Vinati Organics

I am adding my notes from last few calls of theirs.

08.12.2023

• Commercialized Ortho Secondary Butyl Phenol (OSBP) and Di-Secondary Butyl Phenol (DSBP) at Lote facility, only Indian manufacturer for both
• OSBP capacity: 5000 MT; $4-5/kg product; used in agrochemicals, polystyrene, perfumery & liquid solvent dyes
• DSBP capacity: 1000 MT; used in surfactants for agrochemicals, speciality liquid dyes

19.02.2024 CNBC

• Witnessing order book recovery starting February across products, FY25 will be better than FY24 (15-20% growth in sales)
• Anti-oxidant recovery is slower
• Revenue from new line of ATBS will start in FY26 (expect 1.5-2x asset turns on brownfield capex)
• 27% is sustainable EBITDA margin

FY24Q4

• Capacity utilization in ATBS (~611 cr.) and butyl phenols (~300 cr.) is near optimal levels
• Antioxidants: 130 cr., 25% utilization; expects to double to 50% utilization in FY25 (280-300 cr.). Facing pricing pressure from Chinese oversupply and weak demand (peak revenue potential of 700 cr.)
• FY24 Capex: 400 cr. (550 cr. in FY25); MEHQ plant (2000 MT) was commissioned in March 2024, and OSBP (5000 MT) and DSBP (1000 MT) in December 2023
• Commissioned 33MW solar plant
• CSM products contributed 150 cr.

12.06.2024 B&K

• ATBS expansion (40k to 60k tons) will cost 300 cr. and is expected to commercialize in H2FY25
• Antioxidants capacity of ~24,000 MT should generate 700 cr. sales
• Started manufacturing butyl phenols in 2020 and incurred capex of 250-300 cr. for setting up a 39,000 MTPA capacity
• MEHQ, Guaiacol, 4-MAP, anisole, and Iso-Amylene derivatives can generate 500 cr. sales with capex of 500 cr. capital expenditure (1x asset turns). Expected to contribute 50 cr. in FY25
• ATBS competition: couple of Chinese companies have added ATBS capacities for domestic consumption (combined capacity is 15,000-20,000 MTPA). Atvantic Finechem (a Meghmani group company) has acquired trademarks and rights of Lubrizol’s ATBS technology and have started manufacturing ATBS in India. Their current utilisation is ~10-20 tons/month. Clean Science had also applied for an environmental clearance to manufacture ATBS
• Market size of their products
  

Disclosure: Invested (no transactions in last-30 days)