Jubilant Ingrevia Ltd

Summary and Highlights of Annual Report - 2022

About the Company:

• Global integrated life science products and innovative solutions provider serving
pharmaceutical, nutrition, agrochemical and industrial clients
• More than four decades of presence in the chemical industry and integrated operations, the
company offers over 165 products
• Globally the lowest cost producer of pyridine-based derivative products
• Among the top two globally in pyridine and the leader in 14 pyridine derivatives
• In the NHS business, it ranks among the top two manufacturers of vitamin B3 globally and
among India’s largest in vitamin B4 (choline chloride) manufacturing
• The company is one of the top two players in the acetic anhydride market globally and the
leading producer of ethyl acetate.
• Benefits from vertically integrated operations across the value chain, leading to cost
competitiveness

Revenue Split and Financial Parameters:

• Revenue growth in FY 22 has been 42% over FY 21
• Consumer – 3% | Industrial – 18% | Agro – 20% | Nutrition – 20% | Pharma – 37%
• India – 47% |Europe – 21% | Consumption for Export – 17% | RoW – 10% | N. America – 5%
• Company is well diversified across products, geographies and customers
• EBITDA has grown 38% for the year while PAT has grown 51% YoY
• Key Products are – Pyridine and its Derivatives , Vitamin B3 and B4 , Niacinamide , Ethyl Acetate,
Acetic Anhydride , Propionic Anhydride
• Company has prepaid about Rs 548 crore long-term debt over fiscal 2022 and first quarter of
fiscal 2023 using healthy cash accrual. Consequently, debt protection metrics improved, with
interest coverage ratio of 27.9 times in fiscal 2022

Industry Structure and Developments:

• Global chemicals market is estimated to grow at 4.6% CAGR till FY 2025 to US$ 5.2 trillion
growing whereas the Indian chemicals market is estimated to grow at 7.6% CAGR till FY 2025 to
US$ 279 billion with European Region as largest consumer and producer
• Global Speciality chemicals market is expected to reach US$ 1,168 billion by FY 2025 growing at
6.4% CAGR whereas Indian Speciality chemicals market is expected to reach US$ 64.5 billion by
FY 2025 growing at 12.4% CAGR
• Global nutraceuticals ingredients market with a CAGR of 7.4% (FY 2020-2025) would be led by
emerging economies like India (CAGR 20%: FY 2020-2025)
• Indian agrochemical market is expected to grow at 8% from FY 2021-26 which is the end use
industry for Pyridine. An emerging trend is growth of ‘Fluorine Derivatives’ for agrochemical
application.
• Over FY 2021- FY 2028, agrochemicals molecule patents worth ~US$ 6 billion are likely to
expire, of which ~51% share is the fluorine-containing molecules.
• Personal care ingredients market is projected to reach US$ 19.7 billion by 2025, recording a
CAGR of 4.3%. India is one of the fastest-growing personal care ingredients markets, globally.

www.intelsense.in
Speciality Chemical Segment (Brief Summary & Key Highlights)
• Revenues from our Speciality Chemicals business segment grew by 24% on YoY
• Improved demand for Pyridine from the global agrochemical sector and for Beta and 3-Chloro
Pyridine also rallied due to increased demand from the nutrition and agrochemical sector
• For Pyridine, Beta and 3-Cyanopyridine, the company registered 36% growth in sales over the
previous year.
• In FY 2022, the company established our foothold in the Middle East market for the oil field
chemicals, which over the next few years should emerge as a strong market
• Developed and commercialised 10 new products – two in CDMO and the rest in Pyridine &
Picolines, Fine Chemicals and Crop Protection Chemicals
• In FY 2022, the company added new chemistry technologies like Chiral Synthesis, Sugar
Chemistry and Pinner Reaction to our existing technology platforms.
• EBITDA improved by 16% from Rs. 683 million in FY 2021 to Rs. 124 million in FY 2022.

Speciality Chemical Segment (Future Outlook)

• Invested in the Diketene Derivatives plant for the launch of six derivatives and further eight
value added products. Two derivatives have been launched in the last quarter of FY 2022.
• Invested in a world-class, state of the art manufacturing facility for Insecticides, Fungicides and
Herbicides which will be introduced in the coming year

Nutrition & Health Solutions Segment (Brief Summary & Key Highlights)
• Revenue from this business segment grew by 22% YoY
• Comprises of various products – Vitamin B3, Zinc Picolinate and Riboflavin Phosphate Sodium
(RPS), Vitamin B4, Niacinamide
• Niacinamide is used in appetite control and weight management. Zinc Picolinate is used for
growth and boosting immunity. Riboflavin Phosphate Sodium (RPS) has various applications in
energy drinks and dietary supplements
• Launched the herbal replacer of Choline, Methionine and Non-antibiotic growth promoter
under the brand ‘Phytoshield’
• Comprehensive portfolio of 18 branded products that address multiple areas within the Animal
Nutrition & Health Solutions business
• EBITDA grew by 26% and EBIDTA Margin stood at 21.4%, 73 bps higher than the previous year

Nutrition & Health Solutions Segment (Future Outlook)

• Niacinamide and Zinc Picolinate applications are expected to grow at ~5% between FY 2020 and
FY 2025 whereas the market for RPS is growing at about 10% from FY 2020 to FY 2025
• Chromium Picolinate application is expected to grow at ~5% between FY 2020 and FY 2025.
• ‘Phytoshield’ is part of plant-based natural offering and globally this business space is growing
at a 4% CAGR.
• Currently, company is actively working on plant-based proteins for ‘meat and egg analogues’

www.intelsense.in
Chemical Intermediates Segment (Brief Summary & Key Highlights)
• Revenues from this business surged by 61% - to Rs. 7,895 million in FY 2022
• Volume-driven segment and is an essential cash generator that strengthens the organisation’s
liquidity
• Serves as the key value chain for us as they are backward integrated for feedstock and forward
integrated for further value-chain products
• Wide product basket comprising Acetyls and Alcohol derivatives which include Acetic
Anhydride, Ethyl Acetate, Acetic Acid, Anhydrous Alcohol, Acetaldehyde, Formaldehyde and
Propionic Anhydride
• Acetic Anhydride: Among the top two global merchant market suppliers- largest in India with
high-growth user pharmaceuticals such Paracetamol, Ibuprofen, Aspirin, Prazoles etc.
• Competitive edge in uninterrupted supply across the globe for Acetic Anhydride with storage
hubs in Europe and the US positioning the company as 'Preferred Partner
• Ethyl Acetate: is an environment-friendly solvent used in pharmaceutical packaging, coating
and ink industries. Company has been leader for this product in India for decades
• Acetaldehyde: World’s largest producer of Bio-based Acetaldehyde, a product that is backward
integrated into Bio-Ethanol. Produst finds applications in alkyd resins, pharma, flavours &
fragrances, etc.
• Green Acetic acid: caters to the increasing demand in the food preservative segment.
• EBITDA grew by 77% while EBITDA margin stood at 14.9%, 135 bps higher

Chemical Intermediates Segment (Future Outlook)

• Commissioning of Acetic Anhydride Expansion at Bharuch will elevate company to the No. 1
position in the merchant market globally
• Foraying into grain-based Ethanol manufacturing with an investment to the tune of Rs. 3,000
million

Demand Outlook for Key products:

• Pyridine demand for pharmaceuticals growth is witnessing maturity and is expected to grow at
a low CAGR in the coming decade. However, the CDMO opportunity is a potential growth
prospect. Collectively, the global CAGR for CDMO is ~9.1%.
• The nutrition segment is expected to have maximum Pyridine volume growth due to increased
intake of vitamins & minerals in the form of feed supplements & additives (for animals) &
nutraceuticals (for humans) The Indian market for vitamin feed supplements is growing at a
CAGR of 7.5% between 2020 and 2025
• With an expected CAGR >7% in feed supplements & Vitamin B3 contributing ~54% of the total
Feed supplement market, Animal feed would top the pyridine consumption in the Nutrition
segment. Feed additives is projected to reach US$ 47 billion by 2025 growing at 6%
• Vitamin B3 is used in personal care products due to their multiple benefits. The cosmetics
industry has witnessed emerging applications of Vitamin B3 and expected to grow at CAGR of
5.4% through FY 2022-2027
• Ethyl Acetate market: valued at US$ 5 billion in 2022 and expected to grow at 4% till 2026
• Global Ethanol market valued at US$ 89.7 billion in 2022 and expected to grow at 4.6% till 2026
• Acetic Anhydride market: valued at US$ 1 billion in 2022 and expected to grow at 3.6% till 2026
• New opportunities for Acetic Anhydride include Wood acetylation (Consumption CAGR 26.3%
FY 2021-26) and Polyamide films for smartphone (Consumption CAGR 30% FY 2021-26)

www.intelsense.in