JUBLINGREA - Jubilant Ingrevia Limited Share Price

Outlook by Management:
Jubilant Ingrevia aims for 3x revenue growth (Rs.12,000 crore) and 4x EBITDA growth (Rs.2,000 crore) by FY30 under its "˜Pinnacle 345' strategy. Key focus areas include scaling high-margin specialty chemicals, expanding CDMO contracts, and capitalizing on global opportunities in pharmaceuticals, agrochemicals, and nutrition.

Major Points:

1. Specialty Chemicals & CDMO Growth:

   • Target 60% revenue from Specialty (vs. 43% today), driven by CDMO contracts (agro, pharma, semiconductors) and new platforms like Diketene.
   • Signed multi-year CDMO deals worth $300M+; pipeline includes 12+ pharma molecules and semiconductor opportunities.
   • Leadership in Pyridine derivatives (36+ products globally #1) and expansion in cosmetics (skincare/haircare).

2. Nutrition Segment:

   • Vitamin B3 (niacinamide): Aspire to become global #1 with new food/cosmetic-grade capacity.
   • Human nutrition (choline salts, premixes) to grow from 31% to 67% of nutrition revenue by FY30.

3. Operational Excellence:

   • Cost savings: Rs.100cr+ annually via energy efficiency, digital interventions (200+ initiatives), and waste reduction.
   • ESG leadership: Top 5% global chemical firms (ECOVADIS Gold), 35% renewable energy target.

4. Global Expansion:

   • Exports to rise from ~50% to 70% of revenue, focusing on US, Europe, and Japan.
   • Captured 70% market share post a US competitor's exit in Pyridine.

5. Financial Discipline:

   • ROCE improvement to 17-20% (from 12%) via portfolio shift and asset optimization.
   • Funding growth via internal accruals; net debt/EBITDA targeted at 1.2-1.3x.

Risks & Mitigation: Commodity cyclicality (acetyl intermediates) offset by diversification into specialty segments and cost leadership. Inorganic growth (M&A) to bridge portfolio gaps.

Key Enablers: Customer-centricity, R&D investments (new Greater Noida facility), and talent retention.

1. What have been the key takeaways from interactions with global customers, and what is the conversion rate in securing business?
Deepak Jain highlighted that customers appreciate Jubilant's strategic shift toward innovation and customer-centricity. While conversions take time, engagements have generated a robust pipeline, with notable CDMO contracts already secured. Confidence remains high due to strong customer trust and capability alignment.

2. How much Pyridine is consumed captively, and how will derivative expansions alter the mix? How many of 36 derivatives are campaign-based?
Ambrish Dixit explained that Pyridine derivatives are produced in multi-purpose plants, with 80%+ being market-leading products. Campaign-based production is common due to diverse product needs. Leadership retention is ensured through mission-driven culture and incentives.

3. What are the applications, TAM, and SAM for Oil Field Chemicals and Specialty Chemicals?
Amit Saini noted Oil Field Chemicals target corrosion inhibition in upstream/downstream sectors ($13B TAM). Jubilant serves key global customers and plans to expand products aligned with customer needs.

4. What asset turnover is expected for Specialty Chemicals at Rs.6,000cr revenue?
Varun Gupta emphasized ROCE-driven investments (20-25% target), with asset turnover ratios of 1.2"“1.5 for specialty segments, prioritizing profitability over volume.

5. How will capex for growth be funded?
Varun Gupta stated internal accruals and disciplined reinvestment will fund growth, leveraging improved EBITDA and cash conversion. Past investments (Rs.1,700cr) demonstrate this approach.

6. What drives the incremental Rs.100cr savings target?
Vijay Srivastava outlined energy efficiency (50% savings), effluent treatment, and digital interventions as key drivers, building on previous cost-reduction successes.

7. Is Pinnacle 345 based on volume or price growth? Key risks?
Deepak Jain assumed market recovery and volume-driven growth, with limited price upside due to Chinese overcapacity. Risks include prolonged market slumps and geopolitical disruptions.

8. What inorganic strategies are planned?
Partha Basu emphasized targeted acquisitions in gaps like human nutrition or CDMO-enabling chemistries, focusing on strategic fit rather than scale.

9. How immune is Jubilant to tariff wars? US/Europe revenue outlook?
Ambrish Dixit noted competitiveness against China due to tariff differentials. US/Europe contributions will rise via CDMO and specialty focus, leveraging regional customer partnerships.

10. What is the CDMO chemistry mix, and how will it evolve?
Yuvraj and Ambrish Dixit highlighted non-pyridine CDMO dominance (50%+), driven by multi-chemistry capabilities. Future growth will rely on agro/pharma contracts and semiconductor entry.

11. How does pharma CDMO differ from Jubilant Pharmova?
Deepak Jain clarified Jubilant Ingrevia focuses on intermediates, while Pharmova handles APIs. Collaboration occurs for end-to-end solutions, aligning with respective strengths.

12. Capex plans for the next 3"“4 years?
Varun Gupta prioritized specialty/nutrition investments, with peak revenues from current capex by FY27. Future spends will align with high-ROCE projects for Pinnacle 345 targets.

13. What is the CDMO project stage mix? Development work for innovators?
Varun Gupta noted 65% early-stage (Phase I-II) and 35% commercial projects. New GMP facilities will support scaling, driven by deeper innovator engagements.