Stock Review: VINATI ORGANICS

The specialty chemicals company Vinati Organics is the world's largest producer of isobutyl benzene (IBB) — a key raw material for widely used anti-inflammatory drug ibuprofen — and second-largest producer of specialty monomer ATBS. The company has a number of further capex plans, including backward integration, to produce isobutylene raw material of ATBS and forward integration into polymerisation of ATBS. Similarly, it is setting up a plant to produce PAP, which is required for manufacturing of another widely-used drug paracetamol. However, delays in execution of these capex plans have resulted in a slowdown in growth of the company in the past three quarters.