Vinyl Chemicals (India) Limited, a member of the Parekh Group, is an important player in the chemical industry. It was originally promoted by Pidilite Industries Limited (PIL) and the State Industrial & Investment Corporation Of Maharashtra Limited (SICOM) in 1986.
The company specialises in the sale and distribution of chemicals. It primarily focuses on trading Vinyl Acetate Monomer (VAM), sourced from diverse global suppliers and traded within India. Uhde GmbH Germany, a subsidiary of Hoechst, has contributed the technology for producing VAM. In addition to providing the technology, the German collaborator has offered basic engineering services and trained personnel for erection and start-up activities.
This marks the first effort to manufacture VAM directly from petrochemical ethylene. VAM serves as a versatile petrochemical utilised in the production of various materials such as polyvinyl acetate, polyvinyl alcohol, ethylene vinyl acetate copolymers, vinyl acrylic copolymers and acrylic fibres.
Vinyl Chemicals (India) Limited increased its VAM production capacity to 16,400 metric tonnes per annum (TPA) in May 1999, with engineering assistance from Krupp Uhde GmbH Germany. During 2000-2001, the company executed a debottlenecking expansion plan to raise the capacity to 24,500 TPA, which was completed in 2001-02. The installation and commissioning of the oxygen/nitrogen unit took place in February 2002. In the fiscal year 2007-08, the VAM manufacturing unit of the company (VCIL) located at Mahad was demerged into Pidilite Industries Ltd. (PIL).
The market capitalisation of Vinyl Chemicals Ltd stood at ₹800 crore as of January 29, 2024. Vinyl Chemicals share price has gone up by 260% in the last three years.
Business operations
Vinyl Chemicals (India) Limited is a specialist manufacturer of various commercial speciality chemicals, with a particular focus on Vinyl Acetate Monomer. The company serves key industries such as textiles, paints and adhesives, supplying essential monomers and contributing significantly to these industries.
Approximately 10-15 importers consistently bring in VAM for trade in India. The company’s primary business activity revolves around a single reportable segment, specifically chemical trading.
Related businesses play an important role in the company’s revenue, with 82% of revenue coming from the sale of chemicals to its promoter company, Pidilite Industries Ltd. Pidilite Industries owns roughly about 41% equity stake in the company. The company has no subsidiaries, associates or joint venture companies, as of March 31, 2023.
