Thread by @ketanmba03

Sumitomo Chemical CMP 256
✍️ Formidable player in the Indian Agro-chem Space
✍️ Acquired Excel Corp(Generic agrochemical)
✍️ Combined entity is one of the largest agro-chem firms
✍️ The scale will help Japanese Co to derive better synergies
✍️ Merger of Excel crop unlocking value

Diversified & De-risked Portfolio
✍️ Focus on high growth, profitable segments
✍️ Low dependance on individual products
✍️ Top 10 products contributes <50% of TSales
✍️ No product contributes >15% of TSales
✍️ Balanced Presence Across Key Sub-Segments of the Agro-Chem Value chain

Synergy Benefits
✍️ 5 Mfging plants(3 ECCL+2 SCIL)
✍️ Presence in both technical & formulation mfging
✍️ 13k+Distributors, 40k+Dealers
✍️ R&D Capability;New combinations using SCIL's chemistries
✍️ Presence across complete range of products
✍️ ASD focused with presence in AND&EHD

Synergy Benefits
✍️ Diversified product range covering Kharif & Rabi crops
✍️ Strong presence with both the retailers & farmers
✍️ Chance of becoming a global supplier is visible as #Sumitomo has foothholds in every country
✍️ Strong brand & Well-Entrenched Distribution Network

Strong Parantage of SSC Japan
✍️ Leading Research Driven Diversified Chemical Company
✍️ Focused on developing proprietary products & technologies
✍️ Holds 12.6k+ Patents of which ~34% are in health & crop science
✍️ SSC's H&C Sciences is one of the leading R&D Spenders Globally

Strong Parantage of SSC Japan
✍️ Access to world class portfolio(Development of actives & broad range of formulation research)
✍️ Greener chemistries, superior innovative capabilities
✍️ Good Brand recall & wider access to Global Mkts
✍️ Access to SSC's Global SCM,R&D activities

Strong Focus on R&D and Process Innovation
✍️ 3 fully equipped, DSIR approved R&D Labs
✍️ 25+ Patents granted
✍️ Pipeline of 9 new combination products currently under development
✍️ Feasibility of SCC Japan's new molecule pipeline being studied and evaluated in an Indian context

Q3FY20 Result
✍️ Revenue growth of 21% YoY driven by broad based Vol growth across products, geographies & biz segments
✍️ EBITDA margin improved by 450bps to 8.7% lead by gross margin expansion & operational efficiencies
✍️ PBT adujsted for merger expenses (25 Crs) grew 183% YoY

Way Forward
✍️ Continued Investment in R&D and Pipeline
✍️ Invest ~15% of consolidated EBITDA for upgradation of mfging facilities & expansion
✍️ 11 products registration in process to further improve utilization
✍️ Leverage SCC's global SCM & Marketing network to drive exports

Way Forward
✍️ Leverage the local unit's mfging capabilities by sourcing more products from India
✍️ Plans to launch 1 proprietary product from the parent every year.
✍️ The Parent Co's strong product pipeline with opportunties worth $1.4-1.8 Bn will support india operation

Strong Track Record of Driving Growth
✍️ Grown 10x over FY11-19 driven by Organic/Inorganic
✍️ Debt free B/S
✍️ Made an impressive debut on the exchanges
✍️ MFs started buying
✍️ Long-term Outlook is good
@npal20 @nid_rockz @MarketScientist @AnyBodyCanFly @koolvicky @Stockstudy8