Page 185 - CW E-Magazine (23-7-2024)

For Your Regular Requirement of
• HYDROGEN PEROXIDE Special Report
• HYDROLYZED VEGETABLE PROTEIN
• HYDROXYLATED LECITHIN
• HYFLO SUPERCEL
• IMIDAZOLE Domestic tyre volume to grow by 4-6% for FY2025: ICRA
• IRON AMINO ACID CHELATE
• IRON AMMONIUM CITRATE
(FERRIC AMMONIUM CITRATE)
• IRON PROTEIN SUCCINYLATE omestic tyre volume growth is Low single digit growth in exports prices are likely to moderate the tyre indus-
• ISOAMYL ACETATE expected to moderate to 4-6% Tyre export volumes, which contri- try’s margins by 200-300 bps in FY2025.
• SOY PROTEIN ISOLATE
• L-ISOLEUCINE Din FY2025 from an estimated bute approximately 25% of industry’s sales
• ISOPRENE 6-8% in FY2024 on the back of elevated (by value), are estimated to have recorded Supply additions to be moderate
• ISOPROPYL ALCOHOL base and subdued growth in the com- a low single digit growth in FY2024 after Investments in supply addition are
• KAOLIN
PLEASE CONTACT SUPPLIER: mercial vehicle (CV) segment, according contracting by ~7% in FY2023, owing to expected to be moderate as adequate head-
CHOICE ORGANOCHEM LLP to ICRA. However, ICRA anticipates demand shrinkage in key markets amid in- room is available in the existing capacities
G1/G2, Building No. B4, Ayodhya Kutir, domestic demand from original equipment fl ationary pressure and higher interest rates. (i.e., industry’s capacity utilisation levels is
Yashasvi Nagar, Balkum Road, Thane-400608, manufacturers (OEMs) in certain con- estimated at 75-85% in FY2024 for four
Maharashtra, India.
Phone: +91-40-23225550; +91-40-40202121 sumer segments like passenger vehicles Revenue growth in mid-single digits of the seven listed entities which account
Mobile: +91-96183 33877 (PV) and two-wheelers (2W) as well as “After a strong growth in two con- for 50-55% of industry’s revenues) and
Email:cw@choiceorg.com
replacement to remain healthy, support- secutive years, the tyre industry’s revenue demand growth is forecast to remain
ing overall tyre volume expansion in growth (consolidated for ICRA’s sample modest for the near term.
MANUFACTURERS / SUPPLIERS OF
ALCOHOL DENATURANTS / BITTERANTS FY2025. While revenues would expand set of seven leading tyre manufacturers) is
S acetaldehyde by 5-7% in FY2025, high natural rubber estimated to have moderated to mid-single However, the industry is expected
S crotonaldehyde (NR) prices and increasing crude prices digits in FY2024 with estimated domestic to continue to focus on debottlenecking,
S denatonium Benzoate
S denatonium Saccharide are likely to moderate the tyre industry’s volume growth of 6-8%, fl attish realisa- process improvement initiatives, digi-
S Pyridine BaSe margins by 200-300 bps in FY2025. tions and subdued exports. For FY2025, talisation, and research and development
S caoutchoucine the industry revenues are expected to grow (R&D) towards the production of sustain-
the lakshmiji organics Pvt. ltd. Ms. Nithya Debbadi, Assistant Vice by 5-7%, primarily driven by domestic able tyres of superior quality (in terms of
Sitapur, UP. Mob.: 09322661064
Email: organics@lakshmiji.com / loplstp@gmail.com President and Sector Head, ICRA said: OEM and replacement segments,” added lower rolling resistance/noise) and smart
“Tyre exports are expected to remain Ms. Debbadi. tyres to improve safety.
AVAILABLE moderate in the near term because of
Dilute Ammonium Nitrate Solution muted demand growth in key export Operating margins up to 15-17% Industry players entering into retreading
(10 to 25%) destinations, namely the US and Europe. ICRA estimates the tyre industry’s With rising awareness on environ-
in tanker loads regularly from Patalganga
MIDC (Rasayani, Maharashtra) Further, supply chain issues arising from operating margins to have expanded to mental impact and to meet the regulatory
Interested parties please contact: the Red Sea crisis have raised freight 15-17% in FY2024, primarily on the back needs, the industry players are also en-
Kashyap Shah costs (resulting in increased cost of tyre) of softening in prices of key raw materials tering into the retreading segment. ICRA
such as NR, and crude derivates, including expects organised tyre retreading to grow at
and elongated transit times. In terms of
Mobile: 9769170361
Email: kshypshh@yahoo.com domestic factors, despite an elevated base, synthetic rubber, carbon black, and capro- a CAGR of 7-9% during FY2023-FY2026
consumer segments are expected to record lactam for a large part of the year. How- with increasing focus on sustainable pro-
a mid-single digit growth (PV at 4-6%, ever, input costs have been on an upward ducts, improving the tyre and retreading
PARACHLORO META CRESOL Manufacturer of
Acetophenone Dicyclohexylamine Itaconic Acid Para Phenetidine • COPPER SULPHATE (Technical Grade/ Feed Grade) 2Ws at 5-7%), on the back of healthy trend since January 2024. technology, better road infrastructure,
Benzaldehyde Formic Acid 99% Magnesium Oxide Succinic Acid / Anhy. underlying demand. However, growth rising radialisation in the CV segment, and
Lithium Hydroxide Hexylene Glycol N-Butyl Amine Tributyl Amine • COPPER SULPHATE in the CV segment is expected to be International NR prices have increased the Government’s thrust towards sustain-
Cinnamic Acid Iso Amyl Alcohol Pure Phthalimide Triphenyl Phosphine (Commercial / Agriculture Grade) impacted by the brief pause in infrastruc- by 25-30% in the past four months, trading able ways of waste tyre disposal.
QUATERNARY PHOSPHONIUM / AMMONIUM / COMPOUNDS ture activities because of the Parliamentary currently at ~Rs. 185-186 per kg (RSS3
Benzyl Triphenyl Phosphonium Chloride Tetra-Butyl Ammonium Bromide / Iodide • ZINC SULPHATE MONOHYDRATE 33% Elections, and the impact of high base. grade) owing to global supply shortage Capex at 6-9% of revenues in FY2025
Cetyl Trimethyl Ammonium Bromide Tetra-Butyl Ammonium Hydrogen Sulphate • ZINC SULPHATE MONOHYDRATE 22% TO 30 % Tractor demand growth is expected to be amid adverse weather conditions in key On the capex front, the tyre industry is
Ethyl Triphenyl Phosphonium Bromide Tetra-Ethyl Ammonium Bromide / Iodide • MANGANESE SULPHATE supported by the forecast of above normal NR-producing nations in South-east Asia. expected to continue to invest 6-9% of its
Ethyl Triphenyl Phosphonium Iodide Tetra-Propyl Ammonium Bromide monsoons, aiding rural cash fl ows.” Given India’s reliance on imported NR, revenues in FY2025.
Butyl Triphenyl Phosphonium Bromide Triethyl Benzyl Ammonium Chloride • DRIED FERROUS SULPHATE domestic NR prices have also increased
Methyl Triphenyl Phosphonium Bromide Tributyl Benzyl Ammonium Chloride
Methyl Triphenyl Phosphonium Iodide • DI-CALCIUM PHOSPHATE (Feed Grade) Stable replacement market signifi cantly in the past few months, trad- Comfortable credit metrics
Phenyl Trimethyl Ammonium Chloride Contact: SAMIR CHEMICALS ICRA expects the replacement mar- ing at ~Rs. 180 per kg. The industry’s credit metrics are ex-
Tetra-Phenyl Phosphonium Bromide Flat No. 2, Kamala Terrace, Subhash Road, ket, which contributes to over two-thirds pected to be comfortable on the back of
Opp. United Ink, Vile Parle (East), Mumbai 400 057.
PYRIDINIUM SALTS Tel.: 022-26169022 / 26117772 C - 1, 41 / 2, GIDC Estate, Kalol - 382725, (N. G). of the industry volumes, to remain stable, High NR prices to moderate margins healthy earnings, despite the expected
Butylated Hydroxy Toluene Fax: 91-22-26169022 * Mobile: 9820131245 Contact: Mr. Raj Prajapati( + 91 9898464927) aided by healthy demand across the in FY25 moderation, and moderate capital expen-
Cetyl Pyridinium Chloride Email: samir835@hotmail.com / Email: sales@rajmetachem.com segments. High NR prices and increasing crude diture plans.
rajmetachem@gmail.com
drshah@samirchem.com
Lauryl Pyridinium Chloride / Bromide Website: www.samirchem.com (AD-1) Website: www.rajmetachem.com
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Chemical Weekly July 23, 2024 185

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