Key highlights from Ami Organics Q2FY23 concall🧪🧪
CMP - ₹980
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CMP - ₹980
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The company has not been affected much by the energy crisis in Europe as the majority of the business of the company comes from pharmaceuticals which has low energy requirements as compared to other industries
The company is getting 58% of its total revenues from Exports as of FY22 out of which around 70% is contributed by Europe
The company has successfully developed the production of methyl salicylate using flow chemistry. It has successfully erected the flow reactor at Jhagadia
The company has successfully developed the production of methyl salicylate using flow chemistry. It has successfully erected the flow reactor at Jhagadia
which is expected to start production in Q3FY23.This will lead to a cost saving of 5-7%.For the company, Methyl salicylate generates 30% of their total revenues in the Specialty chemical business and 5% of the total revenue of the company. The company expects methyl salicylate to
lead the growth for Specialty Chemicals in upcoming quarters. The company expects to expand current capacities by 200 to 600 tons/month
The company is planning to commercialize 4 big existing products on their flow technology in the second half of FY23
The company has received trial orders for an agrochemical intermediate which is an import substitute products. This intermediate will be used to make a fungicide
The company has received trial orders for an agrochemical intermediate which is an import substitute products. This intermediate will be used to make a fungicide
agro active ingredient. The company will make only the intermediate which is needed to make this active ingredient. The company is not planning to manufacture active ingredients on the agro side. It is a validation batch of around 500 kg. The company expects to commercialize this
product by Q3FY23
The company has also received trial orders for a pharmaceutical intermediate which is also an import substitute product from a European client. It is a validation batch of around 5 tons. The company expects to commercialize this product by Q3FY23. The peak
The company has also received trial orders for a pharmaceutical intermediate which is also an import substitute product from a European client. It is a validation batch of around 5 tons. The company expects to commercialize this product by Q3FY23. The peak
revenue potential of these two products is between Rs 150 to Rs 200 crores. This intermediate will be used to make an API which will be used in the anti-inflammatory segment
The company is expecting a commercial trial order for an electrolyte additive which is a couple of metric tonnes. The company is at various stages of qualification for this product with customers in China, Korea, India and Europe. The company expects to begin commercial supply
of this product in the first half of CY23
The prices of Vinylene carbonate(VC) are going up due to the rise in raw material prices and increase in demand. The product is a low-value product and technology is very important to make this product. The company developed a process
The prices of Vinylene carbonate(VC) are going up due to the rise in raw material prices and increase in demand. The product is a low-value product and technology is very important to make this product. The company developed a process
based on flow chemistry for manufacturing this product. The company has been successful in achieving reduction of production time,production cost and are ready to compete with China on price. The company is expecting its first order probably in the month of November
For any lithium ion battery whether it is lithium silicon, lithium fluorophosphate or lithium nickel based, the final electrolyte solution will contain VC as it is used to cover the lithium cathode. Either VC or fluoroethylene carbonate(FEC) are necessary to be used as
additives based on the geography and applications
The company makes both FEC and VC which are used as additives in the electrolyte solution which goes into Li ion batteries. The company has sent its samples to various customers and within 1 year time, the company was able to get
The company makes both FEC and VC which are used as additives in the electrolyte solution which goes into Li ion batteries. The company has sent its samples to various customers and within 1 year time, the company was able to get
one customer for commercial trial demand. As per a report, the global market size for electrolyte additives is $1.2 billion. The company has been vocal about the fact that they will be manufacturing only the electrolyte additives and not the electrolyte salt. The company has
received orders from Gujarat Fluorochemicals and Neogen Chemicals which are making the electrolyte salt. The company first got this opportunity from their international partner in Israel and they have a 1-1.2 years of history in this electrolyte molecule. The technology to make
electrolyte additives is guarded technology
The key products of the company are Trazodone and Entacapone.These products have contributed 18% and 8% respectively to the top line for H1FY23.Apixaban has contributed 13% revenue in H1FY23.Dolutegravir has contributed 4% revenue in H1 F23 and 3% for Q2FY23
The company is getting inquiries from European clients for KSM owing to the energy crisis which has been rampant in Europe
The company has done a capex of Rs 190 crores in Ankleshwar for making advanced pharmaceutical intermediates to support future business growth. The capex will be funded through a mix of IPO proceeds, internal accruals and debt which is a short-term working capital loan.
The company has got the environmental clearance for setting up this new facility which will have around 90 reactors which will be flow continuous reactors taking the total reactor capacity to 436 KL. This plant is expected to begin commercial production in Q4FY24 which is
December 2023 and it will start generating revenues by FY25 once the company has completed the validation and qualification of this facility. The company has spent Rs 10 to Rs 15 crores out of the total capex amount till H1FY23
The company is expecting a revenue CAGR of 25% for the long term
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