### **Overview** Excel Industries Limited, established in 1941 and headquartered in Mumbai, is one of India’s oldest and most respected chemical manufacturers. The company is a pioneer in indigenous chemical technology development and environmental sustainability. It is a publicly listed entity on the BSE and NSE, operating two core business segments: 1. **Chemicals Division** – manufacturing agrochemical intermediates, specialty chemicals, polymer inputs, and pharmaceutical APIs/intermediates. 2. **Environment & Biotech Division** – providing decentralized and centralized waste management solutions, including organic, construction & demolition (C&D), and municipal solid waste (MSW) treatment. With a strong foundation in **phosphorus chemistry**, Excel Industries has evolved from a traditional agrochemical player to a diversified, innovation-driven specialty chemicals and environmental solutions provider. --- ### **Key Highlights (Nov 2025)** #### **1. Strategic Expansion in Contract Manufacturing** - In November 2025, Excel Industries signed a **five-year contract manufacturing agreement** with a **leading Indian specialty chemicals company** for a **specialty chemical**, involving a **dedicated production line** to be commissioned by **June 2026**. - The project requires a **capex investment of Rs 40 crore**, with a **Rs 25 crore trade advance** from the customer, indicating strong commercial validation. - Expected to generate **annual revenues of Rs 35–40 crore** (excluding raw material costs), the deal is **EBITDA accretive**, supporting margin expansion. - This marks a **strategic pivot** toward **contract manufacturing**, reducing reliance on the agrochemical sector and diversifying revenue streams. - The company has now secured **three contract manufacturing deals** in the past 12 months. This segment currently contributes **~5% (~₹50 crores)** of consolidated revenue and is poised for growth in the next 2–3 years. #### **2. Portfolio & Capabilities** Excel Industries offers five key product lines: 1. **Agrochemical Intermediates** – e.g., DETC (world’s largest producer), DMTC, PCl3, P2S5, used in insecticides and herbicides. 2. **YP Derivatives** – including P2S5, PSCl3. 3. **Performance Solutions** – e.g., phosphonates (top 5 global producer), biocides, anti-scaling agents (HEDP, ATMP, DTPMP). 4. **Pharma Intermediates & APIs** – e.g., Febuxostat, Teneligliptin API, Butaphosphan. 5. **Waste Management Solutions** – Excel OWC, Sanitreat, Bioturn, and Biorapid for organic waste conversion and biogas. The company offers **contract manufacturing services** across its chemical portfolio, supported by **technical expertise, scalable infrastructure, and backward integration**. #### **3. Manufacturing & Operational Strengths** - Operates **three large-scale manufacturing facilities** in **Roha and Lote Parshuram (Maharashtra)** and **Visakhapatnam (Andhra Pradesh)**, with a combined process volume capacity of **2 million liters**. - Average **capacity utilization: 70–75%**, balancing efficiency with flexibility. - High degree of **backward integration**, especially in **APIs, agrochemical intermediates, and specialty chemicals**, ensuring **supply chain control, cost efficiency, and quality assurance**. - **Low exposure to Chinese supply chains**, offering supply security and a competitive cost advantage. #### **4. R&D & Innovation** - A **state-of-the-art corporate R&D center** in **Rabale, Navi Mumbai**, is scheduled to become operational in **Q3 FY26**. - The R&D facility will support **process development, application-specific formulations, sustainable technologies, and custom synthesis**, strengthening innovation capabilities. - Focus on **green chemistry, sustainable processes, and decarbonization** aligns with global ESG trends. #### **5. Capital Expenditure & Strategic Investments** - Invested **Rs 346 crores** in capex over the past five years for modernization and expansion. - Plans to invest **Rs 200–300 crores** between **FY25–26 and FY27–28** to: - Expand capacity (notably in biocides) - Modernize assets - Develop new products - Upgrade technology - Aims to improve **asset turnover** to **1.25x–1.5x** using internal accruals. --- ### **Strategic Initiatives & Diversification** #### **Biocides – A Key Growth Engine** - Commissioned **capacity expansion** for a key biocide product with a **Rs 10.3 crore investment**, now in initial supply phase. - Secured a **long-term supply deal** with a multinational client for biocides. - Expanding product portfolio in **non-phenolic and phenolic biocides** with **backward integration into active ingredients**. - Strong demand driven by applications in **water treatment, paints, coatings, and industrial hygiene**. #### **Pharma & APIs** - Fully backward-integrated manufacturer of niche, high-value APIs like **Teneligliptin** and **Febuxostat**, ensuring **end-to-end control and cost efficiency**. - Small but growing segment, with plans to expand selectively based on technical capability and market demand. #### **Polymer & Specialty Chemicals** - Produces key **phosphorus derivatives** used in: - Lube oil additives - Mining chemicals - Flame retardants - EV battery electrolytes - Corrosion inhibitors - Positioned to benefit from global demand for **performance chemicals** in advanced applications. #### **Environmental & Waste Management** - Offers **decentralized organic waste converters (OWC)**, **biogas plants**, **MRFs**, and **C&D recycling**. - **Maldives Success**: World Bank-funded OWC projects extended to **10 islands**; second export order valued at **Rs 3.88 crores**. - Commissioned a **50 TPD C&D waste plant in Rajkot** producing recycled aggregates. - Shifted focus from community composting to **export markets, B2B industrial clients, and PPP projects**. - Launched **OWC 45 E**, a cost-effective model, to compete in price-sensitive markets. --- ### **Market & Competitive Positioning** #### **Leadership & Specialization** - **World’s No. 1 producer of DETC**. - **Top 5 global producer of phosphonates**. - Key supplier in **water treatment, agrochemicals, FMCG, and pharmaceuticals**. - Strong presence in **biocides, chelating agents, and polymer additives**. #### **Export & Global Reach** - **~18% of revenue from direct exports**, with key markets in **Europe (largest), North America, Latin America, Southeast Asia, Africa, and Australia**. - Active pursuit of opportunities in **U.S. and emerging regions**. - Positioned as a reliable **"China+1" manufacturing alternative** in global supply chains. #### **Competitive Challenges** - Faces competition from **low-cost Chinese producers** with abundant feedstock and scale. - Dependent on **imported raw materials** due to **limited domestic availability**. - Cyclical demand and pricing pressures in some commodity specialty chemicals. --- ### **Sustainability & Future Outlook** #### **Sustainability Focus** - Early adopter of **sustainability and circular economy principles**. - Investing in **renewable energy (aiming for 50% of operational energy needs via solar)**. - **ISO 9001 certified** for waste management operations. - Developed **non-hazardous, biodegradable formulations** (e.g., Sanitreat, Bioculum). #### **Growth Strategy** 1. **Expand Contract Manufacturing** – leverage flexibility and technical depth to win more long-term deals. 2. **Grow Specialty Chemicals** – focus on high-margin, innovation-led products. 3. **Scale Biocides & Pharma APIs** – with backward integration and global alignment. 4. **Diversify Export Markets** – target South Asia, small island nations, and emerging economies. 5. **Strengthen R&D & Innovation** – new lab to accelerate product development and custom solutions. --- ### **Leadership** - **Mr. Ravi A. Shroff**, Managing Director, leads the company with a strong focus on chemical and pharmaceutical expansion. - Holds a **BE in Chemical Engineering (Mumbai University)** and a **postgraduate degree in Chemistry (Boston University, USA)**. - Instrumental in launching new pharmaceutical and veterinary APIs and driving strategic transformation.