On the back of a strong set of Q4 numbers, Vinati Organics, a diversified chemicals manufacturer, expects 25-30 percent growth in FY20.
In an interview to CNBC-TV18, Vinati Saraf, managing director and chief executive officer, said, "2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS) contributes to about 50 percent of our revenues, whereas Isobutyl Benzene (IBB) is between 15 percent and 20 percent."
“Compared to last calendar year, we expect an uptick in IBB demand but ATBS had a fabulous year in FY19. Our market share increased from 45 to 65 percent. We were running at 65 percent capacity utilisation, which today we are running at 100 percent capacity utilisation as a shortage of the product in the market. So we are adding a new line for ATBS, which is expected to get completed by July 2019,” she said.
Talking about business in FY20, Saraf said, "Coming to the outlook of FY20, there will be two main growth drivers in revenue. One will be the new line of ATBS. So we can expect about 20-25 percent volume increase in ATBS. Second, a new plant for new product set of Butylphenols, which is Isobutyl derivatives, will be ready by June."
On the export front, she said, "ATBS is more than 90-95 percent, exported to North America, Western Europe and South East Asia and IBB is also about 65-70 percent export."
According to Saraf, Vinati Organics expects a blended margin of around 30-35 percent in next year.