Sigachi Industries Limited was incorporated as a private limited company in 1989, with the business to manufacture chlorinated paraffin and hydrochloric acid in their manufacturing unit situated at Hyderabad. In the year 1990, the company diversified its product portfolio to manufacture microcrystalline cellulose (“MCC”). Presently, the company manufactures 59 different grades of MCC at their manufacturing units, situated at Hyderabad and Gujarat with an aggregate installed capacity of 11,880 MTPY. The company has entered into operations and management agreements with Gujarat Alkalies and Chemicals Limited (“GACL”) for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminum chloride in the said units.

For year/ period ended ( in Cr.)

• One of the leading manufacturers of MCC in India.
• Long-standing market presence in Pan India and Internationally.
• Experienced management team.
• Wide product portfolio and ability to serve diverse end-use applications.
• Long-term relationships with customers in diverse industry verticals
• Investments and a strong focus on R&D.
• Quality assurance and quality control in products and facilities.
• Strategically located, multi-locational manufacturing facilities.
• Government incentives

• Funding capital expenditure:
• for expansion of production capacity for MCC at Dahej, Gujarat 28.15 crores
• for expansion of production capacity for MCC at Jhagadia, Gujarat 29.24 crores
• General corporate purposes

The issue is reasonably priced based on its financial performance and the virtual monopolistic nature of business, it is poised for bright prospects. Due to the small size of the IPO, the initial listing will be in the T group that may curtail speculative moves. Investors may consider an investment with a medium to long term perspective.