Dharamsi Morarji Chemicals (DMCC)

FY 22 Notes

1. We should have started the capex bit earlier (little more conservative , due to this we were unable to supply)
2. Current Capex will take us to 500cr Revenue (need to make capex for the growth beyond this )
3. Sulphones – One of the Sulphones doing pretty well and completely sold out (large room for growth, not yet made any investments on that )
4. Electronic Chemicals – There is not enough demand in India || In India air quality and water quality is not conducive to make electronic chemicals
5. Future capex is on Specialty chemicals
6. 2/3 capex is borrowing
7. 5 Phds working in R&D and QC
8. Two New products commercially launched last year – did reasonably well, expect to grow in coming years
9. Export – Specialty chemicals did well
10. EU-Ukraine Crisis – This a area for concern , no direct problem to DMCC but for all the global companies
11. RM Prices – Gone up substantially in last 12 months (Pass increases are passed on but unable to do on Bulk Chemicals)
12. Roha – Carbon negative (will achieve this in Dahej as well)
13. Boron – Capacity is not fully utilized due to raw material shortage
14. 400 people working on Roha and Dahej
15. Setting up new R&D lab in Roha and Dahej
16. We are strong in Sulphur and Boron chemistry , don’t see we are going into other chemistries
17. 1-1.5x asset turnover on bulk chemicals, specialty 2-2.5x asset turnover
18. We don’t rely on Ukraine or Russia for RM
19. Borrowings are USD, EUR and INR terms
20. Bulk plant running at 90% capacity
21. Immediately two capex plans
22. We don’t burn too much of power, we rely on heat recovery , dahej grid independent will achieve this at roha as well
23. Sulphuric acid plant – 350 Ton at Roha – 350 Ton at Dahej (no need to make any investment in this for next 5-10 years)
24. In three products we are top in the world