Thank you.
Based on my limited search, the company does have a higher than ordinary pending litigation cases. Their 2020 annual report itself lists some 25+ legal cases pending related to pollution norms.
Started going through conference calls, there are no direct questions so far but indirectly there are many cases where either plant opening was delayed etc. as they didn’t meet pollution control standards.
Here is one, where their Nira plant was delayed. This is from June 2019 conference calls.
Will keep posting more evidence as I find more.
From what I have read so far and compared for peer companies of same stature, two things are evident
a. Jubilant has significantly higher pollution related cases than its peers
b. The quantum of these cases is not limited to a single plant but spread across the business, so seems like a culture issue to me
Peers like Vinati and Deepak do not enter markets unless they can enhance processes via green chemistry where as Jubilant seems to have a culture of growth at all costs.
Edit: More evidence of growth at all costs kind of culture. One of their US subsidiary was fined by USEPA for breaking pollution norms. Taken from March 2019 exchange filings.
D: Invested, sadly its 3rd highest allocation in my PF. May bring it down as regulatory risks seem high