Camlin Fine Sciences: 8 Points Analysis of the Company

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Camlin Fine Sciences

Camlin Fine Sciences (CFS) Ltd. began its journey by manufacturing ink powders and in Mumbai, India in 1931.

Camlin Fine Sciences then soon expanded their product portfolio to offer a whole range of art material and stationery products including chalks, rubber stamp pads, gums and adhesives etc under the brand name ‘Camel’.

It has become a household name and now for many years it has been one of the most trusted brands of stationery items in India. With plans of expansion into fine chemicals, Camlin Fine Sciences set up a new ultramodern plant at Tarapur, India, to manufacture antioxidants for the global market.

Leading on its expansion plans, CFS in 2011 has acquired Borregaard Italia SpA, a Hydroquinone and Catechol manufacturing facility at Ravenna, Italy.

Camlin Fine Sciences, through its aggressive expansion of geographical reach across the globe from the Americas to China, has now transitioned into a multinational specialty chemical company.

CFS’s speciality chemicals cater to diverse industries such as Human Foods, Petfood, Animal Feed, Flavours and Fragrances, Pharmaceuticals, Agrochemicals, Petrochemicals, Dyes, Pigments, Polymers, Biodiesel, just to name a few.

Camlin Fine Sciences supplies more than 100 products to over 1000 customers in over 80 countries across the globe. CFS’s Application laboratories provide technical expertise, support for shelflife extension solutions and sensory evaluation of aroma ingredients. 

Chemical Industry Overview (Global and Indian):

Trade disputes and then pandemic adversely affected the global economy and sentiment.

The global specialty chemicals market is expected to reach the market value of approximately USD 301 billion by 2026 and is anticipated to grow at a CAGR of around 4.8%.

Specialty chemicals are used with the ability to improve quality delivering special chemicals and polymers. 

Indian government’s corporate tax rate cut and $5 trillion economy target has seen aggressive reforms but already complex economic challenges have just severed because of the pandemic.

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India is the 6th largest producer of chemicals in the world and also ranks 14th in export and 8th in the import of chemicals (excluding Pharmaceuticals products) globally.

Total production of major chemicals and petrochemicals stood at 27,847 MT during 2018-19 (CAGR=4.5%).

The specialty chemicals constitute 22% of total chemicals and petrochemicals market in India. Indian chemicals players are expected to benefit from the expanding specialty chemicals market globally which is led by growing new applications and manufacturing shifts from China. 

Speciality Chemicals Portfolio:

Under Shelf life solutions portfolio, CFS manufactures traditional antioxidants like TBHQ, BHA and Ascorbyl Palmitate. CFS has expanded the shelf life portfolio with antimicrobials, improvers, stabilisers, probiotics, binders etc. for various food and beverage, pet food, animal nutrition and biodiesel industries. 

Camlin Fine Sciences introduced Customized blends in 2014, Blends are a customized combination of various antioxidants with other speciality ingredients that are used to extend shelf life. CFS’s 

Performance Chemicals business consists of fine chemicals that find applications in petrochemicals, agrochemicals, dyes, pigments, pharmaceutical, polymers to name a few.

Aroma ingredients are the key chemicals used in the Flavours and Fragrances Industry.

Recently, Camlin Fine Sciences also launched its Health & Wellness business vertical. This division offers nutraceutical products from fermentation and Green extraction sources.

Geographical Presence of Camlin Fine Sciences:



Capacity (in MT)


CFS India

Shelf life Solutions, Aroma Ingredients & Performance Chemicals



CFS Mexico

Shelf life Solutions



CFS Europe

Performance Chemicals & Shelf life Solutions



CFS Brazil

Shelf life Solutions



CFS Wanglong

Vanillin (Aroma Ingredients)



CFS North America

Shelf life Solutions



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Mr Dilip Dandekar (Chairman): Been with the Company since 2006 and has long and vast experience in Marketing, Administration and overall Management.

Mr Ashish Dandekar (Managing Director): Wide experience over 28 years in Pharmaceuticals and Fine Chemical Products including Business Planning, Information Systems, Research & Development, Product Development and Marketing.

Other Key Persons: Mr Santosh Parab (Chief Financial Officer), Mr Mandar Godbole (Company Secretary)

Also Watch: Camlin Fine Sciences 2020 Annual Report Analysis

Financial Highlights:

The company has seen a lot of transformation changes through the years and that has reflected in the business financials.

Operational revenue was constantly increasing but the company was not able to hold onto profits but came back strongly for the last two years. Capital requirements due to diversification and expansion have led to a bit higher D/E ratio, but the results are visible in operational revenue and PAT.

Financials Apollo Tricoat

Promoters shareholding in the company is a bit on the lower side at 22.74% but increased from 22.55% in FY 18-19.


As per the annual report, the risk associated with currency fluctuation has been mitigated by effective forex management policy.

Inflationary pressures and its impacts on the cost of manufacturing gets monitored regularly to ensure that they would not affect the operating margins.

However, lack of clarity on future Government policies continues to be an area of major concern for the industry.

Due to the nature of the current pandemic, its uncertain to predict the impact of Covid in the near future.

Future Outlook:

During FY19-20, the R&D centre in Ravenna, Italy has partially completed the implementation of an energy recovery system.

Also, safety systems for the loading and unloading of a few goods have been successfully done. Also, the R&D centre in Tarapur, India focused on new products and process improvements for all its business verticals with a pipeline of developments leaning towards Performance Chemicals.

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New greenfield plant in Dahej with a capacity of 10000 MTPA to manufacture Hydroquinone and Catechol is spread across 15 acres space and is one of the most awaited projects that is expected to be a game-changer for Camlin Fine Sciences.

Camlin Fine Sciences has invested hugely in expanding their base, integration and diversification of businesses; that has started reaping fruits now. Also, the cyclical boom in the chemical industry can add to the future growth of the company.

Reference: Annual Reports

This analysis has been done by Anshul Galav for FinMedium Research Desk.

Cover Image: EquityBulls

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