Chemcon Speciality Chemicals Ltd

- The bromide business is showing signs of recovery with pending orders and clearances initiating dispatches and supplies. - Kamal Aggarwal mentioned that about 60% to 70% of the bromide volume pending will be recovered in the current quarter. - The company is getting volume requirements and anticipates business recovery in the bromide segment. - New products like 4-chlorobutyryl chloride and 2,5 DHT have started commercial supplies, indicating an expanding order book. - Expansion projects (P8 and P9) are underway, expected to enhance production capacity and order fulfillment ability within 5-12 months. - The working capital on receivables is Rs. 85 Crores as of nine months FY2021, reflecting business carried out and orders in process.

- Chemcon Specialty Chemicals Limited has ongoing capital expenditure projects, specifically plants P8 and P9, funded by IPO proceeds and internal accruals. - Rs. 25 Crores of capex has already been incurred, with further expenditure ongoing for these new plants. - No explicit mention of any new or future fundraising through additional debt or equity beyond the IPO proceeds used for current expansions. - The company is focusing on capacity expansions, new product commercialization, and increasing production volumes funded by internal resources and the IPO. - No clear statement on plans for further capital raising was provided in the call.

- Ongoing capital expenditure on plants P8 and P9, funded partly by IPO proceeds and internal accruals; about Rs. 25 Crores incurred so far. - P8 plant expected to be commercialized in approximately 5 to 5.5 months, and P9 plant around 12 months from the call date (Feb 2021). - The new multipurpose plants (P8 & P9) will support existing products and enable manufacturing of new products such as 4-chlorobutyryl chloride, 2,5 DHT, and expanded CMIC capacity. - Total volumetric reactor capacity after expansion will be ~625 kl. - Future capex beyond P8 & P9 not specifically detailed but focus remains on continuous product additions and capacity expansions. - New product additions target revenue sizes of Rs. 75-100 Crores with a payback period of under one year. - Strategic emphasis on penetrating new clients, new geographic markets, and ongoing cost efficiencies to drive growth.

- Targeted growth of around 15% to 20% in HMDS volumes (Page 11). - Around 30% growth expected in CMIC volumes, plus addition of new products (Page 11). - Plan to increase production capacities and real-time production by 30% in FY2022 (Page 16). - New products like 4-chlorobutyryl chloride and 2,5-DHT expected to contribute Rs. 75-100 Crores revenue each with less than 1-year capex payback period (Pages 12, 5-6). - Expansion plants P8 and P9 to commercialize new and existing products, with P8 commercializing in ~5-5.5 months and P9 in ~12 months (Pages 5, 8). - Bromide volumes expected to recover to 60-70% of earlier quarterly levels (~1 million kg) (Page 16). - Focus on penetrating new clients, new geographic markets, and ongoing cost efficiencies as growth levers (Page 16). - Innovation pipeline includes adding at least 2 new products annually (Page 12).

- Targeted growth of around 15% to 20% in HMDS segment and around 30% in CMIC segment over the next few years. - New product additions expected to contribute significantly, with capex payback period less than a year and expected topline of Rs. 75-100 Crores per new product. - Capacity expansions (plants P8 and P9) underway, with P8 commercializing in approx. 5-5.5 months and P9 in about 12 months, expected to support growth. - Volume growth and new product commercialization are key growth drivers. - Margins expected to remain stable with improvements from higher volumes and cost efficiencies. - Overall long-term vision to multiply current market value several times with leadership in products and continuous innovation. - Working to reduce client concentration through exports, aiming to expand geographic reach and market share. - Expect overall business growth supported by increasing demand in pharma chemicals and oil well completion sectors.