Zee Business Managing Editor Anil Singhvi today said that Laxmi Organic Industries was incorporated on May 15, 1989. The company is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost 3 decades of experience in large scale manufacturing of chemicals.

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Laxmi Organic is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market. Laxmi Organic Industries products are currently divided into 2 broad categories, namely the Acetyl Intermediates (“AI”) and the Specialty Intermediates (“SI”). The Market Guru spoke to Laxmi Organic Executive Director – Strategy & Business Development and Partha Roy Chief Financial Officer (CFO).

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Laxmi Organic Industries share price today is Rs 182, up Rs 18 or 10.8%. The stock price witnessed sharp buying after getting listed yesterday. The offer price for the share was Rs 130 and the share price closed at Rs 164.45 yesterday. Analysts say that many broking houses and fund managers like this speciality chemicals company. The management of the company is extremely focussed and experienced which will perform extremely well going forward.

Laxmi Organic management said that they will focus on growing investor’s wealth from here on and work towards improving the performance of the company going forward.

The company has already planned a capex of Rs 500 cr. They are going to invest the money in the fluorochemical and speciality chemical business. The technology will be transferred from Italy to a new greenfield site. Companies’ vision is to set up contract manufacturing on a bigger scale. This will be a 5 years contract. The company is working on 2 or 3 similar kinds of products and the company will work towards establishing those products in future.

Laxmi Organics management says that the company has been growing consistently since past 10 years on all parameters. Revenue, EBITDA Line and Net worth all have good growth trajectory and they all have seen strong growth. The company will strive hard enough to ensure that they can maintain the growth trajectory. The company will consistently strive harder to grow via changing product profiles.  The management is reasonably confident that they will be successful in serving their customers, in growing the shareholders wealth and meeting the expectations of all stakeholders.

Laxmi Organic management said that measuring Speciality Chemicals Business on Capacity Utilisation basis is not the right thing to do. It depends on the product mix; some products may have lesser capacity utilization but can generate higher revenue. New Product launches will generate growth for the business of the company going forward.