Neogen Chemicals Ltd Research ReportCo.Update 1

Commencing operations in 1991, Neogen Chemicals manufactures specialty organic bromine-based chemical compounds as well as specialty inorganic lithium-based chemicals compounds. The company’s products find\n application in pharmaceutical intermediates, agrochemical intermediates engineering fluids, polymers additives, water treatment chemicals to name a few. Neogen has two segments viz. (i) organic chemicals, (ii) inorganic chemicals of which organic chemical constitute ~80% of overall . Commencing operations in 1991, Neogen Chemicals manufactures specialty organic bromine-based chemical compounds as well as specialty inorganic lithium-based chemicals compounds. The company’s products find application in pharmaceutical intermediates, agrochemical intermediates, engineering fluids, polymers additives, water treatment chemicals to name a few. Neogen has two segments viz. (i) organic chemicals, (ii) inorganic chemicals of which organic chemical constitute ~80% of overall revenue while the rest comes from inorganic chemicals. Going ahead, with the recent increase in the organic chemical capacity at Dahej, the company is poised to witness compounded growth over the medium to long run. The upcoming capacity would largely cater to the Custom Synthesis (CRAMS) opportunity given that two of the customers have expressed long term interest. Since the company is more focused on the advanced bromine intermediates market, hence, such a custom synthesis opportunity is expected to arise in the years to come.