Rossari Biotech Announces Q1 FY22 Results

MUMBAI:
Rossari Biotech Limited (Rossari), a Speciality-Chemicals manufacturer providing intelligent and sustainable solutions for customers across industries, has announced its financial results for the quarter ended June 30, 2021.

Commenting on the performance, in a joint statement, Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, said: “The new fiscal year began on an encouraging note, with solid gains across businesses. While the quarter gone by witnessed a challenging operating environment due the second wave of the COVID-19 pandemic, the demand and offtake across our HPPC, TSC and AHN divisions broadly remained steady. Our HPPC business demonstrated strong growth led by robust volumes in hygiene products and anti-viral portfolio, supported by consistent demand in key end user categories. Although broader operating constraints due to the lockdown restrictions moderated growth of our TSC business sequentially, we have started witnessing sustained improvement in sales from June onwards. In addition, higher consumption in the AHN segment assisted our overall results. Consolidated revenues in the quarter stood higher by 111.12% YoY and PAT up by 58.40% YoY. Our profitability margins also remained within healthy levels.

2021 has been yet another milestone year in Rossari’s growth story. In the last two months, we have announced strategic acquisitions of two high-quality & high-potential companies in the Speciality Chemical space viz. Unitop Chemicals and Tristar Intermediates. These acquisitions bring in multitude of synergies such as expanded product portfolio, stronger presence in new markets, cross-selling opportunities, and access to newer technologies, capacity and talent. Our primary focus area in the coming quarters will be towards seamlessly integrating these into our business model, thus accelerating the growth momentum at Rossari.

Our constant endeavor is to drive operational excellence across our businesses at all times. In the last few years, we have undertaken several growth initiatives, which we believe will lead to stronger growth in the quarters ahead. From a demand perspective, improved recovery in the domestic economy should further support momentum. Overall, with the blend of capabilities from recent acquisitions and with our robust & resilient organic business, the outlook remains positive in the medium-to-longer term.”

Key Developments
Acquisition of Unitop Chemicals Private Ltd. (Unitop Chemicals)
• In June 2021, the Board of Directors of Rossari approved the acquisition of Unitop Chemicals. As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100% equity capital of Unitop Chemicals. 65% of the equity share capital will be acquired upon closure of the transaction, and the balance 35% over the next two years. The total consideration for the acquisition of 100% equity stake is Rs. 421 crore
• Unitop Chemicals is a leading supplier of Surfactants, Emulsifiers and Specialty chemicals to a diversified customer base including large domestic and international companies

Acquisition of Tristar Intermediates Private Ltd. (Tristar Intermediates)
• In July 2021, the Board of Directors of Rossari approved the acquisition of Tristar Intermediates. As per the agreement and subject to customary closing conditions, Rossari will acquire 100% of the equity share capital of Tristar Intermediates. 76% of the equity share capital will be acquired upon closure of the transaction, and the balance 24% over the next 3 years. The total enterprise value of the transaction is Rs. 120 crore
• Tristar Intermediates is one of the prominent companies in India in the field of Preservatives, Aroma Chemicals, and Home & Personal Care Additives with high-tech distillation facilities

Executed a share purchase agreement to buy-out the remaining stake in Rossari Personal Care Products Private Limited
• The Company, in July 2021, executed a share purchase agreement to buy-out the remaining 40% stake in its subsidiary – Rossari Personal Care Products Private Limited to make it a wholly owned subsidiary
• Through this subsidiary, Rossari will build its presence in the upcoming and promising categories of personal care segment such as skin-care, cosmetics and body-care products

Board of Directors approve strategic investment in Romakk Chemicals Private Limited (Romakk)
• Rossari announced that its Board of Directors has resolved to make a strategic investment by acquiring and/or subscribing to equity shares equivalent to 50.10% of the issued and paid-up share capital of Romakk for an aggregate consideration of Rs. 75.10 million