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Laxmi Organic targets growth with specialty portfolio and fluoro intermediates focus
Rajan Venkatesh, MD & CEO of Laxmi Organic Industries, discussed the company’s approach to maintaining a strong EBITDA margin in its specialty portfolio, targeting a range of 20 to 25%.
Chemicals manufacturer Laxmi Organic Industries is targeting profitable volume growth through strategic initiatives, particularly in its high-margin segments of specialty chemicals and fluoro intermediates.
Rajan Venkatesh, MD & CEO of Laxmi Organic Industries, discussed the company’s approach to maintaining a strong earnings before interest, tax, depreciation, and amortisation (EBITDA) margin in its specialty portfolio, targeting a range of 20 to 25%.
The company achieved a 24% EBITDA margin in the specialty segment for the previous financial year and has maintained similar performance in the first half of the current year.
In addition to its specialty portfolio, Laxmi Organic is also focusing on the high-margin fluoro intermediates segment, with a new plant expected to come online in the second half of the year.
The peak revenue potential for this asset is estimated at ₹200 crore. The aims is to achieve 10 to 15% of this peak revenue in the fourth quarter of the current financial year.
In FY26, Laxmi Organic aims to reach 40 to 50% of the peak revenue, with the target of achieving full peak revenues by FY27.
Read Here | Laxmi Organic targets doubling of revenue by FY28
Venkatesh further indicated that the contribution of essentials to the company’s revenue is expected to decline in the coming years.
In FY24, ethyl acetate accounted for around 60% of total revenue, but by FY28, this figure is projected to decrease to about 40%.
In a filing with the stock exchanges on July 31, Laxmi Organic Industries outlined the first phase of its product portfolio at a new site in Gujarat.
This phase will focus on specialty items such as Diketene and Ketene derivatives, alongside essentials like Esters, Anhydrides, and Aldehydes derivatives.
This expansion reinforces the company’s confidence in its specialty products, as it has positioned itself among the top three players globally, including in China, with a diverse portfolio of products and customers.
The company, which has a market capitalisation of ₹7,103 crore, has seen its shares decline 3% over the last year.
Rajan Venkatesh, MD & CEO of Laxmi Organic Industries, discussed the company’s approach to maintaining a strong earnings before interest, tax, depreciation, and amortisation (EBITDA) margin in its specialty portfolio, targeting a range of 20 to 25%.
The company achieved a 24% EBITDA margin in the specialty segment for the previous financial year and has maintained similar performance in the first half of the current year.
In addition to its specialty portfolio, Laxmi Organic is also focusing on the high-margin fluoro intermediates segment, with a new plant expected to come online in the second half of the year.
The peak revenue potential for this asset is estimated at ₹200 crore. The aims is to achieve 10 to 15% of this peak revenue in the fourth quarter of the current financial year.
In FY26, Laxmi Organic aims to reach 40 to 50% of the peak revenue, with the target of achieving full peak revenues by FY27.
Read Here | Laxmi Organic targets doubling of revenue by FY28
Venkatesh further indicated that the contribution of essentials to the company’s revenue is expected to decline in the coming years.
In FY24, ethyl acetate accounted for around 60% of total revenue, but by FY28, this figure is projected to decrease to about 40%.
In a filing with the stock exchanges on July 31, Laxmi Organic Industries outlined the first phase of its product portfolio at a new site in Gujarat.
This phase will focus on specialty items such as Diketene and Ketene derivatives, alongside essentials like Esters, Anhydrides, and Aldehydes derivatives.
This expansion reinforces the company’s confidence in its specialty products, as it has positioned itself among the top three players globally, including in China, with a diverse portfolio of products and customers.
The company, which has a market capitalisation of ₹7,103 crore, has seen its shares decline 3% over the last year.
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