Godrej Backed Chemical Business Acquired Manufacturing Capacity of 5,200 MTPA of Savannah Surfactants Ltd
The stock price has given 32 per cent returns in last years where it has logged 127 per cent returns in last 3 years.
Godrej Industries’ Chemicals Business today announced the completion of a Business transfer with Savannah Surfactants Limited, with the acquisition of their Food Additives Business. As a leading player in Oleochemicals, Surfactants, Specialities and Biotech sectors, this transaction will help the company expand its product offerings to the Food & Beverages Industry globally.
Vishal Sharma, Executive Director and Chief Executive Officer, Godrej Industries (Chemicals) said,” We are glad to have completed this transaction at the start of the fiscal year. This acquisition is in line with our vision and strategy to grow in a profitable and sustainable manner. The Savannah business will be part of our Speciality chemicals sector. The addition of this Food Additives Business will expand our speciality offerings and build a larger speciality business going forward.”
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Located at Goa, Savannah Surfactants Limited has a manufacturing capacity of 5,200 MTPA of finished products.
About Godrej Industries (Chemicals)
Godrej Industries (Chemicals) is one of the oldest businesses of the Godrej Group, established in 1963. We are focused on being a “Green chemistry” company, dedicated to helping the environment and ensuring a greener and more sustainable future. Today, we are one of India’s leading providers of oleochemicals, surfactants, specialty chemicals, and biotech products, all produced largely with renewable feedstocks from vegetable oils.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 4,824.83 crore, reflecting a YoY growth of 34.39 per cent compared to Rs 3,590.08 crore in December 2023. The operating profit stood at Rs 596.84 crore, marking a 113.68 per cent increase from Rs 279.31 crore in the same quarter last year. The profit after tax (PAT) grew by 76.86 per cent to Rs 188.20 crore from Rs 106.41 crore in December 2023.
In FY24, the company posted a revenue of Rs 16,600.62 crore, reflecting a decline of 0.83 per cent compared to Rs 16,740.25 crore in FY23. The net profit stood at Rs 59.97 crore, down by 93.85 per cent from Rs 974.78 crore in FY23.
The current market price of the stock is Rs 1,136.70, and the market capitalisation stands at Rs 38,278.61 crore. The stock is trading at a P/E ratio of 49.5x. The return on equity (ROE) is 0.75 per cent, and the return on capital employed (ROCE) is 5.6 per cent. The industry P/E is 28.8. The stock price has given 32 per cent returns in last years where it has logged 127 per cent returns in last 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.