Shreyas Intermediates Limited is a specialized Indian chemical manufacturer and a dominant force in the **Phthalocyanine Blue Crude** market. The company accounts for approximately **15% of India’s total domestic production** of this critical chemical intermediate, maintaining a global export footprint that extends across **15 countries**. Operating within the **Commodity Chemicals** segment, the company is a vital supplier to the global printing inks, paints, coatings, and plastics industries. --- ### **Vertical Integration & Manufacturing Capabilities** The company’s competitive edge is rooted in its **vertically integrated** production model. By manufacturing **Copper Phthalocyanine (CPC) Blue Crude** in-house, Shreyas Intermediates secures the primary raw material required for its downstream pigment production, insulating itself from supply chain disruptions and capturing higher value across the production cycle. **Manufacturing Infrastructure:** * **Location:** The primary facility is situated at **M.I.D.C. Lote Parshuram, Ratnagiri, Maharashtra** (spanning Plots D-21, D-22, and D-23). * **Resource Self-Sufficiency:** The company has invested in **captive power manufacturing** to reduce dependence on the state grid. * **Sustainability:** Advanced infrastructure allows for the **recycling of over 90% of process water**, a critical factor for environmental compliance in chemical manufacturing. **Monthly Installed Capacities:** | Product Category | Monthly Capacity (Metric Tons) | | :--- | :--- | | **Copper Phthalocyanine (CPC) Blue Crude** | **1,500 MT** | | **Beta Blue** | **400 MT** | | **Alpha Blue** | **200 MT** | | **Pigment Green 7** | **50 MT** | --- ### **Strategic Pivot & Future Growth Drivers** Shreyas Intermediates is currently navigating a recovery phase, shifting its focus from volume-heavy commodities to higher-margin specialized products. * **Geographic Realignment:** Recognizing a structural shift in demand, the company is pivoting away from stagnant markets in the US, Europe, and Japan toward high-growth regions in the **Asia Pacific**, specifically **India and China**. * **Green Energy Diversification:** In a strategic move to diversify its portfolio and embrace sustainability, the company has planned an investment in **Novel Bio Fuel Limited**, involving the subscription of **833,333 Equity Shares** at **Rs. 10** each. * **Operational Efficiency:** Management is prioritizing the ramp-up of existing installed capacities to achieve economies of scale, supported by a disciplined focus on **cost reduction** and diligent cash deployment. --- ### **Financial Performance Summary** The company has faced a challenging biennial period, with widening net losses attributed to volatile raw material costs and global economic headwinds. | Financial Metric (INR) | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | | **Profit / (Loss) After Tax** | **(1,56,70,546)** | **(1,35,43,321)** | | **Total Equity Shares** | **7,08,53,900** | **7,08,53,900** | | **Basic & Diluted EPS** | **(0.22)** | **(0.19)** | | **Face Value per Share** | **Rs. 10/-** | **Rs. 10/-** | **Key Financial Observations:** * **Widening Deficit:** Net losses increased by **15.7%** year-on-year. * **Stable Capital Base:** The weighted average number of equity shares remained constant at **7.08 crore**, indicating no equity dilution during the period. * **Listing:** Shares are listed on the **BSE (Scrip Code: 526335)**, with **97.87%** of the shareholding held in **dematerialized form** as of March 2025. --- ### **Corporate Governance & Ownership Structure** * **Associate Relationship:** **Kesar Petroproducts Limited** is a significant stakeholder, holding **37.05%** of the voting power. * **Leadership:** **Mr. Nareshkumar Ramawatar Swami** has been appointed as Whole-time Director for a **5-year term** (April 2025 – April 2030) to oversee the company’s turnaround strategy. * **Related Party Transactions:** The company has engaged in strategic transactions with **Kesar Petroproducts Limited** and **Niyati Ventures Private Limited** totaling **Rs. 332 Crore**. * **Internal Oversight:** Operational audits are conducted by **M/s. ATJ & Co. LLP**. The company maintains a **Vigil Mechanism Policy** to prevent fraud, with no fraudulent activities reported in the latest fiscal year. --- ### **Risk Matrix & Mitigation Strategies** The company operates in a high-risk environment characterized by regulatory scrutiny and commodity price sensitivity. **1. Market & Geopolitical Risks:** * **Trade Barriers:** The industry faces **steep Countervailing Duties** imposed by **China** on Indian Phthalocyanines. Shreyas is mitigating this by diversifying its export destinations. * **Currency & Inflation:** A **depreciating Rupee** and inflationary pressures on raw materials (which are **crude oil derivatives**) pose constant margin risks. **2. Regulatory & Legal Contingencies:** The company carries a significant burden of contingent liabilities and regulatory defaults that could impact future cash flows. | Nature of Liability | Amount (Rs. in Lacs) | Status | | :--- | :--- | :--- | | **Disputed Excise Duty** | **456.01** | Issues regarding classification/applicability. | | **Civil Court Claims** | **1,600.00** | Pending at Civil Court, Ratnagiri. | | **Other Miscellaneous** | **41.38** | Claims not acknowledged as debt. | | **Total Contingent Risk** | **2,097.39** | *Excluding interest.* | * **RBI Non-Compliance:** The company is currently in default of **Section 45(IA) of the RBI Act, 1934**. Management is seeking professional counsel to regularize this status. * **Secretarial Qualifications:** The **FY 2024-25** Secretarial Audit Report contained several observations regarding non-compliance with statutory norms. **3. Environmental Mandates:** As a chemical manufacturer, the "license to operate" is strictly tied to **waste water treatment** capacity. Any failure to meet evolving environmental standards in the Ratnagiri industrial belt could result in production halts. The company utilizes a **Risk Management Policy** for continuous trend analysis and environmental mapping to mitigate these threats.