Indian Phosphate Limited, established in 1998, is a leading manufacturer of Linear Alkyl Benzene Sulfonic Acid (LABSA 90%), an anionic surfactant widely used in the production of washing powders, cakes, toilet cleaners, and liquid detergents.
In addition to LABSA, the company produces “Single Super Phosphate” (SSP) and “Granules Single Super Phosphate” (GSSP), essential fertilisers that comply with the fertiliser Control Regulation of India. These fertilisers are available in both powder and granule forms and are fortified with essential micronutrients like Zinc and Boron.
The company's state-of-the-art manufacturing facility is strategically located in the Girwa district of Udaipur, Rajasthan. This location offers proximity to key raw materials, including sulphuric acid (98%) and rock phosphate, essential for the production process.
Indian Phosphate Limited sources linear alkyl benzene (LAB) from prominent suppliers such as IOCL, Vadodara, Nirma Ltd, Vadodara, and Reliance Industries Ltd, Patalganga, ensuring a steady supply chain.
With a robust presence across major Indian states, including Punjab, Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Himachal Pradesh, West Bengal, and Uttarakhand, Indian Phosphate Limited is well-positioned in the market. As of March 31, 2024, the company employs a dedicated workforce of 105 employees committed to maintaining high production and service standards.
Industry Outlook:
- India's agriculture sector grew at an average annual rate of 4.6% over the last six years, with food grain production reaching a record 315.72 million tonnes in 2022.
- India produces 75% of its Urea, 40% of DAP, and 85% of NPKS domestically, with the remainder imported to meet the country's fertiliser demand.
Indian Phosphate IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- For Setting up a new manufacturing facility at SIPCOT Industrial Park Phase-I, Kudikadu Village, Cuddalore District ('C' District) Plot(s) - Plot No.C-17/A, TamilNadu for manufacturing of Sulphuric Acid, LABSA 90%, and Magnesium Sulphate
- To Meet Working Capital Requirements.
- For General Corporate Purposes.
Peer Details
The only listed company considered by Indian Phosphate Limited as its peers is Rama Phosphates Limited.
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Contact Details of Indian Phosphate Limited IPO
- Registered office: Plot 638, Sector-11, Udaipur City, Girwa, Rajasthan- 313001, India
- Phone: 0294-2946959
- E-mail: investor@indianphosphate.com
IPO Financials
| Particulars | For the period ended October 30, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operation (in ₹ lakh) | 40,871.70 | 76,869.36 | 55,715.20 |
| Profit After Tax (PAT) (in ₹ lakh) | 908.81 | 1659.53 | 1616.61 |
| Current Ratio (x) | 1.53 | 1.43 | 1.66 |
| Net Worth (in ₹ lakh) | 7,660.61 | 6,751.80 | 5,092.27 |
| Total Borrowings (in ₹ lakh) | 3374.56 | 1535.48 | 1830.58 |
| Return on Equity (%) | 12.61% | 28.02% | 37.74% |
| Return on Capital Employed (RoCE) (%) | 12.40% | 31.00% | 42.08% |
| EPS (in ₹) | 5.00 | 9.13 | 8.89 |
Know before investing
Strengths
6Over 30 years of experience in cost-efficient manufacturing and marketing.
Strategic location enables efficient North, Northwest, and Central Indian market access.
NABL-approved laboratory ensures high product quality standards.
Experienced promoters with 30+ years in the fertiliser and chemical industries.
Ongoing backward integration into Sulphuric Acid production in Tamil Nadu.
Plans to expand geographically into Tamil Nadu and Maharashtra markets.
Risks
6Corporate guarantee of ₹10,500 Lakhs may impact financial stability.
Dependence on top 10 customers; 92.35% sales concentration risk.
Contingent liabilities of ₹11,461.16 Lakhs could affect cash flow.
Litigation risks may adversely impact operations and reputation.
Lack of long-term raw material contracts may disrupt production.
Negative cash flow from operations reported; financial stability uncertain.
