Jubilant Ingrevia is a part of the Jubilant Bhartia Group, a diversified global conglomerate with global workforce of around 45,000 employees, founded by Mr. Shyam S. Bhartia and Mr. Hari S. Bhartia. Jubilant Ingrevia is Innovative Solutions provider serving, Pharmaceutical, Nutrition, Agrochemical, Consumer and Industrial customers with customised products and solutions that are innovative, cost-effective and conforming to excellent quality standards.
Senior Leadership Messages on 1st Anniversary
https://www.jubilantingrevia.com/video/jil_lr3.mp4
https://www.jubilantingrevia.com/video/jil_lr2.mp4
https://www.jubilantingrevia.com/video/jil_lr4.mp4
Jubilant Ingrevia offers a broad portfolio of high-quality ingredients that find application in a wide range of industries. Jubilant Ingrevia’s portfolio also extends to custom research and manufacturing for pharmaceutical and agrochemical customers on an exclusive basis. Jubilant Ingrevia has presence across mainly three segments Speciality Chemicals (26% of revenue), Nutrition and Health Solutions (15%) and Life Science Chemicals (59%), with strong backward integration and a leading market position.
Jubilant Ingrevia has 61 plants at 5-sites in 3 states (UP, Maharashtra, Gujarat) across India and a diversified end-consumer base (Pharma: 43%, Nutrition: 7%, Agro: 23%, Industrial: 26%). Company manufactures over 100 products and sells to 1,400 customers globally.
Key Highlights
Multi-location Plant Advantage
Manufacturing for Global Markets with Global Scale Capacities
NABL Accredited QC Laboratories with Standard ISO/IEC 17025:2005 Certification
Edge to Operate in a Wide Arrays of Temperature / High-Pressure Range
Expertise in 35 Key Technology Platforms for Sustainable and Green Manufacturing
Compliance to REACH, FAMI-QS, KOSHER, FSSC 22000 and other industry standards
Two of largest life science chemical manufacturing plants, Gajraula & Bharuch units along with HO Noida are also certified under RC 14001:2015 based responsible care management system
Gajraula & Bharuch units are certified for ISO 50001 based Energy management system
All Sites are certified for ISO 9001, 14001, 45001
Adopted latest technologies for environment treatment facilities.
Company has enough land bank for future expansions.
Industry Applications
Pharma
Jubilant Ingrevia has a strong portfolio of bulk and fine Ingredients that are used as intermediates in more than 280 APIs of various therapeutic segments. The company is 'partner of choice' to the top pharmaceutical customers.
Jubilant being fully backward integrated with most of these products provides cost-effective, reliable and long-term sustainable solutions to all its valuable customers.
Animal Nutrition
Jubilant Ingrevia is a leading provider of nutritional solutions for the Poultry, Dairy, Aqua farming & pet food industry. In feed vitamins, Jubilant Ingrevia has a dominant global standing being the 2nd largest producer of Vitamin B3 (Niacinamide and Niacin). Jubilant Ingrevia is also India’s largest producer of Vitamin B4 (Choline Chloride).
In-feed specialties and premixes, Jubilant Ingrevia offers a range of performance enhancement and disease prevention products for integrators, feed millers, and commercial farmers, thus helping them to continuously increase their returns on investments.
Human Nutrition
Jubilant Ingrevia is a leading supplier of a select range of vitamins, trace mineral complexes and food flavouring agents built on a strong integrated business model.
In vitamins, Jubilant Ingrevia has a dominant global standing being the 2nd largest producer of Vitamin B3 (Niacinamide and Niacin). It is extensively used in dietary food supplements, enrichment of breakfast cereals and flour, beverages and energy drinks, infant formulas, baking and confectionery.
Personal & Consumer Care
Jubilant Ingrevia has a niche portfolio of multi-purpose ingredients having broad-spectrum applications like anti-microbial action, skin barrier function, anti-aging and wrinkle reduction to name a few.
These are widely used in anti-aging and acne skin care creams, hair care- shampoos, conditioners and colouring treatments, Face and body moisturisers, toiletries, toothpaste and eye creams.
Other Industrial Uses
Jubilant Ingrevia has a broad range of intermediates used as reactants, solvents and catalysts - across several industries– electronic, paints and coatings, sealants, adhesives, packaging, textiles, grouts and patching compounds.
Investment Rationale
Jubilant will benefit from robust growth in specialty chemicals business and its focused initiatives to diversify from their nutrition business and move towards higher value added areas like Pharma and cosmetic-grade vitamins. As the proportion of sales of speciality products rises over the next one year. Three Multi-Purpose plants of Speciality Chemicals is expected to be in operation during the quarter July to September 2022. Company has planned capex outlay of ~Rs. 450 crores for following growth expansion. At peak capacity these investments are expected to generate additional annual revenue of ~Rs. 900 -1000 crores at prevailing prices.
Jubilant has 60+ products in pipeline across its business segment for next 5 years. It includes 32 in Speciality Chemicals, 24 in Nutrition & Health Solutions and 7 in Life Science Chemicals. Food Grade Acetic Acid plant is expected to be in operation during the quarter April to June 2022.
Jubilant Ingrevia has forayed into Diketenes chemistry. Last month the company has started commercial production at new facility for Diketenes & value-added Diketene derivatives. It is one of the few global companies capable of handling large volume of ketene. India is importing around 40% Diketenes of total demand, which will help Ingrevia to capture higher market share with reduced pricing impact. At present Laxmi Organics is sole Indian manufacturer with 55% market share.
Jubilant Ingrevia is the largest producer of Niacinamide. It has 19% global market share in Vitamin B3 and 60% domestic share in Vitamin B4 market. Going forward, the company plans to expand Vitamin B3 capacity by ~20% from current 13,000 MT/ Year and launch various value-added grades of Vitamin B3. It has envisaged an capex of Rs. 100 crores for the same over next 3 years. Agro Actives Phase-1 is expected to be in operation during the quarter Jan to March 2023.
The company globally # 1 in 14 Pyridine Derivatives including Pyridine and Picolines (22% global market share), Gamma Picoline (30% global marketshare), Cyanopyridines (26% global market share), Lutidines (55% global market share), Cetyl Pyridinium Chloride (52% global market share). Globally among top-2 manufacturers of Acetic Anhydride and and largest manufacturer of bio-based Acetaldehyde. Leader in domestic market in Acetic Anhydride and Ethyl Acetate since last 4 decades. New Acetic Anhydride Plant is Expected to be in operation during the quarter Jan to March 2023.
In Speciality chemicals, the company serves 15 of top-20 global Pharma and 7 of top-10 global agrochemical companies. Company has 9% global market share in Life Science Ingredients and 10% domestic market share in speciality alcohol segment.
Contract development and manufacturing (CDMO) portfolio provides customised solutions for the pharmaceutical and agrochemical industry. Strong synthetic, organic chemistry and manufacturing capabilities makes the company one-stop shop for CDMO services for global pharmaceutical and agrochemical customers. It is a ‘Partner of Choice’ in CDMO services with a strong pipeline catering to 420 clients globally and has a strong track record of building diversified scale and capacities across niche categories. New CDMO GMP Facility at Bharuch is expected to be in operation during the quarter July to Sept 2022.
The company enjoys a strong moat of being a lowest cost producer of Pyridine –Beta & all value added products globally. The company has a very diversified customer base (top-10 accounting for 20% sales). Company gets better pricing from smaller customers.
Jubilant Ingrevia is the lowest cost producer and fully backward integrated in its all verticals. Expanding geography and adding value-added Vitamin B3 in Pharma, cosmetic etc. There is growing demand of speciality animal nutrition products. New world class multi-product facilities for pesticides and company is moving up the value-chain from existing products to produce agro-active.
Jubilant Bhartiya Group has well proven successful track record and company has negligible debt.
Conclusion
Jubilant Ingrevia is scaling up in the existing products and new products launches across its verticals. It will enable the company to double its revenue in next 2-3 years. The company has created strong moat with forward and backward integration of its all verticals. There are huge growth possibilities for the company on the back of strong demand environment, healthy market share, major capex programme, new additions of products and China+1 policy adopted by the companies worldwide. Recent market correction has given one of the best investment opportunity at cmp Rs 472 for both short term and long term ( 1 year to 5 years ). It can be bought + / - 15% from cmp with 10-20 % allocation.
