Research on India_Manufacturing and Construction Sector in India Monthly Update_June 2012 by Research on Global Markets

Manufacturing Sector in India Monthly Update June 2012

Top Story

Eastern UP has the potential to emerge as the new plastic hub of India In the export awareness seminar on 'tapping export opportunities for plastic’ organized by Plastic Export Promotion Council, the Eastern UP region of India was stated to have a very high potential to develop as the centre of plastic exports. Export of raw materials account for 35% of the total plastic exports by India which however is not a good sign for the growth of the plastic industry. India should focus on the export of value added finished plastic product which commands a high demand in the global market. Among the export of raw materials polypropylene constitutes the primary export commodity. Gradual reduction in the custom duties under WTO and FTA implies an increase in competition. The exporters need to come forward and avail government schemes such as the zero per cent export promotion capital goods (EPCG) scheme and the authorization scheme.

News Update General

Baleshwar to emerge as the next polymer hub A new polymer cluster will be set up in Baleshwar by the state government. INR 820 mn will be invested to develop a plastic, polymer and allied cluster which will be commissioned by December 2012. Representatives of Government of India, the Government of Odisha and the North Odisha Chamber of Commerce and Industries (NOCCI) have together formed a Special Purpose Vehicle for the project. The investment amount will be raised through financial grants from the Central Government, the State Government, contribution from industries and from term loans. An integrated logistics hub and a common facility hub will also be developed along with the above project An estimated sum of INR I40 mn will be required to develop the develop the water supply from Budhabalanga. The bypass road to the cluster is expected to be completed by June 2012 and the infrastructure for power distribution will also be developed by July 2012. Pesticide prices to witness a rise this Kharif season Pesticides and other crop protection chemicals are expected to witness a 10‐15% price hike in this kharif season. Appreciation of the Yuan and the dollar is expected to increase the cost of production for the manufacturers. Consequently the manufacturers are Manufacturing – Monthly Update

planning to pass the price burden on the farmers. Other factors contributing to the price hike include 12‐15% rise in import prices of certain chemicals and the rise in prices of solvents by 60‐70 per cent this year. Hence the price for the end user is expected to rise further. The agrochemical industry is growing at an annual rate of 10% and finds it difficult to absorb the rise in costs. The uncertainty in the business has been led by the farmers shifting to the production of different crops. The rise in prices will have a direct impact on the availability of inputs which in turn is expected to aggravate the overall volatility.

News Update Expansion Plans

Pesticide ‘Luphos 36’ acquired by Crystal Crop Protection Luphos 36, a pesticide of Mumbai‐based Cheminova India has been acquired by Agro‐ chemicals maker Crystal Crop Protection. The pesticide Luphos 36 is effective for protecting crops such as cotton, paddy, caster, cardamom, tea, coffee, coconut, mango, sugarcane from the attack of pests. The company is also aiming at promoting the brand in Punjab, Haryana, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan, Tamil Nadu, Karnataka, MP, Assam and West Bengal. Last year the company had acquired Hyderabad based Rohini seeds with a view to build up its position in the agricultural input market. The current acquisition is expected to enable the company improve its position in the agro‐chemical value chain. New inorganic coagulant plant to begin production in Vishakhapatnam The new inorganic coagulant plant being set up by Kemira‐Indus in Vishakhapatnam is expected to begin commercial production from October. However the trial production is slated to start from August. The company is a joint venture between IVRCL Ltd and the Finland based Kemira Oyj. The new plant at Vishakhapatnam is valued at INR 692 mn. A 24 acre site with a capacity of 50,000 tonnes per year was acquired by Kemira‐Indus to set up the manufacturing unit. The new plant has zero‐ discharge and is equipped with a complete recycling facility. The company is also focusing on acquiring a new site which would be used to manufacture coagulants from raw materials such as aluminium tri‐ hydrate and HCl. Inorganic coagulants are widely used for industrial and water treatment purposes. The value of the market for water treatment chemicals in India is estimated to be around INR 27,699 mn. Manufacturing – Monthly Update

New natural colours launched by Synthite A new range of natural colours from botanical sources have been launched by Synthite Industries. The new range of colours has been developed for use in ice cream applications. They have been produced by combining Synthite’s natural oxidant products with natural dyes and are stated to provide several health benefits. It is expected to provide the ice cream manufacturers with a way to meet the increasing demand for clean labeled products. Demand for natural colours has registered a year on year growth rate of 6‐7% while the demand for synthetic colours has witnessed stagnation. Growing concern about health is the primary factor leading to the growing demand for natural colours over synthetic ones. A huge fraction of the demand for ice cream and confectionary are constitute by children and hence natural colours are expected to witness greater usage.

Industry Expert Speak Luphos 36 acquired by Crystal Crop Protection – Ankur Aggrawal, Managing Director, Crystal Group “The company is eying to promote the brand in major states including Punjab, Haryana, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan, Tamil Nadu, Karnataka, MP, Assam and West Bengal,” Kemira Chemicals to start a Vizag plant– Mr Sudip Sarkar, Managing Director, Kemira Chemicals India, a subsidiary of Kemira Oyj "The Vizag project is being implemented in three phases. The trial production at the plant will begin in August and by October it is expected to be ready for commercial production,"

Transaction Detail (Apr Jun 2012)

Date

Buyer

Target

Deal Size (INR mn)

% stake

Deal Status

Type of Transaction

21st May 2012

Vilmorin & Cie

Bisco Bio Sciences Private Ltd.

61.01%

Completed

M&A

23rd April 2012

Rallis India Ltd,

Zero Waste Agro Organics Pvt Ltd

312.93

51%

Expected

M&A

Manufacturing – Monthly Update

20th April 2012

Kanoria Chemicals & Industries.

Switzerland‐ based APAG Holdings AG

382.65

90%

Completed

M&A

Annual Financial Results – Revenue (INR mn) Company

FY ‘09

FY ‘10

FY ‘11

FY ‘12

Aimco Pesticides Ltd.

148.724

272.726

489.932

1,147.77

36.557

31.149

102.532

Bayer CropScience Ltd.

13,961.0

16,260.3

20,404.2

22,722.7

Bhageria Dye Chem Ltd.

546.65

564.35

617.686

617.963

Bhansali Engineering Polymers Ltd.

2,251.1

3,129.8

4,639.2

4,144.0

Bharat Rasayan Ltd.

1,061.122

1,028.703

939.25

1,406.1

Bodal Chemicals Ltd.

4,037.9

4,794.4

5,724.2

Chambal Fertilizers and Chemicals Ltd.

56,041.6

41,335.6

56,843.0

75,320.2

Chemcel Biotech Ltd.

351.877

457.202

501.212

436.077

Chemplast Sanmar Ltd.

6,747.8

9,336.8

18,707.7

21,297.0

118.5

162.8

1,050.7

Coromandel International Ltd.

95,451.9

64,066.0

75,416.2

97,891.8

Dhanuka Agritech Ltd.

3,368.7

4,084.6

4,928.0

5,291.9

Excel Industries Ltd.

2,435.0

2,378.3

2,731.0

3,154.9

Finolex Industries Ltd.

15,291.3

14,743.8

20,070.9

20,972.1

Gail India Ltd.

247,818.0

270,353.0

351,066.5

440,578.2

Axel Polymers Ltd.

Chromatic India Ltd.

Manufacturing – Monthly Update

Gujarat Narmada Valley Fertilizers Company Ltd.

29,200.6

26,144.5

28,458.9

38,620.1

Gujarat State Fertilizers & Chemicals Ltd.

58,808.0

40,191.9

47,550.5

53,018.3

Insecticides (India) Ltd.

2,637.2

3,775.4

4,501.0

5,217.6

Jaysynth Dyestuff India Ltd.

803.548

867.205

942.587

920.987

Kalpena Industries Ltd.

6,029.6

7,188.0

8,430.6

9,155.7

Kilpest India Ltd.

151.322

191.318

214.454

Kiri Industries

2,809.6

8,066.8

38,531.8

Meghmani Organics

8,139.5

8,371.7

10,457.5

10,450.8

National Fertilizers Ltd.

51,271.0

51,031.6

58,084.4

73,052.9

Pidilite Industries Ltd.

20,124.0

22,218.6

26,713.6

31,097.4

Poddar Pigments Ltd.

1,201.2

1,541.7

1,885.5

2,218.9

Polychem Ltd.

41.542

41.756

52.607

76.752

Polylink Polymers (India) Ltd.

518.551

321.368

330.486

288.456

Punjab Chemicals and Crop Protection Ltd.

7,265.1

5,770.7

6,613.2

8,137.0

Rallis India Ltd.

8,366.9

8,786.8

10,919.5

12,782.7

Rashtriya Chemicals and Fertilizers Ltd.

83,740.7

56,527.3

55,187.7

34,726.7

1,511,354.9

2,037,397.2

2,658,110.0

3,585,010.0

Sabero Organics Gujarat Ltd.

3,773.5

4,303.2

4,127.2

3,466.5

Sudarshan Chemicals

4,606.8

5,944.0

7,256.7

7,945.1

Syngenta India Ltd.

13,850.6

17,797.8

20,813.0

The Fertilizers & Chemicals Travancore Ltd.

21,287.0

21,059.6

24,607.6

28,984.3

Reliance Industries Ltd.

Manufacturing – Monthly Update

United Phosphorus Ltd.

48,561.0

53,387.3

57,089.5

75,341.9

Vipul Dyechem Ltd.

236.068

265.418

330.994

Zuari Industries Ltd.

3,023.7

2,536.1

2,475.2

(2,185.5)

Annual Financial Results – Income (INR mn) Company

FY ‘08

FY ‘09

FY ‘10

FY ‘11

Aimco Pesticides Ltd.

(37.495)

(24.311)

‐60.905

(34.68)

0.563

0.601

(2.671)

Bayer CropScience Ltd.

944.6

1,272.5

1,315.4

1,389.9

Bhageria Dye Chem Ltd.

(12.355)

11.474

9.03

(4.711)

Bhansali Engineering Polymers Ltd.

(114.2)

105.3

334.1

10.9

Bharat Rasayan Ltd.

51.729

58.081

58.891

110.7

Bodal Chemicals Ltd.

(111.0)

140.4

167.0

Chambal Fertilizers and Chemicals Ltd.

2,255.9

2,172.3

2,405.9

1,583.1

Chemcel Biotech Ltd.

12.885

13.473

8.479

2.422

Chemplast Sanmar Ltd.

(666.1)

(1,281.6)

(421.9)

(519.5)

(6.7)

1.6

9.1

5,595.1

4,676.8

6,936.6

6,387.9

232.0

363.4

511.1

571.3

1.1

76.8

139.8

153.8

(378.9)

1,323.2

761.7

751.5

Axel Polymers Ltd.

Chromatic India Ltd. Coromandel International Ltd. Dhanuka Agritech Ltd. Excel Industries Ltd. Finolex Industries Ltd.

Manufacturing – Monthly Update

Gail India Ltd.

28,263.5

33,278.3

40,209.7

44,436.1

Gujarat Narmada Valley Fertilizers Company Ltd.

2,275.2

1,238.4

2,665.3

2,838.4

Gujarat State Fertilizers & Chemicals Ltd.

4,993.6

2,544.7

7,493.7

7,575.7

Insecticides (India) Ltd.

209.1

282.2

322.2

330.2

Jaysynth Dyestuff India Ltd.

71.258

59.044

44.674

44.774

Kalpena Industries Ltd.

218.5

299.1

191.3

255.2

(2.594)

(4.939)

(7.807)

Kiri Industries

83.7

(570.5)

(2,777.2)

Meghmani Organics

371.2

516.8

380.1

34.8

National Fertilizers Ltd.

974.6

1,715.1

1,385.0

1,267.3

Pidilite Industries Ltd.

1,118.8

2,769.6

3,100.5

3,243.8

Poddar Pigments Ltd.

39.7

141.9

95.5

98.7

28.144

11.006

(0.823)

(4.23)

(52.887)

12.739

(6.548)

41.474

Punjab Chemicals and Crop Protection Ltd.

(9.2)

(587.9)

(63.1)

Rallis India Ltd.

720.2

1,014.9

1,260.4

991.8

2,105.4

2,343.2

2,453.9

2,488.3

149,713.0

245,033.7

192,940.0

197,240.0

Sabero Organics Gujarat Ltd.

204.4

386.6

105.8

(636.5)

Sudarshan Chemicals

119.7

411.5

482.2

335.7

1,549.4

1,785.3

1,516.6

Kilpest India Ltd.

Polychem Ltd. Polylink Polymers (India) Ltd.

Rashtriya Chemicals and Fertilizers Ltd. Reliance Industries Ltd.

Syngenta India Ltd.

Manufacturing – Monthly Update

The Fertilizers & Chemicals Travancore Ltd.

429.5

(1,038.4)

(493.3)

238.2

4,558.7

5,261.6

5,576.2

5,555.5

Vipul Dyechem Ltd.

5.251

5.601

9.637

Zuari Industries Ltd.

88,987.7

61,686.0

75,987.9

18,490.5

United Phosphorus Ltd.

*change in financial year

Quarterly Financial Results – Revenue (INR mn)

AprJun 2011

JulSep 2011

OctDec 2011

Jan Mar 2012

Aimco Pesticides Ltd.

194.946

299.6

205.42

Axel Polymers Ltd.

24.542

30.007

Bayer CropScience Ltd.

7,732.6

7,115.5

4,835.5

2,517.8

Bhageria Dye Chem Ltd.

126.431

131.341

126.908

233.284

Bhansali Engineering Polymers Ltd.

913.9

1,032.2

1,031.6

1,166.3

Bharat Rasayan Ltd.

271.6

341.6

395.6

329.7

Bodal Chemicals Ltd.

1,301.1

1,467.1

1,348.7

1,607.3

16,422.8

17,966.1

1.472

5,023.7

5,518.9

5,116.7

5,229.6

322.4

1,090.7

17,901.1

27,929.6

25,500.8

27,356.4

948.5

1,940.7

1,097.8

1,299.2

Company

Chambal Fertilizers and Chemicals Ltd. Chemcel Biotech Ltd. Chemplast Sanmar Ltd. Chromatic India Ltd. Coromandel International Ltd. Dhanuka Agritech Ltd.

Manufacturing – Monthly Update

Excel Industries Ltd.

691.2

826.7

Finolex Industries Ltd.

5,058.3

4,315.2

5,677.0

5,921.6

Gail India Ltd.

88,673.8

112,597.8

Gujarat Narmada Valley Fertilizers Company Ltd.

6,442.1

10,206.2

10,428.8

11,543.0

Gujarat State Fertilizers & Chemicals Ltd.

12,076.8

12,641.3

13,000.2

15,300.0

Insecticides (India) Ltd.

1,218.1

2,097.1

1,055.3

847.0

200.0

2,050.7

2,219.6

2,117.3

2,768.1

34.5

91.092

45.795

Meghmani Organics

2,541.5

2,774.0

2,693.6

2,440.9

National Fertilizers Ltd.

14,171.2

17,585.6

20,433.6

20,862.5

Pidilite Industries Ltd.

8,450.6

7,813.5

7,680.5

7,152.8

Poddar Pigments Ltd.

476.7

568.4

579.2

594.9

Polychem Ltd.

17.807

18.672

21.517

19.304

69.173

71.033

767.4

896.8

Rallis India Ltd.

2,915.9

4,300.6

3,178.6

2,387.6

Rashtriya Chemicals and Fertilizers Ltd.

8,683.6

15,954.5

684.3

1,050.0

916.5

908.1

1,782.8

1,636.4

Jaysynth Dyestuff India Ltd. Kalpena Industries Ltd. Kilpest India Ltd.

Polylink Polymers (India) Ltd. Punjab Chemicals and Crop Protection Ltd.

Sabero Organics Gujarat Ltd. Sudarshan Chemicals Syngenta India Ltd.

Manufacturing – Monthly Update

The Fertilizers & Chemicals Travancore Ltd.

5,002.3

7,324.8

8,628.3

8,028.9

United Phosphorus Ltd.

18,220.0

17,210.5

19,288.0

21,194.1

Vipul Dyechem Ltd.

65.439

Zuari Industries Ltd.

11,040.8

18,571.4

Quarterly Financial Results – Income (INR mn)

AprJun 2011

JulSep 2011

OctDec 2011

Jan Mar 2012

(12.218)

(10.05)

(16.9)

Axel Polymers Ltd.

0.558

0.441

Bayer CropScience Ltd.

498.8

840.5

267.0

(216.4)

Bhageria Dye Chem Ltd.

2.536

(1.941)

(2.194)

(3.113)

Bhansali Engineering Polymers Ltd.

72.7

(52.4)

7.0

(16.3)

Bharat Rasayan Ltd.

18.3

23.1

22.2

27.0

Bodal Chemicals Ltd.

49.3

51.8

40.2

25.6

Chambal Fertilizers and Chemicals Ltd.

916.5

(12.4)

(5.468)

Chemplast Sanmar Ltd.

17.8

(134.6)

(145.9)

(256.8)

Chromatic India Ltd.

3.8

202.2

1,588.9

2,823.8

1,306.3

668.9

100.8

209.7

78.4

182.4

0.8

35.8

Company Aimco Pesticides Ltd.

Chemcel Biotech Ltd.

Coromandel International Ltd. Dhanuka Agritech Ltd. Excel Industries Ltd.

Manufacturing – Monthly Update

Finolex Industries Ltd.

167.0

40.2

(17.6)

561.9

9,846.7

10,914.2

416.5

808.4

861.9

751.5

1,420.8

2,128.0

1,723.5

2,303.4

Insecticides (India) Ltd.

90.7

163.8

48.1

27.6

Jaysynth Dyestuff India Ltd.

8.5

Kalpena Industries Ltd.

80.8

58.9

58.8

56.8

Kilpest India Ltd.

2.837

2.877

0.945

Meghmani Organics

61.5

8.2

(33.1)

(1.8)

National Fertilizers Ltd.

59.8

91.5

547.5

568.7

Pidilite Industries Ltd.

1,046.1

771.8

786.3

639.7

Poddar Pigments Ltd.

23.8

17.3

32.5

25.1

Polychem Ltd.

2.258

(1.257)

(0.421)

(4.611)

(2.386)

48.908

(125.8)

(67.3)

Rallis India Ltd.

231.2

585.2

76.6

98.8

Rashtriya Chemicals and Fertilizers Ltd.

39.6

539.5

(150.2)

(159.5)

(215.3)

(111.5)

112.2

28.5

(356.2)

64.1

147.9

382.4

Gail India Ltd. Gujarat Narmada Valley Fertilizers Company Ltd. Gujarat State Fertilizers & Chemicals Ltd.

Polylink Polymers (India) Ltd. Punjab Chemicals and Crop Protection Ltd.

Sabero Organics Gujarat Ltd. Sudarshan Chemicals Syngenta India Ltd. The Fertilizers & Chemicals Travancore Ltd.

Manufacturing – Monthly Update

United Phosphorus Ltd.

1,843.1

569.5

1,124.2

2,018.7

Vipul Dyechem Ltd.

1.914

Zuari Industries Ltd.

324.6

313.8

Events Calendar

OneDay Workshop on AUTOMATION IN CHEMICAL INDUSTRY Date: July 13, 2012 Venue: Terrace Hall, West End Hotel, 45 New Marine Lines, Near Bombay Hospital, Mumbai – 400 020 Website http://www.indianchemicalcouncil.com/ne ws.htm

Manufacturing – Monthly Update

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Manufacturing – Monthly Update