Dorf-Ketal Chemicals India IPO

Dorf-Ketal Chemicals India Limited IPO Strengths

• Market Leadership with a Diverse Portfolio

Dorf-Ketal Chemicals India Limited holds a strong market position with a wide range of specialty chemicals. Serving industries across geographies, it ranks first in multiple segments globally, ensuring stability through diversification and a strategic presence across the hydrocarbon value chain.

• Innovation-Driven R&D Capabilities

With dedicated R&D facilities and over 570 patents, the company prioritizes innovation to address customer needs. Advanced technologies enhance efficiency, sustainability, and reliability, allowing it to develop cutting-edge solutions tailored to global market demands while ensuring continuous product improvement and differentiation.

• Long-Term Customer Relationships

The company has built strong, enduring relationships with multinational and regional clients, ensuring high customer retention. Its ability to meet stringent technical specifications and innovate customized solutions has resulted in decades-long partnerships with major industry players, strengthening its market presence.

• Strong Global Manufacturing and Distribution

Operating 16 strategically located manufacturing facilities across India, Brazil, Canada, and the U.S., Dorf-Ketal ensures efficient supply chain management. Its widespread geographical reach mitigates risks, providing seamless product availability and enhancing operational efficiency in serving diverse industries.

• Resilience Against Market Volatility

With a presence across the hydrocarbon value chain, the company effectively mitigates crude oil price fluctuations. Demand shifts between oilfield and petrochemical products balance revenue streams, reducing financial risk while optimizing profitability through adaptable pricing strategies and cost-effective sourcing.

• Track Record of Delivering Growth and Profitability

From FY 2022 to FY 2024, Dorf-Ketal achieved the highest revenue, EBITDA, and profit after tax growth among Indian specialty chemical manufacturers. With a 45.47% revenue CAGR and a 57.77% EBITDA CAGR, the company maintains strong fundamentals, robust cash flow, and a CRISIL AA-rated credit profile.

• Experienced Promoters and Senior Management

Led by Sudhir and Subodh Menon, the leadership team brings decades of industry expertise. With seasoned executives in R&D, finance, and global operations, the company drives innovation, strategic growth, and operational excellence, ensuring long-term success in the specialty chemicals sector.

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More About Dorf-Ketal Chemicals India Limited

Dorf-Ketal Chemicals India Limited is a research-driven global manufacturer and supplier of specialty chemicals catering to hydrocarbons and industrial supply chains. Established in 1992, the company is a major player in India’s specialty chemicals sector, recognized for its innovation and commercial expertise.

Global Presence and Patents

• Operates 16 manufacturing facilities across four countries, including eight in India.

• Holds 571 patent registrations worldwide, including 99 U.S. patents and 29 Indian patents.

• Serves a distinguished client base, including Reliance Industries, Petronas, Indian Oil Corporation, and Vedanta.

Product Portfolio

Dorf-Ketal offers two key product categories:

• Specialty Chemicals for Hydrocarbons – Applied in oil & gas, refining, and petrochemicals.
• Industrial Specialty Chemicals – Serves diverse industrial applications.

Revenue Breakdown (₹ in million)

In the first half of 2024, Dorf-Ketal Chemicals generated a total revenue of ₹29,613.62 million, with Hydrocarbon Chemicals contributing ₹24,031.92 million (81.15%) and Industrial Chemicals ₹5,581.70 million (18.85%). In 2023, the company achieved total revenues of ₹54,795.39 million, where Hydrocarbon Chemicals accounted for ₹44,412.78 million (81.05%) and Industrial Chemicals for ₹10,382.61 million (18.95%).

Innovation and R&D Excellence

• A dedicated R&D team of 116 employees across India, Singapore, Canada, and Brazil.

• Proprietary technologies include ACtify®, TANSCIENT™, and HCR-7000.

• Products play a crucial role in sustainability and operational efficiency for customers.

Expansion Through Acquisitions

Dorf-Ketal has a strong track record in strategic acquisitions:

• 2024 – Acquired Impact Fluid Solutions LP (USA), enhancing wellbore shielding technology.

• 2023 – Acquired Fluid Energy Group (Canada), expanding synthetic acid solutions.

• 2023 – Acquired Clariant’s North American land oil business, strengthening U.S. market presence.

• 2022 – Acquired Khyati Chemicals Private Limited (India), diversifying into optical brightening agents.

Leadership and Management

The company is led by seasoned industry veterans:

• Sudhir Menon – Chairman & Managing Director, driving international growth and R&D.

• Subodh Menon – Whole-time Director, overseeing global operations and sustainability.

With a strong global footprint, cutting-edge R&D, and a focus on sustainability, Dorf-Ketal continues to be a leader in specialty chemicals.

Industry Outlook

The global specialty chemicals market is projected to grow from $1.3 trillion in 2023 to $1.7 trillion by 2029, with a CAGR of 4.9%. In the Asia-Pacific region, including Singapore, the market is expected to reach $548.06 billion by 2031, growing at 7.1% CAGR. Canada’s specialty chemicals sector is expanding, driven by investments like BHP’s Jansen potash project.

Brazil’s market is also growing due to high agricultural demand for fertilizers. Key growth drivers include industrial expansion in Singapore, resource investments in Canada, and Brazil’s agricultural needs. These factors position Singapore, Canada, and Brazil as significant players in the specialty chemicals industry, contributing to global market expansion.

The specialty chemicals market in India is experiencing notable growth, driven by various industrial demands and economic factors.

Market Size and Growth:

• In 2024, the Indian specialty chemicals market was valued at approximately USD 27.05 billion. Projections indicate that it will reach around USD 41.26 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 4.8% from 2024 to 2033.

• Another analysis suggests that the market stood at USD 41.90 billion in 2023 and is anticipated to grow at a CAGR of 3.86% between 2024 and 2029.

Growth Drivers:

• Textile Industry Demand: The burgeoning textile sector in India significantly contributes to the demand for specialty chemicals, particularly for processes like dyeing and finishing.

• Construction Sector Expansion: Rapid urbanization has led to increased construction activities, boosting the need for construction chemicals.

• Petrochemical Investments: India plans to attract investments worth $87 billion in the petrochemicals sector over the next decade to meet the rising demand, which is expected to positively impact the specialty chemicals market.

Oilfield Specialty Chemicals:

• The global oilfield chemicals market is projected to grow from $35.18 billion in 2024 to $37.62 billion in 2025, at a CAGR of 6.9%.

• Factors such as increasing crude oil production and the unique properties of these chemicals that enhance oilfield productivity are primary growth drivers.

How Will Dorf-Ketal Chemicals India Limited Benefit

• Strong Market Position – Dorf-Ketal’s leadership in specialty chemicals, including hydrocarbons, fuel additives, and organometallic titanates, positions it to capitalize on increasing global demand.

• Strategic Manufacturing Advantage – Its large facility in an SEZ near Mundra Port enables duty-free imports and efficient exports, strengthening its global supply chain and cost competitiveness.

• R&D and Innovation Leadership – With 571 patents and proprietary technologies like ACtify® and TANSCIENT™, Dorf-Ketal drives innovation, ensuring a competitive edge in performance-enhancing and sustainable chemicals.

• Expanding Global Presence – The company’s acquisitions in the U.S., Canada, and India bolster its product offerings, market share, and technological capabilities, fostering international growth.

• Sustainability and Green Chemistry – Growing demand for carbon efficiency and eco-friendly solutions aligns with Dorf-Ketal’s focus on sustainable and high-performance specialty chemicals.

• Increasing Hydrocarbon Demand – As mature oil wells require higher efficiency, Dorf-Ketal’s advanced oilfield chemicals, catalysts, and fuel additives will see rising demand.

• Market Consolidation Opportunity – Smaller vendors relying on traditional chemical sales may struggle, allowing Dorf-Ketal to gain market share through superior technology and customer-centric solutions.

Dorf-Ketal Chemicals India Limited IPO Overview

Dorf-Ketal Chemicals India Limited,filed its Draft Red Herring Prospectus (DRHP) with SEBI for a ₹5,000 crore IPO. The offering includes a fresh issue of ₹1,500 crore and an offer for sale of ₹3,500 crore by Menon Family Holdings Trust. The IPO price bands are yet to be announced. JM Financial, Citigroup, HSBC, J.P. Morgan, Morgan Stanley, and Motilal Oswal are the lead managers, with Link Intime as the registrar.

Dorf-Ketal Chemicals India Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Fresh Issue: ₹1500 crores Offer for Sale (OFS): ₹3500 crores
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹2 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	TBA
Shareholding post -issue	TBA

Dorf-Ketal Chemicals India IPO Important Dates

IPO Activity	Date
IPO Open Date	TBA
IPO Close Date	TBA
Basis of Allotment Date	TBA
Refunds Initiation	TBA
Credit of Shares to Demat	TBA
IPO Listing Date	TBA

Dorf-Ketal Chemicals India IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Dorf-Ketal Chemicals India Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	11.56
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	23.53%
Net Asset Value (NAV)	49.14
Return on Equity	23.40%
Return on Capital Employed (ROCE)	19.33%
EBITDA Margin	17.34%
PAT Margin	10.99%
Debt to Equity Ratio	0.40

Peer Group Comparison

Name of the Company	Face Value (₹)	Price to Earning	EPS (Basic) (₹)	RoNW (%)	NAV per Share (₹)
Dorf-Ketal Chemicals India Limited	5	[●]	11.56	23.53	49.14
Peer Group
SRF Limited	10	55.86	45.06	11.65	386.78
Fine Organic Industries Limited	5	32.45	134.34	21.34	629.68
Vinati Organics Limited	1	52.94	31.15	12.53	248.55
Navin Fluorine International Limited	2	66.38	54.57	11.43	477.48
Gujarat Fluorochemicals Limited	1	94.11	39.60	7.53	525.94
Atul Limited	10	60.39	109.54	6.32	1,741.97

Key Insights 

• Face Value: Face value represents the nominal value of a company’s share. Dorf-Ketal Chemicals India Limited has a face value of ₹5, similar to Fine Organic Industries but lower than SRF and Atul Limited (₹10). Navin Fluorine and Gujarat Fluorochemicals have ₹2 and ₹1, respectively.

• Price to Earnings: The P/E ratio for Dorf-Ketal Chemicals is not available, but its peers vary widely. Gujarat Fluorochemicals has the highest at 94.11, followed by Navin Fluorine (66.38) and Atul (60.39). A higher P/E often indicates strong market expectations.

• Earnings Per Share: EPS reflects profitability per share. Dorf-Ketal Chemicals has an EPS of ₹11.56, lower than all peers. Fine Organic Industries leads with ₹134.34, followed by Atul (₹109.54). Higher EPS suggests better earnings generation for shareholders.

• Return on Net Worth: Dorf-Ketal Chemicals has an RoNW of 23.53%, the highest among its peers. Fine Organic Industries follows at 21.34%. Lower RoNW values in Atul (6.32%) and Gujarat Fluorochemicals (7.53%) indicaterelatively lower returns for equity holders.

• Net Asset Value: NAV per share indicates a company’s intrinsic value. Atul Limited has the highest NAV at ₹1,741.97, while Dorf-Ketal Chemicals has ₹49.14. Higher NAV in peers like Fine Organics (₹629.68) and Gujarat Fluorochemicals (₹525.94) suggests substantial asset backing.

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilised as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Funding prepayment, repayment and/ or payment obligations to lenders towards borrowings and Acceptances, in part or full	8290
Investment in our Subsidiary, Dorf Ketal Chemicals FZE for repayment/prepayment, in full or part, of all or certain of its outstanding borrowings	3330
General corporate purposes*	[●]

Note: *To be determined upon finalisation of the Offer Price and updated in the Prospectus prior to filing with the RoC

Dorf-Ketal Chemicals India Limited Financials (in million)

Particulars	30 Sept 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	68,752.09	50,498.38	41,434.94	25,326.13
Revenue	29,613.62	54,795.39	38,664.81	25,895.35
Profit After Tax	3133.35	7795.48	6158.88	3300.68
Reserves and Surplus	22,807.38	22,639.36	17,343.14	12,722.09
Total Borrowings	32,073.73	15,336.03	14,325.02	4930.18
Total Liabilities	43,271.28	24,768.19	21,248.56	9903.97

Key Strategies for Dorf-Ketal Chemicals India Limited

• Capitalising on Market Leadership in Specialty Chemicals

Dorf-Ketal Chemicals India Limited aims to leverage its leadership in the specialty chemicals industry to capture a growing market. With the global specialty chemicals market projected to grow at 4.6% between 2023 and 2028, the company plans to expand its market share across key product categories. Between FY 2022 and FY 2024, revenue from operations increased at a CAGR of 45.47%. Rising demand for performance-enhancing chemicals, green chemistries, and carbon-efficient solutions is expected to drive growth. The company also seeks opportunities from market consolidation as smaller vendors struggle to compete, ensuring sustained expansion.

• Strengthening Product Portfolio Through R&D

Dorf-Ketal Chemicals India Limited focuses on research and development to create innovative products that address evolving industry demands. With a dedicated R&D team of 116 employees, the company develops proprietary solutions tailored to customer needs. Notable innovations include Milex®, a fuel additive enhancing mileage, and various specialty chemicals adopted by global fuel suppliers. Future expansion includes a state-of-the-art R&D centre in Taloja, Maharashtra, with advanced simulation technology. By investing in long-term partnerships, market insights, and technological advancements, the company aims to maintain its competitive edge in specialty chemicals.

• Expanding Geographic Reach and Adjacent Market Presence

Dorf-Ketal Chemicals India Limited continues to enhance its global presence through strategic acquisitions and market penetration. Acquisitions of Khyati Chemicals, Fluid Energy Group, and Impact Fluid Solutions have strengthened its portfolio and regional footprint across India, Brazil, and North America. The company aims to leverage its existing customer base to introduce newly acquired products into untapped markets. Additionally, it explores opportunities in adjacent industries such as water treatment, mining chemicals, and renewable energy solutions, broadening its applications beyond the oilfield segment.

• Pursuing Strategic Acquisitions for Growth

Dorf-Ketal Chemicals India Limited follows a disciplined acquisition strategy to expand its market position and product offerings. Recent acquisitions, including Garuda Xotica, Elixir Soltek, and Clariant’s North American land oil business, have enhanced its global footprint. The company prioritises acquisitions aligned with its core business, offering geographical expansion, manufacturing capabilities, and innovative product technologies. Future acquisitions will focus on businesses that complement existing operations, ensuring sustained growth and market leadership in specialty chemicals.