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.
<div class="paragraphs"><p>Rubber tubes for automotives kept on ground before use. (Source: pxhere)</p></div>
Rubber tubes for automotives kept on ground before use. (Source: pxhere)

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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).

Click on the attachment to read the full report:

Motilal Oswal NOCIL Company Update.pdf
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