Vinati Organics Ltd

Key products
IBB: #1 manufacturer with a global market share of 65% as of FY20. ^# IBB is the raw material for ibuprofen and Vinati is one of the largest global producer of IBB. The current installed capacity is 25'000 MTPA. ^#

ATBS: #1 manufacturer with a global market share of 65% as of FY20. ^# Its a patented product with patent expiring in March 2022. ^# ATBS is used to make polymers used in water treatment, shale gas recovery, oil recovery, paints, deep oil & gas wells, etc. About 25-30% of ATBS demand comes from the gas and oil sector. ^# The current installed capacity is 40'000 MTPA ^#

Product selection criterion
Only produce niche chemical products with a target of 15-20% return on investment and a payback period of upto 5 years.
The process of production should be clean and green, with a potential to convert the generated residual waste into other products, thereby minimizing waste generated and also creating an additional revenue source. ^#
There should be a barrier to entry through a unique process or an integration with existing products (eg: manufacturing of butyl phenol which uses IB as raw material that is already being manufactured by the company). ^#
Company targets import substitute products (eg: Manufacturing of ATBS, butyl phenol, etc.)

Future product pipeline

Butyl phenol: This includes a basket of ~6 products used in sectors like agrochemicals, plastics, cosmetics, etc. These are mostly import substitution products and Vinati Organics has setup a capacity of 35'000 MTPA with peak potential revenues of 350-400 cr. Company will be competing with imported products coming from Korea and Singapore.^{# #}

Miscellaneous:
Do not have any major dependence on China for input sourcing. Instead, China is a market where company sells IB ^#
Works on a cost plus model and can pass on raw material price increases to the end customers. ^#

Company has been unsuccessfully trying to make P-Amino Phenol (PAP), which is used in manufacturing paracetamol, using a cleaner and greener process since 1998. ^#