Vishnu Chemicals Launches Strontium Carbonate Production at Visakhapatnam Facility

1 min read     Updated on 20 Aug 2025, 11:19 AM
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Naman SharmaScanX News Team
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Overview

Vishnu Chemicals has commenced Strontium Carbonate production at its Atchutapuram unit in Visakhapatnam through its subsidiary, Vishnu Strontium Private Limited. The company also launched a 100-day 'Saksham Niveshak' campaign to assist shareholders in claiming unpaid dividends and updating KYC details.

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Vishnu Chemicals Limited has announced a significant expansion of its product portfolio with the commencement of Strontium Carbonate production at its Atchutapuram unit in Visakhapatnam, Andhra Pradesh. This strategic move marks a notable milestone in the company's growth trajectory and diversification efforts.

New Production Line Details

The company officially began commercial production of Strontium Carbonate on August 20, 2025, through its wholly-owned subsidiary, Vishnu Strontium Private Limited. The new manufacturing operations are situated at the company's facility in Atchutapuram, Visakhapatnam, further strengthening Vishnu Chemicals' presence in the specialty chemicals sector.

Strategic Implications

The introduction of Strontium Carbonate to Vishnu Chemicals' product lineup is a significant development for the company. Strontium Carbonate is a versatile chemical compound with applications across various industries, including electronics, ceramics, and pyrotechnics. This expansion into Strontium Carbonate production could potentially open new market opportunities and revenue streams for the company.

Corporate Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, Vishnu Chemicals promptly informed the stock exchanges about this development. The disclosure, made through the company's Company Secretary and Compliance Officer, Vibha Shinde, underscores the company's commitment to transparency and adherence to regulatory requirements.

Investor Education Initiative

In a separate but noteworthy development, Vishnu Chemicals has also launched a 100-day campaign titled "Saksham Niveshak" on August 19, 2025. This initiative, in response to a circular from the Investor Education and Protection Fund Authority (IEPFA), aims to assist shareholders in claiming unpaid or unclaimed dividends and updating their KYC details.

The "Saksham Niveshak" campaign, running from July 28, 2025, to November 6, 2025, encourages shareholders to contact the company's Registrar and Transfer Agent, Bigshare Services Private Limited, to address any issues related to unclaimed dividends or shares. This proactive approach demonstrates Vishnu Chemicals' commitment to shareholder welfare and corporate governance.

As Vishnu Chemicals embarks on this new phase of production and shareholder engagement, investors and industry observers will be keenly watching the impact of these developments on the company's future performance and market position in the specialty chemicals sector.

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Vishnu Chemicals Q1 Revenue Grows 2.4% Amid Global Uncertainties

1 min read     Updated on 11 Aug 2025, 05:01 PM
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Shriram ShekharScanX News Team
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Overview

Vishnu Chemicals reported a 2.4% year-on-year increase in consolidated revenue to Rs 346.90 crores in Q1. Gross margins improved to 45.60%, EBITDA remained stable at Rs 55.70 crores, and PAT increased by 5.80% to Rs 32.20 crores. The company faced challenges due to tariff uncertainties affecting export markets, with a domestic-export sales mix of 55:45. The Board recommended a 15% dividend. Chromium chemicals face tariffs in the US market, while barium chemicals are exempt. The company is focusing on cost management and future growth initiatives, including strontium carbonate production and a South African mine acquisition.

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Vishnu Chemicals , a leading manufacturer of specialty chemicals, reported a modest growth in its Q1 financial results despite facing headwinds from global tariff uncertainties. The company's consolidated revenue increased by 2.4% year-on-year to Rs 346.90 crores, up from Rs 338.90 crores in the same quarter last year.

Financial Highlights

Metric Performance
Gross Margins Improved to 45.60% compared to 44.80% in Q1 of previous year
EBITDA Remained stable at Rs 55.70 crores with margins at 16.10%
PAT Increased by 5.80% to Rs 32.20 crores
Dividend Board recommended a 15% dividend on face value of Rs 2 per share

Operational Performance

The company faced challenges due to tariff uncertainties affecting export markets, with customers taking a cautious approach to inventory stocking. The domestic-export sales mix stood at 55:45 during the quarter.

Siddartha Cherukuri, Joint Managing Director, commented, "Despite headwinds, we continue to focus on margins and a customer-first approach. Our balance presence across domestic and export markets gives us flexibility that is valued in times like these."

Segment-wise Performance

Chromium Chemicals

  • 5% of chromium chemical sales come from the USA
  • Facing 25% plus 3.50% duties in the US market
  • Company focusing on value-added products beyond leather industry

Barium Chemicals

  • 12% of barium chemical sales come from the USA
  • Barium chemicals exempt from US tariffs
  • EBITDA margins remain robust at around 30%

Cost Management

The company reported improved cost management:

  • Manufacturing expenses as a percentage of revenue declined by 100 basis points year-on-year to 6.20% in Q1
  • Ocean freight costs increased by 88 basis points sequentially due to tariff-related developments

Future Outlook

Vishnu Chemicals remains optimistic about future growth:

  • Strontium carbonate production expected to begin in Q2 or early Q3
  • South Africa mine acquisition awaiting statutory approvals
  • Focusing on completing existing projects and strategizing future investments in Chromium and Barium verticals

Hanumant Bhansali, Vice President (Finance & Strategy), stated, "We are also looking at the markets right now, and our current performance is a true reflection of where we could extend our capabilities to give a better performance on a year-on-year metrics."

The company continues to navigate global uncertainties while focusing on operational efficiency and strategic growth initiatives. With a diverse product portfolio and ongoing expansion plans, Vishnu Chemicals aims to maintain its strong position in the specialty chemicals market.

Historical Stock Returns for Vishnu Chemicals

1 Day5 Days1 Month6 Months1 Year5 Years
-1.71%-2.19%-2.28%+21.45%+17.10%0.0%
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