Neogen Chemicals Ltd Company Summary

Neogen Chemicals Ltd Summary

Neogen Chemicals Limited was incorporated as a Private Limited Company with the name Neogen Chemicals Private Limited on March 7, 1989 in Thane, Maharashtra. Subsequently, Company was converted to a Public Limited Company and the name of the Company was changed to Neogen Chemicals Limited on July 2, 1998. Neogen is one of Indias leading manufacturers of bromine-based compounds, lithium and bromine salts and grignard chemicals. Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. Specialty chemicals are manufactured in smaller volumes when compared to non-specialty chemicals. Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances. The Company commenced its business operations in 1991, at Mahape, in Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds. In addition to manufacturing its standard products, the company undertakes custom synthesis and contract manufacturing. In custom synthesis the product is developed and customized primarily for a specific customer, but process know-how and technical specifications are developed in-house by the company. Further, it also commenced contract manufacturing where, the product is developed under confidentiality for a single customer using the process know-how and the technical specifications provided by customer. Contract manufacturing enabled to increase its bouquet of product offering. The Company differentiates itself in the contract manufacturing space by additionally offering process innovation, which, generally, reduces the overall operating costs for their customers. The Company operates out of its manufacturing facilities located in Mahape, Navi Mumbai in Maharashtra (Mahape Facility) and Karakhadi, Vadodara in Gujarat (Vadodara Facility). Company is, presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat (Proposed Dahej Facility). In April 2019, the Company came out with an Initial Public Offering of 6,155,813 equity shares by raising equity capital from public aggregating Rs 132.35 Crores. The offer comprises of a fresh issue of 3,255,813 equity shares aggregating Rs 70 crores by the company and an offer for sale of 1,699,600 equity shares by Haridas Thakarshi Kanani (promoter selling shareholder) and 1,200,400 equity shares by Beena Haridas Kanani (promoter group selling shareholder, and along with the promoter selling shareholder aggregating Rs 62.35 Crores. The Company started the Organic Chemical production at Dahej SEZ (Gujarat) in April 2021. The aggregate manufacturing capacity of Inorganic Chemicals was doubled to 2,400 MT p.a. after the commencement of its operations in Feb 2020.In 2021-22, the Company began with Phase I and Phase II commercial operations of Organic Chemicals at full scale at Dahej SEZ plant. With completion of Phase I and Phase II Expansions and other brownfield expansions, the total organic chemicals manufacturing capacity of the Company increased from 130 Kilo litres of Reactor capacity to 407 Kilo litres of Reactor capacity.The Company acquired 100% stake in BuLi Chemicals India Private Limited and it became the wholly-owned subsidiary of the Company in 2023. The Company forayed into the electrolyte market by signing an agreement with Japan-based MU Iconic Solutions Corporation to acquire a manufacturing technology licence to make electrolytes for lithium-ion batteries for vehicles in India. The Company further incorporated a Wholly Owned Subsidiary of the Company on March 29, 2023, named Neogen Ionics Limited.