About Unilex Colours and Chemicals Limited

Unilex Colours and Chemicals Limited is engaged in the business of manufacturing of Pigment, and the trading of chemicals and food colours. The pigments manufactured by them find diverse applications across various industries such as plastic, rubber, textiles, paper, printing inks, paints and coating.

Within Pigments, they specialize in Pigment Blue 15:3 and 15:4. Their products are marketed under the registered brand name “Unilex.” They cater to both domestic and international markets, providing a wide range of pigment solutions for various industries. Their manufacturing facility is situated at MIDC – Tarapur, Palghar, Maharashtra and is equipped with various machines such as Ball Mill Machine, Root Blower, Silo, Reaction Steel Vessel, Brick Linned Vessel, Rubber Linned Vessel, Drowning Vessel, Spin Flash Dryer, Ribbon Blender, Air Classifier Mill Machine, Air Blender, Filter Press Machine etc. Their products are manufactured from raw materials such as BM CPC, Caustic Soda Flakes, Gum Rosin, Hydrochloric Acid, Mix Xylene, Additive Monosulphonaled CPC Blue and Unisol SI-20 etc. 

Furthermore, they have been recognised as a Three Star Export House by the Ministry of Commerce, Government of India. They trade various pigments and food colours such as Pigment Green 7, Middle Chrome, Lemon Chrome, Pigment Violet 3, 23, and 27, Ultramarine Blue, and other Azo pigments like Red 57:1, 53:1, Orange 5, 13, and Yellow 12, 13, 14 as well as food colours such as Tartrazine, Sunset Yellow, Allura Red, Ponceau 4R, Carmoisine, and Brilliant Blue etc., which are sourced from third-party manufacturers to meet their clients' specific needs and standards. They are exporting their products to countries including Vietnam, Brazil, Mexico, Nigeria, Russia, Turkey, Netherlands, Poland, China, Spain, Malaysia, Thailand, United Arab Emirates and Uzbekistan. 

CHEMICAL INDUSTRY
Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India's chemical sector, which is currently estimated to be worth US$ 220 billion in 2022 and is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. 

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world production of dyestuffs and dye intermediates. Indian colorants industry has emerged as a key player with a global market share of ~15%. The country’s chemicals industry is de-licensed, except for few hazardous chemicals. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at global level (excluding pharmaceuticals). 

The domestic chemicals sector's small and medium enterprises are expected to showcase 18-23% revenue growth in FY22, owing to an improvement in domestic demand and higher realisation due to high prices of chemicals. Domestic demand is expected to rise from US$ 170 billion-US$ 180 billion in 2021 to US$ 850 billion-US$ 1,000 billion by 2040. India’s proximity to the Middle East, the world’s source of petrochemicals feedstock, enables it to benefit on economies of scale.

Despite the pandemic situation, the Indian chemical industry has numerous opportunities considering the supply chain disruption in China and the trade conflict between the US, Europe and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments. 

Additional support, in terms of fiscal incentives, such as tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units will enhance production and development of the industry. The dedicated integrated manufacturing hubs under the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to attract an investment of ₹ 20 lakh crore (US$ 276.46 billion) by 2035. 

To bring about structural changes in the working of the domestic chemical industry, future investments should not only focus on the transportation of fuels such as petrol and diesel but also on crude-to-chemicals complexes or refineries set up to cater to the production of chemicals.

UNILEX COLOURS AND CHEMICALS LIMITED COMPETITIVE STRENGTHS
1. Long standing relationships with diversified customers across geographics
2. They offer a diversified range of products
3. Catering to wide range of industries
4. Research and development capabilities allowing product innovation and customization

UNILEX COLOURS AND CHEMICALS LIMITED STRATEGIES
1. Enhancing branding, promotional and marketing activities
2. Deepen and expand their geographical presence
3. Focus on manufacturing by expanding our product portfolio
4. Continue to strengthen their relationships with the customers
5. Focus on consistently meeting customer specification’s & quality standards

UNILEX COLOURS AND CHEMICALS LIMITED RISK FACTORS AND CONCERNS
1. A significant portion of their revenue is generated from sales of their top five products.
2. Their reliance on certain industries for a significant portion of their sales could have an adverse effect on their business.
3. They are dependent upon third parties for trading and supply of the products they sell.
4. They derive a majority portion of their revenues from exports and are subject to risk of international trade.
5. They are exposed to foreign currency fluctuations risks, particularly in relation to export of products, which may adversely affect their results of operations, financial condition and cash flows.