**Listing Status:** BSE SME Platform (**SHIVAM**) | **IPO Date:** April 30, 2024 Shivam Chemicals Limited is a specialized industrial player that has successfully transitioned from a pure trading entity into a vertically integrated manufacturer and distributor. The company operates a dual-engine business model focusing on **industrial chemicals** (Hydrated Lime and Quick Lime) and **animal nutrition** (feed supplements and additives). By leveraging a **backward integration strategy** and a robust global sourcing network, the company serves as a critical link in the supply chains of the poultry, livestock, and industrial manufacturing sectors. --- ### **Strategic Evolution: From Trading to Integrated Manufacturing** Originally established as a trading house, Shivam Chemicals pivoted to manufacturing in **FY 2022-23**. This transition was designed to capture higher margins and ensure quality control. A cornerstone of this evolution is the **backward integration strategy** formalized in **March 2026**, when the company commenced commercial production at a leased **Quick Lime unit** in **Khimsar, Rajasthan**. * **Supply Chain Security:** The Khimsar facility provides over **50% of the raw material** required for the Dahej manufacturing plant. * **Manufacturing Hub:** Primary production is conducted through the **100% wholly-owned subsidiary**, **Shivam Chemicals and Minerals Private Limited**, located in the industrial belt of **Dahej, Gujarat**. * **Scale of Operations:** The company has supplied over **2.50 Lakh metric tons** of products to date, with a cumulative market value exceeding **₹750 crore**. --- ### **Core Business Segments and Product Portfolio** | Segment | Primary Products | Sourcing & Branding | Capacity / Scale | | :--- | :--- | :--- | :--- | | **Manufacturing** | **Hydrated Lime** (Calcium Hydroxide), **Quick Lime** (Calcium Oxide) | In-house production (Dahej & Khimsar) | **60,000 MT** p.a. (Dahej); Khimsar at **full capacity** | | **Animal Nutrition** | **Amino Acids**, **Feed Phosphate**, **Magnesium Oxide** | Sourced from **China** and **Morocco** | **2,650 MT** average monthly sales volume | | **Value-Added Feed** | **Vitamin Premix Formulations** | Sourced from **Sri Lanka**; Marketed under **"Shivam"** brand | Tailor-made formulations for domestic manufacturers | #### **The "Shivam" Brand & Nutritional Solutions** The company is moving up the value chain by transitioning from generic ingredient supply to **customized nutritional solutions**. Under the proprietary **"Shivam"** brand, the company develops **Vitamin Premix Formulations** designed to meet specific metabolic and skeletal requirements of livestock. These formulations are currently sourced from **Sri Lanka** to maintain high quality standards for the Indian market. --- ### **Financial Performance and Growth Metrics** Following its listing on the **BSE SME** platform, the company reported a significant recovery and expansion in **FY 2024-25**. #### **Consolidated Financial Summary** | Metric | FY 2024-25 (₹ Lakhs) | FY 2023-24 (₹ Lakhs) | Growth (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **22,555.95** | **14,685.94** | **53.6%** | | **Profit Before Tax (PBT)** | **303.34** | **204.16** | **48.6%** | | **Profit After Tax (PAT)** | **209.30** | **120.65** | **73.5%** | #### **Segmental Growth (FY 2024-25)** * **Manufacturing Division:** Volume surged by **104.5%**, while value increased by **77.8%**. * **Trading Division:** Volume grew by **54.4%**, with a value increase of **51.6%**. --- ### **Capital Structure and IPO Utilization** The company has undergone significant capital restructuring to fund its aggressive growth trajectory. * **SME-IPO (April 2024):** Raised **₹20.18 crore** by issuing **4,587,000 Equity Shares** at **₹44 per share** (Face Value **₹10** + Premium **₹34**). * **Subsidiary Investment:** **₹5.62 crore** of the IPO proceeds were infused into **Shivam Chemical & Minerals Private Limited** via a rights issue to support localized manufacturing objectives. * **Bonus Issue:** In September 2023, the company issued **1,20,00,000 bonus shares** (ratio of **30:1**), expanding the paid-up capital from **₹40 Lakhs** to **₹12.40 Crore**. * **Current Paid-up Capital:** **₹16.98 Crore** (as of March 31, 2025). * **Dividend Policy:** The Board currently **ploughs back all profits** into the business to strengthen the financial position and fund expansion, rather than declaring dividends. --- ### **Future Growth Strategy** The company’s roadmap is centered on three pillars: 1. **Geographic Diversification:** Initiating entry into **export markets** to reduce reliance on domestic turnover. 2. **Operational Efficiency:** Increasing **capacity utilization** at the Dahej plant and the Khimsar leased unit to drive economies of scale. 3. **Product Assortment:** Expanding the portfolio into new chemical and nutritional categories to capture a larger share of the animal health market. --- ### **Risk Profile and Mitigation** | Risk Category | Description | Mitigation / Status | | :--- | :--- | :--- | | **Market Competition** | Intense pressure from both organized and unorganized players where **price** is the primary driver. | Leveraging **brand equity** and a pan-India distribution network to maintain client stickiness. | | **Financial Contingency** | **Corporate Guarantee** of **₹5.08 Crore** provided to **IndusInd Bank** for the subsidiary's credit facilities. | Management expects no liability; subsidiary operations are scaling to cover debt obligations. | | **Concentration Risk** | Operates in a **single business segment** with no separate geographical reporting under **AS-17**. | Diversifying into **export markets** and expanding the "Shivam" brand product line. | | **Liquidity Risk** | Potential inability to meet short-term obligations. | Auditors confirm the company is capable of meeting liabilities falling due within **one year**. | **Operational Oversight:** The company’s internal controls are rigorously monitored and audited by **M/s. Bharat Kanakia & Associates** to ensure transparency and efficiency across its manufacturing and trading arms.