Jubilant Industries - Repeat

CMP = 126

Jubilant Industries Ltd is the flagship Company of Agri and Performance Polymers business of the Jubilant Bhartia group.  It is leading producer of Agri and Performance Polymer products comprising consumer products like adhesives, wood finishes, application polymers like emulsion polymers, food polymers and latex such as vinyl pyridine, SBR, NBR latex, Crop Nutrition, Crop Growth, Crop Protection and IMFL. Company  offers broad range of technology based products and solutions to customers in India as well as globally. 

Performance Polymers

Performance polymers are having specific properties like temperature stability, chemical stability, mechanical properties and find wide range of application as given below.

Food Polymers

Jubilant Industries ranks No. 1 in India and one of the three major global suppliers of Polyvinyl Acetate (PVA). PVA is the major raw material for making gum base for chewing gum and bubble gum.

The Product is manufactured at a modern "state of art "manufacturing facility at Gajraula (UP). All grades of PVA have been developed by extensive in-house R&D efforts and technology improvements and conform to international standards and food Grade quality. PVA products are sold under the trade name of VAMIPOL.

All grades of the product comply with the Food Chemical Codex V and US FDA. The products as well as the manufacturing facilities are accredited with ISO 9001, ISO 14001 and OHSAS 18001 certifications. Products and the manufacturing facility are Kosher certified.

Jubilant boasts of a customer profile which includes the market leaders worldwide, in the chewing gum industry. Some of these are - The WM Wrigley Jr. Company, Cadbury (The Kraft foods Company) & Perfetti Van Melle Company. Jubilant is now expanding its portfolio of products in order to have a wider offering of food grade chemicals.

Latex

Jubilant Industries ranks No. 1 in India and is No. 2 globally, for manufacturing VP Latex (Vinyl Pyridine Latex) used in dipping of automobile tyre cord and conveyor belt fabric.

Company also produce SBR latex for use in tyre cord fabric. Company is bulk suppliers of these lattices to various tyre OEM's and dippers located globally. NBR latex used in automotive gasket binding applications. VP latex products are sold under the trade name of ENCORD.

These various grades of latex are manufactured in Samlaya. The manufacturing facilities are accredited with ISO 9001, ISO 14001, OHSAS 18001 and REACH certifications.

Consumer Products

The consumer products are sold under brand name of 'JIVANJOR' and it is the second largest brand in the wood adhesive and finishing sector after Fevicol (Pidilite Industries). Jivanjor brand is focused on providing complete range of woodworking solutions ie adhesives & wood finishes, footwear adhesives and epoxy sealants to the customers with nationwide network setup.

Woodworking Adhesives

Jivanjor offers a range of ready to use wood adhesives, which are suitable for most wood joinery purposes. They are very popular and effective assembly adhesives in the woodworking industry. Water based adhesives comprise of All Rounder, Polystic Hero, and Vambond Excel. These are ready to use adhesives which set rapidly at room temperature & offer superior bond strength to users. Jivanjor also offers contact adhesive Champion which is a synthetic rubber based adhesive for exceptional fast drying & vertical lamination. Jivanjor adhesives are available in attractive packaging & in various pack sizes

Footwear Adhesives

Jivanjor offers a range of footwear adhesives suitable for most shoe components bonding purposes. The range of footwear adhesives comprises synthetic rubber based adhesives and the hugely popular two component polyurethane adhesives. The rubber based adhesives, which include RB 1001F, RB 1003, RB 1005 and FOAMBOND find huge popularity with upholsters & footwear manufacturers. On the other hand, the two component polyurethane adhesives, which include PU 2000, PU 2001, and PU 2002, are indispensable raw material for footwear manufacturers. These products guarantee superior bond strength in stringiest conditions.

Epoxy Sealants

Jivanjor offers a wide range of epoxy sealants ideal for any repair job like small crack and leakages in a very short period of time. The variants include Plumber’s seal, Mix n Fix, Fast Seal, White Putty, 10 Minute Putty, Industrial Grade Epoxy and Wet Set. These are uniquely fresh scented and soft enough to be molded into any shape, they have a very short curing time and display exceptional strength once they are fully cured. These can be sanded, drilled, sawed and painted upon to give the desired look. Jivanjor adhesives are available in an attractive packaging & in various pack sizes for convenience in use.

Wood Finishes

Jivanjor offers complete wood finishes system, stains and ancillaries for decoration & protection of wooden furniture. The wood finishes system includes Polyurethane finish, Melamine Non Yellowing finish, Melamine finish, Nitrocellulose finish & PU Alkyd finish. These systems offer exceptional fast drying properties, tough coatings and superior resistance. Jivanjor also offers a wide range of stains that can be mixed to generate unique colours to suit every desire. Jivanjor also offering ancillaries like sealers & thinners required for the purpose of successful application. The finishes systems are supported by technical team which provides intense technical training.

Agri Products

Jubilant offers a range of products in crop nutrition, crop growth regulator and crop protection areas under the brand “Ramban”, which is a widely accepted brand in the market. Jubilant is the leading manufacturers of Single Super Phosphate (SSP) in India which is also the largest selling product under the Ramban umbrella.

Crop Nutrition

This category of chemicals primarily aid in root and shoot development and increasing the crop yield. They help to provide conditioning to soil and fight against crop diseases. Jubilant “Ramban” brand is highly regarded in major parts of country by farming community for its quality, consistency and reliability.

RAMBAN SSP (Single Super Phosphate, Granule and Powder)

BENTOSULPH (Bentonite Sulphur 90%)

RAMBAN BHOO SANJEEVANI (Organic Manure)

NUTRA PLUS (Water Soluble NPK)

SULPHA GOLD (Sulphur 90% DP)

Crop Growth Regulator

The chemicals under this category primarily help to improve the strength and resistance of crops and curtail the unwanted vegetative growth, saving time and thus increasing the yield. Jubilant crop growth regulators are being used by the farmers to ensure the right growth of plant by balancing different crop life cycle stage. Jubilant offers product to increase crops growth and balance maturity.

VAM C(Chlormequat chloride 50% SL)

Power Plus 500 – Granules (Triacontanol 0.05% granules)

RIPEX (Ethephon 39% SL)

Crop Protection

Jubilant has a wide range of products that covers different aspects of crop protection. The products are used from seed planting to harvesting stage thus ensuring a secure yield for farmers. During crop complete life cycle plants are being destroyed by insects, pests, weeds & fungus.

Jubilant offers a wide range of products for protection of crops. They are primarily classified as fungicides, insecticides and herbicides.

Fungicides

Fungicides exhibit protective as well as curative action and help to control fungal diseases.

1.Vozim (Carbendazim 50% WP)

2.HEXON (Hexaconazole 5% EC)

3.Vozim Plus (Carbendazim 12% + Mancozeb 63% WP)

Insecticides

Insecticides effectively guard against chewing and sucking insecticides.

IKON (Imidacloprid 17.8%, SL )

CARTEX (Cartap Hydrochloride 4% G)

ALTER (Alphamethrin 10% EC)

CYMAX (Chlorpyriphos 50% + Cypermethrin 5%)

RAIDER (Chlorpyriphos 20% EC)

Herbicides

Herbicides to control unwanted weeds growth.

1.FIRE (Pretilachlor 50% EC )

2.CLODINOX (Clodinafop Propargyl 15% WP)

Industrial Chemicals

Sulphuric Acid H2SO4 98.4%

Sulfuric Acid (H2SO4) is a strong mineral acid. It is a basic raw material used in a wide range of industrial process and manufacturing operations.

Sodium silicofluoride - Na2SiF6 [Technical Grade]

Sodium silicofluoride is formulated for cement additives, glass industries, ceramics and allied industries. It is white amorphous powder that comprises of high grade chloride, phosphate and allied compositions.

Indian Made Foreign Liquor ( IMFL)

Jubilant Industries has been manufacturing IMFL products for the various established brands in India, engaged in liquor business. Total installed capacity is 100,000 cases/month for IMFL. With a configuration of 5 automatic/semi-automatic lines we can handle all sizes of bottles.

All lines are equipped with required Vats for storage of ENA and labeling machines which provides flexibility for bottling various sizes of IMFL. Manufacturing unit at Nira is fully equipped with state of art laboratory to support product quality and standards.

Research & Development

Jubilant's technical expertise and experience enables maximization of efficiencies and profitability. State of art R&D Centre is based in Noida with team of qualified scientists work constantly on developing customized solutions for diverse end applications .

Distribution Network 

Jubilant Industries has geographically diversified manufacturing facilities situated across India at Gajraula (UP), Kapasan (Rajasthan), Sahibabad (UP), Samlaya (Gujarat) and Nira (Maharashtra). Corporate Office is situated in Noida (UP). Jubilant consignee warehouses are located on the different  high demand locations to ensure the smooth and efficient supplies.

Investment Rationale

We had bought Jubilant Industry in August 2016 at Rs 163 and stock has given good returns in next 6 months and gone up to Rs 417 in Feb 2017. After that company was unable to perform well as expected due to unfavorable market conditions. In last 3 years, company management has taken some below given excellent decisions which has ensured the turnaround of the business. Company has posted eps of Rs 15.18 for first half of the year and it is expected to improve further in coming quarters. It is first time in last 8 years, the company is going to post positive yearly results.

Rejig in Top Management 

Rejig in top management of Jubilant Industry is a strategic move of Jubilant Bhartia Group to give more focus on business by promoters and to pass the baton to next generation so that they can prove their management capabilities by making turnaround of loss making business.

Appointment of  Priyavrat Bhartia as the Chairman of the Company.

Appointment of Manu Ahuja as Chief Executive Officer & Managing Director

Appointment of Abhishek Mishra as Company Secretary & Compliance Officer

https://www.bseindia.com/xml-data/corpfiling/CorpAttachment/2017/7/46c6c56a-4f73-406b-827c-e85ac017715b.pdf

Fresh Capital Infusion

Company has raised 42 crores capital by issuing Allotment of Equity Shares and Convertible Warrants to the promoter @ 135.95 rupees per shares. Promoters shareholding with  this preferential allocation has gone up from 68% to 75%. It has helped the company to reduce the debt and interest cost. 

https://www.bseindia.com/xml-data/corpfiling/CorpAttachment/2018/12/9f189d3d-33b3-4757-b755-03252c36ac0d.pdf

Re-Utilization of Idle Asset

Company has decided to re-commence the operations of manufacturing facility located at Kapasan, Rajasthan which was temporarily discontinued the operations due to unfavorable market conditions in 2016

https://www.bseindia.com/xml-data/corpfiling/AttachHis/7a791416-8f74-4de0-9dc9-f64395d230ca.pdf

Agri and Performance polymers business are evergreen  and huge future growth potential.  Jubilant Industry product portfolio is having several well  known established brands in their respective segment.

Jubilant management has given focus to promote consumer product brand 'Jivanjor' more aggressively to gain further market share by improving brand visibility and expanding distribution footprint pan India. The business will also focus on expanding reach in OEMs and in Project channel. A big chunk of adhesives produced are consumed by plywood, veneers and laminates sector. Indian plywood market is  growing at 7-8 percent and is expected to continue such growth in future. 


Even though woodworking adhesives market is dominated mainly by Pidilite  but Jubilant Industries has lot of scope to expand its market share because adhesive industry has been growing at good pace with increased activity in real estate, new construction & renovation.


Wood Finish market is dominated by Asian Paints in retail channel. The end users are upgrading from basic varnish and nitrocellulose finishes to more value added finishes like melamine and PU (Polyurethane) for superior aesthetics and performance. The premium segments are driving rapid market growth and products demand of Jubilant Ind is also increasing at similar rate.  


Quality wise Jubilant consumer products are meeting or exceeding its main peers like Pidilite and Asian Paints.


Performance Polymers business alone generating consistent revenue near 400 crores and now with increased focus on Agri and consumer products it will increase profit and margins. 

Conclusion

Jubilant Industries is well diversified company with evergreen product portfolio with brands like Vamipol (1st in food polymer in India), ENCORD (1st in VP Latex in India),  Jivanjor (2nd largest after Pidilite) and Ramban (3rd largest in India) as well as world leadership position in Food Polymer & VP latex segments. 

Jubilant Bhartia Group is well known for business ethics and integrity. Promoters are having excellent business track record with three listed flagships Companies - Jubilant Life Sciences Limited, Jubilant FoodWorks Limited and Jubilant Industries Limited.

Market capital of Jubilant Industry is only 179 crores with annual turnover above 600 crores.  It is excellent investment opportunity at cmp Rs 126 for both mid  term and long term ( 2 year to 5 years ). It can be bought + / - 10% from cmp with 10-20 % of portfolio allocation.