Friday, 8 April 2022

Gujarat Ambuja Exports



Gujarat Ambuja Exports is engaged in manufacturing of 


Feb 2022
The ethanol capacity of around 180 klpd each to be added at Hubli and Chalisgaon by end of fiscal 2022 

17 Jan 2022
Setting up of 1000 TPD Corn Wet Milling Plant to manufacture Starch, Starch Derivatives and Polyols viz., Sorbitol, Maltitol and Mannitol at Sitarganj, UttaranchaL Will increase revenue by 15%.
Capex of 400-500 cr via internal accrual

31 Aug 2021
- Upcoming 1000 TPD State-of-the-art Maize Crushing Plant at Malda, West Bengal. Coming live by Jun 2022. Will increase revenue by 15% 800 cr
- 1MW Solar Plant at Akola, Maharashtra


Business Divisions
Maize Processing (52% of FY21 revenue)[1]
- GAEL is the largest maize processing company in India with installed capacity of 3,000 tonnes per day (TPD). The company's products include liquid glucose, sorbitol, dextrose anhydrous, dextrose monohydrate, maltodextrin and high fructose corn syrup.
- Operating margins in excess of 20% for fiscal 2022
- Corn Starch Derivatives, 
GAEL has four plants located at 
  1. Himmatnagar (500 tpd) in Gujarat, 
  2. Sitarganj (750 tpd) in Uttarakhand, - adding 1000 tpd 
  3. Hubli (750 tpd) in Karnataka and 
  4. Chalisgaon (1,000 tpd) in Maharashtra. 
Agro Processing (30% of FY21 revenue)[1]
- GAEL has India's second largest soybean crushing capacity with six plants located across Gujarat, Madhya Pradesh and Maharashtra with combined capacity of 4,600 tpd. GAEL also has capacity for edible oil (1200 tpd) and wheat milling.
- Edible oil margins have remained stable in the range of 6-7%
Soya Derivatives, 
Feed Ingredients,
Edible Oils. 

Cotton Yarn (4% of FY 21 revenue)[1]
- GAEL has one plant located at Himmatnagar, Gujarat for its cotton yarn segment, with a capacity of 65,520 spindles. GAEL has recently entered into an agreement with a large textile company to provide this plant on a dedicated basis for contract manufacturing.[2]
- The cotton yarn segment has been incurring losses over past few years, however has turned profitable in fiscal 2021. 

Marquee Clientele
GAEL's clients include Dabur, Mondelez, Asian Paints, Patanjali, Nestle, Colgate, Heinz [1], ITC, HUL, Biocon, Parle[3], Cargill India, Agro Tech Foods, BL Agro Oils[4]

The company has its own warehouses as well as fleet and not on rent, unlike its competitors supporting the margins. Also most of company’s processing plants are near to the raw material sources which reduces the freight costs and improves the operating efficiency.  

All these states are major maize growing areas.

Planned raising of funds
GAEL has proposed an equity issuance for fund raising up to Rs 1000 Cr. [5]

Economies of scale
GAEL has a market share of 25%. GAEL buys raw materials in bulk once a year around the harvesting season (typically in March), giving them a 4-5% procurement cost advantage compared to peers.[2][6]

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