Pravin Herlekar, CMD, Omkar Speciality Chemicals Ltd is a Bachelor of Technology in Chemical Engineering from Indian Institute of Technology (IIT), and is a post graduate in Management studies from Mumbai University. He has an overall experience of 38 years in the field of Product Development, Marketing and Administration.
Omkar Speciality Chemicals Limited (OSCL) is mainly engaged in the manufacture and sale of Speciality Chemicals and Intermediates for Chemical and Allied Industries. The Company took over the business of Omkar Chemicals, a proprietary concern (proprietor PravinHerlekar) in June, 2005 which was formed in the year 1983 with capacity of 6 MT per annum for manufacture of molybdenum derivatives. The Company is primarily involved in the production of Speciality Chemicals and Pharma Intermediates OSCL exports its diversified product range various countries in Europe, Asia, North America, South America and Australia and is purely focus on expanding its customer base by catering to the requirements of customers from various industry segments.
Speaking with Yash Ved of IIFL, Pravin Herlekar says “We are planning to invest Rs400-450mn for FY12.”
Brief us on the range of products you manufacture?
Our Company is primarily involved in the production of Speciality Chemicals and Pharma Intermediates. We manufacture a range of Organic, Inorganic and Organo Inorganic Intermediates. The Inorganic Intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth & Tungsten derivatives and the organic intermediates.
What are your R&D plans?
Our research & development is the backbone of the company. We have a research & development unit at Badlapur, Maharashtra. We are identifying products, which have demand in the market. We have invested about 35mn in our Research and Development activities.
How many products are you planning to launch in the coming year?
We are planning to launch 20-25 new products over the 1-1.5 years and would be commercializing them soon.
Any plans for acquisition?
The company recently acquired Rishichem Research which is expected to provide a total R&D back-up to the company for all its future expansion and diversification programmes.
We have taken some premises adjacent to our unit at Badlapur. This gives leverage to create better facilities.
Which countries do you export?
We export our products in several countries like Germany, Belgium, France, Canada, Iran, New Zealand and Australia. We are expecting good business from US, Europe and Germany. We are planning to expand our export market. Our sales export will grow 25% in global market in next 2-3 years.
Comment on your Capex plans?
We are planning to invest Rs400-450mn for FY12.
What is your outlook on the Pharma industry?
The Outlook of the Pharma sector is very encouraging. There is healthcare requirement for growing population. There is requirement for anti-cholesterol, Anti-asthmatic, anti-diabetic and anti-cancer drugs.
Brief us about your financials
The company has reported a robust growth in revenues and profit after tax for the quarter ended September 30, 2011.
The company saw an increase in net sales by an impressive 36.78% from Rs. 286.86mn to Rs. 392.39mn during the same period for the second quarter. The profit after tax for the quarter ended September 30, 2011 stood at Rs. 36.17mn, resulting into an increase of 18.83%, as against Rs. 30.44mn in the corresponding period of the last fiscal year.
What is your revenue mix?
About 85% of our sales come from the domestic market and remaining 15% comes from exports.
Domestic market is not affected by overseas issues and local demand is growing. We are in operation for last 30 years. We are focusing more on domestic market.
What is your promoter holding?
Our promoter holding stands at 59%.