Vishnu Chemicals Acquires Jayansree Pharma to Boost Growth and Expand Operations

Vishnu Chemicals Limited, a leading manufacturer of high-performance speciality chemicals, announced the 100% equity acquisition of Jayansree Pharma Private Limited (JPPL) for an enterprise value of ₹51.99 crore.

The Vishnu Chemicals Board of Directors approved the acquisition in its meeting today, and the company signed a Share Purchase Agreement with JPPL and its shareholders on August 19, 2024.

With this acquisition, JPPL will become a wholly-owned subsidiary of Vishnu Chemicals Limited, adding approximately ₹80 crore to the Group’s fixed assets.

The JPPL plant in Visakhapatnam, where Vishnu Chemicals already has its largest manufacturing unit, will produce chemicals that align with the Group’s operations. As part of its growth strategy, Vishnu Chemicals plans to start producing the inorganic chemical Strontium Carbonate at the JPPL facility and commence business activities as soon as possible.

On this acquisition, Mr Ch. Krishna Murthy, CMD of Vishnu Chemicals Limited, said, “This acquisition expands Vishnu’s presence in Visakhapatnam, Andhra Pradesh, and accelerates the vision for growth and market expansion. By integrating Jayansree’s capabilities, Vishnu is poised to advance its product offerings.”

Financial Highlights

In the first quarter of FY25, Vishnu Chemicals Limited reported operating revenues of ₹338.8 crore, marking a 13% year-on-year increase from ₹300.7 crore in Q1FY24 and also a 13% quarter-on-quarter rise from ₹300.4 crore in Q4FY24. The EBITDA for Q1FY25 stood at ₹55.6 crore, reflecting a 9% YoY growth from ₹51.1 crore, though it saw a 12% decline from ₹63.5 crore in the previous quarter. The company’s PAT (Profit After Tax) increased by 6% YoY to ₹30.5 crore, compared to ₹28.6 crore in Q1FY24, and showed a 10% QoQ improvement from ₹27.7 crore in Q4FY24.

About Vishnu Chemicals Limited

Vishnu Chemicals Limited is a leading manufacturer of high-performance speciality chemicals. The company is known for its strong market position and efficient integration of production processes. It creates top-quality products that cater to the varied needs of customers in over 50 countries.

On August 20, 2024, the share price of Vishnu Chemicals Limited opened at ₹441.80, touching the day’s high of ₹451.50 as of 09:37 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.