Neogen Chemicals Limited was incorporated as a private limited company with the name Neogen Chemicals Private Limited` on March 7, 1989 in Thane, Maharashtra. Subsequently, pursuant to a special resolution passed by the shareholders of the Company on May 2, 1998, the Company was converted to a public limited company and the name of the Company was changed to Neogen Chemicals Limited` on July 2, 1998.
Neogen is one of India`s leading manufacturers of bromine-based, and lithium-based, specialty chemicals. Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. Specialty chemicals are, also generally, in the Indian context, manufactured in smaller volumes when compared to non-specialty chemicals. Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances.
Specialty chemicals are widely used for specialized applications to meet industry-specific requirements and can be classified based on application industries. Additionally, certain specialty chemicals find application in multiple industries.
The Company manufactures specialty organic bromine-based chemical compounds (Bromine Compounds) and other specialty organic chemical compounds as well as specialty inorganic lithium-based chemicals compounds (Lithium Compounds and together with the Bromine Compounds the Products). The Company commenced its business operations in 1991, at Mahape, Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds. Over the years it has expanded its range of products and, presently, manufacture an extensive range of specialty chemicals which find application across various industries in India and globally. As on February 28, 2019, the company has manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.
In addition to manufacturing its standard products, the company also undertakes custom synthesis and contract manufacturing. In custom synthesis the product is developed and customized primarily for a specific customer, but process know-how and technical specifications are developed in-house by the company. Further, it has, more recently, also commenced contract manufacturing where, the product is developed under confidentiality for a single customer using the process know-how and the technical specifications provided by the customer. Contract manufacturing has enabled the company to increase its bouquet of product offering. The Company differentiates itself in the contract manufacturing space by additionally offering process innovation, which, generally, reduces the overall operating costs for their customers.
The Company operates out of its manufacturing facilities located in Mahape, Navi Mumbai in Maharashtra (Mahape Facility) and Karakhadi, Vadodara in Gujarat (Vadodara Facility). The Corporate office is located in Thane, Maharashtra. The Company is, presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat (Proposed Dahej Facility) and are also proposing to expand its operations in Karakhadi, Vadodara (Proposed Vadodara Facility). Its manufacturing facilities in aggregate are spread across approximately 40 acres with an additional 12 acres of leased property in Dahej SEZ. Its manufacturing units at Vadodara and Mahape also contain research and development (R&D) units comprising a dedicated 20 member in-house team.
Neogen Chemicals came out with an Initial Public Offering (IPO) of 6,155,813 equity shares of Face Value of Rs 10 each for cash at a price of Rs 215 per equity share (including a share premium of Rs 205 per equity share) aggregating Rs132.35 Crores. The offer comprises of a fresh issue of 3,255,813 equity shares aggregating Rs 70 crores by the company (fresh issue) and an offer for sale of 1,699,600 equity shares by Haridas Thakarshi Kanani (promoter selling shareholder) and 1,200,400 equity shares by Beena Haridas Kanani (promoter group selling shareholder, and along with the promoter selling shareholder aggregating Rs 62.35 Crores. The face value of equity shares is Rs 10 each. The IPO was priced at Rs 215 per share.