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Showing posts from November, 2020

Understanding Business of Avanti Feeds Ltd.

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The company is in aquaculture business with operation focusing on 2 vertical industries - 1.  Shrimp Feeds (78%) 2.  Shrimp Processing & Export (22%) Shrimp Feed Industry "Shrimp feed is produced in order to meet the nutritional requirements of farmed shrimps. It helps in maintaining the required levels of essential amino acids, vitamins, minerals, fatty acids and other important nutrients. Some of the common ingredients used in shrimp feed include fish and squid meal, lecithin, fish oil, cereal flour and other essential and propriety additives. The use of good quality feed helps in improving the shrimp production, profits, and minimizing the environmental pollution generated from shrimp farming." Indian Shrimp Feed Market Processed Shrimp Industry "Fully grown shrimps are transferred to processing plants for primary processing which involves slicing of shrimp heads and washing. Then undergoes sorting process based on commercially accepted sizes and weights before ha

Understanding the business of Godrej Agrovet Ltd

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The company is in diversified agri-business with operation focusing on five verticals - Animal Feed  Crop Protection Palm Oil / Edible Oil Dairy &  Poultry Processed Food Animal Feed Industry "India  currently represents one of the fastest growing animal feed markets in the world. The increasing demand for animal protein and dairy products has resulted in a growing livestock population in  India , which in turn has increased the demand for animal feed. Currently the poultry, aqua and dairy industry accounts for the major share of the Indian animal feed industry. Modern animal feed products are manufactured by carefully selecting and blending ingredients to impart highly nutritional diets that both increase the quality of its end products such as meat, milk, eggs and at the same time maintain the health of the animal." Indian Animal Feed (Poultry, Cattle, Aqua) Market Report 2019 Crop Protection Industry " The importance of pesticides for agriculture is enormous becau

Is "IPCA Laboratories Limited" a long term investment?

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Ipca is among India's top 20 pharmaceutical companies and is in the business of producing & marketing of  (a)  Active pharmaceutical ingredients (API) (b) Drug Intermediates (c) Formulations The company produces more than 150 formulations that include oral liquids, tablets, dry powders, and capsules and  its business in India focuses mainly on therapeutic segments like  Cardiovascular, Anti-diabetic, Pain management, Anti-malarial, Anti-bacterial, Anthelmintics, Central nervous system product, Gastrointestinal products, Cough preparations etc.  What is the difference between terms like API, Bulk drugs, Intermediates, Finished Dosage, and Formulations that are common jargons in the Pharmaceutical Industry? API  – Active Pharmaceutical Ingredient – is the basic drug itself with the desired medicinal (pharmaceutical) properties. Also referred to as Bulk Drugs. Intermediates  – Most chemical reactions are stepwise, that is they take more than one elementary step to complete. An API

Cadila Healthcare Limited

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Cadila Healthcare is one of the leading, innovation driven pharmaceutical companies in India and is in the business of -  Research & Development of New Chemical Entities (NCE) Manufacturing, marketing and selling of finished dosage human formulations Generics /  Branded Generics Specialty Formulations Biosimilars Vaccines Active pharmaceutical ingredients (APIs)  Animal healthcare products Consumer wellness products via its subsidiary  Zydus Wellness Limited New Chemical Entities (NCE) New Chemical Entity (NCE) research is characterized by large expenditures, long timelines especially in the late phases of clinical trials, increasingly stringent regulatory environment and the commercialization related uncertainties. The company is working on cutting edge technologies in different scientific disciplines to discover novel therapeutic agents. It has the capabilities to conduct drug discovery and development from concept to Investigational New Drug (IND) enabling pre-clinical and clini

Zydus Wellness Limited (ZWL)

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Zydus Wellness is a strong and emerging player in the health and wellness space in India and promoted by Cadila Healthcare Limited (hold 63.55% of shares).  The Company has a wide range of health and wellness products and includes popular brands like Glucon-D, Complan, Sugar Free, Everyuth, Nycil & Nutralite.   Glucon-D has maintained its number one position with a market share of 59.0% Complan has a market share of 5.4% Sugar Free – India’s largest selling low calorie sweetener and has maintained its number one position The Peel Off segment of Everyuth, maintained its number one position with a market share of 77.9% In the Scrub segment, Everyuth maintained its number one position with a market share of 32.5% In the Prickly heat powder category, Nycil maintained its number one position with a market share of 34.4% Moving ahead, the focus is on building the image of Nutralite around its taste and health credentials with more innovations waiting in the pipeline. Health & wellnes

Brief overview of Specialty Chemical Sector

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Specialty chemicals comprise high-value, low-volume chemicals that are recognized for their performance-enhancing end-use applications across several verticals. These chemical products are sold based on specific requirements, rather than on their composition, driving a higher degree of value addition across the final products. Typically, specialty chemicals find significant usage in agrochemicals, automobiles, aviation, personal care products, polymer additives, water chemicals, textiles, construction chemicals, surfactants, flavours and fragrances, and dyes and pigments. The global chemicals market stood at about $3.7 trillion in 2017 comprising basic chemicals, industrial gases, petrochemicals, polymers and specialty chemicals. Agrochemicals dominated the specialty chemicals revenue pie, accounting for 21% in 2017, with increasing applications in fertilizers, herbicides, insecticides and pesticides. The polymers and plastic additives segments comprised the second-largest revenue shar

Vinati Organics Limited (VOL)

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Incorporated in 1989, VOL is one of India’s leading manufacturers and exporters of specialty organic intermediaries, monomers, and polymers. VOL is one of the world’s leading manufacturer of isobutyl benzene (IBB) and 2-Acrylamido 2- Methylpropane Sulfonic Acid (ATBS) and have market share of 65%. Manufacturing processes of these specialty chemicals are not easy to replicate and same acts as entry barrier for new entrants (moat). IBB finds application in manufacturing of Ibuprofen (a non-steroidal anti-inflammatory drug) while ATBS is a specialty monomer which finds multiple applications in operations, such as industrial water treatment, oil field recovery, construction chemicals, hydrogels for medical applications, personal care products, emulsion polymers, detergents, textile print pastes, adhesives and sealants, thickeners and paper coatings.   Products portfolio of VOL are -  Specialty  Monomers:   Act like building blocks, useful in designing unique polymer structures. They contai

Colgate-Palmolive (India) Ltd

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Colgate-Palmolive (India)  is strongly focused in the Personal Care business which includes Oral Care. The Oral Care business accounts for over 90 per cent of the Company’s sales turnover.  It is having moat of market share with > 55% in oral care business. The product range sold by the company in oral care (hygiene) are - Toothpaste - Pastes, Gels, Powders, Polishes Toothbrushes & accessories - Manual, Electric, Battery powered, Replacement toothbrush heads Mouthwashes / Rinses - non medicated, medicated Dental accessories / ancillaries - Dental flosses, breath freshners, cosmetic dental whitening products, dental water jets Dental products like fixatives Dental prosthesis cleaning solution Brief History:  In 1806, devout Baptist English immigrant soap and candle maker William Colgate established a starch, soap, and candle factory on Dutch Street in New York City under the name William Colgate & Company.   In 1896, the company sold the first toothpaste in a tube, named Colg

Container Corporation of India

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Malcolm McLean's idea of containerization changed the basics of cargo transport by standardizing the dimensions of the container and simultaneously improving the productivity of ports by mechanizing handling of container-carrying  'cellular'  ships and reducing their handling to a few hours only. Unitisation helped elimination of multiple handling of cargo and made transfers quick, cheap and easy. As containerization came to stand for  'cargo care' , it grew by leaps and bounds the world over.   CONCOR is a public sector enterprise under the Government of India and was the sole container freight subsidiary of Indian Railways, however divestment is in progress.  Now the  government has allowed private operators to run containers trains across India.  Currently  CONCOR is India’s largest railway container freight operator.   In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and esta

NMDC

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NMDC is an Indian public sector company and is engaged in mining of iron ore, which is crucial for the steel industry and is the single largest producer of iron ore in India.  The company is considered to be one of the low-cost producers of iron ore in the world, at an average of 64% Fe, it sells one of the best grade Iron ore globally.  Top 5 iron ore producer countries are Australia, Brazil, China, India & Russia. It also operates the only merchandised diamond mine in India at Panna, MP. The company is diversifying into steel making & coal production. Other than iron ore, the company also has extensive experience in the exploration of a variety of minerals like copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc. Key growth drivers / opportunities for NMDC in the longer term are -  India's growth & net trade position; the interaction between scrap and hot metal and the transition towards low carb

UPL

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UPL (post acquisition of Arysta) is the 5th largest agrochemical company and 4th largest seed manufacturer in the world with a considerable presence across major markets such as the USA, Europe, Latin America and India. In line with the global trend witnessed among the agrochemical players, UPL now has a product line to cater to a large part of the agriculture value chain. It has diversified its portfolio across fungicides, herbicides, insecticides, plant growth regulators, rodenticides, specialty chemicals, nutri-feeds, seeds and seed treatment products, post harvest solutions and industrial chemicals. Post Arysta acquisition, UPL has access to its portfolio of bio solutions and seed treatment products, which have further diversified its product line and provided more coverage in the agriculture value chain. The company is in business of creating sustainable and robust food systems that can withstand the perils of climate change or any other crisis, enabling farmers across geographies

JUBILANT FOODWORKS LIMITED

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Jubilant FoodWorks Limited (JFL), part of the Jubilant Bhartia Group, is India’s leading food service company. The Company operates two international brands, Domino’s Pizza in India, Sri Lanka and Bangladesh, and Dunkin’ Donuts in India. It also runs Hong’s Kitchen, a home-grown brand, specializing in Chinese cuisine. The trends in the food service industry are expected to veer towards online food ordering, increased share of delivery and takeaway mix, changed customer perceptions about product consumption and services, higher emphasis on hygiene and safety among businesses and customers alike. However, dine-in services are not going anywhere as people prefer going out with family and friends to celebrate and have a good time. Future key demand drivers for the business - India is primarily a consumption-driven economy. Private consumption expenditure, or the money that people spend on buying goods and services, has formed nearly three-fifths of the Indian economy over the years. Indian

Navin Fluorine International Limited

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Navin Fluorine International belongs to the Padmanabh Mafatlal Group, with a legacy of business operations since 1967, having one of the largest integrated fluorochemicals complex in India. The Company primarily focuses on fluorine chemistry - producing refrigeration gases, inorganic fluorides, specialty fluorine based chemical and offers Contract Research and Manufacturing Services. Fluorochemicals are compounds containing fluorine.  Fluorine is a highly reactive element and is derived from sources like fluorite (also known as fluorspar), fluorapatite and cryolite.  Fluorine has a number of desirable chemic al properties like high electronegativity, and reactivity and tendency of form stable compounds. Major business areas of the company are -  - Contract Research & Manufacturing Services (CRAMS) - Refrigerants - Inorganic Fluorides - Specialty Fluorochemical Specialty Fluorochemical Manufactures niche fluorine based molecules, which find downstream application in life science, cr