Gandhar Oil Refinery India Limited IPO Details

Gandhar Oil Refinery India is a leading manufacturer of white oils by revenue with a growing focus on the consumer and healthcare end-industries. As of June 30, 2023, its product suite comprised over 440 products primarily across personal care, healthcare and performance oils (“PHPO”), lubricants and process and insulating oils (“PIO”) divisions under the “Divyol” brand.

The white oil market is the fastest growing segment in the specialty oils sector and the company is India’s largest manufacturer in terms of market share in the calendar year 2022. The company said its consolidated revenue from operations grew at a CAGR of 40.59% between financial years 2021 and 2023.

As of June 30, 2023, the company’s products are sold in over 100 countries across the globe. The company caters to over 3,500 customers in the financial year 2023, including leading Indian and global companies such as Procter & Gamble (“P&G”), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare, supported by its global supplier base and manufacturing operations in India and United Arab Emirates.

The PHPO division is the company’s largest business division and contributed Rs 552.58 crore or 56.29% and Rs 2,098.30 crore or 54.96% of its consolidated revenue from finished goods sold for the quarter ended June 30, 2023 and FY23, respectively.

The company currently operates three manufacturing facilities with a combined annual production capacity of 5,22,403 kL as of June 30, 2023, with plants located at Taloja in Maharashtra, Silvassa in the Union Territory of Dadra and Nagar Haveli and Daman and Diu (the “Silvassa Plant”) and Sharjah, United Arab Emirates to cater to domestic and overseas demand for our products.

Gandhar Oil Refinery is in the process of enhancing its production capacity of its Taloja Plant by an aggregate of 1,00,000 kL, out of which, it has commissioned an incremental capacity of 25,000 kL in October 2022. This enhancement of capacity will be funded from its internal accruals and through external borrowings obtained by the company. The company expects to complete the enhancement to the production capacity during FY24.

In addition, the oil refiner intends to utilize Rs 27.73 crore out of the net proceeds towards enhancing the manufacturing capabilities and expect to add an aggregate of 18,840 kL of annual production capacity at their Silvassa Plant for expansion in capacity of automotive oil.