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Vinati Organics: Indian Company with 
% global Market Share! The Unknown Monopoly
A thread
(1/14)
#investwithticker #StockMarket #stock
% global Market Share! The Unknown Monopoly A thread(1/14)#investwithticker #StockMarket #stock
It is a chemical company which manufactures IBB (Isobutyl Benzene) which is the key
raw material for Ibuprofen (painkillers)
With 65% global market share it is the No.1 manufacturer if IBB of the world.
(2/14)
raw material for Ibuprofen (painkillers) With 65% global market share it is the No.1 manufacturer if IBB of the world.
(2/14)
Survival of the Fittest
: It became the lowest cost manufacturer of IBB in the world due to geographical advantage and technology.
The difference of cost of production of its peers was so huge that its competitors had to quit the market.
(3/14)
: It became the lowest cost manufacturer of IBB in the world due to geographical advantage and technology. The difference of cost of production of its peers was so huge that its competitors had to quit the market.
(3/14)
Due to this the company not only gained a significant market share and almost a Monopoly status
in the global market but also increased profitability of business.
15% of revenues comes from this segment.
(4/14)
in the global market but also increased profitability of business. 15% of revenues comes from this segment.
(4/14)
It is the No.1 manufacturer of ATBS (special chemical) 
which is known for its purity.
It became the lowest cost manufacturer of ATBS of the world and currently has 65% global market share.
60% rev. is from this segment.
(5/14)
which is known for its purity. It became the lowest cost manufacturer of ATBS of the world and currently has 65% global market share.
60% rev. is from this segment.
(5/14)
IB(Iso-butylene): This chemicalis an ingredient to manufacture ATBS.
Entering this segment was a step in backward integration to reduce COP of ATBS and get rid of dependence from China to source raw materials.
This further increased margins.
(6/14)
is an ingredient to manufacture ATBS. Entering this segment was a step in backward integration to reduce COP of ATBS and get rid of dependence from China to source raw materials.
This further increased margins.
(6/14)
Overall 
% of revenue comes from exports indicating strong international presence.
Unlike its peers the company does not rely on China for raw materials which makes it a price dictator
rather than price taker.
Instead it competes with China & Europe
(7/14)
% of revenue comes from exports indicating strong international presence. Unlike its peers the company does not rely on China for raw materials which makes it a price dictator
rather than price taker. Instead it competes with China & Europe
(7/14)
Being a chemical company, the value chain is full of chemical derivatives. The company further processes these chemicals and sells it. This helps product integration. It is the only Indian manufacturer of 10+ special chemicals.(8/14)
It has launched 10 new products in the last 5 years which now takes the total portfolio count to 
65% of revenue comes from clients associated with the company for the long term.
#investwithticker #stock
(9/14)
65% of revenue comes from clients associated with the company for the long term.
#investwithticker #stock
(9/14)
Intellectual Capital :
Highest purity standard achieved by ATBS product
99.7% purity standard of IBB product
99.85% purity standard of IB product
99.97% purity standard of HP-MTBE product
(10/14)
#investment #finance #investwithticker
Highest purity standard achieved by ATBS product 99.7% purity standard of IBB product 99.85% purity standard of IB product 99.97% purity standard of HP-MTBE product (10/14)
#investment #finance #investwithticker
Future Prospects: 
Company consistently incurs huge R&D exp. to enter new areas.
Production of Paracetamol - testing phase
Increasing CAPEX to increase manufacturing capacity of existing products and further achieve economies of scale
(11/14)
Company consistently incurs huge R&D exp. to enter new areas. Production of Paracetamol - testing phaseIncreasing CAPEX to increase manufacturing capacity of existing products and further achieve economies of scale (11/14)
Red Flags: 
Concentration risk on Top Clients.
Tremendous growth in industry is unlikely
Deals in niche business segments only.
(13/14)
#chemical
Concentration risk on Top Clients. Tremendous growth in industry is unlikely Deals in niche business segments only. (13/14)
#chemical
