### **Overview** Yasho Industries Limited, founded in 1985 by Mr. Vinod Jhaveri and commencing operations in 1993, is a leading Indian manufacturer of **specialty and fine chemicals**. Headquartered in Mumbai, the company specializes in high-value chemical solutions for both **consumer and industrial applications**, with a growing emphasis on innovation, global expansion, and operational excellence. The company is recognized as a **Star Export House** by the Directorate General of Foreign Trade (DGFT) and is certified under **ISO 9001:2015 and FSSC 22000** standards. It operates two core divisions: - **Consumer Division**: Serves flavors & fragrances, personal care, pharmaceuticals, nutraceuticals, agrochemicals (e.g., pheromones), food preservation (via antioxidants), animal feed, and oral care. - **Industrial Division**: Supplies chemicals for tyres, automotive components, conveyor belts, latex-based products (gloves, condoms, balloons), lubricants, resins, and industrial fluids. --- ### **Business Segments & Product Portfolio** Yasho offers a diversified portfolio of **148 products**, developed in-house, across five key **verticals**: 1. **Food Antioxidants** (Branded as *YANTQ*) - Includes TBHQ, BHA, and ascorbyl palmitate - Prevents rancidity in oils and fat-based foods, preserves nutrient value - Used in edible oils, confectionery, animal feed, and vitamin premixes 2. **Aroma Chemicals** - Fatty esters, natural essential oils - Applications: fragrances, cosmetics, toiletries, agrochemicals, pharmaceuticals - **Market leader in clove oil & derivatives** 3. **Rubber Chemicals** - Accelerators and antioxidants - Used in tyres, hoses, seals, conveyor belts, surgical gloves, condoms - Contributes ~35–36% of revenue; achieves double-digit margins 4. **Lubricant Additives** (Branded as *YALUB*) - Includes aminic antioxidants, molybdenum-based extreme pressure additives, friction modifiers, and corrosion inhibitors - Enhances lubricity, oxidation resistance, extreme pressure performance - Applications: engine oils, hydraulic systems, gear oils, metalworking fluids - Accounts for ~8–10% of revenue; high-margin growth segment 5. **Specialty Chemicals** - Stabilizers for acrylics, coatings, UPR/fibre composites, electroplating chemicals - Intermediates for APIs, agrochemicals, polyurethanes, and printing inks --- ### **Financial & Operational Highlights (Nov 2025)** | Metric | Details | |-------|--------| | **Founding Year** | 1985 (Operations began in 1993) | | **Headquarters** | Mumbai, India | | **Founder & Promoter** | Mr. Vinod Jhaveri | | **Manufacturing Units** | 4 units across **Vapi and Pakhajan, Gujarat** | | **Total Capacity** | ~**32,500 MT per annum** (expanded from previous 11,000 MT) | | **Workforce** | Over **830 employees**, including **40+ R&D personnel** | | **Revenue Mix (FY24–25)** | **~65% from exports**, 35% domestic | | **Export Destinations** | USA, Europe, Asia, Middle East, Africa, Latin America (>50 countries) | | **Customer Base** | 2,000+ global customers including Marquee clients like **Michelin, Colgate, Indian Oil, Wacker, CEAT, and Huntsman** | --- ### **Strategic Growth Drivers (2024–2027)** #### **1. Greenfield Expansion – Pakhajan (Dahej), Gujarat** - A **42-acre greenfield facility** in Pakhajan became commercially operational in **March 2025**, with **20,000 MTPA capacity**. - Investment: ~₹470 crore (vs. initial ₹400 crore due to automation upgrades and inflation). - **Total capacity now: ~32,500 MTPA**, a near-tripling of installed output. - Phase I focused on **industrial chemicals**, especially **lubricant and rubber additives**. - Expected to reach **70% capacity utilization by FY26**. #### **2. Strategic Supply Agreement & Future Revenue** - Signed a **15-year supply contract** with a global MNC to supply **lubricant additives** from Pakhajan. - **New plant to be established within 12–18 months**, aiming for **commercial production by Q4 FY27**. - Expected to generate **₹150 crore in annual revenue** starting FY28. #### **3. International Expansion & Infrastructure** - **Subsidiaries established** in: - **USA (Wholly owned)** – For sales, customer engagement, and warehouse operations - **Netherlands (Yasho Industries Europe B.V.)** – Acts as EU hub for direct sales and logistics - **New US warehouse (operational Mar 2025)** – Improves delivery speed and supply chain efficiency. - Aims to expand **direct sales from 40% to higher levels**, improving net margins by **5–6%** vs. distributor model. #### **4. R&D & Innovation Focus** - Operates **two dedicated R&D centers** and an in-house **advanced testing laboratory** (HPLC, GC, FTIR, AAS, DSC, etc.). - DSIR-certified R&D unit; over **30 chemists** actively engaged in process optimization and new product development. - **New R&D lab inaugurated October 29, 2025**, with ₹23 crore investment. - Focus: Development of **higher-margin specialty and performance chemicals**, aligned with green chemistry principles. --- ### **Market Positioning & Competitive Advantages** - **"China+1" Beneficiary**: Positioned as a reliable alternative to Chinese suppliers amid global supply chain diversification. - **REACH Compliance**: Registered **35+ products under EU REACH regulation**, enabling seamless European exports and building a **regulatory moat**. - **Sustainability & Automation**: Uses **organic process technologies**, environmentally compliant systems; new plants feature high automation to improve yield and reduce effluent. - **Government Support**: Leveraging **"Make in India"**, **Atmanirbhar Bharat**, and **Production Linked Incentive (PLI) schemes** to boost global manufacturing credibility. - **Strong Management**: Over **30 years of industry experience** within leadership; technocrat promoters deeply involved in R&D. --- ### **Capital Allocation & Financial Strategy** - **₹125 crore raised via preferential equity issue** – Used to fund expansion and de-lever. - **Annual Capex**: ₹100 crore planned; ₹30 crore invested by Aug 2025. - Focus on improving **ROCE**, managing **debt-to-EBITDA**, and increasing **value-added product mix**. - New capacity addition aimed at reducing import dependence in India (e.g., ethanol-blended fuel additives).