ABOUT
Bhagiradha Chemicals & Industries is an Agro Chemical Company in India involved in the manufacturing of insecticides, fungicides, herbicides, etc. It was Promoted by the late Sri S. Koteswara Rao, a former scientist of the Indian Institute of Chemical Technology, Hyderabad in the year 1993.
KEY POINTS
Product Portfolio
The company’s product portfolio includes a wide range of insecticides, fungicides, herbicides, and specialty intermediaries -
a. Insecticides: Chlorpyrifos, Diafenthiuron, Fipronil, Buprofezin, etc.
b. Fungicides: Azoxystrobin
c. Herbicides: Imazethapyr, Clodinafop-propargyl, Cloquintocet-mexyl
d. Specialty-intermediaries: R-HPPA, 2,6-Dichloroaniline, etc
Product Concentration
The co. has over twenty products and expertise in other processes, the revenue streams of the co. however, are concentrated on four products which together contributed 84% of the gross sales for the co. in FY22.
Export Presence
The co. exports its products to various countries viz. USA, Brazil, Columbia, Argentina, Mexico, Costa Rica, Germany, UK, France, Portugal, Italy, Israel, Turkey, Iran, Indonesia, Taiwan, Malaysia, New Zealand, and Australia. In FY23, exports accounted for ~11% of overall revenues v/s 24% in FY22.
R&D Capabilities
The co. has an established R&D division located at the factory premises, which the Ministry of Science & Technology (GOI) also recognizes. BCIL spends about Rs 1.50 crore for R&D every year (Rs. ~4 cr in FY23). It has successfully commercialized three insecticides, namely, Fipronil, Pymetrozine, and Dinotefuran. During FY23, two Indian patents have been granted to the co.
Manufacturing Capabilities
The co. is operating its manufacturing facility in Cheruvukommupalem, Ongole, Andhra Pradesh. More than 60% of the 71.68 acres of factory land is an open area covered with a green belt and its three production blocks cater to five process lines, utilities, a quality assurance block, a warehouse, an R&D facility, etc. It has a capacity of 3250 MTPA of chemicals.
Capacity Utilization
During FY22, the co. achieved a capacity utilization (CU) of ~80% compared to ~70% in FY21.
New Facility
The co. had signed an MOU with the Government of Karnataka for setting up a manufacturing unit in Kadechur industrial area, Yadgir Dist., Karnataka, through its WOS- Bheema Fine Chemicals. The project is expected to be completed in three phases at an estimated cost of Rs 350 crore. This new unit will roll out commercial production by FY25.
Strategy
The co. is aiming to have registration approvals in place during FY24 for a couple of products that have commercial potential and also focusing on improving its overseas footprint with new strategies.
Sales are increasing
EBITDA margin is stable
EPS is growing
In a recent company do allotment of 25,61,425 Convertible warrants for the company’s expansion
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In this allotment MEHUL MOHANKA who is MD of TEGA INDUSTRIES also invested.
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In this expansion company says that they will achieve 1200 cr revenue in three years(the recent highest revenue was 500 cr in FY23)
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