Shanti Inorganics Limited

Sector: Specialty / Inorganic Chemicals (Sulphur-based bisulphites)

1. Overview

Shanti Inorganics Limited ("Shanti Inorganics" or "the Company") is engaged in the manufacturing and supply of sulphur-based inorganic chemicals. The Company holds one of the largest domestic production capacities for bisulphites, with an installed capacity of 18,800 MTPA at its principal facility (Source: CareEdge Report). Its product portfolio spans ammonium bisulphite solution, sodium bisulphite (powder/solution), sodium meta bisulphite, and sodium sulphite (powder/anhydrous) — chemicals that function as preservatives, reducing agents, oxygen scavengers, and process intermediates.

The Company was incorporated in 2010 in Ahmedabad, Gujarat, taking over the running business of the promoters' partnership firm "Shanti Industries" on a going-concern basis with effect from April 1, 2010. Since inception it has progressively broadened its product range — from sodium bisulphite (powder, then liquid) to the higher-grade sodium metabisulphite, and, in Fiscal 2016, ammonium bisulphite solutions.

Operations are anchored across two manufacturing locations in Gujarat: Manufacturing Unit-I at Vatva, Ahmedabad (installed capacity 18,800 MTPA) and Manufacturing Unit-II at Bavla, Ahmedabad, whose Phase I (18,000 MTPA) commenced commercial production in February 2025. A Phase II expansion (78,544 MTPA) is under development, which would lift the Company's combined installed capacity to 1,15,344 MTPA.

Commercially, the Company serves a diversified, multi-industry customer base across food & beverages, chemicals, oil drilling, pharmaceuticals, ceramics, agrochemicals, water treatment, petrochemicals, cosmetics, paints, polymers, boilers and mining, and exports to approximately 15 countries. Revenue from operations grew from ₹44.87 Cr in FY2024 to ₹71.22 Cr in FY2026, a CAGR of ~26%.

2. Business Model and Revenue Streams

The Company operates a B2B industrial-chemicals model, selling standardised and grade-differentiated bisulphite products (food grade and technical grade) to industrial buyers across multiple end-use sectors and geographies. Revenue is driven by manufactured product sales, supplemented by a smaller trading/stockist component.

Revenue by End-Use Industry (₹ Crore)

Revenue by Geography — Domestic vs Export (₹ Crore)

Exports are a material and structural revenue pillar (43%–54% of revenue over FY2024–FY2026), spread across countries including Eswatini, Malaysia, UAE, Qatar, Nigeria, Russia, Colombia, Turkey, Puerto Rico, Iraq, Vietnam, Azerbaijan, Egypt, Ghana and the Philippines.

Customer Concentration (₹ Crore)

Client concentration is moderately high (top-10 customers ~63%–68% of revenue), a dependency partially mitigated by long-standing relationships — for FY2026, 4 of the top-10 customers had been associated with the Company for more than five years. A structural risk flag is the absence of long-term contractual arrangements with the majority of customers.

3. Products and Service Portfolio

The Company's portfolio is built around four principal bisulphite chemistries, offered in food grade and technical grade based on end-use purity requirements:

Capacity and Utilisation (industry-specific operating metric)

*Bavla Phase I commenced commercial operations in February 2025.

The Vatva unit runs at near-full utilisation (>92% across the last three fiscals), underscoring the rationale for the Bavla capacity build-out. The primary revenue drivers are the established sodium bisulphite and sodium metabisulphite lines, with ammonium bisulphite and higher-grade/food-grade variants as growth segments supported by the Phase II expansion.

4. Key Business Strengths

• Leading domestic bisulphite capacity: one of the largest domestic production capacities for bisulphites at 18,800 MTPA (per CareEdge Report), providing scale and supply reliability.
• Geographic diversification via exports: products exported across ~15 countries, with exports contributing 43%–54% of revenue, reducing dependence on any single market.
• Diversified, multi-industry customer base: demand spread across food & beverages, chemicals, oil drilling, pharma, agrochemicals, water treatment and more, cushioning sector-specific downturns.
• Long-standing customer relationships: several of the top-10 customers associated for 5+ years, supporting repeat and increasing orders.
• Strategically located, resource-proximate facilities: Gujarat locations offering access to raw materials, lower logistics cost and reduced lead time.
• Quality and food-safety certifications: compliance standards that enhance credibility and enable supply to regulated/food-grade end-uses.
• Experienced promoter-led management: promoters with 17–26 years of domain experience in sulphur-based inorganic chemicals.
• Consistent financial performance: revenue, EBITDA and PAT compounding at ~26%, ~33% and ~41% respectively over FY2024–FY2026.

5. Future Growth Strategy

• Manufacturing-capacity expansion: commissioning Bavla Phase II (+78,544 MTPA) to raise combined capacity to 1,15,344 MTPA, funded partly by ₹42.50 Cr of Net Proceeds, to capture growing domestic and international demand.
• Investment in new plant & machinery: deployment toward enhanced productivity and cost efficiency, optimising per-unit operating cost to strengthen competitiveness in domestic and export markets.
• Deepening existing customer wallet share: increasing order volumes from existing customers and reinforcing long-term relationships.
• Geographic market penetration: expanding the international customer base and entering new high-value markets.
• Product-mix upgrade: scaling higher-grade and food-grade bisulphite variants across the expanded Phase II capacity (sodium metabisulphite, sodium bisulphite, ammonium bisulphite).