Clean Science: Leading the Way For Specialty Chemical Industry

“The company is fully committed to sustainability and continuously implement several initiatives across the organization. We are continuously upgrading our facilities and investing in various new technologies across all our manufacturing units, which helped us to increase our energy efficiency and improve our focus on 3R, which is reduce, recycler and reuse. Our initiatives have helped us significantly to reduce water energy consumption and also reduce our emissions. We are committed to continually implement globally benchmark ESG practices. On CSR, our focus still remains on education, environment, sustainability and health care.”
-Siddharth Sikchi, Promoter & Executive Director

Stock Data

Ticker	CLEAN
Exchange	NSE & BSE
Industry	Specialty Chemical

Share Price

Last 1 Month	11.9%
Last 6 Months	12%
Last 12 Months	26%

Business Basics

Clean Science and Technology Limited is a specialty chemicals company engaged in the manufacturing of performance chemicals, pharmaceutical intermediates and FMCG chemicals. The company was founded in 2003 and is headquartered in Pune, India. Clean Science operates with a focus on sustainability and eco-friendliness, and all its products are manufactured through sustainable processes. The company’s product portfolio includes multiple products, such as MEHQ (Methyl Hydroxybenzoate), BHA (Butylated Hydroxyanisole), and Anisole. Its performance chemicals segment caters to the global demand for specialty chemicals across industries such as pharmaceuticals, agrochemicals, and personal care. The pharmaceutical intermediates segment produces key intermediates used in the production of various life-saving drugs. The FMCG chemicals segment produces ingredients used in products such as toothpaste, soaps, and detergents.

Clean Science’s state-of-the-art manufacturing facility is located in Kurkumbh, Maharashtra. The facility has a production capacity of 29,900 metric tonnes per annum and is equipped with various quality control measures to ensure that products adhere to international standards. The company has also filed multiple patents for its products and manufacturing processes. Clean Science has a strong global presence, with exports to over 44 countries. The company has long-term relationships with several multinational corporations and is a preferred supplier to some of the world’s largest chemical companies.

Clean Science’s Product Segment

The company operates in three product segments: 1) Performance Chemicals, 2) Pharmaceutical Intermediates, and 3) FMCG Intermediates. The Performance Chemicals segment offers specialty chemicals such as MEHQ, BHA, and TBHQ, which are used in various applications such as food, cosmetics, and polymer stabilizers. The Pharmaceutical Intermediates segment offers a range of products such as Guanidine Hydrochloride, 4-Cyanophenol, and 4-Aminophenol, which are used in the production of various drugs and medicines. The FMCG Intermediates segment offers a range of ingredients such as Para Anisic Aldehyde and Anisyl Acetate, which are used in the manufacturing of perfumes, flavors, and other consumer goods.

Q3 FY23 Financial Performance

Clean Science and Technology Limited reported Total Income for Q3 FY23 of ₹249.91 Crore up from ₹188.26 Crore year on year, a growth of 32.7%. The consolidated Net Profit of ₹83.79 Crore, up 44.5% from ₹57.98 Crore in the same quarter of the previous year. The Earnings per Share is ₹7.88 for this quarter.

Clean Science’s Revenue Mix By Geography

The company’s revenue mix by geography is primarily dominated by exports, accounting for around 70% of the total revenue. China is the largest market for Clean Science, contributing to around 35% of its revenue for this year, followed by India, Europe and America. The company has a diversified customer base that includes several multinational companies in the pharma, agrochemical, and other specialty chemical industries. With a strong focus on sustainability, Clean Science has positioned itself as a leading manufacturer of green chemicals, which has helped the company to expand its market share in the global specialty chemicals industry.

India’s Specialty Chemicals Industry

India’s specialty chemical industry is one of the most dynamic and rapidly growing sectors in the country’s economy. The specialty chemicals sector refers to a diverse range of high value-added chemicals that are used in a variety of applications, including pharmaceuticals, agrochemicals, construction, textiles, and personal care products. The $25 billion specialty chemicals market in India has successfully produced 13% growth over the past five years, primarily driven by domestic consumption. From 2020 to 2025, the industry is anticipated to expand at a CAGR of more than 12%. The market for specialty chemicals is valued at 32 billion rupees and accounts for 22% of India’s overall chemicals and petrochemicals market.

Due to the significant demand from end-user industries like food, automobiles, real estate, clothing, and cosmetics, among others, there are plenty of opportunities for both domestic and international manufacturers. In the ensuing years, India’s industry is likely to continue to grow at a faster rate than the rest of the world as a result of this. The specialty chemical industry in India is driven by several factors, including strong domestic demand, a large and growing middle class, favorable government policies, and a skilled workforce. The industry has also benefited from India’s low labor costs and its strategic location, which allows it to serve as a hub for exports to other countries. One of the challenges faced by the Indian specialty chemicals industry is the need to import major raw materials.

The petroleum, chemicals, and petrochemicals investment region (PCPIR) policy and production-linked incentive (PLI) schemes are two government initiatives for the Indian specialty chemicals industry that have bolstered manufacturers’ confidence to invest there.