Jesons Industries Limited - Comprehensive Analysis Report

Summary

Jesons Industries Limited, established in 1999, stands as a prominent Indian leader in the manufacture of specialty coating emulsions (SCE) and water-based pressure-sensitive adhesives (PSAs). The company has significantly evolved from its origins to become a key player in the chemical industry, particularly recognized for its role in creating reliable and innovative chemical solutions. Jesons holds a substantial market share in India, supplying approximately 27-30% of the non-captive domestic market for Specialty Coating Emulsions to the paint sector and commanding a 35% share in water-based PSAs for tapes and labels. With a global footprint spanning over 60 countries across Asia-Pacific, the Middle East, and Africa, Jesons is committed to innovation, sustainability, and green chemistry, driving growth through a customer-centric approach. Its products are integral to various industries, including paints, packaging, woodworking, furniture, construction, and textiles.

1. Strategic Focus & Objectives

Core Objectives

Jesons Industries Limited's core objectives are deeply rooted in fostering innovation and sustainable growth to achieve global leadership. The company is committed to integrity, transparency, accountability, and a customer-centric philosophy. Key objectives include:

• Developing green and innovative products that enhance customer productivity.

• Creating solutions that operate at higher speeds on coater lines.

• Ensuring compliance with FDA standards for product safety and quality.

• Delivering the highest quality products suitable for diverse applications.

• Expanding export share, targeting an increase to 28% of overall revenues by fiscal year 2024 from 26% in fiscal year 2023.

Specialization Areas

The company specializes in a broad range of chemicals and their applications, focusing on:

• Acrylic and acrylic co-polymers

• Vinyl and vinyl acetate co-polymers

• Acrylates

• Styrenes

• Specialty monomers

Jesons' unique value proposition lies in its dedication to "greener chemistry," developing eco-friendly and water-based adhesive solutions. This focus aims to minimize environmental impact while delivering high-performance products. Key innovations include high polymer content ready-to-use PSAs, CMR-free furniture adhesives, green paint binders with latent crosslinking technology, elastomeric coatings that use sunlight for crosslinking, and moisture barrier coatings for concrete curing.

Target Markets

Jesons Industries primarily targets diverse industrial segments, both domestically and internationally. Its key market segments include:

• Tapes and Labels

• Decorative Paints

• Construction Chemicals

• Textiles

• Furniture

• Flocking

The company continuously pushes for innovation in architectural coatings, industrial adhesives, and other specialty applications, positioning itself as a crucial supplier to these dynamic industries.

2. Financial Overview

Funding History

Jesons Industries Limited reported an annual revenue of ₹1,540 Cr for the financial year ended March 31, 2025. The company's operating revenue exceeded INR 500 crores for the financial year ending March 31, 2024, with consolidated revenue reaching ₹1,496 crore for March 2024. Profit after tax for the same period was ₹56.6 crore, representing a 15.4% year-on-year increase. The company maintains a strong financial position, evidenced by a current ratio of 2.57 and a low debt-equity ratio of 0.02 as of March 2024. Profitability metrics are robust, with a return on equity of 13.96% and a net profit margin of 5.11%.

The company filed for an Initial Public Offering (IPO), which included a fresh issue of up to ₹3,000 million and an offer for sale of up to 9,460,800 equity shares by its promoter, Dhiresh Shashikant Gosalia. The company's authorized share capital is ₹40.00 crore, and its total paid-up capital as of December 29, 2025, is ₹26.81 crore.

Detailed breakdown of IPO proceeds utilization:

• Debt Repayment: ₹90 crore is earmarked for repaying borrowings of Jesons Industries and its subsidiary, Jeson Techno Polymers.

• General Corporate Purposes: The remaining balance will be allocated for new strategic initiatives, capital expenditure, marketing, and brand building.

The long-term bank facilities outlook was revised to 'Positive' from 'Stable' by CRISIL Ratings, reaffirming the 'CRISIL A-' rating, with short-term rating reaffirmed at 'CRISIL A2+' as of October 03, 2024.

3. Product Pipeline

Key Products/Services

Jesons Industries Limited specializes in a critical range of chemical products vital for various manufacturing sectors. The core of its product portfolio comprises:

• Specialty Coating Emulsions (SCE):

• Description: These emulsions are crucial components in decorative paints and other coatings. They provide performance characteristics like durability, finish, and application properties.

• Development Stage: Continuously undergoing innovation, with a focus on green paint binders featuring latent crosslinking technology to improve paint shelf life and introduce newer generations of architectural coatings.

• Target Market/Condition: Primarily the paint sector, including architectural and industrial coatings.

• Expected Timeline: Ongoing development and introduction of advanced formulations.

• Key Features and Benefits: Enhanced paint durability, improved aesthetic quality, extended shelf life, and eco-friendly formulations.

• Water-Based Pressure-Sensitive Adhesives (PSAs):

• Description: Adhesives designed for high-speed application in tapes and labels, offering strong adhesion and performance.

• Development Stage: Active development of high polymer content, ready-to-use PSAs to minimize water consumption during application.

• Target Market/Condition: Tapes and labels industry, packaging, and other applications requiring strong, reliable adhesive bonds.

• Expected Timeline: Regular introduction of optimized adhesive solutions.

• Key Features and Benefits: High adhesion strength, superior performance on coater lines, reduced water consumption, and versatility across various applications.

• Specialty Chemicals for Diverse Applications:

• Description: This category includes a broad spectrum of chemical solutions for sectors like construction, textiles, woodworking, furniture, and leather.

• Development Stage: Ongoing research in areas like CMR-free products for furniture adhesives, elastomeric coatings for crosslinking using sunlight, and moisture barrier coatings to reduce water demand for concrete curing.

• Target Market/Condition: Construction, textiles, furniture, woodworking, carpet, and paper industries.

• Expected Timeline: Continuous integration of advanced chemical solutions into various industrial processes.

• Key Features and Benefits: Enhanced productivity, improved product performance, sustainable and eco-friendly options, and compliance with industry standards.

4. Technology & Innovation

Technology Stack

Jesons Industries operates a state-of-the-art, DSIR-recognized R&D Centre located at Turbhe, Navi Mumbai. This facility, staffed by a dedicated team of 40 personnel as of September 30, 2024, is the cornerstone of the company's innovation efforts.

Core Platforms and Technologies:

• Advanced R&D Centre: Equipped for developing new products in Specialty Coating Emulsions (SCE) and Pressure Sensitive Adhesives (PSA) across diverse applications.

• Application Labs: Utilized for rigorous testing and validation of new formulations, ensuring a high success probability (95%) for samples.

Proprietary Developments:

• "Greener Chemistry" Focus: A strategic shift towards safer and more environmentally friendly solutions, including eco-friendly and water-based adhesive formulations.

• Patented Biocidal Composition: The company holds a patent for a long-acting biocidal composition and its preparation process, highlighting its commitment to proprietary technologies.

• Innovative Product Formulations:

• High polymer content ready-to-use pressure-sensitive adhesives for tape and label applications to minimize water consumption.

• CMR-free products for furniture adhesives.

• Green paint binders with latent crosslinking technology to boost paint shelf life.

• Elastomeric coatings using sunlight for crosslinking properties.

• Moisture barrier coatings designed to reduce water demand for concrete curing.

Scientific Methodologies:

• Customer-Centric Development: Innovation is driven by active engagement in customer conversations to identify specific needs and challenges.

• Expert Development Teams: A team of over 30 technical experts is involved in the development and optimization of new products.

• Rigorous Testing: Involves application lab testing, sampling, live testing, and meticulous quality tracking throughout the process.

• Scale-Up and Process Optimization: Focused on efficient transition from lab-scale development to industrial production.

Technical Capabilities:

• Expertise in a wide range of chemical applications, including acrylic and acrylic co-polymers, vinyl and vinyl acetate co-polymers, acrylates, styrenes, and specialty monomers.

• Ability to develop solutions that enhance customer productivity and operate efficiently at higher speeds on coater lines.

• Strong capacity for meeting FDA standards and developing high-quality products for diverse applications.

5. Leadership & Management

Executive Team

Jesons Industries Limited is led by a proficient and experienced management team.

• Mr. Dhiresh Shashikant Gosalia

• Position: Chairman & Managing Director.

• Professional Background: Founder of Jesons Industries Ltd. in 1999. Holds a bachelor's degree in science from Jai Hind College, University of Mumbai, and a diploma in business management from K.C. College of Management Studies, Bombay.

• Notable Achievements/Contributions: Participated in the Owner/President Management Program at Harvard Graduate School of Business, the SME Programme at IIM, Ahmedabad, and the Building the Business: Strategies for Asia Pacific Programme organized by INSEAD in Singapore. Instrumental in the company's growth from a modest manufacturer to a market leader.

• Madhavi Dhiresh Gosalia

• Position: Whole-Time Director.

• Sadayapillai Kameswaran

• Position: Whole-Time Director.

• Mr. Shilip Kumar Sant

• Position: Chief Executive Officer (appointed December 17, 2024).

• Mr. Deepak Kumar Jain

• Position: Chief Financial Officer.

• Mr. Kushal Vasantbhai Gala

• Position: Company Secretary.

• Shriram Sharad Dandekar

• Position: Independent Director (Non-Executive).

• Amitabh Verma

• Position: Independent Director.

• Deeti Ojha

• Position: Independent Director.

Recent Leadership Changes

Mr. Shilip Kumar Sant was appointed as the Chief Executive Officer (CEO) on December 17, 2024. This change reflects a strategic move in the company's executive leadership, aiming to drive future growth and operational efficiency under new stewardship.

6. Talent and Growth Indicators

Hiring Trends and Workforce

As of September 30, 2024, Jesons Industries employed 784 full-time staff members, with the total human capital across the company exceeding 800 individuals. By May 31, 2025, Jesons Industries Limited alone reported 360 employees, while its subsidiaries, Jesons Techno Polymers LLP and Jesons Innovative Polymers Private Limited, had 216 and 38 employees, respectively, indicating a robust and growing group workforce. The overall workforce is projected to be over 900 people.

Company Growth Trajectory Indicators:

• Volume Growth: The company forecasts a volume growth of approximately 25% for fiscal year 2024.

• CAGR: Jesons has demonstrated consistent growth, achieving an approximate 20% Compound Annual Growth Rate (CAGR) over the past decade.

• Automation Enhancement: A strategic focus on increasing automation in its manufacturing plants from the current 75% to 90% by 2027 illustrates a commitment to efficiency and scalable growth, potentially impacting future workforce requirements and productivity.

• Export Expansion: The company aims to increase its export share to 28% of overall revenues in fiscal year 2024, up from 26% in fiscal year 2023, signaling international growth ambitions.

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