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Vinati organics | Can it be the next multi-bagger in the chemical industry

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Vinati organics is an Indian-based company founded in 1989 and is headquartered in Mumbai. Vinati organics is primarily engaged in producing different types of chemicals. It produces organic intermediaries and monomers. 

Some of its products are 

Butyl Benzene, normal butyl benzene, secondary butyl benzene, tertiary amyl benzene, and 3 phenyl pentane.

Vinati Organics products list

Currently, it has a market capitalization of 18,000 crores


Vinati organics has 3 decades of experience in producing different types of chemicals. 

Vinati organics is the world’s largest producer of IBB and ATBS chemicals. 

No 1 manufacturer in producing ATBS with 60% market share. The patent is going to expire in march 2022.

Over 35 countries are represented worldwide by the company. 

Do not heavily reliant on China for imports


Heavily dependent on some products 

High competition 

Vinati Organics Revenue and profit

Net Profit282334269347
Vinati Organics’ revenue and profit in crs

The first parameter we are considering is sales growth.

In 2019 the company posted revenue of 1,128 cores with a net profit of 334 crores. Surprisingly in 2022, the company posted 1,616 crores in sales with a CAGR of 13% growth. The 5-year CAGR stood at 20% and 10 years at 14%. Generally, in chemical sector companies, the profit margin will be very lower. But Vinati organics has had an average profit margin of 35.5% for the last four years. Generally, producing specialized chemical products is a very complicated and it is a time-consuming process.

Vinati Organics ROE and ROCE

ROE defines as Return on Equity and ROCE defines as Return on capital employed. It is used to measure a company’s ability to make money for the capital employed in return for equity. Analyzing the 10-year ROE, Vinati Organics has had a whopping 24%.

The ROCe for the company stood at 32% which is really commendable when we compare it to the industry leader Pidilite Inds which is at 32%.

Vinati organics SWOT analysis


Strong market proposition

With its patented products, Vinati organics has a strong market position. It is the leading producer of IBB and ATBS chemicals.

Diversified product portfolio

Vinati organics has wide-ranging products catering to different sectors. It produces products for pharmaceuticals, agrochemicals, and personal care.

Efficient workforce

Vinato Organics has well-organized skilled employees.


High dependence

The company has a high dependence on a few customers for selling its products.

Raw material prices

The company uses different types of chemical products to make its final product. The chemicals used in manufacturing are highly reactive to prices. This in turn will affect the company when there are uncertainties happens.


High demand for chemicals

There has been a huge demand for pharmaceuticals, especially during the period of Covid and after. There are ample opportunities for Vinati organics to grab the market.

Research and development

With its research and development, Vinati organics can become a monopoly company.


High completion.

As the demand is rising, new companies are emerging every year which is denting the old legacy companies in their sales.

Economic slowdown

Due to recession fears and high inflation, the cost of goods is rising.

Sector growth

The chemical industry in India is growing rapidly every year. The current market is worth approximately $178 billion. And it is projected to reach $300 by 2025. Vinati organics has a better product line with numerous products in its segment.


Revenue streams

Future analysis 


Varun is a stock market enthusiast and passionate writer. He has 2+ years of experience in writing about stock market and personal finance.