PUNJAB CHEMICALS AND CROP PROTECTION LTD-$
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BSE Code:
506618
NSE Code:
PUNJABCHEM
Business Profile
Business Profile
Punjab Chemicals & Crop Protection (PUNJCHEM), incorporated on Nov. 19, 1975, is a manufacturer of agrochemicals, active pharmaceutical ingredients (APIs), intermediates, phosphorous derivatives and specialty chemicals. Earlier known as Punjab Chemicals and Pharmaceuticals, it got its present name with effect from Nov. 16, 2004.
The ISO 9001 and ISO 14001 certified company offers agrochemicals including agro-technicals, intermediates and mercapten derivatives; agro formulations such as insecticides, herbicides, fungicides, plant growth regulators, bio products and sulfur range; active pharmaceutical ingredients, anti-oxidants, intermediates and fine chemicals, development products and cephalosphorin side chains; industrial chemicals like phosphorous-based derivatives and oxalates.
Manufacturing units are located across Punjab and Maharashtra with annual installed capacities of 7581 MT agrochemicals and intermediates, 15,850 MT oxalic acid, 2,038 MT specialty chemicals, 240 MT bulk drugs, 8,950 MT sulfur-based drugs, 5,300 MT other chemicals, 2,040 MT inorganic phosphates, 960 MT organic phosphates, and 300 MT sulfur-based compounds. Subsidiaries include STS Chemicals (UK), SD AgChem (Europe) NV, Sintesis Quimica - Argentina, Agrichem BY - Netherlands, N.V. Agricultural Chemicals, Agrichem Helvetia GmbH, PG Crop Protection, SD Agchem Netherlands. Source Dynamics - USA, Nedab DK - Denmark and Kapchem - Ireland are joint ventures.
The international trading division exports photo chemicals, specialty chemicals, fine chemicals and natural products like soyatone, tryptone, peptone, yeast extract and casein protein hydrolysate. Regional offices in India located at Chandigarh, Pune and Tarapur and overseas offices in the UK and Belgium cater to customers spanning across five continents and 60 countries. The client list includes name like Bayer, Dow, Ranbaxy Labs, and Nufarm among others.
The registered office is at SCO 417-418, Sector 35-C, Chandigarh-160022.
Financials
Punjab Chemicals & Crop Protection announced a phenomenal rise in standalone net profit for the quarter ended September 2008. During the quarter, the profit of the company rose 2.15 times to Rs 74.5 million from Rs 34.6 million in the same quarter previous year.
Net sales for the quarter surged 87.2% to Rs 1,573.2 million, while total income for the quarter jumped 79.72% to Rs 1,575.80 million, when compared with the prior year period. During the quarter, the company reported an earnings of Rs 9.2 per share.
Recent Developments
02-SEP-08
The company has announced the acquisition of 70% stake in Vadodara based agro-formulation company Parul Chemicals (Parul) at an enterprise value of Rs 90 million.
29-AUG-08
On Aug. 29, 2008, the board of directors approved the following:
-To acquire 70% stake in Parul Chemicals - Vadodara from the existing promoters. The company has a state-of-the-art manufacturing facility near Vadodara and has over the last 30 years acquired more than 100 registrations for various formulations.
- To explore various options to acquire multiple product portfolios to enhance the business of the company in the international portfolio, the cumulative value of which may be approximately USD 25 million.
27-DEC-07
On Dec. 27, 2007, the shareholders passed the special resolution for issue of 1.51 preferential convertible warrants.
Future Plans
The company plans to grow through the inorganic route. It is planning to increase its portfolio of registered products in high margin foreign markets by acquiring companies in overseas markets. This will also present an opportunity to shift manufacturing to India that has a cost advantage.
The company proposes to fund these acquisitions through a mix of debt and equity. It has already convened an EGM and received shareholder approval for raising Rs 4,000 million through various instruments like GDRs, FCCBs, private equity and structured debt. It has also allotted 833,000 preferential convertible warrants to the promoters at Rs 231 per share aggregating to Rs 192.4 million.