Vikram Thermo (India) Limited (VTIL) is a research-driven, specialized manufacturer of pharmaceutical excipients and specialty polymers. Established in **1985**, the company has evolved from a diversified chemical manufacturer into a focused player in the high-value **Pharma Polymers** space. Following a strategic demerger in **2024**, the company has streamlined its operations to capitalize on the rapid growth of the global and domestic pharmaceutical industries. --- ### **Strategic Corporate Restructuring: The 2024 Demerger** In **May 2024**, Vikram Thermo successfully executed a Scheme of Arrangement to separate its two distinct business verticals. This move was designed to unlock shareholder value, isolate business-specific risks, and allow for dedicated management focus on the core pharmaceutical excipient business. | Feature | Details | | :--- | :--- | | **Demerged Business** | **Aromatic Chemicals (Diphenyl Oxide)** | | **Resulting Company** | **Vikram Aroma Limited (VAL)** | | **Effective Date** | **May 4, 2024** | | **Share Entitlement** | **1 equity share** of VAL for every **10 shares** held in Vikram Thermo | | **Financial Impact** | **INR 25.34 crore** recognized as an exceptional loss on transfer of net assets | | **Listing Status** | Vikram Aroma Limited commenced trading on **BSE** on **March 6, 2025** | Post-demerger, Vikram Thermo operates as a pure-play pharmaceutical polymer entity, while the aromatic chemicals business (used in soaps, detergents, and heat transfer fluids) resides within the newly listed Vikram Aroma Limited. --- ### **Core Product Portfolio & Brand Architecture** The company’s revenue is driven by five primary brands, focusing on methacrylic acid and ethyl acrylate-based co-polymers used for drug delivery and cosmetic formulations. * **DRCOAT (Ready-To-Use Coating Systems):** A flagship range of complete coating solutions for **solid oral dosages**. These are optimized for modern pharmaceutical processes to reduce processing time and improve consistency. * **DRUGCOAT (Basic Pharma Polymers):** Specialized co-polymers used for **enteric coating** (acid resistance), **taste masking**, and **sustained release** formulations. * **APION (Ion Exchange Resins):** High-performance polymers used for the **taste masking** of bitter active pharmaceutical ingredients (APIs) and achieving **superfast tablet disintegration**. * **AQUAPOL (Cosmetic Polymers):** Synthetic polymers acting as **thickening and gelling agents** for personal care products, including shampoos, lotions, and hair gels. * **DPO (Diphenyl Oxide):** While the primary production has moved to the demerged entity, VTIL historically utilized this aromatic chemical for heat transfer fluids and fire retardants. --- ### **Operational Infrastructure & R&D Excellence** Vikram Thermo leverages a robust manufacturing and research base in Gujarat, India, providing a competitive edge through lower capital costs and access to skilled scientific manpower. * **Unit-I (Dhanot):** The primary manufacturing site located in Gandhinagar, operating under **EXCIPACT GMP** standards to ensure global pharmaceutical compliance. * **Application Lab (Chhatral):** A dedicated **1,045 sq. m. F&D division** focused on formulation development. This facility allows the company to provide **complimentary technical support** to clients, integrating its products into customer-specific formulations. * **Human Capital:** The R&D center is managed by a multidisciplinary team of pharmacists, research scientists, and chemical engineers focused on polymer synthesis and emerging drug delivery technologies. --- ### **Financial Performance & Market Presence** The company has demonstrated strong financial resilience, achieving record results in the lead-up to its restructuring. **Key Financial Metrics (FY 2023-24 & 2024-25):** * **Revenue (FY24):** **INR 126.39 Crore** (Best-ever performance). * **Profit After Tax (FY24):** **INR 25.38 Crore**. * **Proposed Dividend (FY25):** **INR 1 per share** (**10%** on par value), totaling an outflow of **INR 3.14 Crore**. * **Paid-up Equity Capital:** **INR 31.36 Crore**. * **Authorized Share Capital:** Expanded to **INR 32.00 Crore**. **Geographical Revenue Distribution (FY 2024-25):** | Region | Revenue (INR Lakhs) | | :--- | :--- | | **India (Domestic)** | **9,096.73** | | **Rest of World (Exports)** | **3,978.32** | | **Total Segment Revenue** | **13,075.05** | --- ### **Regulatory Compliance & Quality Standards** To maintain its status as a global supplier, the company adheres to stringent international regulatory frameworks: * **Certifications:** Holds **EXCIPACT**, **GMP**, **ISO 9001:2008**, and **Halal** certifications. * **Global Access:** The company has successfully filed **US-DMF (Drug Master Files)**, a critical requirement for supplying excipients to the regulated United States pharmaceutical market. * **Governance:** Maintains an **unmodified audit opinion** with quarterly internal audits reported directly to the Audit Committee. * **Corporate Social Responsibility:** Spent **INR 52 Lakhs** in FY25, exceeding the statutory **2%** requirement. --- ### **Risk Profile & Mitigation Strategies** Vikram Thermo manages a complex risk landscape through a structured framework overseen by the Board. * **Raw Material Volatility:** As primary inputs are **petrochemical-based**, the company is sensitive to global petroleum price fluctuations. * **Credit & Liquidity Risk:** * Standard credit terms range from **30-90 days**. * **Expected Credit Loss (ECL)** provisions stood at **INR 3.01 Crore** as of March 2024. * Maintains undrawn borrowing facilities of **INR 13.31 Crore** to ensure liquidity. * **Market Competition:** Faces pressure from large-scale global manufacturers and international imports. The company mitigates this through its **service-integrated model**, providing technical formulation support that creates high switching costs for customers. * **Currency & Interest Sensitivity:** * A **5%** shift in the **USD** exchange rate impacts Profit Before Tax by approximately **INR 1.35 Lakh**. * The company **does not use derivative instruments** for speculation, focusing on natural hedges and conservative cash management. * **Debt Security:** Borrowings are secured by **Industrial Units I & II**, trade receivables, and mutual fund investments, supported by personal guarantees from the directors.