Chemplast Sanmar Limited, a part of the Sanmar Group, is a leading manufacturer of Specialty Chemicals, including Specialty Paste PVC resin and Custom Manufactured Chemicals serving the agrochemical, pharmaceutical, and fine chemicals sectors. The company also produces other essential chemicals such as Caustic Soda, Chlorochemicals, Hydrogen Peroxide, Refrigerant gas, and Industrial Salt, positioning itself as a comprehensive chemical solutions provider in India.
With a legacy spanning over fifty years, Chemplast Sanmar is a constituent of the Sanmar Group, one of South India's oldest and most prominent corporate conglomerates. The company has cultivated strong international partnerships, notably with Fairfax India Holdings Corporation (Fairfax), a well-regarded international investor led by Mr. Prem Watsa, based in Canada. Fairfax, through FIH Mauritius Investments Limited, has been an investor in the SHL Chemicals Group since 2016.
Chemplast Sanmar operates its manufacturing facilities strategically located in Mettur, Berigai, and Vedaranyam in Tamil Nadu, and Karaikal in the Union Territory of Puducherry. The company holds the distinction of being the largest manufacturer of speciality paste PVC resin in India, the third largest manufacturer of caustic soda, and the largest manufacturer of hydrogen peroxide in South India.
The company's business model is characterized by a strong emphasis on vertical integration. The Chlorochemicals division of Chemplast, itself a result of the Group's backward integration efforts, exemplifies this strategic approach. This integration enables Chemplast Sanmar to maintain cost-effective production while ensuring stringent quality control across its entire product portfolio.
For the first quarter of Fiscal Year 2025 (ending March 2025), Chemplast Sanmar reported consolidated net sales of Rs 1,150.88 crore, representing a year-on-year increase of 9.53%. Despite a significant EBITDA increase of 50.65%, the company registered a net loss of Rs 54.17 crore for the quarter. As of March 2025 (Q1 FY25), the company's revenue stood at ₹1,150.88 crore with a net loss of ₹54.17 crore.
For the full financial year FY24, the company faced financial challenges, recording revenue of ₹4,346 crore and a loss of ₹110 crore. In the fourth quarter of FY25 (Q4FY25), Chemplast Sanmar's total income was ₹1063.34 crores, a decline of 9.7% compared to ₹1177.76 crores in Q4FY24.
As of recent data, Chemplast Sanmar Limited has a market capitalization of ₹6,748 crore. The promoter holding in the company is a majority at 54.99%. Domestic institutional investors hold a significant portion at 25.81%, with mutual funds accounting for 24.11%. The promoter holding is consistently reported at 55.0%.
The company was previously delisted in 2012 with a market cap of ₹1,189 crore, following losses incurred during the global financial crisis of 2008-09. It was subsequently relisted in 2021 with a market capitalization of ₹8,553 crore.
Chemplast Sanmar has announced a substantial investment of Rs 340 crore in a new refrigerant gas facility. This strategic investment is aimed at further strengthening its position within the competitive specialty chemicals market. The company maintains an optimistic outlook for growth, driven by expected improvements in pricing and sustained demand. This investment underscores the company's dedication to expanding its specialty chemicals portfolio and capitalizing on emerging market opportunities.
During the financial year 2018-19, the Suspension PVC Business of the Company was demerged as a going concern and vested with Chemplast Cuddalore Vinyls Limited. Subsequently, the Company's holding company, Sanmar Speciality Chemicals Limited, was merged with Chemplast Sanmar Limited, effective from April 1, 2018.
Chemplast Sanmar is led by Chairman Vijay Sankar. The most recent reported Annual General Meeting was held on August 8, 2024. The company's board comprises 8 directors, including prominent figures such as Prasad Raghava Menon and Vijay Sankar.
The company adheres to high standards of corporate governance and has garnered recognition for its operational excellence. In April 2022, CRISIL Ratings upgraded the ratings for both the company and its wholly-owned subsidiary to 'AA-/Stable' for long-term bank facilities and 'A1+' for short-term bank facilities.
As a committed corporate citizen, Chemplast Sanmar has consistently strived to enhance its manufacturing processes by adopting new technologies. The company has been a pioneer in the chemical industry through its innovative selection of feedstocks and manufacturing processes, coupled with efficient and eco-friendly practices. Its ongoing development of environmentally friendly production processes has led to a reduced consumption of valuable natural resources.
The company's dedication to sustainability is evident in its continued investment in cleaner technologies and processes, positioning it favorably to meet future regulatory requirements and evolving market demands for environmentally responsible manufacturing.
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