Neogen Chemicals - Custom Synthesis Offers Strong Visibility Ahead: ICICI Direct

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ICICI Direct Report

Commencing operations in 1991, Neogen Chemicals Ltd. manufactures specialty organic bromine-based chemical compounds as well as specialty inorganic lithium-based chemicals compounds.

The company's products find application in pharmaceutical intermediates, agrochemical intermediates, engineering fluids, polymers additives and water treatment chemicals to name a few.

Neogen has two segments viz. 1. organic chemicals, 2. inorganic chemicals of which organic chemical constitute ~80% of overall revenue while the rest comes from inorganic chemicals.

The company incurred a capex of Rs 75 crore for Phase one at Dahej while the same for Phase two remains at Rs 55 crore.

The phase one capacity would largely cater to the custom synthesis business while the same for phase two is expected to be for advanced intermediates.

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