Ultramarine & Pigments Limited is a diversified Indian industrial leader with a legacy in high-quality chemical manufacturing. The company operates a multi-sectoral business model spanning **Inorganic Pigments**, **Surfactants**, **IT-Enabled Services (ITeS)**, and **Renewable Energy**. With a robust manufacturing footprint in South India and an aggressive expansion strategy into specialty chemicals, the company is positioned as a key player in both domestic and export markets. --- ### **Core Business Segments & Revenue Architecture** The company’s revenue is driven by the transfer of control of goods and services, categorized into three primary operational pillars: | Segment | Key Products & Services | Strategic Drivers | |:---|:---|:---| | **Chemicals & Allied Products** | Inorganic Pigments (Ultramarine Blue, CICP), Surfactants (Alpha Olefin Sulfonates), Synthetic Detergents. | High capacity utilization and expansion into value-added specialty grades. | | **IT Enabled Services (ITeS)** | BPO activities and digital solutions via **Lapiz Digital Services**. | Focused on international marketing to drive high-margin service exports. | | **Renewable Energy** | Power generation via **6 Wind Turbine Generators** (**4.3 MW** capacity). | Captive consumption to offset industrial energy costs and reduce carbon footprint. | **Performance Highlights (FY 2024-25):** * **Pigments Revenue:** **₹175 Crores** (+29% YoY). * **Surfactants Revenue:** **₹430 Crores** (+25% YoY). * **Export Earnings:** **₹167.83 Crores** (against an outgo of **₹111.16 Crores**). --- ### **Strategic Manufacturing Footprint & Infrastructure** The company operates strategically located facilities across Tamil Nadu and Andhra Pradesh, optimized for logistics and export efficiency: * **Ranipet, Tamil Nadu:** The primary hub for surfactants and detergents, currently operating at **optimum capacity utilization**. * **Ambattur, Tamil Nadu:** Dedicated manufacturing unit for the pigments division. * **Naidupeta, Andhra Pradesh:** A high-growth site housing surfactants and a new specialty chemicals plant. The company holds **Plots 60 & 61** (**₹8.98 Crore** consideration) and has commenced commercial production. * **Guindy, Chennai:** The operational headquarters for the ITeS division. * **Future Expansion Land:** The company has secured a **99-year lease** for **32.72 acres** in **SIPCOT Industrial Park, Manapparai, Tamil Nadu** (December 2024) for future chemical projects, recognized as a **Right-of-Use (ROU) Asset** of **₹3,266.31 lakhs**. --- ### **Aggressive Capacity Expansion & Subsidiary Growth** Growth is being channeled through two wholly-owned subsidiaries, focusing on high-barrier specialty chemicals: **1. Ultramarine Specialty Chemicals Limited (USCL):** * **CICP Plant:** Commissioned the balance of planned capacity in **Q3 FY 2025-26**. * **Pigment Expansion:** Adding **1,500 MT** of capacity; **750 MT** was commissioned in FY25, with the remainder due in **FY 2025-26**. * **Operational Synergy:** USCL pays a **3% royalty** on net sales to the parent company for technical know-how. * **Capital Infusion:** The parent company invested **₹13 Crore** in equity and over **₹8.5 Crore** in preference shares (2023-2024) to fund these expansions. **2. Ultramarine Fine Chemicals Limited:** * Incorporated in FY 2022-23; currently in the pre-operational phase to support future product lines. **Consolidated Capacity Roadmap:** * **Pigments Debottlenecking:** **+1,200 MT** (Total: **7,200 MT**) with a **₹25 Crore** outlay approved in Nov 2024. * **Specialty Chemicals:** A **1,800 MT** greenfield plant was commissioned on **July 27, 2023**. * **Inorganic Pigments:** A **1,500 MT** greenfield site commissioned in FY23 has already achieved **70% utilization**. --- ### **Financial Profile & Capital Allocation** The company maintains a strong balance sheet with a focus on long-term value creation and consistent shareholder returns. **Consolidated Financial Summary:** | Metric (₹ in Crore) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :---: | :---: | :---: | | **Revenue from Operations** | **526** | **541** | 492 | | **Net Profit After Tax (PAT)** | **57.60** | **69.20** | 60.17 | | **Export Revenue** | **131** | **151** | 117 | | **Dividend per Share (Par ₹2)** | **₹6.00 (Proposed)** | **₹5.00** | ₹5.00 | **Key Financial Developments:** * **Credit Ratings:** Reaffirmed by ICRA (Oct 2025) at **[ICRA] A+ (Stable)** for long-term and **[ICRA] A1+** for short-term facilities. * **Strategic Investment:** Holds **2,04,51,770 shares** in **Thirumalai Chemicals Limited (TCL)**. In Dec 2025, the company increased its stake to **78.23%** via a **₹45 Crore** preferential allotment at **₹296 per share**. * **Exceptional Gains:** Recorded a net gain of **₹4.26 Crore** in Dec 2025, primarily from **₹6.01 Crore** in NHAI compensation for land acquisition at Ranipet. * **Debt Management:** Term loans (secured by Naidupet/Menakur assets) carry interest rates of **7%–8%**. Repayments for major loans began in **June 2024** and **August 2025**. --- ### **Sustainability, R&D, and ESG Integration** Ultramarine & Pigments is transitioning toward a low-carbon, innovation-led operational model. * **Energy Transition:** **55%** of total energy consumption is met through renewable sources. A new **750 KW** windmill is being added in **FY 2025-26**. * **Emission Reduction:** Boilers and process heating have transitioned to **Natural Gas** to lower **Scope 1 emissions**. * **Research & Development:** Invested **₹2.32 Crores** in FY 2024-25. Successfully commercialized **one new product** in FY25 with a pipeline of value-added grades. * **Social Responsibility:** Expanding community healthcare infrastructure to a **200-bed** facility (**96,000 sq. ft.**) over the next **3-5 years**, including specialized dialysis and surgical units. --- ### **Risk Management & Governance** The company employs a structured **Enterprise Risk Management (ERM)** framework to navigate market and regulatory volatility. * **Regulatory Impact:** Recognized a one-time cost of **₹1.74 Crore** in March 2026 to comply with the **New Labour Codes** (effective Nov 2025). * **Market Volatility:** Exposure to **USD** and **GBP** fluctuations due to imports of **Alpha Olefin (AO)** and **Lauryl Ethoxylated Oxide (LEO)**. * **Credit Concentration:** While historically low, credit risk increased in FY24, with **one customer** accounting for **25.04%** of total receivables. * **Compliance:** Adheres to **ISO 50001:2018**, **Responsible Care**, and **RSPO** standards. A robust **Whistle Blower Policy** and **Vigil Mechanism** are in place to ensure ethical governance.