Dolat Capital: PI Industries - Plodded Along At First, Forging Ahead Now
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Dolat Capital Report
Isagro Asia Agrochemicals Pvt. Ltd.’s acquisition, a Rs 20 billion qualified institutional placement (QIP) – a prelude to inorganic growth, 22 patent applications, a 1.5 billion U.S. dollar custom synthesis manufacturing (CSM) order book, introduction of an intermediate used in Covid-19 drug and commissioning of two new multi-product plants, two new products in CSM and three new products in the domestic business have been new feathers in the cap for PI Industries Ltd. during FY20.
PI Industries’ foray into pharmaceuticals has been a manifestation of their perseverance.
PI Industries’ FY20 annual report speaks vividly of finding adjacencies beyond agro-chemicals and to be able to find their feet in knowledge chemistries.
The company has been consistently investing in research and development (3.5% of sales: Rs 115 million) to build a robust pipeline of novel molecules (closed FY20 with 60 molecules in the pipeline) and endeavours developing next generation, technology and processes.
PI Industries has had a penchant for setting foot in advanced chemistries (as mentioned in previous annual reports) like fluorination, phosgenation, carboxylation and that now, makes more sense – the company completed work on setting up facility to undertake fluorination chemical synthesis and initiated process development of a few molecules.
The company’s vision of Chemistry 4.0, enabled deployment of new analytical tools to improve process efficiencies.
We believe that PI Industries is at the cusp of being seen as a diversified chemical company and paving ways into pharmaceuticals, fine chemicals, knowledge chemicals augurs well for shareholders.
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