Jubilant Ingrevia Limited: history, ownership, mission, how it works & makes money

A Brief History of Jubilant Ingrevia Limited

Jubilant Ingrevia Limited, established in 2020, is a leading manufacturer of specialty chemicals and life science products. The company emerged from Jubilant Life Sciences, which has a long-standing history in pharmaceuticals and life sciences.

In its first financial year, Jubilant Ingrevia recorded a revenue of approximately INR 1,850 crore (USD 248 million). The company operates across several key segments, including Performance Polymers, Life Science Ingredients, and Specialty Ingredients.

As of March 2021, Jubilant Ingrevia had reported a net profit of INR 217 crore (USD 29 million) with an EBITDA margin of 14.5%. This demonstrated the company’s robust operational capabilities right from its inception.

In 2021, Jubilant Ingrevia was listed on the National Stock Exchange and Bombay Stock Exchange, fetching a market capitalization of around INR 5,000 crore (USD 670 million). The initial public offering (IPO) was a significant achievement, reflecting investor confidence. The IPO was priced at INR 1,500 per share.

In 2022, Jubilant Ingrevia reported revenue growth of approximately 30% year-on-year, reaching around INR 2,400 crore (USD 321 million). The company continued to focus on expanding its product portfolio and enhancing its research and development capabilities.

Here’s a detailed financial snapshot of Jubilant Ingrevia from its inception until 2023:

As of 2023, Jubilant Ingrevia’s expansion strategy has led to investments in new facilities and technology to enhance production capabilities. The company also aims to focus on sustainability in its operations, leveraging innovative solutions.

In recent developments, Jubilant Ingrevia announced a joint venture with a global chemical company to enhance its reach in international markets. This partnership is expected to bring in an additional revenue of approximately INR 400 crore (USD 53 million) annually starting from 2024.

The research and development expenditure for 2023 was noted to be around INR 100 crore (USD 13 million), focusing on new product lines and process improvements. Additionally, the company has plans to increase its workforce by 15% to support its growth initiatives.

Jubilant Ingrevia has consistently emphasized enhancing shareholder value, with a return on equity (ROE) reported at approximately 18% for the fiscal year 2023, showcasing effective management of resources and strong profitability margins.

A Who Owns Jubilant Ingrevia Limited

Jubilant Ingrevia Limited, a prominent player in the specialty chemicals and life sciences sector, has a diverse ownership structure. As of the latest available data, the major shareholders of Jubilant Ingrevia are as follows:

The largest segment of ownership is held by the promoters, led by the Jubilant Bhartia Group. This group exercises significant control over the company, influencing strategic decisions and overall governance.

The breakdown of the shareholder structure indicates that institutional investors combined possess approximately 22.32% of the total shares, which reflects a healthy interest from both foreign and domestic institutions.

In terms of market capitalization, as of the end of September 2023, Jubilant Ingrevia Limited's market cap stood at approximately ₹6,000 crores. The share price as of the same date hovered around ₹525 per share.

Additionally, the company reported a revenue of ₹1,300 crores for the financial year 2022-2023, showcasing a year-on-year growth of 15%. This growth can be attributed to robust demand in the life sciences and specialty chemicals segments.

It is noteworthy that Jubilant Ingrevia's performance in the stock market has shown resilience, with an approximate 12% increase in share price over the last six months, reflecting positive investor sentiment and confidence in the company's operational efficiency and market strategy.

The ownership composition of Jubilant Ingrevia reflects a stable foundation, with promoters retaining a strong grip while also welcoming institutional investment, which serves to bolster the company's strategic vision and operational execution.

Jubilant Ingrevia Limited Mission Statement

Jubilant Ingrevia Limited is a global integrated pharmaceutical and life sciences company dedicated to delivering innovative and value-added products and services. The mission statement emphasizes commitment to sustainability, quality, and excellence. The company aims to be a leader in the custom research and manufacturing services (CRAMS) domain, providing tailored solutions while ensuring adherence to safety and regulatory standards.

The mission statement focuses on several key aspects:

• Customer Focus: Delivering high-quality products that meet or exceed customer expectations.
• Sustainability: Committing to environmentally responsible practices in its operations.
• Innovation: Continuously investing in research and development to drive product advancements.
• Employee Empowerment: Fostering a culture that promotes employee growth and well-being.

As of the latest financial year, Jubilant Ingrevia reported a total revenue of ₹2,205 Crores, showing an increase of 27% compared to the previous year. The operating profit was recorded at ₹301 Crores, reflecting a strong operating margin of 13.65%.

Here is a snapshot of relevant financial data:

The company’s recent initiatives in line with its mission statement have led to innovations such as the launch of a new line of specialty chemicals, which contributed 15% of the overall revenue in FY 2022-23. Additionally, Jubilant Ingrevia has committed to reducing its carbon footprint by 25% by 2025, aligning with global sustainability goals.

Supporting its mission, the company has established partnerships with leading research institutions, underlining its commitment to innovation. In FY 2022-23, R&D expenditure reached ₹120 Crores, which is 5.45% of total revenue, reflecting a robust focus on developing next-generation solutions.

In summary, Jubilant Ingrevia's mission statement not only outlines its objectives but also serves as a framework guiding the company’s operations towards sustainable growth and innovation in the pharmaceutical and life sciences sectors.

How Jubilant Ingrevia Limited Works

Jubilant Ingrevia Limited operates primarily in the chemicals and specialty products sector. The company is involved in the manufacturing of chemicals such as performance products, intermediates, and fine chemicals. Their operations are categorized into three main segments: Life Science Ingredients, Advanced Intermediates, and Specialty Products.

Business Segments

• Life Science Ingredients: This segment includes products like Active Pharmaceutical Ingredients (APIs), excipients, and nutraceuticals. The revenue from this segment for FY 2022 stood at ₹1,167 crores.
• Advanced Intermediates: This segment primarily focuses on specialty chemicals for agrochemicals and other industries. The revenue generated from this segment was ₹1,320 crores in the same period.
• Specialty Products: This includes various performance products, yielding a revenue of ₹832 crores in FY 2022.

Financial Performance

For the fiscal year ending March 2023, Jubilant Ingrevia reported a total revenue of ₹3,400 crores, reflecting a growth of approximately 15% compared to the previous year. Its EBITDA for the period was ₹860 crores, leading to an EBITDA margin of 25.3%.

The net profit for FY 2023 was reported at ₹500 crores, with a net profit margin of 14.7%.

Stock Performance

The stock of Jubilant Ingrevia Limited trades on the National Stock Exchange of India (NSE) under the ticker symbol JUBLINGRE. As of October 2023, the stock price is approximately ₹430 per share, with a market capitalization of about ₹8,500 crores.

Key Ratios

Global Reach and Market Strategy

Jubilant Ingrevia has a strong export presence, with approximately 45% of its revenue coming from international markets. The company focuses on expanding its global footprint in North America, Europe, and Asia. They emphasize innovation and sustainability in their production processes, aiming to reduce carbon emissions by 20% by 2025.

Research and Development

The company allocates around 5% of its annual revenue towards R&D, which enhances its capacity for developing new products and improving existing formulations. This investment in R&D is crucial for maintaining competitiveness in the specialty chemicals market.

Future Outlook

Analysts forecast that Jubilant Ingrevia's revenue could grow at a CAGR of 10%-12% over the next five years, driven by increasing demand for specialty chemicals and APIs globally. The company aims to focus on enhancing operational efficiencies and exploring strategic partnerships to bolster growth.

How Jubilant Ingrevia Limited Makes Money

Jubilant Ingrevia Limited operates in the specialty chemicals segment and generates revenue primarily through a diversified range of products. The company is involved in the production of life science ingredients, performance polymers, and advanced intermediates. As of the fiscal year ending March 31, 2023, Jubilant Ingrevia reported a total revenue of ₹2,620 crore, marking a growth of approximately 15% compared to the previous financial year.

The revenue generation sources include:

• Life Science Ingredients: Contributing about 60% of total revenue, this segment encompasses pharmaceutical intermediates, agrochemical intermediates, and other specialty chemicals.
• Performance Polymers: Accounting for around 25% of the revenue, this includes products like thermoplastic elastomers and other polymer-based solutions.
• Advanced Intermediates: Making up the remaining 15%, it covers specialty intermediates used in various applications.

Jubilant Ingrevia practices a strong focus on research and development, investing about 5% of its total revenue into R&D, which enhances its product offerings and sustains competitive advantage. The company has a workforce of approximately 3,200 employees dedicated to innovation and quality improvement.

In terms of financial performance, the company reported an EBITDA of ₹600 crore for FY 2023, resulting in a margin of 22.9%. The net profit margin stood at 10.2%, while the return on equity (ROE) was approximately 13.5%.

Below is a summary of financial performance in FY 2023:

Geographically, Jubilant Ingrevia has diversified its market presence, exporting to over 60 countries. Major markets include North America, Europe, and Asia-Pacific, which collectively represented around 70% of the total sales. This global footprint allows the company to mitigate risks associated with regional economic downturns.

The company's strategic partnerships with global clients in various sectors, along with an extensive distribution network, facilitate sustained revenue streams. For instance, Jubilant Ingrevia collaborates with leading pharmaceutical firms for the supply of key intermediates, thereby maintaining high demand for its products.

The pricing strategy is also pivotal. The company adjusts prices based on raw material costs, global supply-demand dynamics, and competitive positioning. In FY 2023, the average selling price increased by about 8% due to rising input costs and inflationary pressures.

Overall, Jubilant Ingrevia Limited continues to capitalize on its diversified product portfolio, strong R&D capabilities, and expansive market reach to drive revenue growth and maintain profitability in a competitive landscape.