Survival Technologies IPO Company Profile:
Survival Technologies Limited is a contract research and manufacturing services (“CRAMS”) focused specialty chemical manufacturer in India. The company is one of the leading CRAMS companies in India in terms of manufacturing select chemical products as of March 31, 2022. The company is engaged in the supply of specialty chemicals with multiple applications and many products it sells domestically are import substitutes that were formerly imported from China. The company is one of the few specialty chemical manufacturers in India manufacturing select products from the heterocyclic and fluoro organic product groups for sale in India and globally. Survival Technologies Limited engages with customers across their product lifecycles, i.e., providing extensive in-house research for the development of products, commercial scale process development, and manufacture of commercial quantities of products. Between April 1, 2007, and March 31, 2022, the company synthesized 677 products of which over 500 products have been commercially produced and sold to various customers across the export markets.
Survival Technologies Limited’s key customers include multinational corporations such as Evonik Industries AG (“Evonik”), Chori Co. Limited (“Chori”), BioSpectra Inc. (“BioSpectra”), LBB Specialities, Procos, MOEHS Iberica, S.L., Sumitomo Corporation, Synthetics USA, LLC, Alzchem Trostberg GmbH and domestic companies such as Lee Pharma Limited, MSN Laboratories Private Limited, Sai Life Sciences Limited, and Dr. Reddy’s Laboratories.
Survival Technologies Limited services customers through its three manufacturing facilities, two in Ankleshwar, Gujarat, and one in Sarigam, Gujarat. All of the manufacturing facilities are fungible with the capability to manufacture the company’s entire product portfolio. The facility at Sarigam, Gujarat is ISO 9001:2015 and GMP certified. The facilities are equipped with advanced infrastructure including reactors and automated systems that ensure efficiency in the company’s manufacturing process. The company intends to scale its annual capacity to manufacture products by establishing a new manufacturing facility in Mahad, Maharashtra.
Survival Technologies IPO Revenue from Operations:
| Segment | 3M of FY-23(in cr.) | % | FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % | CAGR |
| CRAMS* | 44.52 | 44.97% | 162.88 | 53.43% | 150.64 | 55.28% | 109.95 | 55.77% | 14.0% |
| Other Custom Manufacturing** | 54.48 | 55.03% | 141.97 | 46.57% | 121.84 | 44.72% | 87.21 | 44.23% | 17.6% |
| Total | 99.00 | 100.00% | 304.84 | 100.00% | 272.48 | 100.00% | 197.17 | 100.00% | 15.6% |
*- Survival Technologies Limited’s contract research and manufacturing services represent end-to-end product development based on the request of a customer to develop a product that has not been manufactured by the company before such request. The company commences with understanding the chemistry to develop the engineering process required for the product and also manage its packaging and labelling once developed.
**- Other custom manufacturing represents the manufacturing of products at the request of a customer based on their requirements and specifications from the company’s existing portfolio of products.
Survival Technologies IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹2 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | [●] shares
(aggregating up to ₹1000 Cr) |
| Fresh Issue | [●] shares
(aggregating up to ₹200 Cr) |
| Offer For Sale | [●] shares
(aggregating up to ₹800 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Promoters | Vijaykumar Raghunandanprasad Agrawal and Nimai Vijay Agrawal |
Survival Technologies IPO Financial Analysis:
| Particulars | 3M of FY-23(in cr.) | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR |
| Revenue from Operations | 100.02 | 311.78 | 274.79 | 199.15 | 16.1% |
| Other Income | 3.49 | 9.89 | 9.57 | 1.05 | |
| Cost of Goods Sold | 45.24 | 150.29 | 155.90 | 116.02 | 9.0% |
| Employee Cost | 6.00 | 23.43 | 16.94 | 14.64 | |
| Other expenses | 15.92 | 46.16 | 32.30 | 33.58 | |
| EBITDA | 36.35 | 101.79 | 79.21 | 35.96 | 41.5% |
| EBITDA margin% | 36.34% | 32.65% | 28.83% | 18.05% | |
| Depreciation | 1.35 | 4.21 | 3.71 | 4.22 | |
| Interest | 0.18 | 0.54 | 1.00 | 2.34 | |
| PBT | 34.82 | 97.05 | 74.51 | 29.40 | 48.9% |
| Total tax | 9.94 | 23.58 | 18.19 | 10.35 | |
| PAT | 24.88 | 73.46 | 56.32 | 19.05 | 56.8% |
| PAT margin% | 24.87% | 23.56% | 20.50% | 9.57% |
Survival Technologies IPO Shareholders:
| S.NO. | Name of the Shareholder | No. of Shares | % of pre-Offer shareholding |
| 1 | Vijaykumar Raghunandanprasad Agrawal | 58,629,750 | 67.98% |
| 2 | Nimai Vijay Agrawal | 22,875,000 | 26.52% |
| 3 | Prabha Vijay Agarwal | 4,650,000 | 5.39% |
| 4 | Gauri Jain | 91,500 | 0.11% |
| 5 | Laxmi Bansal | 1,500 | Negligible |
| 6 | Namrata Agrawal | 1,500 | Negligible |
| Total | 86,249,250 | 100% |
Survival Technologies IPO Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Number Of Shares Offered /
Amount (₹ In crores) |
|
| 1. | Vijaykumar Raghunandanprasad Agrawal | Up to [●] Equity Shares aggregating up to ₹ 544.41 crores | |
| 2. | Nimai Vijay Agrawal | Up to [●] Equity Shares aggregating up to ₹ 212.41 crores | |
| 3. | Prabha Vijay Agarwal | Up to [●] Equity Shares aggregating up to ₹ 43.18 crores | |
Survival Technologies IPO Strengths:
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Survival Technologies Limited’s R&D capabilities and manufacturing facilities have enabled it to develop core competencies in several chemistries, including complex chemistries such as heterocyclic chemistry, hydrazide chemistry, macrocyclic ethers, trifluoromethylation, electrophilic and nucleophilic fluorination using various fluorination reagents.
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Survival Technologies Limited’s market-leading position across several of its products offers advantages such as cost efficiency due to in-house R&D processes, economies of scale, competitive product pricing, ability to scale the business, ensure customer loyalty and stickiness and expand the product portfolio into new end-use cases.
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As of June 30, 2022, Survival Technologies Limited’s R&D team comprised 30 employees with 23 having doctorates and/or Master of Sciences degrees in chemistry. The company’s strong R&D capabilities provide significant competitive advantages making it a preferred partner for customers to engage it to manufacture their products. The company’s R&D efforts place significant emphasis on improving its production processes, augmenting the quality of its existing products, and conducting safety studies for new molecules often driven by specific customer requirements.
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The nature of the business in which Survival Technologies Limited operates, and in particular niche products groups such as heterocyclic and fluoro organic compounds, is characterized by high entry barriers owing to its knowledge-intensive nature, the expertise required to handle complex chemistries, ability to develop products to cater to a variety of industries, high-quality standards and stringent impurity specifications for processes and products capabilities.
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The handling of raw materials used for the manufacture of the products requires considerable training for the company’s employees, which creates additional significant barriers to entry for a new player.
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The diversification of the company’s customers across various industries has enabled it to minimize the impact of industry-specific disruptions on the business. It also ensures that the revenues are consistent across periods with the customers having different business or industry cycles. Further, the company has low customer revenue concentration and the reliance on any single customer is limited.
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Survival Technologies Limited’s enduring customer relationships have helped it expand its product portfolio and geographic reach. The company’s long-term active engagement with key customers ensures steady revenue, allowing it to plan its capital expenditure, enhance its ability to benefit from increasing economies of scale with stronger purchasing power for raw materials and a lower cost base, which has helped it to achieve sustainable growth and profitability.
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Survival Technologies Limited is mindful of the potential impact of its activities on the local environment and has set stringent environmental standards. The company focuses on minimizing the social and environmental impact of its manufacturing operations and has established dedicated effluent treatment plants at Unit III located at Sarigam, Gujarat while Unit I and Unit II located at Ankleshwar, Gujarat are connected to a common effluent treatment plant operated by a third party. Such initiatives result in reduced effluent and solid hazardous waste due to effective raw material and solvent and water consumption required for the manufacturing operations
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Survival Technologies Limited was one of the most profitable companies manufacturing speciality chemicals in India in Fiscal 2022 based on the analysis of the margins of Indian companies operating in the speciality chemicals industry. The company has demonstrated consistent growth in terms of revenues and profitability and has organically grown its operations. Over the last three years, the company has focused its attention towards manufacturing products with higher gross margins and high-value products which have resulted in an increase in the revenue from operations and profit for the period/year.
Survival Technologies IPO Risk Factors:
- Sorry we cant Do complete COD on above 1000 cart valueSurvival Technologies Limited depends on the success of its relationships with its customers. The company generally does business with customers on a purchase-order basis and does not enter into long-term contracts with the customers. Any loss of one or more of the top customers, or the deterioration of their financial condition or prospects, or a reduction in their demand for its products, could adversely affect the business, results of operations, financial condition, and cash flows.
- Sorry we cant Do complete COD on above 1000 cart valueSurvival Technologies Limited does not enter into long-term agreements with suppliers for its raw materials and the company is dependent on the imported raw materials. An increase in the cost of, or a shortfall in the availability or quality of such raw materials, in a timely manner or at all, could have an adverse effect on the business, cash flows, and results of operations.
- Sorry we cant Do complete COD on above 1000 cart valueSorry we cant Do complete COD on above 1000 cart valueSurvival Technologies Limited has in the past received closure notices from the Gujarat Pollution Control Board for our Unit I, and Unit II located at Ankleshwar, Gujarat and Unit III located at Sarigam, Gujarat prohibiting manufacturing activities.
- Sorry we cant Do complete COD on above 1000 cart valueSurvival Technologies Limited is subject to strict quality requirements, regular inspections, and audits, and sales of the products are dependent on quality controls and standards. Any failure to comply with quality standards may adversely affect the business prospects, cash flows and financial performance, including cancellation of existing and future orders.
Objects of the Offer:
Survival Technologies Limited proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Funding the working capital requirements
- General corporate purposes
Survival Technologies Limited IPO Prospectus:
- Survival Technologies Limited IPO DRHP –
- Survival Technologies Limited IPO RHP –
Registrar to the offer:
Link Intime India Private Limited
Telephone: + 91 810 811 4949
Email: survival.ipo@linkintime.co.in
Investor grievance email: survival.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No: INR000004058