1.Company Information
Stallion India Fluorochemicals Limited (SIFL), established in 2002, is an Indian company based in Mumbai. SIFL is in the business of selling refrigerant and industrial gases and related products. The company's primary business involves debulking, blending, and processing these gases, as well as selling pre-filled cans and small cylinders/containers.
SIFL's gases are utilized in various industries, including air conditioners and refrigerators, firefighting, semiconductor manufacturing, automobile manufacturing, pharmaceuticals, glass bottle manufacturing, aerosols, and spray foam. The company's product portfolio includes a diverse range of gases, with fluorochemicals being a primary focus, primarily used as refrigerants. SIFL sells its products under the brand name "Stallion".
SIFL has a network of four processing facilities located in strategic regions for optimal efficiency and accessibility: Khalapur and Panvel (Maharashtra), Ghiloth (Rajasthan), and Manesar (Haryana). Each of these facilities is designed to store gases in a controlled environment, adhering to stringent safety standards.
SIFL's production processes involve debulking and blending gases received in bulk quantities. Debulking involves transferring gases from larger containers, like ISO tanks or cylinders, into smaller cylinders for distribution. Blending involves combining different gases in specific proportions to create refrigerant blends that meet customer requirements.
Details about the manufacturing capacity of each facility are as follows:
- Khalapur Facility: This facility has a production capacity of 10,800 metric tons. The capacity utilization for fiscal years 2022, 2023, and 2024 and for the period ending September 2024 was 28.95%, 37.76%, 49.42%, and 51.92% respectively.
- Ghiloth Facility: With a production capacity of 3,600 metric tons, the facility's capacity utilization was 12.15%, 24.60%, and 26.71% in fiscal years 2022, 2023, and 2024, respectively. For the period ending September 30, 2024, utilization stood at 15.30%.
Manesar Facility: This facility, with a capacity of 1,440 metric tons, had a utilization rate of 33.33%, 34.86%, and 54.16% in fiscal years 2022, 2023, and 2024, respectively. As of September 30, 2024, the utilization was 28.47%.
- Panvel Facility: This facility operates as an extension of the Khalapur Plant. While it has a capacity of 7,200 million tons, all billing for Maharashtra is managed through the Khalapur Plant. The capacity utilization rates for this facility were 30.59%, 22.58%, and 21.38% in fiscal years 2022, 2023, and 2024, respectively.
SIFL serves a diverse clientele, including multinational companies, with a significant portion of its revenue concentrated in specific regions. In fiscal year 2024 and the period ending September 30, 2024, the states of Maharashtra and Delhi contributed 69.82% and 74.41% to SIFL's total revenue, respectively. The company's revenue stream is significantly dependent on a limited number of customers. During fiscal years 2022, 2023, and 2024, as well as in the period ending September 2024, the combined revenue contribution from SIFL's top ten customers accounted for 72.88%, 74.77%, 75.69%, and 77.32% of total revenue, respectively.
SIFL's key competitors in the market include SRF Limited, Gujarat Fluorochemicals Limited, and Navin Fluorine International Limited. Notably, some of these competitors have a larger scale and more extensive resources, including broader product portfolios and wider market reach.
2. Strengths
1) Strong Market Recognition: With over two decades in the refrigerant gases industry, Stallion India Fluorochemicals Limited has established a strong brand reputation, enabling them to stand out from competitors. This recognition is attributed to the company's competitive pricing, high-quality products, innovation, reliability, and effective customer service.
2) Effective Business Model and Ability to Mitigate Operational Risks: The company focuses on operational efficiency, ensuring timely deliveries, and implementing robust quality control measures. These key strengths have played a vital role in fostering strong relationships within the industry, contributing to the company's significant operational growth.
3) Diverse Customer Base Across High-Growth Industries and Long-Standing Relationships: Stallion India Fluorochemicals Limited caters to a wide range of industries, including air conditioners & refrigerators, firefighting, semiconductor manufacturing, automobile manufacturing, pharmaceuticals, and more. This diversification helps to mitigate risks associated with dependence on a single market. Their dedication to building long-term relationships built on trust, reliability, and consistent delivery has resulted in repeat business, referrals, and new growth opportunities.. In fiscal years 2022, 2023, and 2024, as well as in the period ending September 2024, revenue from Stallion India Fluorochemicals Limited's top ten customers accounted for 72.88%, 74.77%, 75.69%, and 77.32% of total revenue, respectively.
4) Strategically Located Processing Plants: Stallion India Fluorochemicals Limited operates four processing plants located in Khalapur, Panvel, Ghiloth, and Manesar. These facilities are strategically positioned to efficiently cater to their target markets, and their adherence to safety standards ensures the regulated and secure handling of gases.
5)Experienced Promoters and Key Managerial Personnel: Stallion India Fluorochemicals Limited's leadership team, which includes its promoters and key managerial personnel, boasts extensive industry experience and expertise. This leadership is instrumental in identifying market trends, expanding the company's product portfolio, managing business operations, cultivating customer relationships, and navigating shifts in the business environment. The company's Board of Directors comprises Independent Directors with experience in various fields such as accounting, taxation, and legal, which brings a diversified perspective to the company's decision-making and governance.
3. Objects of the Issue
The net proceeds of the Fresh Issue:
1) Funding incremental working capital requirements of the Company.
2) Funding capital expenditure requirements for our Semi-conductor & Specialty Gas debulking & blending facility (“Khalapur, Maharashtra”).
3) Funding capital expenditure requirements for our Refrigerant debulking & blending facility (“Mambattu, Andhra Pradesh”).
4) General Corporate Purposes.
4.STALLION INDIA FLUOROCHEMICALS Limited IPO Registrar
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