Motilal Oswal IPO report on Clean Science and Technology
Largest manufacturer of multiple green chemicals: CSTL has created niche by developing clean-technology that uses non-toxic raw materials with lower effluents, leading to cost efficiencies. It has unique ability to produce through catalytic transformation (rare among Indian chemical companies) and is the only company globally to use vapor phase process for Anisole (used as a key raw material for all its other products). CSTL also manufactures sulphur-free BHA & sulphur-free DCC. It has grown to be the largest manufacturer globally of MEHQ and BHA and second largest for AP under Performance Chemicals (69% of FY21 revenues) while it is largest for both Anisole/ 4-MAP under FMCG Chemicals (12% of revenues). It is the third largest for Guaiacol and among the largest for DCC under Pharma Intermediates (16% of revenue).
Valuation and Outlook
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