Rain Industries FY21 Annual Report

RAIN operates in 3 business segments –

▫️ Carbon
▫️ Advanced Materials
▫️ Cement

It is one of the leading product manufacturers in these segments.

They serve as raw materials for industries such as aluminium, carbon black, speciality chemicals, coatings and construction.

The 64% (Majority) of the 10,500 crs revenue & 70% of the operating profit & is derived from the Carbon segment.

2nd is Advanced materials with 26% of rev & 19% of the profit.

Thirdly, a small Cement business.

The diversity of their customer industries remain unmatched.

37% from Aluminium Industry

14% from Construction

8% from Carbon Black

8% from Graphite

& on & on.

Carbon-

The Group is the world’s largest CTP producer and the second-largest manufacturer of CPC.

Primary Consumers– Aluminium, Titanium dioxide and Steel – are returning to their pre-COVID growth.

The recovery of the Chinese economy should drive increased demand for aluminium.

Advanced Materials-

Focuses on the development of eco-friendlier alternatives as well as non-coal tar-based downstream hydrocarbon and advanced carbon products.

Back to 95% from pre-covid+ No structural Impact.

Launched new products.

Cement-

With one manufacturing unit each in Andhra Pradesh and Telangana, the total capacity is 4 MTPA (utilisation at 55%)

Holds Limestone mines (a key RM in the cement manufacturing) lease with reserves of 50 years.

Financials-

Strengthened the balance sheet over the last 5 years.

Highly cyclical businesses given the volatility in the margins.

Important Capital developments-

Started production at a hydrogenated hydrocarbon resin plant in Germany in mid-May.

During the 2nd half of the year, Began providing our NOVARES® pure ‘water-white resins’ to customers for testing and approval. (50,000 ton/ per year capacity)

New vertical-shaft calciner in India is almost completed: will lead to CPC production capacity of 0.37 MTPA

In late 2020, Resumed construction of our integrated anhydrous carbon pellet (ACP) production plants

sold non-core RÜTGERS Polymers and Handy Chemicals businesses.

10/ The most important factors to understand Future Outlook:

London Metal Exchange (LME) Aluminium prices are at their highest levels since 2010, and there is an increased demand from titanium dioxide producers.

Something to track going forward.

The beneficiary of the continued growth of the worldwide electric vehicle (EV) market.

EVs use ~25% more aluminium than automobiles

with internal combustion engines. The IEA predicts that by 2030, 26 million EVs will be sold annually – compared with 2.1 million in 2019.

Among the reasons for optimism, China’s economy is roaring back after being virtually shut down at the beginning of the year due to the COVID-19 outbreak.

As soon as the rest of the world’s demand is back, the company would be able to utilise its capacities.

More Annual report takeaways here. Our complete media coverage here.

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