Nocil - On The Road To Recovery After Two Quarters Of Downturn: Motilal Oswal
Further, management expects that Europe+1 could play out over medium term with no likely capacity constraints in near future.
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Motilal Oswal Report
Nocil Ltd. is the largest manufacturer of rubber chemicals in India, with a domestic/global market share of ~40%/~5%, respectively.
Having a rich experience of over four decades, it is a one-stop shop and a dependable supplier of rubber chemicals. The company provides a range of 20 plus products. It is part of the Arvind Mafatlal group, with Mr. Hrishikesh A. Mafatlal serving as the Executive Chairman and a Promoter Director of the company.
We visited the Dahej plant last week. Below are the key highlights from the same.
The plant is spread across two land parcels of 50 acres and 10 acres each. The 50 acres land one is for manufacturing, the other is for logistics; 55% of 50 acres is utilised, 20% of 10 acres leaving large scope for future expansion.
The Dahej plant was built with in-house expertise and the management believes that it would take 15 months to build a similar plant after receiving all approvals.
The total capacity of 110 thousand tonnes per annum is spread 50:50 across Navi Mumbai and Dahej sites with neither sites having any fungibility. 95% of valuables from effluents are recovered, then the rest is treated using soil enzymes.
Half of 23 products are for tyre applications, rest for non-tyre applications. Four ADPA was commissioned in 2012, antioxidants in 2019, accelerators in 2018. ADPA is the intermediate for PX-13; it is also the most complex in terms of chemistry with five-six steps of reactions.
In term of global competition, China Sunshine is mostly in tyre applications, that too accelerators. Senex and Chemi are two smaller players in addition to China Sunshine (20% of global capacity- 254,000 million tonne total capacity incld 50,000 of insoluble Sulphur- this capacity is of end products).
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