Good point, has there been any regulatory action against them so far?
Recently in 2019, they had fires at one of their plants which led to subdued FY20 numbers. https://www.bseindia.com/xml-data/corpfiling/AttachHis/d7f4dbf2-2966-4b29-99ef-1a4b1cb4a1ba.PDF
Also, in the past (2009), there was fire incidence which led to them defaulting on their debt obligations. But this is part of any chemicals business.
These two are the only incidences which I could find, and this is pretty normal for chemical companies.
If we look at compliance certificates, Punjab Chemicals mention in their presentations about their facilities being zero liquid discharge + REACH compliance certificate + in-house incineration facility for organic waste. I found an interesting TOI article on their facility being used by local authorities to dispose drugs (heroin, ganja, etc.).
I have been unable to find anything where the company has come in crosshair with regulatory authorities in terms of environment compliance issues, can you point me to a relevant source?
Thanks for sharing these numbers, these are for metconazole only, right? I am also adding my notes related to metconazole
- It’s a triazole fungicide, Punjab most likely supplies it to Kureha or Sumitomo (based on US import data)
- Rallis supplies metconazole to Kureha under contract manufacturing arrangement. There was a destocking in metconzole in FY21 (this was mentioned in Punjab’s Q2FY22 concall). This was also mentioned in Rallis’ concall
- Metconazole sales for Punjab: 195 cr. in FY20, 50 cr. in FY21 (mentioned in Q2FY22 concall)
Disclosure: Invested (with transaction in last 30 days), position size here