Clean Science & Technology Ltd IPO

Competitive Strengths:

Strategic process innovation through consistent R&D Initiatives: 
Clean Science and Technology Limited is among the leading companies in India to have commercialized use of environment-friendly processes to manufacture certain specialty chemicals. This was possible by optimizing the use of conventional raw materials, improving atom economy, enhancing yields, reducing effluent discharge, and consequently increasing cost competitiveness. This process at such a large scale is difficult to replicate and creates a significant barrier for new entrants. 

One of the largest producers globally of certain critical specialty chemicals used across industries:
Clean Science and Technology Limited is amongst the largest producer of certain speciality chemicals in terms of manufacturing capacities as of FY21. The company’s products are used as polymerization inhibitors, intermediates for agrochemicals and pharmaceuticals, anti-oxidants, UV blockers, and anti-retroviral reagents, which are functionally critical in a wide range of industries, including in the manufacture of paints and inks, agro-chemicals, pharmaceuticals, flavors and fragrance, food and animal nutrition, and personal care products.

Strong and long-term relationships with key customers:
The company’s ability to meet the demand along with quality at competitive prices has resulted strong and long-standing relationship with various multinational corporations. Revenue generated from the top 10 cus-tomers represented 47.9% of the revenue from operations as of FY21. The company’s long-term relationships and ongoing active engagements with customers also allow them to plan their capital expenditure, enhance the company’s ability to benefit from increasing economies of scale with stronger purchasing power for raw mate-rials and a lower cost base.

Risks:

• Operations are dependent on R&D capabilities and their inability to continue to design catalytic processes may adversely affect their business.
• None of catalytic processes are patented and the intellectual property may not be adequately protected.    
• Significant portion of their revenue comes from certain key customers and loss of one or more of such customers can have an adverse impact on their operations.