Eternis Fine Chemicals Limited

Background

Eternis Fine Chemicals Limited, established in 1965 and headquartered in Mumbai, India, is a leading manufacturer and exporter of aroma chemicals. The company is part of the Mariwala Group, which also includes Marico Limited, a prominent consumer products company. Eternis has a significant global presence, exporting to over 20 countries and serving as a preferred supplier to major flavor and fragrance houses worldwide.

Key Strategic Focus

Eternis focuses on the production of aroma chemicals used in various applications, including soaps, detergents, household products, and fine fragrances. The company emphasizes economies of scale, producing a select number of high-demand products efficiently. This strategy has enabled Eternis to establish a strong foothold in the global market, catering to approximately 45 clients across 20 countries.

Financials and Funding

As of the fiscal year ending March 31, 2024, Eternis reported revenues of ₹1,911 crore, a slight decrease from the previous year due to a drop in realizations following corrections in raw material prices. Operating margins improved to 13.2% from 10.2% in the prior year, attributed to lower raw material costs. The company's financial risk profile is expected to moderate in the interim due to debt raised for funding the acquisition of Sharon Personal Care. The total debt/EBITDA ratio is projected to increase to 4.72 times as of March 31, 2025, from 1.21 times the previous year. An equity infusion from promoters and subsequent debt reduction are anticipated to improve leverage metrics, with a target debt/EBITDA ratio of approximately 2.5-2.7 times by the end of fiscal 2026.

Pipeline Development

Eternis has been actively expanding its product portfolio and market reach through strategic acquisitions. In December 2024, the company acquired 100% stake in Sharon Personal Care, a global supplier of innovative ingredient solutions for personal care products, with manufacturing capabilities in Italy and Israel. This acquisition is expected to enhance Eternis' presence in the personal care segment and strengthen its innovative capabilities.

Technological Platform and Innovation

Eternis operates five dedicated plants for aroma chemicals, including one in Leek, UK, with separate production lines that allow for flexible production scaling based on market demand. The company maintains a dedicated R&D team that focuses on product and process development, aiming to minimize waste and optimize energy use. This commitment to innovation has enabled Eternis to maintain high-quality standards and meet the evolving needs of its global clientele.

Leadership Team

• Rajen Mariwala: Managing Director

• Wilfrid Gambade: Chief Executive Officer

• Chetan Chowatia: Chief Financial Officer

• Sandesh Pokhriyal: Company Secretary

The leadership team brings extensive experience in the chemical industry, guiding Eternis through strategic expansions and operational efficiencies.

Leadership Changes

In September 2024, Achim Gerhard Daub was appointed as an Additional Director, bringing additional expertise to the board.

Competitor Profile

Market Insights and Dynamics

The global aroma chemicals market is competitive, with several key players vying for market share. Eternis' focus on economies of scale and strategic acquisitions positions it favorably within this landscape.

Competitor Analysis

• Privi Organics (Fairchem Speciality): A major competitor in India, offering a broader range of aroma chemicals and reporting higher revenues.

• Mitsubishi Gas Chemical Company: A global manufacturer and supplier of chemical products.

• PhosAgro: A vertically integrated phosphate-based fertilizer producer.

• ICL Group: A global specialty minerals and chemicals company.

• Sociedad Quimica y Minera de Chile (SQM): An integrated producer and seller of specialty plant nutrients and industrial chemicals.

Strategic Collaborations and Partnerships

Eternis has expanded its global footprint through strategic acquisitions, including the purchase of Tennants Fine Chemicals in 2021 and Sharon Personal Care in 2024. These acquisitions have enhanced the company's product offerings and market reach.

Operational Insights

Eternis' strategic focus on economies of scale, combined with its commitment to quality and innovation, provides a competitive advantage in the aroma chemicals industry. The company's global manufacturing and distribution capabilities enable it to meet diverse customer needs efficiently.

Strategic Opportunities and Future Directions

Eternis aims to continue its growth trajectory by leveraging recent acquisitions to expand its product portfolio and market presence. The company is also exploring opportunities in the personal care segment and other high-growth areas within the chemical industry.

Contact Information

• Website: eternis.com

• LinkedIn: Eternis Fine Chemicals Limited

Eternis Fine Chemicals Limited continues to strengthen its position as a leading global supplier of aroma chemicals, driven by strategic growth initiatives and a commitment to quality and innovation.