HIMADRI VS RAIN INDUSTRIES
Both the companies along with philip carban or Goa carbon rising because of rise in demand seen in Aluminium industry , rising demand of Electic blast furnace process in steel industy i.e pollution problem seen rising because of heated blast furnace method. Also shut down of many industries chemical and steel co in china due to environmental issues.
Rain industry is present mainly in CPC, CTP and other speciality chemical and cement plant. They are one of the Global leader in CPC with capacity of 2.1 MMTP ( proposed to increase to 2.45 MMTP) and 1.3 MMTP of CTP.
Himadri speciality on the other hand is leader in INDIAN CTP market with 70% market share ( 0.4 MMTP). CTP is the product having entry barrier in usage because of its properties of use in liquid form where it has advange of usage in Indian market. They have carban black capacity of 1.2 LMTPA ( proposed to increase by 30,000 MTPA) and Advance carbon material proposed to increase to 20,000 MTPA
Though PE and PS ratio or capacities of Rain industries( 24 and 1.1) are much better as compared to Himadri ( 45 and 4.2) however D/E ratio of himadri is lower than Rain.
Himadri Management in its concall said they are concentrating on high margin value added product . It has developed zero QI ( quinnolene insoluble) pitch ( one of three global manufacturer) , special pitch for long range missile and SNF for non construction ( agrochemical, gyspum) . Himadri is only producer in India for Anode material for Li-ion battery.
Both CPC and CTP are used in Aluminium industry smelting and for making Graphite electrode. Rain is Global co with huge capacities but himadri looks interesting too looking at product portfolio and continous R&D in Advance carbon product and capacity expansion.
Recent capacity addition will be done by equity infusion of 628 cr for which shareholder approval has been taken.