Profile of the company
The company was incorporated as Mamta Dyes and Intermediaries Private Limited under the provision of the Companies Act, 1956 vide certificate of incorporation dated July 27, 1994 issued by the Assistant Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Consequent upon the conversion of the company to public limited company, the name of the company was changed to Mamta Dyes and Intermediaries Limited and fresh certificate of incorporation dated February 20, 1997 was issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently, the name of the company was changed to R R J-Dyes and Intermediates Limited vide fresh certificate of incorporation dated February 20, 1997 was issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Later on the name of the company was changed to Prolife Industries Limited and fresh certificate of Incorporation dated March 7, 2013 pursuant to change of name was issued by Registrar of Companies, Gujarat, Dadra and Nagar Haveli.
The company originally founded in the year 1994 in the name of Mamta Dyes & Intermediates Private Ltd and has been in this Industry from the very inception. Company has established even its own Research & Development Department within few years of incorporation of the company. It has already succeeded in developing very high quality Specialty Chemicals as result of thorough knowledge and R & D efforts of the Chairman and Managing Director of the company who has sound knowledge as well as vast experience of two decades in the chemical industry. The company has established its presence in domestic as well export market and are regularly catering to the needs of their customers in many countries including U.S.A, Spain, Switzerland, Germany, France, Taiwan, Japan, Germany, Brazil etc.
At present, the company is mainly manufacturing ranges of intermediaries for dyes, pigments, pharmaceuticals agro chemicals. The company’s existing and proposed product and products mix are Dehydro Thio Para Toluidine Sulfonic Acid (DTPTSA), Amino Phenoxy Propane Sulfonic Acid (SPA), Amino Methyl Phenoxy Sulfonic Acid (SPMT), PYBIZS- 4-Nitrile-1-Hydroxy-8-Metoxy-3-Methyl Benzo [4,5] Imidazo [1,2A] Pyridine-7 & Sulphonic Acid & its sodium salt, Basic Red51/Red 76/Brown16/Brown17/Brown99/yellow-1/Yellow57/Orange31, 2-Chloro Methyl -3,4- Dimethoxy Pyridine, Octahydro-4B-Methyl-9 (Methylamino), Di Amino Bisphenoxy Ethane, 5-Methoxy 6- Amino Benz Imidazole Para Nitro Aniline, Epsilon Acid, 2:4 Di Nitro Aniline, Dichloro Para Nitro Aniline, Ortho Chloro Para Nitro Aniline, 6 Chloro 2:4 Di Nitro Aniline, 6 Bromo Di Nitro Aniline.
Proceed is being used for:
Chemicals are an integral part of daily life in today‘s world. There is hardly any industry where chemicals are not used and there is no single economic sector where chemicals do not play an important role. These chemicals are used in a wide variety of products and processes and while they are major contributors to national and world economies, their sound management throughout their lifecycle is essential in order to avoid significant and increasingly complex risks to human health and ecosystems and substantial costs to national economies.
By volume, the Indian chemical industry was the third largest producer in Asia, and it alone contributed 5% of its GDP. India is one of the top 5 world producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals. Despite being a large producer and exporter of chemicals, India is a net importer of chemicals given its domestic demand for products. The Indian chemical industry, which has several characteristics specific to Indian context, has evolved from a producer and supplier of basic chemicals to the domestic market in a highly regulated environment to an industry with diverse product portfolio in an open economy. The size of the Indian chemical industry was estimated at $83 billion in the FY 2010. Of this 53% was accounted for by base chemicals and 24% by pharmaceuticals.
With this size, its contribution in total Indian industrial output is 14%. The chemical industry is among the oldest and fastest growing domestic industries in India, contributing substantially towards industrial and economic growth of the nation. The industry in India produces nearly 70,000 types of commercial products over a wide range of categories ranging from cosmetics and toiletries, to plastics and pesticides. This multi product and multi faceted industry is mostly concentrated in the western part of India where almost half of the industry is located.
Pros and strengths
Well equipped Research and Development facility: The company has well equipped research and Development (R&D) facility to improve quality of the products and to produce high performance chemicals. Company has in house sound R&D Department backed by technical expertise of its Managing Director Maninder Singh Jolly, which helps the company to enhance its product range.
Established vast domestic as well as export market: The company is catering the customers both in domestic market as well as overseas market. The company is catering the needs of customers with its high quality customized products as per the specific requirements of buyers located in U.S.A, Spain, Switzerland, Germany, France, Taiwan, Japan, Germany, Brazil etc. The company is selling its product to internationally renowned companies.
Modern infrastructure and integrated facilities: The unit is located in Panoli Industrial Estate, Tal. Ankleshwar, Dist Bharuch. The Industrial estate is developed by GIDC and enjoys good infrastructure like electricity, water, roads, labour, raw material suppliers and market for finished products which has a vital demand in the market & with this scenario it is concentrating on expanding the production capacity and new product range.
Risks and concerns
Largely dependent on sales income from group company: The sales income from the company’s group company is constituting 22.32% and 55.69% of its total sales for the period ended June 30, 2016 and for the year ended March 31, 2016 respectively i.e from Prolife Bio-Chemical Industries Private Limited, Gold Star Chemicals Private Limited and Shraddha Finchem Private Limited. There is no assurance that the company will be able to get the sales income from its group company in any future periods, the loss of sales income from its group company may have material and adverse effect on its business and results of operations.
No long term supply agreement for major raw material: The company’s prime raw material is Para Toluidine, Caustic soda Flakes, Oleum, Sulfur, Soda Ash, Sulfuric Acid, Magnesium Oxide etc. constitutes major cost of its total raw material expenses. It generally procures its raw material from domestic and foreign suppliers as well, as and when it is required. In the absence of long term agreement with its suppliers, the company may not be able to meet its raw material requirement on time. Also, volatility in the prices of raw material will have an impact on all the manufacturers of chemical industry and any adverse change in the purchase price would lead to a near corresponding adjustment in the selling price as well. However, the company acknowledges that it is exposed to and will have to absorb any fluctuations in the prices of raw materials partially which will affect its margins.
Highly dependent on promoters and senior management: The company’s success depends heavily upon the continuing services of Manindersingh Jolly, who is the natural person in control of the company. He currently serves as the company’s Chairman and Managing Director and his experience and vision has played a key role in obtaining its current market position. The company would depend significantly on its Key Managerial Persons for its existing manufacturing operations and its proposed expansion of its existing manufacturing operations. If the company’s Chairman and Managing Director or any member of the senior management team is unable or unwilling to continue in his present position, it may not be able to replace him easily or at all, and its business, financial condition, results of operations and prospects may be materially and adversely affected.
Prolife Industries is engaged in the business of manufacturing special and exclusive range of intermediates for dyes, pigments, pharmaceuticals, agrochemicals and others. The company offers special and exclusive range of intermediates for dyes, pigments, pharmaceuticals agrochemicals and others. Such diverse product mix helps it to cater the diverse customer segments and to various sectors of Industry. The product mix helps it to sustain the growth level. On the concern side, the company’s business is substantially dependent on sales income from its group company. Also the company’s success depends heavily upon its promoters and senior management for their continuing services, strategic guidance and financial support.
On performance front, the company’s total revenue from operations for the FY16 was Rs 2229.55 lakh as compared to Rs 1958.38 lakh during the FY15 showing an increase of 13.85%. The growth was due to increase in sales of Products. The company’s Profit after Tax (PAT) increased to Rs 59.09 lakh in FY16 from Rs 40.49 lakh for the FY15, showing an increase of 45.94%. This increase was due to increase of total income by 14.78% in FY 2016. The company intends to strengthen its R&D department to enhance the product range and improve the quality of the products and achieve the cost reduction by utilizing the improved method of production. In keeping with this philosophy, the company will focus on increasing its customer base of its products, give them a platform of choice to transact and support them with quality research as well as on capturing the significant growth opportunities across the spectrum.