Indofil Industries Limited Unlisted Shares I Indofil Share Price

Indofil Industries Limited Unlisted Shares

Content

Indofil Industries Limited Essentials

In this reasearch report, you will get complete analysis on Indofil Upcoming IPO
- Indofil Pre IPO Review and Analysis
- Indofil Pre IPO Details

- Indofil Industries Upcoming IPO Details
- Expected Indofil Industries Upcoming IPO Date
- Management Details (Ownership)
- Business Model
- Key Ratios
- Peer Comparisons
- Financial reports (Profit and Loss Statements, Balance Sheets, Results, Growth, Valuations, Funding Rounds)

- Latest News (Articles and Videos)
- Upcoming and Past Events Details
- Rating and recommendations for the Company's shares (Whether to Buy/Sell/Hold)

- Indofil Share Price (Latest in Pre IPO Market)

Discover and get a complete analysis on Indofil Industries Limited - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get the latest updates on Indofil unlisted share price.

ISIN

INE071I01016

Face Value

₹10.00

Total Share

2,29,58,222

Total Income

₹2,440.82 Cr

Profit After Tax

₹66.94 Cr

EPS

₹31.40

P/E

24.24

P/B

0.90

Market Capitalisation

₹1,747.12 Cr

Enterprise Value

₹2,211.94 Cr

Book Value

₹844.95

Intrinsic Value

₹1,004.00

Dividend Yield

1.37 %

Earnings Yield

4.13 %

Sector

Materials

Sub-sector

Fertilizers & Agro Chemicals

Indofil Industries Limited Growth

Compounded Sales Growth

9.66%

1 Year
5.88%

3 Year
7.18%

5 Year

Pro Only

Compounded Profit Growth

-29.36%

1 Year
-34.30%

3 Year
-16.05%

5 Year

Pro Only

Return On Equity

3.45%

2021
10.47%

2019
21.68%

2017

Pro Only

About Indofil Industries Limited

Indofil Industries Ltd. is uniquely placed both in agricultural chemicals (ABD) as well as specialty and performance chemicals (SPCD) business. As a part of K.K. Modi Group, the company operates as an integrated multi-product chemical company, manufactures and distributes agrochemicals, and specialty and performance chemicals in India. It operates through three segments: agrochemicals, specialty and performance chemicals, and investments. The company offers fungicides, insecticides, herbicides, acaricides, plant growth regulators, surfactants, plant nutrition products, etc. It also provides specialty performance chemicals for leather, plastic, textile, paints, coatings, and construction industries; and offers solutions to help farmers. The company primarily sells its products through distributors and dealers.
The company has its export presence in more than 60 countries as suppliers of mancozeb formulations. In India, the company is successful in strategic marketing of insecticides including igr's, fungicides (mancozeb, tricyclazole, zineb, etc.), bactericides, herbicides, acaricides, surfactants, and plant growth regulators (PGR). The company is driven by the "crop care concept" in the agriculture business.
The company operates one manufacturing unit in Thane, India, and 3 manufacturing units in Dahej, India.
The company was incorporated in 1962 as a subsidiary of Rohm & Haas Co., USA., and is based in Thane, India.

Indofil Industries Limited Merger & Acquisition

Acquisition

On March 5, 2012, Indofil Industries Ltd. acquired European Dithane fungicide business of Dow AgriSciences LLC for approximately $50 million. The agreement only includes Dithane products sold in Europe and does not include other parts of the Dow AgroSciences’ Dithane business. Mayer Brown LLP acted as legal advisor for Dow AgroSciences LLC. Simon Fielder and Nipun Gupta of Bird & Bird acted as legal advisor and Yes Bank acted as financial advisor to Indofil.

Indofil Industries Limited Subsidiaries

Company's subsidiaries are:

Good Investment (India) Ltd.
Quick Investment (India)Ltd.
Indo Baijin Chemicals Pvt. Ltd.
Indofil Bangladesh Industries Pvt. Ltd.
Indofil Costa Rica S.A.
Indofil Industries (Netherlands) B.V.
Indofil Industries (International)
Indofil Industries DO Brasil LTDA
Indofil Philippines Inc.
Agrowin Bioscience
PT Industries Indonesia
Finkotech Pvt. Ltd.

Indofil Industries Limited Business Model

Indo Baijin Chemicals Pvt. Ltd. - The company is primarily involved in manufacturing and supply of carbon disulphide.
Indofil Philippines Inc. - It is involved in manufacturing of agrochemical products.
Agrowin Bioscience - Manufacturer of crop protection and plant nutrients.

Indofil Industries Limited Revenue Segmentation

Agrochemical
Specialty and Performance Chemicals

Indofil Industries Limited Product & Services

Products of the company are:

Agro Chemicals
Specialty & Performance chemicals

Indofil Industries Limited Assets

Assets as on 31 March, 2021:

Total Assets

Particulars	Amount (in Rs. crores)
Freehold Land	1.77
Buildings	232.53
Road and Culvert	4.03
Office Equipment	2.07
Computers	1.24
Vehicles	2.64
Plant and Machinery	393.69
Furniture and Fixture	1.81

Indofil Industries Limited Industry Overview

Industry Statistics

According to IBEF, the Indian chemical industry stood at USD 178 bn in 2019 and is expected to reach USD 304 bn by 2025 registering a CAGR of 9.3%. The specialty chemicals market was valued at INR 3,159.22 bn in FY 2020 and is expected to reach INR 6,435.73 bn by FY 2025, expanding at a compound annual growth rate (CAGR) of ~15.87% during the FY 2021 – FY 2025 period. The growth is primarily attributable to the rise in demand from different end-user industries such as food processing, textile, automotive, paints and coatings, real estate, agriculture, and home and personal care
Under the specialty chemicals, agrochemicals such as pesticides and insecticides are specialty chemicals used in agriculture to protect the crop from pests and insects and enhance yield quality. As per EMR, the Indian agrochemicals market size reached a value of almost USD 4.5 bn in the year 2020 which is further expected to grow at a CAGR of 8.6% between 2021 and 2026 to reach a value of almost USD 7.4 billion by 2026. The growth is primarily driven by the rising population within the country, which has led to maintaining sufficiency in agricultural practices, further boosting the use of Indian agrochemical products for farming activities. The industry is positively influenced by the Indianization of the agrochemical industry, which has fueled the sales of agrochemical products. Other factors affecting the growth of the Indian agrochemical industry include an increase in population growth, a rising need for food production, and economic growth.
APAC leads the regional demand for agrochemicals due to the growing population, which is increasing the need for food production. Countries such as India, China, Indonesia, and Australia are the major consumers of crop protection chemicals in the region. Additionally, agriculture is the mainstay of the Indian economy and constitutes around 14% of the country’s GDP. Also, the agricultural sector in India employs over 50% of the country’s workforce. India is the fourth-largest producer of agrichemicals. The Indian agrochemicals industry can be primarily divided into the following types: a. Insecticides b. Fungicides c. Herbicides. Insecticides account for a major share of 60% followed by fungicides and herbicides with a share of 18% and 16%, respectively
As per the industry analysts, agrochemical players are expected to see decent volume growth driven by favorable agronomics. However, higher input costs will continue to pressurize margin and thus we expect aggregate earnings growth of mid-single digit for our coverage universe. Market is expected to see stable demand for agri-input companies owing to favorable agronomic conditions. However, high raw material prices would continue to pressurize margins in the forecasted years.
Competitive Landscape: Indian agrochemical market is highly diverse in nature and consists of around 800 formulators. The market has beheld acquisitions of many small firms by large manufacturers and also merging of small and large firms. Coromandel International, PI Industries, Sumitomo Chemical India, SRF, Aarti Industries and NOCIL are some of the key companies in this sector.

Future Prospects

The demand for specialty chemicals is expected to rise at a CAGR of 15.87% in FY20-25 from INR 3,159.22 bn in FY20 to INR 6,435.73 bn in FY25.
As per EMR, the Indian agrochemicals market in India is expected to grow at a CAGR of 8.6% between 2021-26 reaching USD 7.4 bn by 2026 from USD 4.5 bn by 2020.

Government Initiatives

The government has started various initiatives such as mandating BIS-like certification for imported chemicals to prevent the dumping of cheap and substandard chemicals into the country.
The government recognizes the chemical industry as a key growth element and is forecast to increase the share of the chemicals sector to around 25% of the GDP by 2025.
Under the union budget 2021-22, the government allocated Rs. 233.14 crores to the Department of Chemicals and Petrochemicals.
The government has proposed several incentives for setting up a sourcing or manufacturing platform within an Indian SEZ including 100% income tax exemption on export income for sez units for the first 5 years, 50% for the next 5 years, and 50% of plowed back profits.
The government proposed single-window clearance for central and state-level approvals.
The government proposed duty-free import/domestic procurement of goods for the development, operation, and maintenance of SEZ units.

Indofil Industries Limited Strengths

Penetration: Company has consolidated and strengthened its market share by expanding the footprint and penetration in key markets of Africa, Asia Pacific, and Latin American countries such as Brazil, Argentina, and Mexico, which helps to mitigate the risk of diversification.
The Company operates in both the B2B and B2C business segments and the international markets by which it has witnessed a significant rise in individual consumers.

Indofil Industries Limited Shortcomings

Time consuming product registration process.
Low level of process awareness among farmers in respect of availability and use of advanced agrochemical products.

Indofil Industries Limited Opportunities

Agriculture reforms targeted at doubling farmer income over the next five years.
Government’s support to improve consumption of agri inputs for improving crop yields.
Technology dissemination in rural India through JAM (Jan Dhan, Aadhar enablement, and Mobile penetration) to improve farmer connectivity and improve marketing opportunities.

Indofil Industries Limited Threats

The average farmer in India lacks proper knowledge of agronomy and relies mostly on skills and knowledge gained through experience or on product recommendations from agri-input retailers.
Agrochemical consumption in India is represented by high usage of generic molecules, some of which have been continuously used for decades.
The Pesticide Management Bill 2020, proposes limited interventions in areas like research and development of new molecules which could hamper the growth of the industry to a certain extent.