**Vikram Aroma Limited** is a specialized Indian chemical manufacturer focused on the production, marketing, and export of **Diphenyl Oxide (DPO)** and its derivatives. Following its strategic demerger from **Vikram Thermo (India) Limited**, the company has transitioned into a standalone entity, listing on the **BSE** in **March 2025**. With over **30 years** of operational heritage, the company integrates research-based development with global distribution to serve the fragrance, industrial, and pharmaceutical sectors. --- ### Corporate Genesis and Listing Timeline The company was formed through a court-sanctioned demerger aimed at unlocking the value of the aromatic chemicals business. The restructuring followed a rigorous regulatory path to independent listing: * **Demerger Origin:** The **Aromatic Chemical-Diphenyl Oxide business** was carved out of Vikram Thermo (India) Limited via an **NCLT** order sanctioned on **April 26, 2024** (with a retrospective appointed date of **July 01, 2022**). * **Shareholder Value:** Under the **Scheme of Arrangement**, shareholders received **1 Equity Share** of Vikram Aroma Limited (₹10 face value) for every **10 Equity Shares** held in the parent company. * **Capital Recognition:** The process resulted in an equity share capital pending allotment of **₹3.14 crore** and the recognition of a **₹22.03 crore Capital Reserve**. * **BSE Listing Milestones:** * **June 15, 2024:** Filed listing application with **BSE Limited**. * **December 9, 2024:** Received **in-principle approval**. * **March 6, 2025:** Commencement of **equity share trading** on the BSE. --- ### Core Product Portfolio and Industrial Applications Vikram Aroma Limited specializes in the discovery and manufacturing of **Diphenyl Oxide (DPO)**, a versatile chemical intermediate. The company’s expertise spans the entire lifecycle from R&D to global marketing. | Product / Segment | Primary Industrial Applications | | :--- | :--- | | **Diphenyl Oxide (DPO)** | Essential perfumery component for **detergents, soaps, toiletries**, and **essence sticks**. | | **Heat Transfer Fluids** | High-temperature thermal mediums for specialized industrial processes. | | **Specialty Surfactants** | Critical inputs for the **textiles, mining, petroleum**, and **agriculture** sectors. | | **Pharmaceutical Intermediates** | High-purity **reaction solvents** used in drug synthesis. | | **Industrial Additives** | Key components in the production of **fire retardants**. | --- ### Manufacturing Infrastructure and Quality Standards The company operates a dedicated aromatic chemical facility designed for global compliance and high-volume output. * **Location:** **Indrad, Chhatal-Kadi Road, Mehsana, Gujarat**. * **Certifications:** The plant is highly regulated, holding **ISO 9001:2015** (Quality), **ISO 14001:2015** (Environment), and **ISO 45001:2018** (Occupational Health & Safety). * **Global Compliance:** To facilitate international trade, the facility maintains **Halal** and **Kosher** certifications, ensuring its products meet the requirements of diverse global markets. --- ### Geographic Revenue Distribution While the company operates in a single primary segment—**Manufacturing of Chemicals**—it has successfully diversified its geographic footprint, showing a notable surge in international demand. | Metric (₹ in lakhs) | India (Domestic) | Rest of World (Export) | Total | | :--- | :--- | :--- | :--- | | **Revenue (FY 2024-25)** | **1,748.80** | **1,064.78** | **2,813.58** | | **Revenue (FY 2023-24)** | **1,861.84** | **650.45** | **2,512.29** | | **Segment Assets (Mar 2025)** | **2,147.59** | **Nil** | **2,147.59** | *Key Observation:* Export revenue grew by approximately **63.7%** year-on-year, signaling a strategic shift toward global market penetration. --- ### Financial Performance and Ratio Analysis The company is currently in a capital-intensive growth phase following its demerger, which is reflected in its recent financial metrics. | Key Financial Ratio | FY 2024-25 | FY 2023-24 | Analysis | | :--- | :--- | :--- | :--- | | **Operating Profit Margin** | **(1.80)%** | **1.40%** | Shift to negative margin due to expansion costs. | | **Net Profit Margin** | **(5.33)%** | **(1.73)%** | Widening loss margin during transition. | | **Return on Equity (RoE)** | **(0.07)** | **(0.02)** | Impacted by increased annual losses. | | **Debt Equity Ratio** | **0.12** | **0.00** | Introduction of **short-term loans**. | | **Current Ratio** | **1.03** | **1.24** | Tightening liquidity cushion. | | **Debtors Turnover** | **8.36** | **7.94** | **Improved** collection efficiency. | | **Inventory Turnover** | **5.14** | **5.37** | Slight slowdown in stock movement. | | **Interest Coverage Ratio** | **(3.35)** | **(8.98)** | Improved, though still negative. | --- ### Strategic Growth and Capital Allocation The Board of Directors has adopted a "growth-first" philosophy to stabilize the entity post-listing. * **Dividend Policy:** The Board **did not recommend a dividend** for **FY 2024-25**, opting to retain all earnings to fund **business expansion** and resource preservation. * **Managerial Remuneration:** To retain leadership during this critical phase, the company proposed an increase in remuneration for the **Director & CFO** effective **April 1, 2025**, including a **10% annual increment**. * **Regulatory Flexibility:** The company has adopted **Schedule V of the Companies Act, 2013**, allowing it to pay managerial remuneration even in periods of **inadequacy of profits**, ensuring leadership stability during the turnaround. --- ### Risk Management and Mitigation Framework Vikram Aroma faces a complex landscape of market and financial risks, managed through a structured framework overseen by the **Audit Committee**. * **Competitive Landscape:** The primary threat is **import competition** from massive global plants. The company mitigates this by leveraging **low-cost skilled manpower** and the **lower CAPEX** requirements of operating in India. * **Currency and Market Risk:** The company has significant exposure to **foreign currency payables and receivables**. Currently, it **does not use derivative instruments** for hedging, leaving it exposed to exchange rate volatility. * **Liquidity Management:** To manage obligations, the company secured undrawn borrowing facilities of **₹99.76 Lakhs** as of March 2025. * **Credit Risk:** Managed via the **Expected Credit Loss (ECL) model** under **Ind AS 109** and a strict provision matrix based on historical default data. * **Accounting Transitions:** The company continues to manage the impact of **Deferred Tax Liabilities** arising from depreciation differences between **Previous GAAP and Ind AS** regarding Property, Plant, and Equipment (PPE).