Thread by @ParveenBhansali

#CleanScience is a Highly innovative company with professional mindset, capacity expansion and non-patent approach, Massive cashflows generation and Power of Competitive Advantage.

#CleanScience will be the first company to develop HALS series (Hindered Amine Light Stabilizers) in India.

HALS has a global market size of $1 Billion and CAGR growth of 12%.

HALS are basically used to stabilize/protect the color, surface, gloss retention, UV protection, Dust protection, enhance self life etc for huge varities of products that we see and use in our day to day life.

Around 300 crores capex in line for next 3 yrs thru internal accruals which will increase their production capacities by more than 3 times from existing capacity of 30k tons in next 3 yrs. Big jump in topline will happen from H2 onwards due to these aggressive capex.

New plant to commission from Q3 leading to higher sales. They have done capex in last year, this year, and has capex plans for coming yrs. Capex of last yr will come on stream this yr, this yr's capex in next yr and so on.

Recently they disclosed a lease agreement for a Plot size of 30 acres for additional manufacturing unit. Despite having Unit 3 and 4 they took this additional lease which shows the robust demand of their products and management's approach.

Margins in established products will be sustainable and in new products margins will be around 20-25% to start with and then they will gradually grow in next few yrs.

Clean Science has RoCE and margins which no other chemicals co will have in listed space.

Margins are already at an elevated levels due to their expertise processes and backwards integration.

Co is a dominate force in most of its products due to their proprietary technology of lower cost of production. It tries to deploy its cash flows in developing n making similar products n enhance its products basket wch again takes substantial leadership position in the market.

Beauty of their Proprietory Technology  is that their
raw materials cost is the worlds lowest for manufacturing of their feedstock-Anisole. Similar results will be visible for HALS products series which has feedstock-Acetone.

Not just fully backward integration for RM but their mastery in the process of making RM which reduces the uses of RM to make final products. Further cost reduction thru installation of 50Crs of solar panels this year also.