**Lime Chemicals Limited** is a veteran player in the Indian industrial minerals sector, specializing in the production and distribution of **Precipitated and Coated Calcium Carbonate (PCC)**. Established in **1976**, the company has historically served as a critical supply chain partner for the pharmaceutical, consumer goods, and construction industries. Currently, the company is navigating a high-stakes operational pivot, transitioning from a traditional manufacturing-heavy model to a lean, sourcing-led hybrid strategy to address financial pressures and negative net worth. --- ### **Strategic Pivot: Transition to a Hybrid Sourcing Model** Following a comprehensive business re-organization, Lime Chemicals has shifted its operational focus to improve agility and reduce fixed overheads. * **Asset Rationalization:** In **December 2022**, the company sold its **Roha Factory Building** and land for **₹5.1 crore**, realizing a profit of **₹3.09 crore**. This was a precursor to a broader exit from direct manufacturing at underperforming sites. * **Plant Closure (Sidhpur):** In **December 2024**, the company shuttered its leased manufacturing facility in **Sidhpur, Gujarat**, citing non-viability. * **Current Sourcing Strategy:** The company now operates via a hybrid model, sourcing manufactured products through strategic arrangements with **group companies** and third-party providers from new premises in **Abu Road, Rajasthan**. * **Future Manufacturing Optionality:** While currently focused on trading and outsourced sourcing, the company retains land in **Kala Amb, Dist. Jagadhri, Haryana**. This site is earmarked for the potential re-establishment of direct manufacturing should market conditions and internal liquidity improve. --- ### **Product Portfolio & Industrial Value Chain** Lime Chemicals produces and deals in two primary forms of Calcium Carbonate, distinguished by their processing methods and end-use purity. | Product Category | Key Characteristics | Primary Industrial Applications | | :--- | :--- | :--- | | **Precipitated Calcium Carbonate (PCC)** | Chemically synthesized; high purity; controlled particle size. | **Toothpaste, Pharmaceuticals**, PVC, Rubber, Polymers, and Paints. | | **Ground Calcium Carbonate (GCC)** | High **brightness (whiteness)**; derived from natural limestone. | **Paper**, Plastics, Adhesives, and **Building/Construction** materials. | **Key Market Drivers:** * **Construction & Infrastructure:** Products are essential for **vinyl floor tiles**, **asphalt roofing**, concrete, and masonry. * **Consumer Essentials:** High-purity grades are critical inputs for the **Pharmaceutical** and **Oral Care (Toothpaste)** sectors. * **Industrial Fillers:** Used extensively as extenders in the **Paper** and **Paint** industries to enhance opacity and reduce production costs. * **Raw Material Dependency:** The company relies on **imported high-quality limestone** to meet stringent customer specifications regarding chemical purity and whiteness. --- ### **Financial Performance & Capital Structure** The company is currently classified as a **sick company** under financial stress, with a focus on stabilizing a balance sheet characterized by **negative net worth** and accumulated losses. **Comparative Financial Snapshot (₹ in Lakhs)** | Metric | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Gross Income** | **1,085.00** | **1,560.00** | | **Net Profit / (Loss)** | **(48.57)** | **(0.66)** | | **Total Comprehensive Income** | **(51.55)** | **271.00** | | **Domestic Sales** | **1,045.47** | **1,535.24** | | **Export Sales** | **0.00** | **12.55** | **Solvency and Liquidity Metrics** * **Revenue Contraction:** Gross income declined by **33.65%** in the most recent full fiscal year. * **Capital Gearing:** The **Capital Gearing Ratio** stood at **2.87** as of March 2025, reflecting high leverage. * **Working Capital Deficit:** As of March 2024, current liabilities (**₹8.66 crore**) significantly exceeded current assets (**₹4.07 crore**), resulting in a negative working capital of **₹(4.59) crore**. * **Debt Management:** Total debt was **513.35 Lakhs** as of March 2025. The company relies on funding from **Executive Directors** to bridge working capital gaps. * **Dividend Status:** No dividends have been recommended for the last **three years** due to persistent losses. --- ### **Governance, Compliance & Leadership** The company is undergoing a leadership and administrative refresh to align with **SEBI (LODR) Regulations, 2015**. * **Leadership Changes:** **Mrs. Rutuja Shinde** was appointed as **CFO** effective **March 07, 2026**. Additionally, **Mr. Rahim Narsingdani** joined as an **Additional Non-Executive Independent Director** for a **5-year** term. * **Corporate Relocation:** The Board approved shifting the **Registered Office** from CBD Belapur to **Vile Parle West, Mumbai**, moving the company under the jurisdiction of **ROC Mumbai I**. * **Internal Controls:** The company maintains an **ISO 9001** certification. Internal Audit functions report directly to the **Chairman of the Audit Committee**. * **Operational Transparency:** The company does **not accept fixed deposits**, owns **no intangible assets**, and has **no subsidiaries** or joint ventures as of late 2025. --- ### **Risk Factors & Contingent Liabilities** Investors should note significant legal and macro-economic risks that could impact the "Going Concern" status of the company. **1. Litigation and Tax Demands** The company is contesting several high-value claims: * **GST Demands:** **₹1.85 Crore** (Maharashtra) and **₹1.44 Crore** (Himachal Pradesh). * **Employees P.F.:** Disputed claims of **₹138.62 Lakhs**. * **Income Tax:** Outstanding demand of **₹57.27 Lakhs** for **A.Y. 2006-07**. * **MSME Dispute:** A quality dispute with a raw material vendor has led to an unprovided interest liability of **₹35.35 Lakhs** to **₹36.25 Lakhs**. **2. Operational & Macro Risks** * **Logistics Costs:** Limestone reserves are geographically concentrated; high **transportation costs** for bulky raw materials weigh on margins. * **Input Volatility:** Exposure to **foreign exchange fluctuations** (due to imported limestone) and price volatility in **stearic acid** and **calcite powder**. * **Regulatory Changes:** The implementation of **New Labour Codes** (effective Nov 2025) regarding wages and gratuity has not yet been financially provisioned. * **Competitive Pressure:** Intense rivalry from both large-scale organized manufacturers and low-cost unorganized local players. **3. Mitigation Strategy** To counter these risks, management is pursuing **price renegotiations** with key customers to pass through raw material hikes, implementing **strict credit limits** to manage counterparty risk, and executing **cost-reduction plans** to stabilize the negative net worth.