Question 1: What is the overview of the company ?

Arunaya Organics Limited is a specialty chemical manufacturer based in Ahmedabad, Gujarat, engaged in the production and export of dyes, dye intermediates, and performance chemicals. Established in 2010, the company operates primarily on a B2B model, supplying its products to industries such as textiles, paints, plastics, mining, paper, and food processing.

The company offers a wide range of dyes including acid dyes (for wool and nylon), basic dyes (for acrylic fibers, detergents, and paper), direct dyes (for cotton and other cellulosic materials), and solvent dyes (used in paper, plastics, and cosmetics). It also manufactures dye intermediates, which are essential raw materials for dye production.

Arunaya’s manufacturing operations are supported by its ISO 9001-certified facility located in the GIDC Industrial Estate, Naroda. The company produces dyes in various forms such as powders, granules, crude, salt-free, and reverse osmosis-treated formats to meet specific customer needs. In addition to in-house production, Arunaya strategically partners with its group company, Chinmay Chemicals Private Limited, for outsourced manufacturing, enabling it to maintain a broad product portfolio and achieve operational efficiencies.

The company also caters to niche segments through its specialty performance chemicals, particularly designed for applications in the paper and textile industries. Backed by robust research and development capabilities and a focus on quality and environmental standards, Arunaya Organics has established itself as a reliable supplier in both domestic and international markets.

Product wise Revenue Bifurcation:

Geography wise Revenue Bifurcation:

Capacity and Capacity Utilization:

Question 2: Who are the promoters of the Company?

Mr. Vinod Brijmohandas Agrawal

• Designation: Chairman and Managing Director
• Role: Mr. Agrawal leads the strategic direction and overall management of Arunaya Organics. His leadership encompasses business development, operational oversight, and expansion initiatives.
• Experience: With over 15 years at the helm, he has been instrumental in establishing the company’s presence in both domestic and international markets. ​

Ms. Shivali Vinod Agrawal

• Designation: Executive Director
• Role: Ms. Agrawal focuses on operational management, including supply chain coordination, quality assurance, and regulatory compliance.
• Experience: Also associated with the company since 2010, she plays a key role in maintaining product quality and operational efficiency.

Mr. Ashokbhai Agrawal is a Non-Executive Director at Arunaya Organics Limited. He provides strategic oversight and supports governance but is not involved in daily operations.

Question 3: How Company performed in the past ?

Question 4: How much money is the Company raising and why?

In the IPO, the company is offering 58.6 Lakh shares, priced at INR 55-58 per share, aggregating to total of INR 33.39 Cr, with a lot size of 2000 shares. For the purpose of:

Setting Up of a new manufacturing facility located at Dahej, Bharuch, Gujrat – INR 11.7 Cr.

Funding Working capital requirements – INR 9 Cr

Offer for Sale – INR 3.48 Cr.

General Corporate Purposes – INR 9.81 Cr.

Question 5: Valuation of the company and comparison with other companies

Strengths:

1. Diverse Product Portfolio: Arunaya Organics offers a wide range of dyes—including acid, basic, direct, and solvent dyes—as well as dye intermediates and specialty chemicals, catering to various industries such as textiles, paints, plastics, mining, and food processing. ​
2. Quality Certifications: The company’s manufacturing facility in Ahmedabad is ISO 9001 and ISO 14001 certified, reflecting its commitment to quality and environmental standards. ​
3. Strategic Location: Proximity to key logistics hubs like Mundra Port and ICD Ahmedabad enables efficient distribution to both domestic and international markets, including India, Brazil, and China. ​
4. Experienced Leadership: The promoters, Mr. Vinod Agrawal and Ms. Shivali Agrawal, have been leading the company since its inception in 2010, bringing over a decade of experience in the specialty chemicals sector. ​

Weaknesses:

1. Limited Production Capacity: With an annual production capacity of approximately 30 metric tons and a workforce of just 36 employees, the company’s scale of operations is relatively small. ​
2. Dependence on Key Customers: A significant portion of revenue is derived from a few major customers, making the company vulnerable to revenue fluctuations if any of these clients reduce or cease their orders. ​
3. Reliance on Third-Party Suppliers: The company depends on third-party suppliers for key raw materials. Any disruption in the supply chain or failure to adhere to quality standards by these suppliers could adversely affect operations. ​
4. No Long-Term Supply Agreements: The absence of long-term contracts with raw material vendors exposes the company to price volatility and supply uncertainties. ​
5. Single Manufacturing Facility: Operating from a single production site in Ahmedabad could pose risks related to operational disruptions due to unforeseen events or natural calamities in the region.

Registrar Details:

• Registrar: Bigshare Services Pvt Ltd
• Phone: +91-22-6263 8200
• Email: ipo@bigshareonline.com
• Website: https://ipo.bigshareonline.com/IPO_Status.html ​

Company Registered Office Address:

Arunaya Organics Limited
C-8, GIDC Phase-II,
Naroda, Ahmedabad – 382330,
Gujarat, India

• Phone: +91 7779018165
• Email: info@arunayaorganics.com
• Website: www.arunayaorganics.com ​

Frequently Asked Questions (FAQs) – Arunaya Organics Limited

1. What does Arunaya Organics Limited do?
Arunaya Organics is a specialty chemical company engaged in manufacturing and exporting dyes, dye intermediates, and performance chemicals for industries like textiles, plastics, paints, paper, and food processing.

2. Where is the company located?
The company is headquartered at C-8, GIDC Phase-II, Naroda, Ahmedabad – 382330, Gujarat, India.

3. When was Arunaya Organics established?
The company was incorporated in 2010.

4. What products does the company offer?
Its product range includes acid dyes, basic dyes, direct dyes, solvent dyes, dye intermediates, and specialty chemicals for paper and textiles.

5. What is the production capacity of the company?
The company operates a manufacturing facility with an annual capacity of approximately 30 metric tons.

6. Who are the promoters of Arunaya Organics?
The company is promoted by Mr. Vinod Agrawal and Ms. Shivali Agrawal, who have been managing the company since its inception.

7. Is the company ISO certified?
Yes, the company’s manufacturing facility is ISO 9001 and ISO 14001 certified.

8. Who is the registrar for the IPO?
Bigshare Services Pvt Ltd is the official registrar for the IPO.

9. Does the company export its products?
Yes, Arunaya Organics exports to various international markets, including Brazil and China.

10. Does the company depend on third-party manufacturing?
Yes, it outsources part of its manufacturing to its group company, Chinmay Chemicals Private Limited.