India Gelatine - India Gelatine

📊 BSE: 531253 🏢 Specialty Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company experienced a decline in revenues during FY 2024-25. Direct export revenue (FOB value) decreased by 16.48% from INR 142.53 Cr in FY 2023-24 to INR 119.04 Cr in FY 2024-25. The Di-Calcium Phosphate (DCP) segment saw 'sluggish' demand compared to the previous year due to poultry price fluctuations between April and August.

Geographic Revenue Split

Exports are the primary revenue driver, contributing INR 119.04 Cr in FOB value for FY 2024-25. While specific domestic vs. international percentage splits are not fully detailed, the company emphasizes a 'strategic emphasis on exports' and notes that overseas markets deliver higher realizations.

Profitability Margins

Profit Before Tax (PBT) declined by 39.22% from INR 37.26 Cr in FY 2023-24 to INR 22.65 Cr in FY 2024-25. This was driven by pricing pressures in gelatine and ossein segments due to surplus global production.

EBITDA Margin

Not explicitly disclosed as a percentage, but PBT as a percentage of export revenue contracted from approximately 26.1% in FY 2024 to 19.0% in FY 2025, indicating a significant squeeze on core profitability due to pricing pressures.

Capital Expenditure

The company spent INR 50.58 Lakhs on CSR obligations. Specific historical or planned CAPEX for manufacturing facilities in INR Cr is not disclosed in the provided documents, though trials for new raw material sourcing were conducted.

⚙️ Operational Drivers

Raw Materials

Gel bones (primary raw material for Ossein and Gelatine), which are sourced both domestically and internationally. Imported raw materials accounted for INR 8.59 Cr in FY 2024-25, a 33.9% increase from INR 6.41 Cr in FY 2023-24.

Import Sources

The company is diversifying sourcing to 'new regions' internationally to reduce dependence on domestic raw materials. Specific countries are not named, but trials with imported gel bones from these regions were successful in FY 2025.

Capacity Expansion

Current capacity is not specified in MT. The company is focusing on 'yield improvement' and 'process development' for new grades of gelatine rather than immediate physical footprint expansion.

Raw Material Costs

Raw material imports cost INR 8.59 Cr in FY 2025. Costs are impacted by 'pricing volatility' and 'raw material consistency' issues in the domestic Indian market, leading to a strategic shift toward imports to improve yield and consistency.

Manufacturing Efficiency

Yield improvement during FY 2024-25 was described as 'marginal'. The company is implementing automation, digitization, and membrane filtration to improve purity and efficiency.

📈 Strategic Growth

Expected Growth Rate

6-7%

Growth Strategy

Growth will be achieved through a 39.42% stake acquisition by Pioneer Jellice India and Ashok Matches, which may bring strategic synergies. The company is also focusing on premium product positioning, cost optimization, and diversifying into marine-derived gelatine and collagen peptides to capture the 6-7% CAGR projected for the global market.

Products & Services

Gelatine (used in pharma capsules, food, and cosmetics), Ossein, and Di-Calcium Phosphate (DCP) for the poultry sector.

Brand Portfolio

India Gelatine & Chemicals Limited (IGCL).

New Products/Services

Development of new grades/types of Gelatine and research into using waste products as raw material for other industries. Marine-based gelatine is identified as a high-growth area.

Market Expansion

Targeting expansion in the Asia-Pacific region (India and China) and emerging markets for halal-certified products in the Middle East and Africa.

Strategic Alliances

In December 2024, Pioneer Jellice India Private Limited and Ashok Matches and Timber Industries Private Limited entered a Share Purchase Agreement to acquire 39.42% of the company.

🌍 External Factors

Industry Trends

The global gelatine market is valued at USD 4.8 billion (2024) and growing at 6-7% CAGR. Trends include a shift toward functional/protein-enriched foods, rising demand for marine-derived gelatine for halal/kosher markets, and increasing use in 3D printing and tissue engineering.

Competitive Landscape

Key competition comes from manufacturers in South America and Turkey (due to surplus production) and plant-based substitute providers (agar, pectin, carrageenan).

Competitive Moat

The company's moat is built on a 'strong and loyal international customer base' and 'rigorous compliance standards' which are difficult for new entrants to replicate in the regulated pharma/nutraceutical sectors.

Macro Economic Sensitivity

Highly sensitive to global trade flows and geopolitical uncertainties due to strong export reliance. Demand is also sensitive to health-related consumer sentiment regarding animal-derived products.

Consumer Behavior

Rising health awareness and protein consumption are driving demand, while some segments are shifting toward vegan/vegetarian alternatives.

Geopolitical Risks

Geopolitical uncertainties are cited as a risk that could disrupt operations and impact global trade flows for the company's export-heavy business.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by FDA, FSSAI, and EU regulations. Compliance with halal and kosher certifications is increasingly critical for market access.

Environmental Compliance

The company spent INR 50.58 Lakhs on CSR activities in FY 2024-25. It is also investing in renewable energy and waste-heat recovery to meet sustainability pressures.

Legal Contingencies

The company reported a 2-day delay in compliance with Regulation 44(3) of the LODR during the audit period. No major pending court cases or values were disclosed.