Industry Profile: The chemical industry comprises companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials (oil, natural gas, air, water, metals, and minerals) into more than 70,000 products. Sales of the chemical business can be divided into a few broad categories, including basic chemicals (about 35 to 37 percent of the dollar output), life sciences (30 percent), specialty chemicals (20 to 25 percent), and consumer products (about 10 percent). Basic chemicals, or “commodity chemicals,” are a broad chemical category including polymers, bulk petrochemicals and intermediates, other derivatives and basic industrials, inorganic chemicals, and fertilizers. Typical growth rates for basic chemicals are about 0.5 to 0.7 times GDP. Product prices are generally less than fifty cents per pound.
The Specialty Chemicals industry is mature. For decades, many industrial enterprises in manufacturing and finished goods. Some categories are adhesives, Agrochemicals, cleaning materials, cosmetics, construction chemicals, eatable flavor, food coloring, Fragrance, Industrial gasses, lubricants, polymers, Textile related chemicals. Growth in demand for Speciality Chemicals depends on industrial activities. Whenever industrial activities increase, the need for specialty Chemicals also increases. Mainly the driving sectors are Automobile, Textile, Infrastructure, and construction. The food industry is not so much sense as for the food industry. The cost of Speciality Chemicals is low as of Total cost.
During the last ten years, specialty Chemicals saw Lower growth and Low profitability. Consumption also shows up’s and down. But in recent times trying to improve Margin and going through the transition by increasing Price, especially taking place in adhesive, polymer, paper water treatment, etc. During 2014-19; 4% growth is expected in the value of consumption of specialty Chemicals all over the world.
The market is also concentrated. Top 5 specialty Chemicals like polymer, construction chemicals, industrial cleaner, electronics, and electronic chemical segments account for 37%. The top 10 segments account for 61% of annual sales. Also as Industrialisation is taking place in Asia and Africa, the sector is developing in Asian economies. Dominant players in the Sector were North American, and Western European companies. But in recent days it is changing. As the global chemical industry is shifting towards the Middle East, the Speciality Chemicals industry is also no exception for That.
The emergence of India as a manufacturer and supplier of Speciality Chemicals has had a major impact on the market. Some Large players are listed and Operating in India directly or indirectly. Some of them are BASF, Clariant Chemical, AkzoNobel, etc. The Market in India is very big for Industry as well as agriculture. As Infrastructure and Textile also exist in India, India plays a key role.
Company Profile: Godrej Industries is an Indian manufacturer of oleochemicals (a chemical compound derived industrially from animal or vegetable oils or fats) for use in various industries. It also manufactures edible oils, vanaspati, and bakery fats. In addition, it operates real estate. Godrej Industries (Chemicals Division) has its headquarters in Mumbai, India, and bases in 40 countries; it exports to more than 60 countries. The company operates in many other segments through its subsidiaries. The company has subsidiaries like Godrej properties for real estate. Godrej Agrovet with animal feed, Godrej natures basket for grocery and Fresh Food store. Aztec life for agrochemical etc
Shareholding Pattern: BSE Filing
Financials and Ratios : [table id=198 /]
Future Prospectus This company is growing fast through its subsidiaries and its own business. There are some gems in its subsidiaries, like Godrej Agrovet. This is beyond doubt a portfolio company.
