Company Profile
Neptune Petrochemicals Limited is a Gujarat-based company engaged in the manufacturing, trading, and import of petrochemical and specialty products. Founded in 2004, the company has steadily expanded its product range and market presence across India. Its key offerings include:
- Bitumen and Bitumen Emulsions
- Lubricants and Base Oils
- Fuel Oils, Glycols, Sulphur, and Urea
With manufacturing units located in Gujarat, Haryana, and Assam, Neptune supplies industries such as road construction, energy, and agriculture. The company also exports to neighboring countries like Nepal and Bhutan.
📰 IPO News – Neptune Petrochemicals Limited
- IPO Type: SME IPO
- Issue Size: 60 lakh equity shares
- Listing Exchange: NSE SME Platform
- Use of Funds:
- Purchase of machinery
- Office expansion
- Working capital
- General corporate purposes
The IPO aims to strengthen the company’s infrastructure and support its long-term growth plans in domestic and international markets.
Business Model
Neptune Petrochemicals Limited operates on a hybrid model that combines manufacturing, importing, and trading of petrochemical products. The company’s operations are structured to meet diverse industrial demands, particularly in infrastructure, transportation, and energy.
Key Elements of the Business Model:
- Product Diversification:
The company deals in a wide range of products including Bitumen (various grades), Emulsions, Polymer Modified Bitumen, Lubricants, Base Oils, Urea, Sulphur, Glycols, and more. - Asset-Light Trading Approach:
Alongside manufacturing, Neptune acts as an intermediary importer and trader, which helps manage capital expenditures efficiently. - Strategic Manufacturing Units:
Facilities are located in Gujarat, Haryana, and Assam to serve both western and eastern Indian markets effectively, reducing logistics costs. - B2B Clientele:
The business is primarily B2B, supplying to road contractors, oil refineries, industrial clients, and government infrastructure projects. - Pan-India and Cross-Border Reach:
With a distribution network across India and exports to Nepal and Bhutan, the company leverages geographic diversification to expand revenue streams.
Product Portfolio
Neptune Petrochemicals Limited offers a diverse range of products tailored to industries such as road construction, infrastructure, agriculture, and energy. The portfolio includes both manufactured and traded products.
🛢️ Bitumen & Derivatives
- Penetration Grade Bitumen – Used in road construction and surfacing.
- Viscosity Grade Bitumen – Offers better performance in varying temperatures.
- Polymer Modified Bitumen (PMB) – Enhanced durability for highways and expressways.
- Crumb Rubber Modified Bitumen (CRMB) – Eco-friendly solution using recycled rubber.
- Bitumen Emulsion – Suitable for cold application in rural and urban roads.
- Micro Surfacing Emulsion – Applied for surface treatment and maintenance.
⚙️ Lubricants & Oils
- Base Oils – Used in manufacturing automotive and industrial lubricants.
- Industrial Lubricants – Supports machinery and heavy equipment.
🌾 Chemicals & Commodities
- Urea – Agricultural fertilizer.
- Sulphur – Used in fertilizers and industrial processes.
- Mixed Glycols – Applications in antifreeze, coolants, and solvents.
- Heavy Aromatics & Fuel Oil – Industrial and heating applications.
Features Across Products:
Neptune Petrochemicals’ product range is designed to deliver performance, consistency, and industry compliance. The following are common features across their major product lines:
✅ High Performance & Durability
- Engineered to withstand extreme weather conditions and heavy usage.
- Especially important in road construction and industrial machinery applications.
🌍 Eco-Friendly Options
- Use of Crumb Rubber Modified Bitumen (CRMB) and emulsion-based bitumen reduces environmental impact.
- Supports sustainable road-building practices and recycling initiatives.
🧰 Custom Formulations
- Tailored grades of bitumen and lubricants available for specific project requirements.
- Enables adaptability across diverse geographic and climatic conditions.
🔍 Quality Standards Compliance
- Products adhere to national and international standards (e.g., IS, ASTM).
- Manufacturing units certified with ISO 9001:2015, ISO 14001:2015, and OHSAS 18001:2007.
🔄 Consistency and Reliability
- Sourced and processed through strict quality control systems.
- Ensures uniformity across batches for consistent end-user performance.
Financial Snapshot (as of March 31, 2024)
📊 Financial Highlights (₹ in Crores)
| Metric | FY 2023–24 | FY 2022–23 | FY 2021–22 |
|---|---|---|---|
| Revenue (₹ Crore) | 667.74 | 707.82 | 81.16 |
| Expenses (₹ Crore) | 647.71 | 695.37 | 81.24 |
| Net Profit (₹ Crore) | 20.82 | 10.39 | 0.68 |
| Net Worth (₹ Crore) | 31.90 | 11.08 | 0.69 |
| Earnings Per Share (EPS) | ₹13.87 | ₹6.92 | ₹1.03 |
| Return on Net Worth (%) | 65.25% | 93.75% | 98.56% |
| Return on Capital Employed (%) | 65.25% | 93.75% | 98.55% |
| Debt-to-Equity Ratio | 0.00 | 0.46 | 0.00 |
📈 Key Financial Ratios
| Ratio | Value (FY 2023–24) | Meaning |
|---|---|---|
| Earnings Per Share (EPS) | ₹13.87 | Net profit allocated per share; indicates profitability. |
| Return on Net Worth (RoNW) | 65.25% | Efficiency in generating profit from shareholders’ equity. |
| Net Profit Margin | 3.12% | Profitability as a percentage of total revenue. |
| Current Ratio | 3.11 | Ability to pay short-term obligations; healthy above 1. |
| Debt-to-Equity Ratio | 0.00 | Shows no reliance on debt; indicates strong balance sheet. |
| Return on Capital Employed (RoCE) | 65.25% | Efficiency in using capital to generate profits. |
| Asset Turnover Ratio | 2.72 | How effectively assets generate revenue. |
| Inventory Turnover Ratio | 18.86 | Frequency of inventory sold and replaced; high indicates efficiency. |
Initial Public Offering (IPO) Plans
Neptune Petrochemicals Limited is launching its IPO to raise capital for business expansion, operational support, and infrastructure upgrades. The IPO is designed to strengthen the company’s financial base and support long-term growth.
🗓️ Key Dates
- IPO Opening Date: May 28, 2025
- IPO Closing Date: May 30, 2025
- Listing Date: June 4, 2025
- Listing Platform: NSE SME Platform
📊 IPO Details
- Issue Type: Book-built SME IPO
- Total Issue Size: ₹73.20 crore
- Number of Shares Offered: 60,00,000 equity shares
- Price Band: ₹115 to ₹122 per share
- Face Value: ₹10 per share
- Minimum Lot Size: 1,000 shares
🧾 Fund Utilization
Proceeds from the IPO will be used for:
- Acquiring new plant and machinery
- Expanding office infrastructure
- Meeting working capital needs
- Supporting general corporate initiatives
Objectives of the Issue
- Capital Expenditure:
To invest in new machinery and equipment to enhance manufacturing capacity and improve operational efficiency. - Infrastructure Development:
To acquire commercial office space, which will support the company’s growing administrative and operational needs. - Working Capital Requirements:
To ensure adequate liquidity for day-to-day business operations and to manage increasing order volumes. - General Corporate Purposes:
To strengthen the financial position of the company and provide flexibility for future business initiatives. - IPO Expenses:
To cover the costs related to the public offering, including underwriting, listing, and compliance-related expenses.
🎯 Objectives of the IPO
- Capital Expenditure (CapEx):
To invest in advanced machinery and equipment to enhance production capacity and improve manufacturing efficiency. - Infrastructure Development:
To acquire office space and infrastructure to support the growing scale of operations and enhance business capabilities. - Working Capital Requirements:
To meet the working capital needs required for day-to-day operations, ensuring smooth production and supply chain management. - General Corporate Purposes:
To utilize funds for business growth, expansion initiatives, and improving financial flexibility for strategic opportunities. - IPO Expenses:
To cover the costs associated with the IPO process, such as underwriting fees, legal expenses, and other administrative costs.
Future Outlook
Neptune Petrochemicals Limited is well-positioned to capitalize on opportunities within the petrochemical and bitumen sector. The company aims to leverage its solid financial foundation, strategic investments, and industry experience to drive long-term growth.
📌 Growth Drivers
- Rising Infrastructure Demand:
Increasing investment in road construction, industrial development, and urban infrastructure in India is expected to boost demand for bitumen products. - Capacity Expansion:
With plans to enhance manufacturing facilities and acquire new machinery, the company is focused on scaling operations to meet growing market needs. - Widening Market Reach:
The company is looking to deepen its presence across more Indian states and expand exports to neighboring countries such as Nepal and Bhutan. - Product Innovation:
Neptune continues to invest in environmentally friendly products like bitumen emulsions and CRMB, aligning with global trends in sustainability. - Strong Operational Backbone:
A stable financial profile, efficient supply chain, and strategically located plants provide a solid base for future scalability.
Key Growth Areas:
- Infrastructure-Driven Demand:
Growth in road construction, highways, and urban development is increasing the demand for bitumen and related products. - Capacity Expansion:
Investment in new equipment and plant upgrades will allow the company to scale production and meet higher order volumes. - Eco-Friendly Product Development:
The company is focused on developing sustainable products like Bitumen Emulsions and CRMB (Crumb Rubber Modified Bitumen), catering to eco-conscious markets. - Geographical Expansion:
Neptune aims to strengthen its domestic footprint and expand exports to neighboring countries, including Nepal and Bhutan. - Operational Efficiency:
Improvements in logistics, automation, and supply chain processes are expected to reduce costs and improve delivery timelines.
These areas position Neptune Petrochemicals for steady growth, increased market share, and long-term competitiveness in the petrochemical sector. Let me know if you need this adapted for a pitch deck or investor report.
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🧭 Vision and Leadership
Vision:
Prostarm aims to be a leading provider of reliable, efficient, and sustainable power backup and energy solutions. The company focuses on innovation, customer satisfaction, and environmental responsibility to support the growing energy needs of India and beyond.
Leadership:
Prostarm is led by an experienced team of professionals committed to driving growth and operational excellence. The leadership emphasizes strategic planning, technology advancement, and strong corporate governance to create long-term value for stakeholders.
Market Positioning and Growth Prospects
Market Positioning
Neptune Petrochemicals Limited has built a strong presence in the petrochemical and bitumen sector, serving both domestic and neighboring markets. Starting as a trading firm, the company has evolved into a full-fledged manufacturer and importer of bitumen and allied products.
With ISO certifications and a network spread across numerous Indian states and union territories, the company delivers quality-assured products through efficient logistics and robust manufacturing practices. It also exports to countries like Nepal, Bhutan, and Bangladesh, strengthening its regional footprint.
Growth Prospects
Neptune Petrochemicals is strategically positioned to benefit from the growing demand for road infrastructure, urban development, and eco-friendly construction materials. Key growth drivers include:
- Expansion of Manufacturing Capacity: Investing in new equipment and production technologies to meet increasing demand.
- Product Diversification: Developing environment-friendly products like Bitumen Emulsions and CRMB to meet sustainability goals.
- Market Expansion: Strengthening distribution in underpenetrated regions and increasing export volumes.
- Improved Operational Efficiency: Streamlining logistics and automation to reduce costs and enhance delivery.
