Bharat Rasayan Ltd

Link to the results:

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Management shared in RAY consulting seminar that their plant wasn’t operational for almost 1.5 months of last quarter. And last year Q1 had roughly 40cr spillover from Q4FY19. These reasons may explain dip in top-line.

It’s heartening to see good increase in Gross Margins. Will be keeping an eye on it to see if it sustains post ongoing agri tailwind.

Disc: invested


Dip in finance cost also is significant : from 5 to 1.8 cr… Company seems to have retired significant part of its debt which is a good sign.

Disclosure - not invested but looking at opportunity to invest

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Hi Amit,
Thanks for the update on company.
Just wanted to know if there’s any major announcement on Nissan JV front?
Could you share the presentation? if not, can you share any highlights?



I agree.

Based on some requests, I have added my analysis of a comparison between Astec and Bharat Rasayan :

Would request esteemed members to critically examine the comparison to help me improve it and strengthen our understanding of the comparison between the two businesses.

Disc: No current investments in Bharat Rasayan (i’m considering making an investment).

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looks like they have the got environment clearance for capacity expansion. company is however yet to make a formal announcement the to the exchanges.

any idea how long it takes for them to complete construction?

disclosure: holding.


Thank for the information, could you please share the source.

screen shots of the environment clearance document is being shared online. I am awaiting the company’s formal announcement.


Bharat Rasayan- outcome of AGM

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I am new in this investment field and I have been going through the AR20 of BR and I found something which I am not able to comprehend the complete extent of

– Even though they are selling much more of what BR is purchasing from its group companies, why BR still has payable instead of receivables? Am I missing something?
– Why instead of borrowing from banks, BR is borrowing from its promoters? Is it fine or Is there something underlying which we are not able to see?

Your input will be much appreciated and it will help me get a better understanding of the company and reading AR in general. Pardon me if I am sounding like a complete novice.

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Here are my notes from the ​Bharat Rasayan AGM:

Topline and Bottomline growth is likely to be poor this year due to the Covid pandemic. Management refused to give guidance for this year.

Looking ahead, management is banking heavily on tie-ups with Japanese players to grow its business. Questions were asked about majority stake in Bharat Insecticides being sold to Japanese company Mitsui.

According to Gupta, Bharat Rasayan will be supplying high margin intermediate products for BIL which is moving towards producing patented products from generic products. Bharat Rasayan will be supplying intermediate products to Japanese and European companies.

Apart from Mitsui, the Guptas have tied up with Nissan to set up Bharat Rasayan’s new plant. Construction of the plant will begin soon and be completed by March 2022. A number of high-value patented molecules will be manufactured under this JV.

Management is talking to other global companies to set up similar joint ventures. Talks are on with the Top 10 global companies. The company is looking for land in different parts of the country to set up these projects.

Advantage of such tie-ups is that Bharat Rasayan will get preference in the supply of intermediates for such ventures. Margins are thus likely to be higher.


Work on expanding the existing facility at Dahej ​has started and new products will be introduced next year.

​Brazil is all set to emerge as a major market for Indian agro-chemical companies and Bharat Rasayan too is preparing to make use of this opportunity. Several product registrations are done and the company is working towards supplying a big product to that country.​

Others may please update if I have missed anything.

​disclosure: holding


Hi Team,
I have been going through ARFY19 and I found the below excerpt:

– I could not find how much dependency is there on China for BR raw material requirement. And do they make any substantial sales in China?
– Are they exploring any alternate sources/countries for their raw material requirement for the purpose of de-risking given the tension between India-China?

I want to understand more about China’s angle from the BR business perspective.

Disc: Tracking but not invested yet.


Interested to know from those who attended the AGM or others, have the Promoters said anything on how they will utilize the cash received from Mitsui for 56% stake sale in BIL? At a 15x EBITDA multiple for that business which did 60 cr EBITDA last year (from RoC), thats ~500 cr of cash. Thanks!

since BIL is a privately held company, promoters are not duty-bound to answer the question. But their reply would be eagerly awaited by share-holders of the listed Bharat Rasayan.

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Hi VPers,
I came across this article regarding Pesticide Management Bill 2020. I have just started reading about agrochem industry and don’t have much idea of its implications on BR business and agrochem industry in general. It would be really enlightening if somebody experienced can throw some lights on this.


Hey Naquib, VP threads are literally gold mines! Try to go through the thread since beginning and you will find all the questions have been answered in the past.


While reading about Agrochem industry, I came across this interesting stat which states that contribution of herbicides in crop protection chemicals is around 50% globally but in India, herbicides contribute only 25% and insecticides contribute more than 50%. If anyone of you could throw some lights on the following queries I have regarding this:

  1. What could be the reason behind this gap in herbicides and insecticides consumption globally and in India? Does it relate to pricing that herbicides are expensive than insecticides and that is why Indian farmers tend to use insecticides due to their sub-par income level?
  2. What is the share of insecticides and herbicides to total revenue for BRL? I know that they have more shares in insecticides but could not find the exact numbers.
  3. Will it be reasonable to expect in the future that India will also move towards the global trend which is higher consumption of herbicides than consumption?


IIFL on Chemicals - Chemical market trends: For Deepak Nitrite, prices of its key fine &
specialty chemicals remain firm, while phenol spreads have also
improved, offsetting soft prices of DASDA and pointing to good 2QFY21
results. For the fluorine companies (SRF and Navin Fluorine), prices of
R-22 softened further in July, while those of R-134a, too, seem to
remain under pressure. For Atul, para-cresol prices as well as spreads
appear to have softened. For Rallis, prices of metribuzin have corrected

40% YoY, albeit partly mitigated by lower input costs.

Prices of Metribuzin has corrected by more than 40%, will likely have an impact on Bharat Rasayan, given it contributes 11% to the turnover