C.J. Gelatine Products Limited is an Indian manufacturer specializing in high-grade gelatin and its derivatives. Positioned within the critical "Pharmacy of the World" supply chain, the company serves as a vital supplier to the pharmaceutical, healthcare, and food industries. Operating from a centralized manufacturing hub, the company is currently undergoing a strategic transition focused on financial restructuring, infrastructure modernization, and capitalizing on the global shift toward Indian-made pharmaceutical ingredients. --- ### **Core Product Portfolio & Value Chain Integration** The company operates as a **Single-Segment Entity**, focusing exclusively on the manufacturing and sale of **Gelatine** and its associated by-products. These products are essential components in several high-growth global sectors: * **Gelatine:** The primary product, used extensively in the production of **Hard Empty Capsules** and **Soft gel Capsules**. It serves as the delivery vehicle for a vast range of medications and nutritional supplements. * **Ossein:** A critical intermediate product generated during the gelatin manufacturing process. * **Di-Calcium Phosphate (DCP):** A high-value by-product utilized primarily in the **animal feed** industry and specific pharmaceutical applications. By focusing on these core outputs, the company maintains a specialized role in the healthcare supply chain, benefiting from the increasing global preference for capsules as a delivery method for both medicine and functional nutrition. --- ### **Operational Infrastructure & Corporate Structure** The company maintains a lean corporate structure with a centralized manufacturing model to ensure quality control and operational oversight. | Feature | Details | | :--- | :--- | | **Manufacturing Facility** | Plot No. 21, New Industrial Area, **Mandideep, Dist. Raisen, Madhya Pradesh** | | **Registered Office** | Sewree (W), Mumbai, Maharashtra | | **Subsidiaries** | **None** (No subsidiary, associate, or joint venture entities) | | **Corporate Status** | **Small/Mid-cap** (Does not meet "Large Corporate" criteria as of March 31, 2025) | | **Accounting Standards** | **Indian Accounting Standards (Ind AS)** per Section 133 of the Companies Act, 2013 | --- ### **Financial Performance & Recovery Trajectory** The company has successfully navigated a period of volatility, returning to profitability in **FY 2024-25**. While revenue has shown consistent growth, the bottom line has been impacted by non-recurring items in previous years. | Financial Metric (INR in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **4,163.36** | **4,113.00** | **3,739.73** | | **Net Profit / (Loss)** | **2.33** | **(193.72)** | **22.93** | | **Transfer to Reserves** | **2.33** | **(193.72)** | **22.93** | **Key Financial Observations:** * **Revenue Growth:** Total income increased by **1.22%** in the most recent fiscal year and **9.98%** in the year prior, demonstrating steady market demand. * **Profitability Turnaround:** The **Net Profit** of **Rs. 2.33 Lakhs** in **FY 2024-25** marks a recovery from the **Rs. 193.72 Lakhs loss** in **FY 2023-24**. * **Exceptional Items:** The prior year's loss was largely driven by **exceptional items** related to **employee retirement benefits** recognized via actuary reports, rather than a failure in core operations. * **Dividend Policy:** To preserve capital for growth and restructuring, the Board has **not recommended a dividend** for the fiscal years 2024 or 2025. --- ### **Strategic Capital Restructuring & Expansion** To support future growth initiatives and increase liquidity, the company is aggressively expanding its financial capacity. | Metric | Current Status | Proposed/Approved Target | | :--- | :--- | :--- | | **Authorized Share Capital** | **Rs. 15.00 Crore** | **Rs. 20.00 Crore** | | **Paid-up Share Capital** | **Rs. 4.81 Crore** | - | | **Borrowing Limits** | - | **Rs. 35.00 Crore** | * **Equity Expansion:** In August 2025, the Board recommended increasing the **Authorized Share Capital** to **Rs. 20.00 Crore** (comprising **2.00 Crore Equity Shares** at **Rs. 10** each). This move is designed to facilitate future fundraising through equity or convertible securities. * **Debt Capacity:** Shareholders have approved an increase in borrowing limits to **Rs. 35.00 Crore** under Section 180(1)(c), secured against company properties, providing the necessary leverage for infrastructure upgrades. --- ### **Market Dynamics & Growth Catalysts** C.J. Gelatine is positioning itself to benefit from several macroeconomic and industry-specific tailwinds: * **China-Plus-One Strategy:** The company is actively capitalizing on global supply chain shifts as international buyers seek Indian-made alternatives to Chinese gelatin production. * **Healthcare Tailwinds:** Growth is supported by the Indian Government’s increased spending on **Research & Development** and public healthcare schemes, alongside rising standards of living. * **Consumer Trends:** There is a surging demand for **functional and convenience foods** and nutritional supplements in emerging markets, where gelatin is a primary ingredient. * **Operational Efficiency:** Management is currently studying **infrastructure upgrades** specifically designed to lower energy consumption and operational costs, which is expected to expand future profit margins. --- ### **Risk Management & Mitigation Framework** The company operates under a formal **Risk Management Framework** overseen by the Board to address vulnerabilities in production and finance. **Operational & Input Risks:** * **Raw Material Volatility:** The primary risk is the availability and cost of **crushed bones**. Fluctuations in this market directly impact the **Cost of Production**. * **Energy & Utilities:** Rising **coal prices**, fuel availability, and increasing **energy charges** are significant cost drivers. * **Environmental Constraints:** **Water scarcity** is a critical operational risk that could impact manufacturing continuity. * **Substitution Risk:** The emergence of **plant-based gelatin alternatives** poses a long-term competitive challenge to traditional animal-based products. **Financial Risk Profile:** The company manages credit and interest rate risks through Board-approved policies. Notably, the company has **Nil Foreign Exchange Earnings and Outgo**, insulating it from direct currency volatility. | Interest Rate Sensitivity (₹ in Lakhs) | As at 31st March, 2025 | As at 31st March, 2024 | | :--- | :--- | :--- | | **Bank Borrowings** | **1,556.84** | **1,456.66** | | **1% Interest Rate Shift Impact** | **15.57** | **14.57** | --- ### **Governance & Leadership Continuity** The company has recently refreshed its leadership and compliance framework to ensure long-term stability: * **Executive Leadership:** **Mr. Jaspal Singh** (Chairman and Managing Director) and **Mr. Harman Singh** (Executive Director) have been reappointed for three-year terms through **September 20, 2027**. * **Independent Oversight:** Three Non-Executive Independent Directors (**Mr. Harish Pande**, **Mr. Satish Chander Mathur**, and **Mr. Rajesh Kantilal Divetia**) were appointed for five-year terms ending in **September 2028**. * **Audit & Compliance:** **M/s. Ketan Vyas & Company** has been appointed as Secretarial Auditor for a five-year term (**FY 2025-26 to 2029-30**) to ensure alignment with **SEBI (LODR)** peer-review mandates. Internal audits are conducted by **M/s Prem Chand Jain & Co.**, with findings reported directly to the Audit Committee.