Sudarshan Chemical Industries Ltd

Sudarshan Chemical Industries Ltd

Sudarshan Chemical Industries is a globally renowned player in the Pigment Industry and manufactures a wide range of Organic and Inorganic Pigments Effect Pigments Agro Chemicals and other products with two facilities at Roha and Mahad in Maharashtra. As the largest producer of pigments in India the Company manufactures an extensive range of Organic Inorganic and Effect Pigments and dispersions catering to the Coatings Plastics Inks and Cosmetics Industries worldwide. Their product offerings include recognized brands such as Sudaperm Sudafast Sudacolor Sumica and Sumicos. Company's development focus is on high performance pigments mainly for automotive coatings and engineering plastics that are produced in state of the art manufacturing facilities at Roha and Mahad.Pune-based Sudarshan Chemical Industries was formed as a Private Limited Company under the name 'Sudarshan Chemicals Industries Private Limited' in February 19th 1951. The name of the Company was changed to 'Sudarshan Chemicals Industries Limited' on 15th May 1975 and the Company went to Public in the December 1976. Until the seventies the Company manufactured organic / inorganic pigments and intermediates. But in 1980 it diversified into pesticides.In Jan.'91 it commenced manufacture of a new range of organic pigments such as pthalocyanine with technology from Dainippon Ink & Chemicals Japan. The Japanese collaborator apart from providing technology also holds a 29.03% stake in the Company. The company entered the area of environmental engineering in collaboration with Radian Corporation US. It went public with a rights offer at a premium of Rs 100 to set up a plant to manufacture 1125 tpa of organic pigments at Mahad.The Company announced bonus shares in the ratio 1:2. During 1994-95 exports amounted to Rs 45.8 crore Company has received ISO 9001 certification in respect of its Pigment division. During 2000-01 the company received the prestigeous ISO 9001 re-certification in respect of its Pigment Division by Bureau Veritas Quality International (BVQI). During 2000-01 Mahad factory has been awarded the coveted ISO 14000 certification by Bureau Veritas Quality International (BVQI) which reconfirms the emphasis given by the company to safety and environment aspects and strict adherence to safety and environment standards.The Board of Directors of the company in its meeting held on 9 August 2014 recommended sub-division of equity shares of the company from Rs. 10 each to Rs. 2 each along with issue of Bonus Shares in the ratio of 1:1. Accordingly 34613625 shares have been allotted as fully paid up by way of bonus shares of Rs 2 each in the ratio of 1:1 during the year ended 31 March 2015.During the year 2017 the Company has incorporated through its direct subsidiary in The Netherlands viz. Sudarshan Europe B.V. a step-down subsidiary (SDS) in Mexico by the name Sudarshan Mexico on 25 January 2017 for marketing and selling pigments manufactured by Sudarshan India. Further the SDS will also be in a position to keep stocks of finished products and do invoicing. This will also enable the Company to service key customers in regions around U.S.A.In 2017 the Company has also set up a Marketing / Sales Office in Shanghai China to locally source raw materials and among others to cater to the requirements of Asia Pacific customers.On 1 June 2018 the Company has entered into a Share Purchase Agreement with Americhem Inc. USA to sell the entire shareholding in its Wholly Owned Subsidiary Prescient Color Limited for an Enterprise Value of Rs. 11700 Lakhs. The Equity Value for sale of shares on Closing Date is Rs. 10228 Lakhs.The Board of Directors in its meeting held on 27 June 2018 have in-principle approved the transfer of Agro Formulation Brand Business for a fixed consideration of Rs. 700 Lakhs and a variable component in terms of royalty payable on sales. The modalities for this transaction are being worked out.The Board of Directors at its meeting held on 12th April 2019 approved a proposal to enter into a definitive agreement with GMM Pfaudler Limited (GMMP) to divest the Industrial Mixing Solutions Division (IMSD) of the Company. The consideration for the said transaction was approx. Rs 29 Crore which was subject to adjustment on account of trade working capital difference and related items. On 26th April 2019 the Company completed the divestment subject to closing adjustments of its IMSD to GMMP on a going concern basis in terms of the definitive agreements executed between the parties.On 26th April 2019 the Company completed the divestment subject to closing adjustments of its IMSD to GMMP on a going concern basis in terms of the definitive agreements executed between the parties.During the FY2020 `Sudarshan Japan Limited' a Wholly Owned Subsidiary (WOS) of the Company was set up in Japan which was incorporated on 29 October 2019.The Company continued its expansion plans and has put into use projects amounting to Rs 227 Crore during the year 2019-20. This capital expenditure is primarily aimed at augmenting production capacities at Roha and Mahad facilities. These investments are proposed to be funded through the blend of debt and internal accruals.The Company's operations were shut down from the last week of March 2020 following the nationwide lockdown imposed by the Government of India in view of the COVID-19 pandemic. The Company's plants have since resumed operations in line with the various directives of the Government in a phased manner.In 2023 the Company commissioned the Capex programme for Rs 750 crore. It launched 4 products comprising of CICP Solvent Dyes Pigment Preparation and Digitial Inks. It launched New Pigment Violet 23 for Coatings Plastics and Inks application.