@karanthharsha999… follow up to this, have you reached out for any fresh updates? Appreciate your inputs. Thanks.
Hi
I haven’t received any update till now.
Whether have they re applied afresh with all the prices to be re done again or
With just The category change and the TOI is still valid so that the process is quick.
I’m thoroughly following for any updated by the pollution board.
Will update once I get.
Thank you
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hi,
Just received a reply mail from the company to my questions on the EC and i quote:-
With reference to your query and as advised by management, please take note of the following :
“Company has received Terms of Reference Number (TOR), for B1 category EC Application.
Company will do EIA Report submission under B1 category, based on evaluation of all latest provisions at central & state Level in the interest of company.
All efforts are being made to get EC approval, however, approval & timeline is dependent on government Policies from time to time.”
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Dear Sahil / Karan / Suarabh / Ayush and all
Time and again the issue that they are keep on encountering is with pollution control board.
Is it not possible for them to produce these chemicals in an environment friendly way ?
There are many players out there like Vinati Organics - zero waste company (Might not be apple to apple comparison )
Transformation towards Green Chemistry (am being naive on this subject please correct me )
Promoters are first generation Technocrats
Have excellent track record so far
I know one need money to achieve all the process improvements, unlike before access to funding is not that difficult, there are PE funds and there are other funding options available in the market; also there are MNC’s who wants to collaborate and work. I am sure promoters must have thought about all of these but analysis on this perspective is missing.
We always say (whichever thread you read on chemical / pharma ) India has china plus 1 advantage, due to clampdown by Chinese government to control the pollution many industries are closing down.
Does that mean India’s pollution norms are strict and better than China ? Hence the industry is moving to India ? If they are that means our (chemical industry) process capabilities are superior than china (in terms of technological / operational / cost )
Thanks to everyone who has put so much efforts so far.
Disc : I am still learning basics
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Correction - It is not Vinati Organics it is Valiant
Here is the reference to zero liquid waste - Annual Report Page - 5
@pennywise is bit right on this. I too went through toluene to benzoic .
The recent development I see as proposed by IIT itself is mentioned in the link below which can reduce pollution and re use waste product. But only thing I don’t know is the cost to do this.
https://blog.nextias.com/benzoic-acid-from-petroleum-waste-toluene.
Ironically this company has IITians running the biz but not trying to follow their own institute.
Being a nano cap , and process focussed , it would have been wise for them to try the mentioned process or some other better ones
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I first saw this share in Sahil’s portfolio. It interested me and I got marginally invested to watch the share. I see the following in this company :
Its small size is its biggest weakness and also a big opportunity.
Pollution issues and lack of space seem to be a big hinderance in growth.
It is doing well in production and marketing but the existing “size” of marketing opportunity is not clear.
The current state of brownfield expansion is not known except that it is underway I have not been able to get the timelines.
I tried to speak to the company secretary or the MD but they did not connect and asked me to email them. But i got a feeling it was only to end the call.
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Thanks for posting and glad I could be of some help.
Wouldd request you to please go through the thread. If you do that, you’ll realise that the company is fairly prompt in replying to investor queries over email. I personally do not prefer calls either and only get on to calls if something cannot be done over email.
Also if you see the thread you’ll realize that the current status of the capex is that it is blocked by a resubmission of the EC approval request. I personally suspect that this will now happen in H1FY22.
Biggest risk imo remains the geographical concentration due to existing pollution in that area. I am thinking of sending an email to investor relations about the chemistry they use in their reactions (since a couple of people pointed out that that is outdated and more polluting than alternatives available).
Disc: invested
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Pursuant to Regulation 30 of SEBI ( Listing Obligation and Disclosure Requirements) Regulation,
2015 it is hereby informed that vide our intimation letter dated 19/01/2021 submitted to Gujarat Pollution Control Board (GPCB), we have shutdown our production activities at Ankleshwar Plant, as a self compliance to the Closure Order of GPCB.
Company will make Revocation application after complying all points of GPCB order and shall resume production activities after grant of Revocation Order from
Disc: invested.
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@Sahil, did you write to company as to what is causing repeated GPCB order and what measures are being taken to prevent the same happening again? If I remember last time it took about a week’s time to obtain revocation order and resume production. Thanks.
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I did, and yet to hear back.
Here’s my email:
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Stock has started moving down. Does it present an opportunity to up stakes ? People who have visited the plant and interacted with the management would be able to make a more accurate assessment. In my experience pollution guys are strict but generally give enough warning before closing down a plant.
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I was able to reach out to the CS, she has said that this is a new observation from GPCB regarding company operations (different from the September Observations). Company has made the required modifications and also replied to the GPCB observations. Company would let BSE/NSE know as and when GPCB allows them to restart production.
Disc: Invested
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Finally, they replied my query on the shutdown today (after 2 reminders!). This is similar to @sahil_vi’s post above. Hope they restart soon.
"
Dear Sir, Please be informed that the observations of GPCB has been complied with and we have filed application for Revocation order, which is awaited shortly.
These objections were different from last year and management is putting in all required efforts in this regard.
"
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I have been following this company from past 2 months and looks like despite their efforts made to get EC approval, it keeps on getting delayed.
Given their plant is shut down from 1 month and there is no news when it will restart, I am wondering how much it will impact their revenues in coming quarter?
Mrs. Ekta Kumari - Company Secretary/Compliance Officer has given resignation today.
As this news is coming when we don’t have any time frame of restarting the factory, should we see this as a red flag?
Disc: Not Invested still learning
This risk was there all along, never understood the irrational jump in stock price. Lets say even if they be able to start the plant over next 10 years , will they be able to grow the business, expand capacity etc, thats a huge question mark.
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For me the only big red flag is their repeated PCB non-compliance and the plant showdown. Also not sure, why this time it is taking so long to get the PCB permission to restart. With this in mind, I think stock has come down in the last one month. Also I feel 2nd half results could be bad due to plant shutdown twice.
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One thing that I wanted to share is that I have sold out of my chemcrux position because imo in the medium term they will have some scale up challenges, and for me personally, owning and tracking too many companies becomes a nightmare due to my 9-5 day job. Anything more than 16/17 companies becomes too time consuming for me. I still continue to like chemcrux and will track it from time to time. But imo there are better opportunities out there (at higher valuations of course but much lower uncertainties and easier to track)
Most recent trigger for me to sell is recent GPCB notice to the company. I had asked the cs about what the issue is about, and she told me that management has chosen to not share that (possibly due to them being busy with day to day). Just wanted to share in interest of full disclosure. 
The other thing which worries me about chemcrux is the scalability of the business given the geography they are in - ankleshwar. It’s one of highest polluted places in india, if these plant closures continue like they have, that means only 11 months of effective operations every year, which is again a loss on their economic value.
Disc: sold out today.
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Short to medium term fundamentals have changed for the company with repeated PCB notice and plant shutdown. The management has neither responded to my email with full details (except to say that they have complied and waiting for PCB permission) of what the non-conformances are nor has shared any plans to prevent such failures in the future. This was all 2 weeks ago and still no sign of production restart or updates from the company to exchange till now.
Having no clue of what the violations are, it is clear that PCB is not showing any leniency for the repeated non-compliance. If I look at their expansion plan, which unfortunately scheduled in the same location raises big question as to whether they would receive EC approval, given repeated PCB notices? So lots of ??? at this point of time.
Discl: Exited. Will relook again when things are favourable.
I was mulling over exiting for last two weeks. But now the price has gone too low and indicates a buy if the production restarts. Sudden departure of CS during a major crisis shows that tempers are running high inside the company as most promoters look for scapegoats, rightly or wrongly in such situations. Perhaps the best thing that can happen to Chemcrux is, if they are acquired. It would however depend upon how many days cashburn they can survive.