Vinati Organics sets up US warehouse to enhance customer service

Vinati Organics sets up US warehouse to enhance customer service
Vinati Saraf Mutreja, Managing Director of Vinati Organics, said the company’s US subsidiary is a warehousing facility meant to serve its American customers, as a significant portion of its products are exported to the US.

She explained that some customers expect them to maintain a warehouse, and at times, there is a need for product restructuring and reprocessing. She clarified, “I am not sure if that has anything to do with the tariffs, given transfer pricing and all of that, but it’s purely to service our US customers better and some reprocessing.”

Mutreja also mentioned that the company’s ATBS (acrylamide tertiary butyl sulfonic acid) plant will expand its volume capacity by 50%, with commissioning expected by the April-June quarter of 2025 (Q1FY26). ATBS currently contributes 40% of sales, and she expects this to remain stable in the future.

Acrylamide tertiary butyl sulfonic acid (ATBS) is a special chemical used in many industries. It helps make polymers, which are materials used in textiles, adhesives, personal care products, and other applications.

Also Read: Vinati Organics reiterates 20% revenue growth target for FY25

On the financial front, Vinati Organics reported strong October-December quarter of 2024 (Q3FY25) growth. Revenue rose 17% year on year (YoY) to ₹522 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 25% to ₹142 crore. The EBITDA margin improved to 27.2% from 25.4%, and profit after tax (PAT) increased to ₹93.7 crore from ₹76.9 crore.

Meanwhile, brokerage firm MOSL stated that the company’s October-December quarter of 2024 (Q3FY25) EBITDA was in line with expectations, but PAT fell short due to lower-than-expected other income.

Also Read: Vinati Organics expects expanded product portfolio to drive growth

The company’s market capitalisation stands at ₹18,074.62 crore, with its shares gaining nearly 4% over the past year.

For the entire interview, watch the accompanying video

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