### **Overview** AG Ventures Ltd (formerly known as **Oriental Carbon & Chemicals Limited – OCCL**) is a leading global manufacturer of **insoluble sulphur**, a specialized rubber chemical critical in the production of high-performance and radial tires. The company also produces **sulphuric acid and oleum** at its Dharuhera facility and operates an investment business with diversified holdings. It is part of the **JP Goenka Group**, has over four decades of industrial heritage, and is listed on both the **Bombay Stock Exchange (BSE)** and the **National Stock Exchange (NSE)**. In 2023–24, the company underwent a **corporate demerger**, separating its chemicals business into a new entity, **OCCL Limited**, to unlock shareholder value, enhance strategic flexibility, and focus on long-term growth in core business segments. However, references to the company’s operations and performance in the provided data continue under the legacy OCCL identity. --- ### **Core Business & Products** - **Flagship Product**: - **DIAMOND SULF** – A world-class brand of insoluble sulphur used as a **vulcanizing agent** in tire manufacturing. It prevents sulphur bloom and scorching in rubber compounds and is essential for high-sulphur-loading applications. - Available in **multiple grades**, including: - *High Dispersion* - *High Stability* (resistant to reversion at high temperatures) - *Special/Custom-Made Grades* tailored to specific customer requirements. - **Other Products**: - **Sulphuric Acid & Oleum**: Produced at the Dharuhera plant in commercial and battery grades, serving sectors such as fertilizers, detergents, pharmaceuticals, steel, batteries, dyes, and chemicals. - **Dyamix**: A **pre-dispersed form** of insoluble sulphur launched in 2020, designed to reduce energy use and processing time in advanced tire manufacturing. --- ### **Manufacturing & Capacity (as of 2024)** OCCL operates two key manufacturing facilities in India: | Facility | Location | Key Capacities (Annual) | |----------------|-----------------------|--------------------------| | **Dharuhera** | Haryana | - Insoluble Sulphur: **17,500 MTPA** (3 lines)<br>- Sulphuric Acid & Oleum: **88,000 MTPA** (2 lines) | | **Mundra SEZ** | Gujarat (Port-based) | - Insoluble Sulphur: **22,000 MTPA** (4 lines) | > ✅ **Total Combined Capacity (as of March 2024)**: > - **39,500 MTPA** of insoluble sulphur > - **88,000 MTPA** of sulphuric acid and oleums The company has executed **brownfield expansions** over time, enabling cost-efficient capacity additions with low capital cost per tonne—significantly below greenfield project benchmarks. --- ### **Market Position & Competitive Advantages** #### **Global & Domestic Leadership** - Holds **~10% of the global insoluble sulphur market**. - Dominant **~60% share in the Indian market**, making it the **largest domestic producer**. - Among the **top five global manufacturers** and one of only a few capable of producing high-purity, customized insoluble sulphur. #### **Key Competitive Strengths** - ✅ **High Entry Barriers**: Long customer approval cycles (up to 24 months), proprietary technology, and complex manufacturing processes deter new entrants. - ✅ **Proprietary Technology**: Fully self-reliant in R&D and manufacturing; no dependence on external licensors. - ✅ **DSIR-Accredited R&D Center**: Enables continuous innovation and co-development with global tire makers. - ✅ **Global Customer Approvals**: Plants audited and approved by major tire manufacturers including **Continental, Bridgestone, Goodyear, Pirelli, MRF, JK Tyre, and Apollo Tyres**. #### **Strategic Differentiation** - Deep technical partnerships with customers for **product customization** and joint development. - **‘Sell-and-make’ production model** aligns output with demand, minimizing inventory risks. - Strong **value proposition**: High quality, timely delivery, cost efficiency, and technical support. --- ### **Customers & Markets** - **Serves over 40 leading global tire brands** across more than **21 countries**. - Approximately **90% of revenue** comes from customers with **5+ years of relationship history**, indicating exceptional retention and trust. - **Revenue Split (2023–24)**: - Domestic: ₹26,219 crore (**56.5%**) - Export: ₹20,148 crore (**43.5%**) - **Total Revenue**: ₹46,367 crore > 🌍 **Export Markets**: Contribute **~67% of sales**, with strong presence in **Europe, North America, Southeast Asia, and Latin America**. - **Primary Markets (Historically)**: - **India**: ~60% of revenue (as of review periods in 2023–24) - **Europe**: Second-largest market, though demand has weakened due to macroeconomic challenges. #### **Growth Markets Focus** - Actively expanding in **North America**, aiming for **10% market share** within 3–5 years. - Targeting **Latin America** and **Southeast Asia** to reduce reliance on stagnant European markets. - Capitalizing on rising **radialization in India** and EV-driven tire demand. --- ### **Financial & Operational Highlights** - **Total Revenue (FY23–24)**: ₹46,367 crore (down from ₹46,486 crore in FY22–23), reflecting pricing pressure and volume contraction in certain markets. - **Integrated Manufacturing Model**: Shared assets serve both domestic and export markets—no dedicated production lines by geography, enabling flexibility and scale. - **Cost Efficiency Drivers**: - Low-cost access to **sulphur** and **naphthenic oil**. - **Port proximity** at Mundra reduces freight and logistics costs. - **Mundra SEZ benefits**: Tax exemptions and lower power costs. - **Dharuhera plant** is **self-sufficient in steam**, reducing energy costs. - Implemented **solar power solutions** (rooftop and captive) to further optimize energy spend. - **Operating Leverage**: Rising volumes have reduced fixed and overhead costs per tonne. --- ### **Strategic Initiatives & Expansion** - **Capacity Expansion**: - Executed phased expansion at both Dharuhera and Mundra, increasing insoluble sulphur capacity from **3,000 MTPA (1994)** to **39,500 MTPA (2024)**. - Sulphuric acid/oleum capacity expanded from **46,000 to 88,000 MTPA**. - **R&D Investment**: Focused on developing **specialty grades**, improving process efficiency, and meeting evolving ESG standards. - **Sustainability & ESG**: - **Gold Rating from EcoVadis** - **Responsible Care Certification** by Indian Chemical Council - Customers increasingly evaluating suppliers based on carbon footprint and clean technology—areas where OCCL holds a competitive edge. --- ### **Challenges & Risks** - **Pricing Pressure**: Global chemical oversupply and weak demand, particularly in Europe, have compressed margins. - **Import Competition in India**: Unfairly priced **imports from China and Japan** have intensified competition in the domestic market, leading to reduced realizations. - Response: Filed **anti-dumping petition** with DGTR (under review). - **Logistics Disruptions**: Red Sea crisis forced rerouting via Africa, increasing **freight costs and transit times** for exports. - **Global Macro Headwinds**: Inflation, geopolitical tensions, and supply chain volatility continue to impact the chemical industry. --- ### **Corporate Structure & Governance** - **Promoter Holding**: ~52% (as of 2023), ensuring strong alignment with long-term performance. - **Management**: Led by experienced leadership with over **30 years** of industry expertise. - **Corporate Office**: Based in India’s National Capital Region (NCR). - **Global Presence**: Supported by a network of **warehouses and agents** for timely delivery and customer responsiveness. --- ### **Subsidiaries** - **Duncan Engineering Ltd. (DEL)**: - Majority-owned, listed subsidiary. - Pioneering manufacturer of **pneumatic products, OTR accessories, and fluid power systems**. - Operates in OEM and aftermarket segments across industries such as construction, mining, cement, and metals. - Manufacturing plant located in **Ranjangaon, Maharashtra**. ---