Laxmi Organic Industries Ltd is a leading Indian manufacturer of specialty chemicals and intermediates. Founded in 1989.
The innovation pipeline for this campus startup, located across 30,000 sq. ft. in Mahape, Maharashtra, appears promising with several key highlights:
- Strong Product Pipeline: Currently, 11 products are in the pilot phase and awaiting capital expenditure (capex) approval.
- Investment in Innovation: The startup continues to allocate 2% of its Specialties revenues specifically for innovation.
- Revenue Growth from New Products: The company has maintained a trend of over 20% of its revenue contribution from new products within its Specialties segment, emphasizing its focus on continuous innovation.
- Customer Expansion: The company is strategically adding new and diverse customers by offering a wide range of new and differentiated products.
The company is planning investments of approximately INR 11,000 million with ambitious financial goals to achieve by FY28:
- Revenue Doubling: The investment is expected to double the company’s revenues by FY28.
- EBITDA Growth: The company aims to nearly triple its EBITDA by FY28.
- Return on Capital Employed (RoCE) Improvement: The company expects to double its RoCE to 20% by FY28.
Laxmi Organic Industries Limited has initiated the merger process of its 100% subsidiary, Yellowstone Fine Chemicals Private Limited (YFCPL), to streamline operations and potentially unlock synergies between the two entities. The merger application was submitted to the National Company Law Tribunal (NCLT) in July 2024.
Laxmi Organic Industries has established itself as a market leader in key chemical sectors, with notable achievements:
- #1 in Acetyl Intermediaries in India and #3 globally (excluding China): Laxmi Organic dominates the acetyl intermediaries market in India, reflecting its strong manufacturing capabilities and market share. Its global ranking highlights its competitive position in the international market outside of China.
- #1 in Ketene & DiKetene Intermediaries in India and Top 5 globally: The company leads the Indian market for ketene and diketene intermediaries and holds a top-five global position. This is a testament to its expertise in niche chemical production.
- In-House R&D Innovation: With over 30 products developed in-house through its R&D efforts, Laxmi Organic showcases a strong innovation pipeline. This focus on research and development helps the company stay ahead of the curve by consistently launching new, high-value products.
- Entry into Fluorine Intermediates Market: Laxmi Organic has ventured into the USD 2.5 billion market for fluorine intermediates, signaling its intention to diversify its portfolio further. Fluorine intermediates are crucial in various high-growth industries such as pharmaceuticals, agrochemicals, and specialty chemicals.
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