Indo Borax and Chemicals

What I was able to find so far:

1. I couldn’t find a direct quote or reference. But it seems like Boron is highly dangerous even in small quantities and it’s also used in nuclear reactors. That sort of makes sense as to why there are high import restrictions for Boron.

2. There are only 4 large firms with the IS 10116 certification (Requirement to produce Boric Acid in India) – see below. While Avantor seems to be a really big firm, the rest of them are at the same size of Indo Borax more or less. So my assumption is that this is the reason behind Indo Borax’s above average and sustaining Operating Margins and thereby RoCE.

3. Of course, as per their AR, they’re the only manufacturers of IP Grade Boric Acid in India. Based on my cursory Google search, I was not able to confirm this. But taking them on their word, and the fact that the major raw material has severe import restrictions, these couple of points could be the source of their Sustainable Competitive Advantage.

Interesting company, to say the least. I just wish the Annual Report offered more information. It’s quite shallow in terms of giving out details on the industry structure and a view of the competition. Even the future guidance is limited to ‘Company will grow well, its product are of high quality’.

References

List of India firms with IS 10116 BIS Certification (Might be dated): https://www.services.bis.gov.in/php/BIS_2.0/bisconnect/knowyourstandards/Indian_standards/downloadLicenses/ODc0

IS 10116 1982 Document: https://law.resource.org/pub/in/bis/S02/is.10116.1982.pdf

IS 10116 2015 Document (Needs login to download): Bureau of Indian Standards – e-Sale Search Result