Camlin Fine Sciences’ (CFS) topline received a mighty blow when it announced its entry into the antioxidants blends business. Its biggest client, US-based Kemin Industries was unhappy with its entry as a direct competitor and annulled its contract with the firm in August 2017, when it announced its foray into the US market. Kemin Industries accounted for 20% of CFS’ topline at Rs.1 billion. CFS was also facing headwind from the Chinese market around the same time, in the form of pricing pressure and low demand. The resultant capital crunch put the brakes on its expansion plans. But this definitely is not the endgame for CFS which was formed after the demerger of the fine chemical division of Kokuyo Camlin in 2006. The firm is a global player with manufacturing and research presence across five countries, through a host of its subsidiaries. The firm started off as a manufacturer of intermediate antioxidant products and due to an enterprising management, quickly became a global leader in the market.
The right blend
Camlin Fine Sciences’ strategy of scaling new geographical and product frontiers is set to pay off after bleeding it for two years
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