India Glycols Ltd - Stock Valuation and Financial Performance

India Glycols Limited (IGL) is a leading company that manufactures green technology based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals.

The company was established as a single mono-ethylene glycol plant in 1983. Since then, the company has brought together cutting-edge technology, innovation and an unflagging commitment to quality, to manufacture a wide range of products that have found global demand.

Its state-of-the-art, integrated facilities manufacture chemicals including glycols, ethoxylates, glycol ethers and acetates, and various performance chemicals. Its product range spans the chemicals, spirits, herbal and other phytochemical extracts and guar gum, industrial gases and realty sectors, and finds application across an increasing number of industries.

These products are manufactured in compliance with stringent global standards of plant operations, quality and safety. The company’s facilities have been approved and certified by international agencies including Det Norske Veritas (DNV). The operations at all plants are closely monitored through distributed control systems (DCS), which facilitate a high degree of control over the quality of products.

The company’s flagship chemicals division started out with a path-breaking green approach to manufacturing ethylene oxide and derivatives. Using the molasses-ethyl alcohol-ethylene 'green route', the company is the only one of its kind in the world. With the emphasis now increasingly shifting to green manufacturing, the chemical division is well poised to meet the industry’s need for environmentally responsible products and production techniques.

Keeping in mind the critical dependence on agricultural feedstock, the company has taken up several initiatives including backward integration into sugar manufacturing to ensure seamless raw material availability. Other complementary initiatives include co-opting the cane growing community to ensure cane availability while providing adequate returns to the farmer.

Apart from chemicals, the company has a significant presence in the natural active pharmaceuticals and nutraceuticals space with Ennature Biopharma; a well-established natural gum division manufacturing guar gum and a variety of derivatives; a spirits division that manufactures country and Indian-made foreign liquor adhering to the highest quality standards; and Shakumbari Sugar - a well-established player in the Indian sugar industry.

Further, the company has traditionally looked to leverage the export potential of its products. The company has therefore initiated the process of aligning to emerging global trends and has established facilities and operations that are in compliance with global good manufacturing practices.

Business area of the company

The company is one of the leading manufacturers with its presence in Glycols (Bio-Based Specialities and Performance Chemicals), Ethyl Alcohol (Potable Spirits), Plant based APIs and Nutraceuticals, Natural Gums (Bio Polymers) and Derivatives and Industrial Gases. The Bio-based Ethylene Oxide Derivatives business is being transferred to a JV company, details whereof are given under the heading Ethylene Oxide Derivatives (EODs) in this report. Its state-of-the-art manufacturing facilities are working to provide sustainable value added products using the best technologies.

The Company has organised its business into:

A) Chemicals having following segments:-

• Bio-based Glycols (MEG, DEG, TEG and Heavy Glycols), Glycol Ethers, Glycol Ether Acetates.
• Ethylene Oxide Derivatives (EODs) (this business is being transferred to a JV company, details whereof are given under the heading Ethylene Oxide Derivatives (EODs) in this report).
• Power Alcohol (Bio Fuel), Industrial Gases, Natural Gum (Bio Polymers) etc.

B) Ethyl Alcohol (Potable Spirits) and Extra Neutral Alcohol (ENA).

C) Ennature Biopharma (Nutraceuticals)

Products

• Polyethylene glycols
• Fatty alcohol ethoxylates
• Fatty acid ethoxylates
• Fatty amine ethoxylates
• Alkyl phenol ethoxylates
• Castor / natural oil ethoxylates
• EO / PO co-polymers
• Polysorbates
• Glycol ethers and acetates
• Brake fluids / anti-freeze coolant
• Performance chemicals
• Natural gum
• Extra neutral alcohol
• Indian-made foreign liquor (IMFL)

Awards

• 1991: National Safety Award for meritorious performance in industrial safety, in achieving longest accident-free period from Ministry of Labour, Government of India.
• 1991: National Safety Award for outstanding performance in industrial safety as runner up in achieving lowest average frequency rate from Ministry of Labour, Government of India.
• 1992: Award of Merit for operating 27,55,364 employee hours without occupational injury or illness from National Safety Council, USA.
• 1997: Award for Best Project / Entrepreneur in the biomethanation sector from Ireda.
• 1998: Safety Award in recognition and commendation of services rendered to the cause of safety from British Safety Council, UK.
• 1999: Safety Award in recognition and commendation of services rendered to the cause of safety from British Safety Council, UK.
• 2000: Safety Award in recognition and commendation of services rendered to the cause of safety from British Safety Council, UK.
• 2001: Safety Award in recognition and commendation of services rendered to the cause of safety from British Safety Council, UK.
• 2002: Safety Award in recognition and commendation of services rendered to the cause of safety from British Safety Council, UK.
• 2002: National Safety Award for outstanding performance in industrial safety, in achieving longest accident-free period from Ministry of Labour, Government of India.
• 2002: Perfect Record Award for operating 7,208,784 employee hours without occupational injury or illness from National Safety Council, USA.
• 2004: Best Performing Power Plant from Wartsila.
• 2004: International Safety Award in recognition of proven track record of maintaining excellent safety standards from British Safety Council, UK.
• 2005: International Safety Award in recognition and commendation of services rendered to the cause of safety from British Safety Council, UK.
• 2008: Best Quality ENA Award in recognition of quality ENA production from Ciab.
• 2008: Best Enhanced Performance for enhanced performance in exports, northern region from Concor.
• 2013:  Award of Business Leader of the Year - Innovation for year 2013 conferred to its CMD, U.S. Bhartia from Chemtech CEW Leadership & Excellence Awards.
• 2014:  India Glycols has been awarded The ICONIC IDC Insights Award 2014 in the manufacturing and logistics vertical from International Data Corporation (IDC).
• 2014:  India Glycols honoured with the silver award for being one of the highest foreign exchange earners in the Chemicals, Drugs, Pharma and allied sector from Federation of Indian export organization.
• 2015: Soulmate Premium Whisky won the Gold Award at Monde Selection 2015 for its logo from Organisation International Institute for Quality Selections.
• 2016:  India Glycols, Kashipur, wins the BIRAC Innovator Award 2016 from BIRAC.
• 2016:  India Glycols conferred ICC Award for Excellence in Energy Conservation and Management from Indian Chemical Council (ICC).
• 2016:  India Glycols won the prestigious gold award for outstanding export performance in the 'chemicals panel - large scale sector' category from Basic Chemicals, Cosmetics & Dyes Export Promotion Council.
• 2017:  CHEMEXCIL awards India Glycols for outstanding export performance from CHEMEXCIL.
• 2018:  India Glycols honoured for 'efficiency in energy usage in the petrochemical sector' at the FICCI Chemicals and Petrochemicals Awards 2018 from FICCI.

Milestones

• 1983: Incorporated on November 19, 1983, as UP Glycols Limited.
• 1986: Renamed as India Glycols Limited on 28th August 1986.
• 1989: Commercial production commenced at MEG plant from 25th April 1989: capacity, 20,000MTPA.
• 1994: Commissioning of 13,000MTPA EO purification plant.
• 1994: Commissioning of 20,000MTPA ethoxylate plant.
• 1995: De-bottlenecking of MEG facility (20,000 to 25,000 MTPA).
• 1997: Commissioning of 10,000MTPA formulation plant.
• 1998: De-bottlenecking of MEG facility (25,000 to 30,000 MTPA).
• 1998: Commissioning of 6,000MTPA sulphation plant.
• 1999: Commissioning of 85,000 BL PD new continuous process distillery.
• 1999: De-bottlenecking of MEG facility (30,000 to 33,000 MTPA).
• 1999: Increase in power generation capacity (6 to 18 MW).
• 2001: Commissioning of glycol ether plant.
• 2001: Commissioning of guar gum facility, 12,000MTPA capacity.
• 2002: Commissioning of bottling plant.
• 2002: Expansion of MEG plant to 60,000MTPA.
• 2003: Addition of GE acetate facility.
• 2003: Commissioning of ENA plant.
• 2005: Expansion of MEG production to 1 lakh MTPA.
• 2005: Commissioning of ASU - III.
• 2005: Commissioning of RAB unit.
• 2006: Commissioning of Gorakhpur unit.
• 2007: Acquisition of Shakumbhari Sugar.
• 2008: Commissioning of CO2 plant.
• 2008: Expansion of MEG plant to 200,000MTPA.
• 2009: Commissioning of Ennature Biopharma, Dehradun.
• 2009: Commissioning of DEGEE acetate plant.
• 2009: Expansion of formulation plant - CABS.
• 2009: Expansion of ethoxylate plant (stirred reactor).
• 2010: “The Biomass based Cogeneration Project at Gorakhpur registered under CDM project by UNFCCC.”
• 2016-17: The Company launched ‘Soulmate Blu’, a Premium Whisky brand in semi-premium segment in the states of Uttarakhand and Haryana
• 2017-18: Launched its premium products under the brand name of “V2 O Vodka” and Smooth in Vodka category, Soulmate in Whisky category and some premium brands in Rum.
• 2018-19: The Company launched ‘Soulmate Blu’, a Premium Whisky in semi-premium segment in eastern states such as Assam, Odisha in addition to existing States of Uttarakhand, Himachal Pradesh and Haryana
• 2019-2020: The company started manufacturing of premium quality Hand Sanitizer from its Kashipur and Gorakhpur plants and successfully launched the brand “HandSantol” which got a very good response from the market.
• 2022: The company commissioned operations in a grain based distillery unit at Gorakhpur.