Paushak Ltd. - Alembic's agrochemical business


(Few important points from Annual report 2022 and credit rating @july 2022)

1 …Backward integration

=Operating profitability remained strong at 36%, owing to a high degree of backward integration in the form of phosgene gas manufacturing capacity, even as the rest of the industry reeled from increasing input prices

=Backward integration of operations has led to robust operating margin (36% in fiscal 2022 and 35.8% in fiscal 2021). Return on capital employed was healthy at 15.7% in fiscal 2022. While most of the specialty chemicals industry depends heavily on imports for their raw material supplies, the company has a low import bill.

2…Revenue growth

=The full year benefit of enhanced capacity amidst steady product prices should lead to about 30% revenue growth in fiscal 2023, while operating profitability is expected to sustain at about 30% over the medium term.

3…The company is one of the few players licenced to manufacture phosgene gas, which is highly restricted by the government.


A…Phosgene Capacity expansion

=We have completed our first round of capex programme & tripled our Phosgene Capacity while commissioning a new Phosgene plant of 14400 MT/Year (1200mt/month)

B…Multi-purpose plant

=Along with this, we have also commissioned a new
Phosgene Derivatives/ multi-purpose plant with supporting utilities, etc. This entire new set up is highly automated andmatches global standards of plant design, safety and operational efficiency while reducing manpower requirements substantially.

=The new plants are fully functional now contributing to sales from fourth quarter of financial year 2021-22

=It is also a matter of pride for us, we have become first large scale commercial supplier of such products in India and will fulfil major domestic demand while reducing imports and saving foreign exchange

C…Future capex
=The company continues to have moderate capex plans averaging Rs 40-50 crore per annum over the medium term, which will be funded largely through internal accruals, thus building up its downstream capacities.


=Revenue growth has picked up in the past four years, driven by diversification of customer base and product portfolio.

=Apart from pharmaceuticals, the company now caters to other sectors such as agro-chemicals and performance-based materials


=With the commissioning of the upstream and downstream capacities, we are focusing to expand domestically and globally while further expanding our operations.

= We are committed to invest more to create downstream capacities while developing newer technologies and product portfolios & improving our R&D capabilities.

= We have hired more technical resources with focus to grow capabilities. The new plants, just commissioned, will also catalyse our growth while demonstrating our technical capabilities, commitment and our vision to become a global technology leader in Phosgene and derivatives while creating niche for us & will help us to continue to be “Partner of Choice” for our customers.


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