Gandhar Oil Refinery is a leading manufacturer of white oils. As of June 30, 2022, their product suite comprised over 350 products under the ‘Divyol’ brand. Their personal care, lubricant, process and insulating oil products are used as ingredients by leading Indian and global companies for the manufacture of end products for the consumer, healthcare, automotive, industrial, power and tyre and rubber sectors.
The white oil market is the fastest-growing segment in the speciality oils sector and Gandhar Oil Refinery is India’s largest manufacturer of white oils by revenue in FY 2022. It is one of the top 5 players globally in terms of market share in the calendar year 2021. As of June 30, 2022, their products were sold in over 100 countries across the globe. They catered to over 3,500 customers
in FY 2022, including leading Indian and global companies such as Procter & Gamble (P&G), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare. Their operations are supported by their global supplier base and manufacturing operations in India and UAE.
The global specialty oil market value, estimated at $125.99 billion in 2022, is expected to grow to $148.7 billion by 2027, at a CAGR of 3.4%. In 2021, of the entire global speciality oil market, white oil constituted around 2.5%. Therefore, Gandhar Oil Refinery may benefit from the expanding market.
Gandhar Oil Refinery India Ltd IPO Details
Gandhar Oil Refinery India Ltd IPO Date
The dates for bidding for the Gandhar Oil Refinery India IPO are November 21, 2023 to November 23, 2023.
Gandhar Oil Refinery India Ltd IPO Price Band
Gandhar Oil Refinery India is a book-built IPO. The price range has not been declared.
Gandhar Oil Refinery India Ltd IPO Lot Size
The Gandhar Oil Refinery India Ltd IPO lot size has not been declared yet.
Gandhar Oil Refinery India Ltd IPO Objectives
The company proposes to utilise the net proceeds from the issue towards funding the following objectives:
- Investment in Texol by helping Texol repay its loan from the Bank of Baroda.
- Capital expenditure through the purchase of equipment and civil work required for:
- Expansion in the capacity of automotive oil at their Silvassa Plant.
- Expansion in the capacity of petroleum jelly and accompanying cosmetic product division at their Taloja Plant.
- Expansion in the capacity of white oils by installing blending tanks at their Taloja Plant.
- Funding working capital requirements.
- General corporate purposes.
Peer Details
The company’s peers include:
- Savita Oil Technologies Ltd
- Apar Industries Ltd
- Panama Petrochem
- Galaxy Surfactants
- Privi Speciality Chemicals
- Rossari Biotech
- Fairchem Organics
How To Check the Allotment Status of the Gandhar Oil Refinery India Ltd IPO?
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Contact Details of Gandhar Oil Refinery India Ltd
Registered office: 18th floor, DLH Park, S.V. Road Goregaon (W), Mumbai 400062, Maharashtra, India
Phone: +91 22 40635600
E-mail: investor@gandharoil.com
Company Financials
| Particulars ( ₹ in million ) | Year Ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|
| Total Income | 35,688.03 | 22,423.83 |
| Total Restated Comprehensive Income/(loss) for the Year | 1,600.69 | 984.94 |
| Current Ratio | 1.53 | 1.55 |
| Return on Capital Employed | 42.12% | 30.00% |
| Debt Service Coverage Ratio | 4.90 | 3.51 |
Know before investing
Strengths
3Their pro forma consolidated revenue from operations grew at a CAGR of 49.68% between FY 2020-22. This was the highest CAGR among selected speciality oil peers and the second highest CAGR growth among selected speciality chemical peers.
The percentage of customers placing repeat orders in the Financial Years 2022, 2021 and 2020 was 68.86%, 66.37% and 59.30%, respectively. This shows how much customer satisfaction and value their products have been able to create.
They currently operate 3 strategically located manufacturing facilities, with two plants located in Western India and one plant located in Sharjah, UAE. All of these are easily connected to global oil supply routes as well as major markets.
Risks
3They depend significantly on their PHPO division, which contributed 53.50% of their total pro forma consolidated revenue from finished goods sold.
For their speciality oil and lubricant products, a major component of their raw material is base oil, which is derived from vacuum gas oil, which is, in turn, a by-product of crude oil. Therefore, their raw material costs are indirectly exposed to fluctuations in crude oil prices. It also exposes them to exchange rate fluctuations.
Their overall business and the demand for their products are dependent on the end industries in which their products are used and any decline in the demand for their customers’ end products could have an adverse impact on their business.
