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Why will Laxmi Organics grow? | Management Interview with Mr Ravi Goenka | Laxmi Organics IPO

Original: Laxmi Organics ఎందుకు Grow అవ్వనుంది? | Management Interview with Mr RaviGoenka | Laxmi Organics IPO

47.2K views · Mar 13, 2021 · 22:57 min · Watch on YouTube ↗
Takeaway

Laxmi Organics combines acetyl-scale leadership with niche Clariant/Miteni-acquired technology for fluorochemicals — strong moat for IPO investors.

Summary

  • Laxmi Organic Industries is a specialty chemical manufacturer making everything from acetyl intermediates to complex molecules used in agro, pharma, paints, flexible packaging (Lays, Maggie, shampoo sachet printing) and yellow pigments
  • Two competitive moats: scale (~500,000 tons/year, one of 3-4 mega sites globally for acetyl intermediates, 30% India market share, 50%+ of India exports) and technology (acquired Clariant Swiss specialty intermediate business 10 years ago — only producer in India)
  • Fluorochemical business is the next big growth runway — $10 billion global market with $1B+ imported into India; acquired Miteni's plant, machinery, technology, patents
  • Capex: ₹230-250 crore in fluorochemical business plus specialty intermediate expansion with long-term multinational contract
  • Has captive hydro power covering 60%+ of needs; IFC (World Bank arm) was an early investor and exited successfully
Laxmi Organicsspecialty chemicalsIPO
Original description
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What is in for you?
00:00 : Intro  
04:12 : Entry Barriers and Moat 
07:22 : Company Journey 
10:12 : Strength over Peer group Comparison
10:52 : About own power plants 
12:15 : Advantages with Miteni Acquisition
16:49 : Why that the growth is low in the last 3years 
19:37 : Why should I invest in Laxmi Organics

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