Jubilant Agri and Consumer Products Announces Expansion Plans and Growth Strategy

Jubilant Agri & Consumer Products Limited (JACPL) has unveiled significant strategic moves, including capacity expansion, demerger plans, and a focus on double-digit revenue growth. These decisions, approved by the company's Board of Directors, are set to reshape JACPL's business structure and operations.

Growth Strategy

JACPL plans to achieve double-digit revenue growth driven by its adhesives, agri-products, and performance polymers divisions. The company's growth strategy involves:

Expanding its product range in NPK fertilizers and SBR latex
Leveraging innovation-led R&D
Utilizing its pan-India distribution network
Focusing on strong volume-led margin guidance

Capacity Expansion

The company has approved an expansion of its Performance Polymers manufacturing capacity. This expansion will be implemented through the establishment of a new manufacturing facility at JACPL's Samlya (Savli) site in Vadodara. Key details of the expansion include:

Aspect	Details
Existing Capacity	80,000 MTPA
Current Utilization	~79%
Proposed Capacity Addition	30,000 MTPA
Implementation Timeline	Approximately 12 months
Investment Required	₹50.00 crore (approx.)
Financing Method	Internal Accruals

The rationale behind this expansion is to meet the increasing demand for Performance Polymers products. This move is expected to strengthen JACPL's position in the market and potentially drive future growth.

Demerger Plan

JACPL's Board has approved a Scheme of Arrangement for the demerger of its Agri Division. The key points of this demerger are:

The Agri Division will be demerged from JACPL (the Demerged Company) and transferred to Jubilant Agri Solutions Limited (JASL, the Resulting Company).
The demerger will be executed on a going concern basis.
Shareholders of JACPL will receive equity shares in JASL as part of the arrangement.
The share exchange ratio has been set at 1:1, meaning shareholders will receive one fully paid-up equity share of ₹10.00 face value in JASL for every one fully paid-up equity share of ₹10.00 face value held in JACPL.
The existing equity shares of JASL held by JACPL will be cancelled upon the scheme's effectiveness.

The demerger aims to create focused management structures for each business, allowing them to pursue tailored growth strategies aligned with their respective market dynamics and regulatory frameworks. It is expected to provide financial flexibility, operational efficiency, and the potential for value unlocking for shareholders.

Regulatory Approvals and Next Steps

Both the capacity expansion and the demerger plan are subject to necessary approvals from regulatory authorities, shareholders, and creditors. The company will be seeking approvals from the BSE Limited, National Stock Exchange of India Limited, Securities and Exchange Board of India (SEBI), and the National Company Law Tribunal (NCLT), among others.

These strategic moves by Jubilant Agri & Consumer Products Limited reflect the company's proactive approach to business growth and restructuring. The capacity expansion in the Performance Polymers segment and the focus on double-digit revenue growth indicate confidence in market demand, while the demerger plan suggests a focus on creating more streamlined and specialized business entities. Investors and industry observers will be keenly watching how these developments unfold and impact the company's future performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.06%	-4.27%	-4.37%	+49.27%	+54.50%	+54.50%

Jubilant Agri & Consumer Products Limited (JACPL) has reported a robust financial performance for the second quarter, with significant growth across key metrics.

Financial Performance

JACPL delivered impressive results for Q2, with consolidated revenue from operations reaching ₹51,182.00 lakhs, compared to ₹44,117.00 lakhs in the previous quarter, marking a 16% increase. The company's net profit from continuing operations stood at ₹4,127.00 lakhs for the quarter.

For the half-year period, revenue grew to ₹95,299.00 lakhs from ₹76,308.00 lakhs in the corresponding period last year, indicating a healthy demand for JACPL's products across its business segments.

Business Segments

The company operates through three main segments:

Performance Polymers & Chemicals
PSK Fertilizers
Agri Nutrients

Proposed Demerger

In a significant development, the Board of Directors has approved a scheme of arrangement for demerger between the company and Jubilant Agri Solutions Limited. This involves the transfer of the Agri Division on a going concern basis. Under the proposed scheme, shareholders will receive one equity share of the resulting company for every one share held in the demerged company.

Future Outlook

The strong financial results and the proposed demerger indicate JACPL's strategic moves to optimize its business structure and focus on core competencies. The company's ability to grow its revenue significantly year-over-year positions it well for future growth.

As Jubilant Agri & Consumer Products moves forward with its demerger plans, investors and market observers may be keen to see how this translates into future performance and value creation for both entities.

The company's robust performance demonstrates its resilience and effective business strategies, setting a positive tone for the coming quarters.