J.G.Chemicals Ltd IPO

Leading market position with a diversified customer base, being supplier to 9 out of top 10 global tyre manufacturers and to all of the top 11 Indian tyre manufacturers.

High entry barriers in key end-use industries.

Strong and consistent financial performance with growth of revenue from operations and profit after tax growth at a CAGR 34.2825% and 40.43%, respectively, from FY21 to FY23.

Long-term relationships with customers and suppliers & having robust supply chain with more than 250 customers in last 3 years.

Experienced and dedicated management team.

Focus on long term sustainability with environmental initiatives and safety standards.

Its business is almost completely dependent on the sale of one principal product i.e. zinc oxide (in various grades) and any reduction in the demand of the same may have an adverse effect on its business and financial performance.

The company is significantly dependent on the business operations of its material subsidiary i.e. BDJ Oxides Private Limited and any deterioration in the performance of its material subsidiary may adversely affect the companys business, financial condition and results of operations.

The company derives a significant part of its revenue from select customers. If one or more of such customers choose not to source their requirements from it, its business, financial condition and results of operations may be adversely affected.

The companys logo is not registered as a trademark. If the company is unable to protect its intellectual property rights, its business, financial condition and results of operations may be adversely affected.

The company operates in a competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.

Its operations are heavily dependent on the rubber and tyre industry and there is a lack of diversification in its business across other Application Industries.

Its business is heavily dependent on procurement of raw materials from overseas suppliers. The company does not have long-term agreements with its suppliers of raw material and any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse effect on its business and results of operations.

A part of its manufacturing facility and the company registered office premises, are being utilised by it on leasehold basis and the company is subject to terms and conditions imposed on it by the lessor. In any event the company is unable to renew such leasehold rights, its business, financial condition and results of operations may be adversely affected.

The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances.

As a part of its Objects of the Offer, the company intend to set up an R&D center at its Naidupeta Facility. The Company has not incurred any identifiable expenses towards R&D in Fiscal 2023, Fiscal 2022 and Fiscal 2021 and the nine months period ended December 31, 2023.