Tatva Chintan Pharma Chem Limited has informed the Exchange about Investor Presentation
®
Tatva (Formerly known
Chintan
Pharma
as Tatva Chin
tan Pharma
Chem Limited Chem Private
Limited)
(CIN :L24232GJ1996PLC029894)
TATVACHINTAN
Date:
25 April 2022
To, The General Manager, Corporate relationship BSE
Limited
department,
Phiroze
Jeejeebhoy Towers,
Dalal Street, Fort, Mumbai-400 001 Scrip Code:
543321
Subject:
Investor
Presentation
Dear Sir/Madam,
RefNo:
TCPCL/SEC/2022-23/00013
Stock Exchange
The Manager, Listing department, National Exchange Plaza, C-1, Block-G, Bandra-Kurla, Complex Bandra(E), Mumbai-400 Scrip Symbol: T ATV A
India
051
of
Limited
Pursuant Regulations, 2015
to Regulation 30
of SEBI
as amended, please find enclosed
(Listing Obligations Investor
and Disclosure
Presentation
for
Requirements) and the quarter
year
ended
31 March
2022.
The
above
information
is also being made
available
on
the website
of
the Company at
www.tatvachintan.com.
This
is for your
information
and records.
Thanking You,
Your Faithfully, For
Tatva
Chintan
Pharma
Chem
Limited
-L--Y='--+-1-...::._? Nayl Ish Company Secretary M. No.: A37444
,-
·
and Compliance Officer ??
;;;ffl5.!,'4C. 1\/(('c:\jj/.R;911 ·-<t'>-\._,/g"i/
Encl: As above
Factory and Registered SEZ Unit:
Plot No. Z/103/F/1
Office:
Plot No. 502/17, G.I.D.C.
and Plot No. Z/103/F/2,
Estate, Ankleshwar
- 393 002, District: SEZ Area, Part-2, Dahej - 392 130, District:
Bharuch, Gujarat, India. Bharuch, Gujarat, India.
DSIR Approved R & D Center
: Plot No. 353, G.I.D.C., Makarpura, Vadodara I 34
+91 75748
48533
Fax:
+91
265
263
- 390 010, Gujarat,
India.
8533
Telephone No.: E-mail:
chintan@tatvachintan.com Website:
www.tatvachintan.com
L
2291
Investor Presentation
Tatva Chintan Pharma Chem Limited (TCPCL)
Q 4 F Y 2 2 & F Y 2 2
2 5 A p r i l 2 0 2 2
Contents
01
Q4FY22 & FY22 Financial Performance
05
Expansive international presence with Marquee clientele
02
03
TATVA CHINTAN at Glance Product Categories
04
Leading Sustainable practices coupled with cutting edge technology
06
07
08
Why TATVA CHINTAN
Industry Outlook
Our Business
2
Q4FY22 & FY22 Financial Performance
3
Chairman & MD’s Message
“
We continued to grow organically by incorporating innovative ideas across operations, increased our product portfolio across product categories and optimally managed the product mix.
“
Mr. Chintan Shah
M D AT TAT V A C H I N TA N P H A R M A C H E M L I M I T E D
Financial year 2022 has been a special year, as for the first time, we crossed the revenue mark of ₹ 4,000 million, we crossed an PBT of more than ₹ 1,000 million, our exports revenue crossed the mark of ₹ 3,000 million for the first time and in fact our export revenue of FY22 has exceeded the total revenue of FY21. Last and most memorable was successfully getting listed on Indian Stock Exchange.
We are pleased to inform you that on “together for sustainability” platform, we have drastically improved our Audit score from 54% to 87%. This is a matter of pride for TATVA CHINTAN and it also demonstrates our genuine efforts in moving towards sustainable solutions.
Our approach of being an integrated manufacturer, producing niche specialty chemical, having leadership position across product categories, diversified geographically with 79% exports as on FY22, focus on green chemistry by using cutting edge technology, in-house R&D facility with 24 employees including 10 senior highly qualified scientists has helped us steadily grow our presence and more importantly helped grow the customer’s confidence in TATVA CHINTAN, despite the turbulent macro-economic situation of covid lockdowns and geopolitical tensions globally.
We got listed on NSE/BSE on 29 July 2021, out of our net IPO proceeds of ₹ 2,072.81 million, ₹ 129.59 million have been utilized during Q4FY22 taking the total amount utilized to ₹ 640.97 million as on 31 March 2022. The expansion is underway at our Dahej SEZ manufacturing plant and at our R&D facility at Vadodara.
Tatva Chintan Pharma Chem Limited
4
Q4FY22 and FY22: Result highlights
Q4FY22 HIGHLIGHTS Revenue from Operations 1 (In ₹ Mn)
EBIDTA & EBIDTA Margin 1 (In ₹ Mn, %)
26%
300
PAT & PAT Margin 1 (In ₹ Mn, %)
250
7 6
.
6 8 0
,
1
25%
1 7 2
3 2 2
23%
250
200
150
100
50
0
19%
211
25%
25%
24%
24%
23%
23%
22%
22%
18% YoY
200
150
100
50
0
175
18%
1 3
.
5 8 9
9% YoY
Q4FY21
Q4FY22
Q4FY21 EBITDA
Q4FY22 EBITDA Margin
Q4FY21 PAT
Q4FY22 PAT Margin
FY22 HIGHLIGHTS Revenue from Operations1 (In ₹ Mn)
1,400
EBIDTA & EBIDTA Margin 1 (In ₹ Mn, %) 27%
1,200
28%
27%
9 5
.
3 0 0
,
3
7 4
.
6 3 3
,
4
44% YoY
1,000
800
600
400
200
0
24%
716
1,171
27%
26%
26%
25%
25%
24%
24%
23%
23%
22%
64% YoY
FY21
FY22
Notes: (1) Numbers have been rounded off
FY21 EBITDA
FY22 EBITDA Margin
PAT & PAT Margin 1 (In ₹ Mn, %)
1,200
1,000
800
600
400
200
0
17%
22%
959
523
FY21
PAT
FY22 PAT Margin
20%
20%
19%
19%
18%
18%
17%
17%
25%
20%
15%
10%
5%
0%
17% YoY
83% YoY
EPS (In ₹)
11
8
Q4FY21
Q4FY22
EPS (In ₹)
26
FY21
45
FY22
Tatva Chintan Pharma Chem Limited
5
Q4FY22 and FY22: Operational highlights
OPERATING REVENUE SPLIT (IN %)
Q4FY22
FY22
SDA
PTC
ELECTROLYTE SALTS
PASC
OTHERS
40%
31%
2%
27%
1%
SDA
PTC
ELECTROLYTE SALTS
PASC
OTHERS
52%
23%
1%
24%
1%
Tatva Chintan Pharma Chem Limited
6
Q4FY22 and FY22: Consolidated P&L
Particulars (₹ Mn)
Q4 FY22
Q4 FY21
YoY (%)
Q3 FY22
QoQ (%)
FY22
FY21
YoY (%)
Revenue from Operation
985.31
1,086.67
-9.33%
1,046.70
-5.87%
4,336.47
3,003.59
44.38%
Total Income
988.85
1,112.58
-11.12%
1,092.36
-9.48%
4,425.41
3,055.59
44.83%
EBITDA (Including Other Income)
223.05
270.59
-17.57%
285.32
-21.82%
1,171.33
716.36
63.51%
EBITDA Margin
Profit Before Tax
PBT Margin
Profit after Tax
PAT Margin
22.64%
24.90%
-9.09%
28.96%
-21.82%
27.01%
23.85%
13.25%
189.76
242.39
-21.71%
254.68
-25.49%
1,041.21
606.97
71.54%
19.26%
22.31%
-13.66%
24.33%
-20.85%
24.01%
20.21%
18.82%
175.09
211.19
-17.09%
228.07
-23.23%
958.74
522.63
83.45%
17.77%
19.43%
-8.57%
21.79%
-18.45%
22.11%
17.40%
27.06%
Tatva Chintan Pharma Chem Limited
7
Financial Highlights
REVENUE FROM OPERATIONS1 (IN ₹ MN)
PROFITABILITY1 (IN ₹ MN) EBITDA & EBITDA Margin
PAT & PAT Margin
14
2 3 6
,
2
59
4 0 0
,
3
5
3 6 0
,
2
FY19
FY20 Revenue from Operations
FY21
89 6 3 3
,
4
28% CAGR
FY22
Other Income
17%
21%
24%
27%
10%
14%
17%
22%
3 4 3 FY19
3 6 5
FY20
1 7 1 1
51% CAGR
6 1 7
FY21
FY22
EBITDA
EBITDA Margin
5 0 2
FY19
PAT
8 7 3 FY20
3 2 5
FY21
PAT Margin
67% CAGR
9 5 9
FY22
BALANCE SHEET RATIOS
RoE (IN %)
% 1
.
2 3
% 5
.
1 3
% 8
.
5 2
RoCE (IN %)
Net Debt to Equity (x)
Net Debt to EBIDTA (x)
% 4
.
6 2
% 3
.
0 2
% 0
.
2 3
% 0
.
3 3
% 4
.
2 2
7 9
.
0
7 7
.
0
4 5
.
0
5 2
.
0
5 2
.
2
1 6
.
1
6 2
.
1
2 0
.
1
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
Notes: (1) Numbers have been rounded off
Tatva Chintan Pharma Chem Limited
8
Creating value for our stakeholders
NET DEBT1 (IN ₹ Mn) & NET DEBT/EBITDA (TIMES)
CAPITAL EMPLOYED1 (IN ₹ Mn) & RoCE (%)
1,400
1,200
1,000
800
600
400
200
-
2.25
1 7 7
FY19
2.5
6,000
2
1.5
1
0.5
5,000
4,000
3,000
2,000
1,000
0
-
26%
9 4 1 1
,
FY19
32%
33%
3 1 6 1
,
FY20
8 6 9 1
,
FY21
35%
30%
25%
20%
15%
10%
5%
0%
22%
9 6 8 4
,
FY22
1.61
7 0 9
FY20
1.26
2 0 9
FY21
1.02
9 9 1 1
,
FY22
Notes: (1) Numbers have been rounded off
NET DEBT
NET DEBT/ EBIDTA
CAPITAL EMPLOYED
RoCE
Tatva Chintan Pharma Chem Limited
9
Consolidated Statement Profit & Loss
Particulars (₹ Mn)
Income Revenue from operations Other income Total Income Expenses Cost of materials consumed Purchases of stock-in-trade Changes In Inventories of Finished Goods, WIP and Stock in Trade Employee Benefit Expenses Finance costs Depreciation and amortization expense Other expenses Total expenses Profit before exceptional items and tax Exceptional items Profit before tax Tax expense Current tax Deferred tax Tax for earlier years Total Tax Profit after tax Earnings Per Share (EPS) ₹
31 March 2019 Audited
31 March 2020 Audited
31 March 2021 Audited
31 March 2022 Audited
As at
2,063.07 4.94 2,068.01
1,182.92 2.75 (43.26) 163.13 36.34 40.18 419.51 1,801.57 266.44 (7.49) 273.93
52.84 16.94 (1.28) 68.50 205.43 10.23
2,632.39 13.83 2,646.22
1,461.59 24.51 (158.43) 205.29 39.45 47.93 549.91 2,170.25 475.97 - 475.97
79.97 11.47 6.64 98.08 377.89 18.81
3,003.59 52.00 3,055.59
1,535.26 25.36 -40.57 238.02 42.07 67.33 581.16 2,448.63 606.96 - 606.96
108.11 -23.77 - 84.34 522.62 26.02
4,336.47 88.94 4,425.41
2,544.94 36.79 -635.34 308.14 48.32 81.80 999.55 3,384.20 1,041.21 - 1,041.21
189.76 -107.29
82.47 958.74 44.59
Tatva Chintan Pharma Chem Limited
10
Consolidated Statement Balance Sheet
Particulars (₹ Mn)
Assets Fixed Assets Capital work-in-progress Intangible assets Other non-current assets Trade Receivable Cash and cash equivalents including Bank Balance Total current assets Total Assets Equity Equity share capital Tangible Net worth Liabilities Non-current liabilities
(i) Long-term Borrowings (ii) Other non current liabilities
Total non current liabilities Current liabilities
(i) Short-term Borrowings including current maturities (ii) Trade Payables (ii) Other liabilities Total current liabilities Total equity and liabilities
31 March 2019 Audited
31 March 2020 Audited
31 March 2021 Audited
31 March 2022 Audited
As at
665.75 60.36 1.38 3.75 412.57 157.45 1,143.84 1,875.08
80.35 797.00
315.19 36.37 351.56
456.29 221.34 48.89 726.52 1,875.08
1,110.60 48.92 1.20 1.67 495.71 108.29 1,326.99 2,489.38
80.35 1,176.94
387.09 48.85 435.94
519.80 316.13 40.57 876.50 2,489.38
1,203.51 98.11 0.95 2.96 907.43 53.42 1,842.50 3,148.03
200.88 1,659.64
267.63 40.61 308.24
634.85 474.77 70.53 1,180.15 3,148.03
1,592.96 514.91 3.17 113.12 565.98 1,769.86 4,358.85 6,583.01
221.65 4,730.89
131.11 6.68 137.79
1,068.27 445.13 200.93 1,714.33 6,583.01
Tatva Chintan Pharma Chem Limited
11
TATVA CHINTAN at Glance
12
TATVA CHINTAN at Glance
INTEGRATED SPECIALTY CHEMICAL COMPANY, PRESENT ACROSS THE VALUE CHAIN
• Established by first generation entrepreneur engineers in
1996
• Plants located at Ankleshwar and Dahej SEZ, Gujarat with an existing combined installed capacity of 280KL & 29 Assembly Lines
• Sophisticated R&D Unit recognized by DSIR at Vadodara,
Gujarat
• Pioneers in processes such as conventional synthesis,
electrolysis and developing continuous flow chemistry which is a green chemistry and generates higher efficiencies. • Listed on NSE and BSE on 29 July 2021 raising Rs.5,000
million
• Customer Base spanning over 25 Countries including USA,
UK, China, Germany, Japan and South Africa. Exports constitute 79% of revenue in FY22. Overseas subsidiaries in USA & Netherlands provides off-shore support
Manufacturing Products
Revenue Split – FY22
Phase Transfer Catalyst (PTC)
Structure Directing Agents (SDA)
Electrolyte Salts
Pharma & Agrochemical Intermediates (PASC)
FY22
PTC
SDA
ELECTROLYTE SALTS
PASC
OTHERS
23%
52%
01%
24%
00%
Tatva Chintan Pharma Chem Limited
13
TATVA CHINTAN at Glance (Contd.)
KEY FINANCIAL NUMBERS FY22
CRISIL A- Stable/ A2+
Credit Rating
4,336
Revenue from Operations (In ₹ Mn)
27%
EBIDTA %
44.59
EPS (In ₹)
22%
RoCE %
25+
Countries Export
471+
Workforce
20%
RoE %
1,199
Borrowings (In ₹ Mn)
0.25
Net Debt / Equity (In times)
Tatva Chintan Pharma Chem Limited
14
Product Categories
15
Phase Transfer Catalyst (PTC) A Catalyst with Innumerable Benefits
WHAT ARE PTC? • PTC are used to facilitate the
migration of a reactant from one phase into another phase, in a heterogeneous multi-phase system
• The catalyst functions as a
detergent for solubilizing the salts into the organic phase
• PTCs have evolved as a useful
catalyst that has varied advantages
BENEFITS • Offers faster reactions
• Higher conversion or yields,
• Makes fewer by products,
• Enables lesser energy consumption, at times eliminates the need for expensive or dangerous solvents,
• Minimizes waste and saves time
DEMAND DRIVERS • Rising demand for technologically advanced environment-friendly catalyst
• Push for greener chemistry in
organic synthesis
• PTC's have evolved as a very useful catalyst that has varied advantages and these are non regenerative type of catalyst which generates recurring demands.
END USER INDUSTRY APPLICATION
Pharmaceutical API’s
Flavors and Fragrances
Agrochemicals
Environment Control Processes
Tatva Chintan’s PRESENCE IN PTC
1996
Manufacturing since
₹980 mn
Revenue in FY22
23%
of Revenue
#1
One of the leading producers with entire range of PTCs in India and one of the key producers across the globe
Tatva Chintan Pharma Chem Limited
16
Structure Directing Agents (SDA) – An important ingredient for making the world more sustainable
WHAT ARE SDA? • High purity Quaternary salts that
helps in the formation of channels/pores during the synthesis of zeolites. High purity and consistent quality SDAs are essential for the synthesis of precision Zeolites
• Industrially important zeolites are produced synthetically. Zeolites have varied applications including as catalysts and absorbents
BENEFITS SDAs are important raw material for creation of high precision Zeolites which are: • An important ingredient in
Emission control systems for NOx removal
• Facilitates cracking crude to
acquire various desired outputs
•
Important part of continuous flow chemistry process
DEMAND DRIVERS • With the recent developments in emission control and refining catalyst applications, Tatva Chintan’s deep knowledge about the SDA for Zeolites market helps it to gain the market position
• Versatile applications and non-
regenerative nature of SDAs helps in creating recurring demand for SDA • Stricter emission norms is pushing
demand
• Limited competition globally
END USER INDUSTRY APPLICATION OF ZEOLITES
Automotive – Catalytic Converter – Emission Control
Petrochemicals – Cracking crude
Catalyst– Continuous flow chemistry
Tatva Chintan’s PRESENCE IN SDA
2015
Manufacturing since
₹2,248 mn
Revenue in FY22
52%
of Revenue
#2
2nd largest manufacturer of SDAs for Zeolites globally and the largest commercial supplier in India
Tatva Chintan Pharma Chem Limited
17
Electrolysis – A better and greener way of producing SDAs
ABOUT ELECTROLYSIS
BENEFITS
• TCPCL started R&D into developing SDAs
• Electrolysis is considered as a ‘green’
since 2007
• In 2015, it received commercial approval for its products, produced using the Electrolysis process
• There are entry barriers as product development and approvals take anywhere between 1-6 years
• With few players in the Indian and global market, TCPCL is the largest and only commercial manufacturer of SDA for Zeolites in India. The advanced chemistries make it difficult for new players to enter the market chemistry
chemistry process wherein apart from a single starting raw material, the process largely uses only water and electricity
• Since no additional solvents or other
chemicals are used, it is a safe chemistry
• It has minimum requirement of auxiliary
substances
• The process enables faster output and Higher
Purity
• By deploying electrolysis, the products achieve the lowest possible process mass intensity
TCPCL is one of the few companies globally that uses Electrolysis process in organic synthesis.
Tatva Chintan Pharma Chem Limited
18
Electrolyte Salts – Aiding the technological thrust
WHAT ARE ELECTROLYTE SALTS? • Electrolyte Salts are used in
manufacture of super capacitor batteries, which are used in automobile, electronics and energy storage devices.
• Super-Capacitors or ultra-capacitors are energy storage devices that store electrical energy via electrochemical and electrostatic processes. These have an unusually high energy density as compared to common capacitors.
BENEFITS • Due to their properties like fast charging ability, superior low temperature performance, long service and cycle life and reliability. Super-Capacitors hold the potential to replace or complement traditional batteries in several applications.
DEMAND DRIVERS Currently, these are used along with Lithium battery in EV vehicles • Solar energy storage – to absorb
high voltage currents at the time of peak energy generation
• Smart-Grid – To absorb high Voltage
• Battery runtime and operational life is improved extensively by using Super-Capacitors.
• Electric Vehicles – For sudden burst of energy required during the start and while accelerating
• Other electronic devices where high burst of energy is required to be discharged or stored.
END USER INDUSTRY APPLICATION
Automotive
Transport & Infrastructure
Renewable Energy
Consumer Electronics
Grid Balancing
Electric Vehicles
Tatva Chintan’s PRESENCE IN SALTS
2016
Manufacturing since
₹57 mn
Revenue in FY22
01%
of Revenue
#1
Largest producer of electrolyte salts for super capacitor batteries in India.
Tatva Chintan Pharma Chem Limited
19
Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)
WHICH PRODUCTS ARE MANUFACTURED?
END USER INDUSTRY APPLICATION
• Various pharmaceutical and
agrochemical products such as intermediates, disinfectants, catalysts and solvents.
• TCPCL manufactures Glyme which is used as solvents in manufacturing of pharmaceutical API’s, Solvent for Li battery.
Pharmaceuticals API’s
Agro Actives
Paints and coatings products
Li Battery
Detergents and personal care products
Tatva Chintan’s POSITION IN PASC
2016
Manufacturing since
1,022 mn
Revenue in FY22
24%
of Revenue
TCPCL is the largest producer of Glymes in India and third largest in the world. Market Position
Tatva Chintan Pharma Chem Limited
20
Continuous Flow Chemistry- sophisticated method with analytical expertise
ABOUT
BENEFITS
PROCESS
•
•
•
Tatva Chintan started R&D into continuous flow chemistry since 2018
Focused on developing pharma intermediates and agro intermediates using continuous flow chemistries to offer environmentally sustainable sourcing solution to customers
Involves manufacturing large volumes products to replace environmentally hazardous chemistries
• Continuous Flow Chemistry is
considered as a ‘green’ chemistry process, wherein it generates minimum waste
•
•
•
It has lower treatment cost
The technology take smaller space compared to conventional synthesis.
The products achieve the lowest possible process mass intensity and the resultant savings that lead to higher margins
•
Structure directing agents are converted to Zeolite based catalysts to run continuous flow chemistry.
• A bed of catalysts is created inside a pipe reactor. Required Raw materials are continuously fed through the bed of catalyst to Continuously get the desired output products
Tatva Chintan Pharma Chem Limited
21
Value derived from Product Categories
REVENUE FROM EACH PRODUCT CATEGORY1 (In ₹ Mn.)
8 4 2 , 2
2 0 2
,
1
7 1 0
,
1
0 8 9
4 6 8
6 1 8
9 4 7
Considering the wide range of applications of our products, Tatva Chintan can cater to customers across wide spectrum of Chemical Industries which ensures a sustainable business model.
Diversified product portfolio has helped accelerate our growth and in innovating and thus retain both new and existing customers.
2 2 0 , 1
2 1 9
5 7 8
5 6 7
4 5 2
2 3
6 4
0 3
57
PTC's
SDA's
Electrolyte Salt
PASC
FY19
FY20
FY21
FY22
Notes: (1) Numbers have been rounded off
Tatva Chintan Pharma Chem Limited
22
Leading Sustainable practices coupled with cutting edge technology
23
Integrated and Modern Manufacturing Facility
ANKLESHWAR • Manufacturing facility started in 1996 • Converted into a ‘zero liquid effluent discharge’ facility from January 2020
• Using PNG as the boiler fuel at Ankleshwar
Facility
DAHEJ SEZ • Manufacturing started in 2017 •
Sophisticated quality control lab equipped with modern analytical equipment, team of 76 employees of whom 30 are dedicated to quality assurance and 40 for quality control, enabling to detect impurities up to PPM levels and thus achieve ‘ultra-pure’ grade certification.
Installed
Installed
0 9
0 9
0 9
0 9
0 9 1
0 9 1
4 0 2
COMBINED CAPACITY Installed
0 8 2
0 8 2
4 9 2
0 6 1
0 1
3 1
7 1
7 2
FY19
FY20
FY21
FY22
Utilization
% 7 7
% 9 1
% 0 9
% 2 9
% 4 6
% 0 9
% 9 6
% 5 5
3
3
3
3
0 7
7
0 1
4 1
4 2
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
Reactor capacity KL
Assembly Lines
CERTIFICATIONS
ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
• Both the plants are in-close proximity to
Hazira port.
• Modern machinery viz. reactors, Assembly Lines, ANFDs, centrifuges and RCVDs. These equipment enable Tatva Chintan to undertake various chemistry processes, such as, quaternization, methylation, amination, phase transfer reactions, cyclization, halogenation, condensation and electrolysis.
• Electrolysis is part of green chemistry
processes which uses water and electricity to produce the target product, as no additional chemicals are used, minimum waste or by-products are generated in this process.
• Facilities are designed to allow a level of flexibility enabling to manufacture a diverse range of products and provide with the ability to modify and customize product portfolio to address the changing requirements of customers.
Tatva Chintan Pharma Chem Limited
24
One of the prominent Research & Development center
• Dedicated R&D facility at Vadodara recognized by
the Department of Scientific and Industrial Research (“DSIR”), Government of India. Currently spread over 10,000 Sq. ft and being expanded to 36,000 Sq. ft.
• Equipped with glass assemblies, continuous flow reactors, and
high-pressure autoclaves set-up with the ability to run reactions at temperatures ranging from -10ºC to +300ºC and up to pressure conditions measuring up to 100 bar.
• Currently R&D team of 24 employees including 10 senior highly
qualified scientists.
• From IPO proceeds, ₹ 239.71 million will be utilized towards R&D
expansion. R & D designed and segregated into:
• Organic Chemical Synthesis lab • Electrolysis lab • Catalyst development and Continuous Flow Chemistry lab • Analytical method Development lab
R&D CAPITAL AND REVENUE EXPENDITURE (In ₹ Mn.)
60
50
40
30
20
10
0
39.39
FY19
39.94
FY20
51.14
FY21
33.5*
FY22
* Net of Interest Income from Fixed Deposit made out of IPO Proceeds
Tatva Chintan Pharma Chem Limited
25
…With a focus on ‘green’ chemistry processes
Tatva Chintan’s ‘green’ chemistry is based on the principles of clean chemistry, minimum requirement of auxiliary substances, minimum waste and by-products and safe chemistry
• Undertaking various ‘green’ chemistry processes such as electrolysis - apart from a single starting raw material, the process largely uses only water and electricity. Since no additional solvents or other chemicals are used, minimum waste or by-products are generated
• Use of PNG as the boiler fuel at Ankleshwar
manufacturing facility
• Continuous Flow Chemistry being developed which would involve manufacturing large volumes, receiving benefits viz. minimum waste, less treatment cost, lowest process mass intensity that leads to higher margins
• By deploying electrolysis for the manufacture
of products, the Company believes they achieve the lowest possible process mass intensity (ratio of the weights of all raw materials to the weight of the product manufactured)
• Successfully converted the Ankleshwar
Manufacturing Facility into a ‘zero liquid effluent discharge’ facility from January 2020, aided by MEEs and a reserve osmosis ETP
• The sustainability performance as monitored by EcoVadis and TfS has been above the industry average score on their sustainability performance
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Expansive international presence with Marquee clientele
27
Fostered long term relationship with marquee clientele while continuously expanding presence in global market
ESTEEMED CUSTOMERS
EXPORTS
• Tatva Chintan exports products to over 25 countries viz. USA, China, Germany,
Japan, South Africa and UK.
• Subsidiaries facilitates overseas operations:-
• Tatva Chintan USA Inc. and, • Tatva Chintan Europe BV, Netherlands
• TCPCL has successfully maintained long term relationships with its customers
• Warehousing facilities at Amsterdam, The Netherlands and Savanna & Houston, USA
to facilitate business operations.
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Why TATVA CHINTAN
29
Investment Rationale
Strong position in the niche specialty chemicals space with limited competitors in this product profile.
Successful track record on widening product basket, expanding to different geographies and showcasing technical expertise to create products with low impurities which leads to higher customer retention.
Wide basket of products are used in varied industries which reduces risk of dependence on a single industry.
Continuous focus on R&D and in house developed technology creates a differentiated moat for the future.
High industry barriers as new entrant will have to wait from 1 to 6 years for different product approvals.
Capex to boost the capacities and pave the way for higher revenues.
Tatva Chintan Pharma Chem Limited
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Industry Outlook
31
India's rapidly expanding footprint in Global Chemical Market
SHARE OF COUNTRIES IN GLOBAL CHEMICAL INDUSTRY (IN %)
TRENDS IN SPECIALTY CHEMICALS LANDSCAPE
CHINA
EU
US
JAPAN
SOUTH KOREA
INDIA
TAIWAN
RUSSIA
BRAZIL
SAUDI ARABIA
OTHERS
Indian Chemical Industry got Advantage vs China due to: • Trade sanctions between
China and US
• Stringent environmental regulations since 2015 and Large-scale shutdowns in China
• Customers preference to de-risk the supply chain led to China+1 policy
• Geopolitical shift after
the outbreak of Covid-19
•
Increased cost of labour
41%
15%
14%
05%
04%
04%
02%
02%
02%
01%
12%
Move towards sustainable product development:
Opportunity for Indian Manufacturers:
• With an increasing awareness of the ill effects of certain chemicals on humans and the environment, there is a growing trend in the chemicals industry to shift towards what is known as “green” chemicals or more accurately sustainable chemistry
• China holds 41% share in global chemical industry of which exportable specialty chemicals accounts for ~15-17% while India accounts for merely 1-2% indicating widespread opportunity
• The spill over impact of China’s declining competitiveness has set the stage for India to intensify its effort to capture larger market share
Source: CEFIC, IBEF, As on 2019 data
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Global Chemical Industry
GLOBAL CHEMICAL INDUSTRY MARKET SIZE
4,738
2019 (USD Bn)
6,400
2024E (USD Bn)
6.2% CAGR
Commodity Chemicals • Basic Chemicals • Manufactured In large volumes • Mkt Size USD 3,700bn • ~Expected 6% CAGR
Speciality Chemicals • Value Added • Low volume, Niche Chemical • Mkt Size USD 800bn • ~17% share of Global Chemical market • Expected 6% CAGR
Other Chemicals
PTC
1,031 Mkt Size 2019 (USD Mn)
1,328
Mkt Size 2024E (USD Mn)
5.1% CAGR
SDA
964 Mkt Size 2019 (USD Mn)
1.4
Mkt Size 2024E (USD Bn)
Electrolyte Salts
Intermediates
4.8 Mkt Size 2019 (USD Bn)
7.1
Mkt Size 2024E (USD Mn)
8.2% CAGR
115 Mkt Size 2019 (USD Bn)
148
Mkt Size 2024E (USD Bn)
6.8% CAGR
5.2% CAGR
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Our Business
34
Major Events & Milestones
1996 Incorporation of our Company
2007 Expansion of manufacturing capacity at our Ankleshwar Manufacturing Facility
2013 Achieved turnover of ₹ 500.00 million
2017 Set up our Dahej SEZ Manufacturing Facility
2019 Incorporation of Tatva Chintan Europe BV, a wholly owned Subsidiary of our Company
2021 •
Listed on BSE and NSE
• Achieved turnover of
₹ 3 billion
• Acquired industrial
land at Dahej-III GIDC Estate, Bharuch.
2011 Commenced commercial manufacturing of SDAs
2004 Received license to manufacture for sale (or for distribution) of certain drugs from the Food and Drugs Control Administration, Gujarat at our Ankleshwar Manufacturing Facility
2015 • Achieved turnover of
•
•
₹ 1 billion Incorporation of Tatva Chintan USA Inc., a wholly owned Subsidiary of our Company Set up our warehousing facility in Netherlands
2018 Set up our R&D facility in Vadodara
2020 • Completion of ‘Together for Sustainability’ audit • Conversion of Ankleshwar facility to a ‘zero
liquid effluent discharge facility’
• Achieved total revenue of
•
₹ 2 billion Increase in manufacturing capacity at Dahej SEZ facility resulting in an increase in the aggregate manufacturing capacity of the Company from 160 KL and 10 Assembly Lines to 280 KL and 13 Assembly Lines
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Leadership and Management
Chintan Nitinkumar Shah
M A NA G I N G D I RE C T O R
Ajaykumar Mansukhlal Patel W H O L E T I M E D I R E C T O R
Shekhar Rasiklal Somani
W H O L E T I M E D I R E C T O R
Dr. Manher Chimanlal Desai I N D E P E ND E N T D I RE C T O R
CA Subhash Ambubhai Patel I N D E P E ND E N T D I RE C T O R
Dr. Avani Rajesh Umatt
I N D E P E ND E N T D I RE C T O R
A Graduate in Engineering with a specialization in Computer Science, from Maharaja Sayajirao University of Baroda, Mr. Chintan Shah carries an experience of over 25 years and is responsible for the Business Development, Finance and information Services in our Company.
A passionate Chemical Engineer from Maharaja Sayajirao University of Baroda, with an experience of over 26 years, he takes care of Project Engineering & Development and implementation of new Technology in our Company.
A Bachelor in Pharmacy from Maharaja Sayajirao University of Baroda, Mr. Shekhar Somani looks after Business Development, Production Controlling, Quality and Supply Chain Management in our Company. He has over 25 years of experience.
He is a Postgraduate in Organic Chemistry and holds Doctorate in Science from the University of Mumbai. He carries a rich experience of over 3 decades in Specialty Chemicals Industry.
A Chartered Accountant by profession and a Commerce Graduate from Maharaja Sayajirao University of Baroda Mr. Subhash Patel is a Fellow Member of the Institute of Chartered Accountants of India and has an experience of over 3 decades.
She holds doctorate in chemistry from the Sardar Patel University. She has over 19 years of experience in research and academia. She is currently associated with Team Lease Skills University as Associate Professor, Dean Academics.
Tatva Chintan Pharma Chem Limited
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Shareholder Information
SHAREHOLDING PATTERN- MARCH 2022 (IN %)
NSE Ticker
BSE Ticker
IPO Listing Date
Share Price (₹)^
PROMOTER
79.17%
Market Cap (₹ Mn)^
March 2022
MF
PUBLIC
FPI
FI
OTHERS
7.54%
6.35%
3.23%
0.41%
3.30%
TATVA
543321
29 July 2021
2,308
51,165
20.8%
10,657
% Free Float^
Free float market cap (₹ Mn)^
Shares outstanding^
2,21,65,062
3M ADTV (Shares)
3M ADTV (₹ Mn)
43,187
107
Industry
Specialty Chemical
Source: NSE, ^As on 31 March 2022
Tatva Chintan Pharma Chem Limited
37
Net IPO Proceeds
ISSUE SIZE ₹5,000 MILLION AT ₹1,083/PIECE
Offer for Sale: Raised ₹2750 mn
Fresh Issue: Raised ₹2250 mn
Capex at Dahej Plant Of: ₹1471 mn
Capex at R&D Unit: ₹239.71 mn
General Corporate Purpose: ₹362.10 mn
CAPACITY EXPANSION Capacities post expansion Expected Date of Completion
Of Expansion at Dahej SEZ Of R&D Facility at Vadodara
480KL, 39 Assembly Lines
Q3FY23 August 2022
USE OF NET IPO PROCEEDS1 (IN ₹ MN) The Net Proceeds are utilized in accordance with the details provided in the following chart:
3 7 0 2
,
1 7 4 1
,
2 6 3
0 4 2
2 3 4 1
,
1 1 2 1
,
2 1 1
7 1
-
0 3 1
1 2 2
-
Amount as proposed in offer document
Amount Utilized during the Quarter
Total Unutilized Amount as on 31 March 2022
Expansion at Dahej SEZ
Upgradation of R&D Facility
General Corporate purose
Total
Notes: (1) Numbers have been rounded off
Tatva Chintan Pharma Chem Limited
38
Safe Harbor
Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.
The company's results may be affected by factors including, but not limited to, the risks and uncertainties in research and development; competitive developments; regulatory actions; the extent and duration of the effects of the COVID-19 pandemic; litigation and investigations; business development transactions; economic conditions; and changes in laws and regulations.
Tatva Chintan Pharma Chem Limited will not be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances
Tatva Chintan Pharma Chem Limited
39
APRIL 2022
Thank You
Copyright ©2021 Tatva Chintan Pharma Chem Limited
TATVA CHINTAN PHARMA CHEM LIMITED
INVESTOR RELATIONS AT
CORPORATE OFFICE Plot No. 353, G.I.D.C, Makarpura, Vadodara – 390 010, Gujarat, India
TATVA CHINTAN Mr. Ashok Bothra finance@tatvachintan.com
BSE: 543321 NSE: TATVA CIN: L24232GJ1996PLC029894 www.tatvachintan.com
EY Ms. Krishna Patel, Mr. Rahul Thakur Krishna.patel2@in.ey.com, Rahul.thakur@in.ey.com