Himadri Acquires Three Firms in Q1 FY 24

Himadri Speciality Chemical Ltd (HSCL) has made significant strides in Q1 FY 24 by acquiring stakes in three companies: Sicona, Invati Creations, and Birla Tyres Ltd. These strategic acquisitions align with Himadri's long-term goals of enhancing its presence in high-margin niche markets and venturing into new segments such as battery materials and tyre manufacturing.

Sicona Acquisition: 

Himadri acquired a 12.79% stake in Sicona, an innovative Australian startup specializing in high-capacity silicon anode technology for lithium-ion batteries. Sicona’s silicon-composite anode technology delivers 50% to 100% higher capacity than conventional graphite anodes, resulting in more than 50% higher cell energy density than current Li-ion batteries.

Sicona uses scalable and efficient manufacturing processes to produce its high-performance anode materials, positioning itself as a key player in the global battery market.

Invati Creations Acquisition: 

Himadri acquired a 40% stake in Invati Creations for Rs. 45.16 crores. Invati, founded by alumni from IIM Kolkata and IIT Kharagpur, focuses on engineering lithium-ion electrode materials for efficient energy storage and longer battery life.

The company engages in R&D of nanotechnology solutions for various industries, including agrochemical, animal health, and energy storage. Invati holds multiple patented technologies and is known for developing the first-ever broad-spectrum antiviral drug molecule.

Birla Tyres Ltd Acquisition: 

In collaboration with Dalmia Bharat Refractories Limited (DBRL), Himadri participated in the corporate insolvency resolution process of Birla Tyres Limited. The resolution plan was approved by the NCLT, Kolkata Bench, on October 19, 2023.

The total acquisition cost for Himadri was Rs. 306 crores, with additional capex required to make the plant fully operational. The acquisition is seen as a forward integration step, allowing Himadri to move into the tyre manufacturing sector and leverage its existing expertise in carbon black production for tyres.

These acquisitions reflect Himadri's strategic vision of expanding its capabilities and presence in high-growth markets, reinforcing its commitment to innovation and sustainability.

Get the full Announcement Here 

Himadri Q1 FY 24 Financials

Himadri Speciality Chemical Ltd (HSCL) has announced impressive financial results for Q1 FY 24, demonstrating strong growth and a robust balance sheet. The company has reported record increases in key financial metrics, highlighting its operational efficiency and strategic initiatives.

Financial Highlights:

• Revenue: Himadri's revenue grew by 26.2% year-over-year (YoY), reaching ₹1,200 crores in Q1 FY 25, up from ₹951 crores in Q1 FY 24. This consistent increase in revenue is backed by a strong sales volume growth, driven by the addition of new speciality product lines.
• Sales Volume: The company achieved a record sales volume of 1,39,175 metric tons (MT) in Q1 FY 25, marking a 37.8% YoY increase from 1,01,030 MT in Q1 FY 24.
• EBITDA: Himadri's EBITDA increased by 43.4%, reaching ₹188 crores in Q1 FY 25 compared to ₹131 crores in Q1 FY 24. This significant growth is attributed to a change in product mix and improved operating efficiency.
• PAT (Profit After Tax): The company reported a 40.8% increase in PAT, amounting to ₹123 crores in Q1 FY 25, up from ₹88 crores in Q1 FY 24.

Balance Sheet Strengthening:

Himadri has successfully upgraded its credit ratings, reflecting the company's improved financial stability:

• Term Loan: Rated ICRA AA- (Stable)
• Fund Based + Non Fund Based: Rated ICRA AA- (Stable)/ICRA A1+
• Commercial Paper: Rated ICRA A1+

The company has achieved a net positive cash balance of ₹56 crores as of June 30, 2024, and remains debt-free, underscoring its financial health and capital discipline.

Himadri continues to focus on capital disciplined growth with the aim to improve shareholder returns. The company’s return on capital employed (ROCE), excluding investments and capital work in progress (CWIP), stands at a sustainable 28%.

Himadri's Q1 FY 24 financial performance highlights its commitment to operational excellence and strategic growth, positioning the company for continued success in the high-margin niche markets it serves.

New Line Ups in Q1 FY 24

Himadri Speciality Chemical Ltd (HSCL) continues to innovate with the launch of several new speciality carbon black grades and an ambitious expansion plan. These developments are set to enhance the company's portfolio and meet growing market demands for high-performance materials.

Speciality Carbon Black Expansion:

Himadri is increasing its speciality carbon black capacity to 130,000 metric tons per annum (MTPA), making it the world's largest speciality carbon black facility at a single site. The expansion, which involves a brownfield addition of a new speciality carbon black line of 70,000 MTPA, requires an estimated capital expenditure of Rs. 220 crores. The project is scheduled to be operational by Q3 FY 26.

New Speciality Carbon Black Grades:

Himadri has introduced seven new speciality black series with over 55 grades, catering to various high-demand applications:

• ONYX: Ideal for synthetic fibers and high-performance plastics due to its deep black color and high purity.
• JETEX: Provides reliable color and UV protection for pressure pipes and plastic films.
• ELECTRA: Low sulfur, low ionics, and low physical grit levels make it suitable for products requiring electrostatic discharge protection.
• KLAREX: Clean speciality blacks with low ash and grit levels, ensuring easy dispersion and high processability.
• COLORX: Powder black used as a colorant for premium-grade inks, paints, adhesives, and coatings, offering high jetness and smooth processing.
• BARONX: Premium-grade pigment valued in solvent and aqueous-based coatings and industrial decorative paints.
• VIRTEX: Designed for high-performance speciality tyres, optimizing grip, rolling resistance, and mechanical performance.
• Launched New Li+ and LB Series specifically for battery applications, enhancing the performance of lithium-ion batteries.

Himadri LFP Cathode Vision:

Himadri is set to produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material in phases over the next 5-6 years, with the first commercial plant in India catering to both domestic and global markets.

The Phase 1 capacity is 40,000 MTPA, with operations expected to begin by Q3 FY 27. This project emphasizes sustainable and eco-friendly products, aiming to support the growing demand for lithium-ion batteries in the electric mobility and renewable energy storage sectors.

The company has taken initial steps towards several new launches expected to be achieved in the coming years. Investors can look forward to seeing how these assets will bring in more value-added goods and result in higher shareholder returns.

Himadri Speciality Chemical 

Himadri Speciality Chemical Ltd (HSCL) is a global speciality chemical conglomerate headquartered in Kolkata, with seven manufacturing facilities in India and one in China. The company focuses on research and development (R&D), innovation, and sustainability, producing a wide range of carbon products and value-added by-products.

HSCL is recognized for its extensive value chain in the carbon segment, including products critical for lithium-ion batteries. With government-recognized R&D facilities, HSCL continuously innovates to enhance energy efficiency, employee well-being, and its global footprint.

Committed to stakeholders, the company aspires to be a leading speciality carbon chemicals conglomerate through cutting-edge research and superior financial performance.