Refnol Resins & Chemicals was established in 1980, Refnol Oil Refineries Pvt. Ltd., as it was then known, was established to re-refine waste lubricating oils. The Khatau Group of Bombay promoted it, with a business tradition going back over 100 years. The re-refining business was shut down in 1986 in which year Refnol started manufacture of a range of Textile Sizing Chemicals. The transformation of the company to its present from with five business divisions had begun. In 1986 Company started its "Textile Sizing Chemicals division" for Manufacturing & marketing a comprehensive range of performance chemicals for the sizing of warp yarns. Marketed successfully in India and overseas. With the tremendous success of this division company started "Unsaturated & Saturated Polyester Resins Division" in 1989 for Unsaturated Polyester Resins for composite applications of all kinds. Chemical Equipments, Transportation & Marine, Construction & Architecture. India's first & today the largest exporter of such resins delivering successfully to major customers in the Middle East, Europe & South Asia. Saturated Polyester Resins for coil coatings, enamels and special applications.

With the growing Garment's market in India it started its "Garment Wash Chemicals & Textile Enzymes division" in 1994. Co-operation with AB Enzymes Finland Oy. Formulate textile enzyme products under exclusive agreement with AB Enzymes for sale in India, Bangladesh, Gulf Cooperation Council countries and Kenya. A full range of Garment Finishing Chemicals and Auxiliaries are manufactured & sold together with the enzyme formulations to the garment manufacturing industry in these countries. In 2002 Company started its "Laundry & Cleaning Chemicals Division", which manufactures contemporary range of Laundry & Cleaning and building maintenance chemicals primarily aimed at institutional & industrial users. In 2003 "Textile Auxiliaries Division" came into existence and company started to manufacture full range of Chemicals for the Textile & fabric manufacturing process. The POLYESTER RESINS & POLYMERIC PRODUCTS DIVISION met international standards and received the ISO-9002 accreditation in 2001.

Products & Services:

The five divisions of Refnol deliver various quality products to a large number of customers in the textile, garment composites industries. Five business divisions are:

Textile Sizing Chemicals:

Used for the sizing of warp yarns, these chemicals find applications in the textile weaving industry. Consisting of size binders, lubricants, softeners, performance blends and others, Refnol's range of Speciality Textile Sizing Chemicals have dominated the Indian market for over sixteen years. Refnol's proven TSC are one of the most comprehensive and cost effective range in the world today, being successfully exported to South Asia, the Middle East, South East Asia, Latin America, and Africa.

Polyester Resins:

Over the last ten years Refnol has emerged as the leading Polyester Resin manufacturing company in India with products that cover the entire range of applications. UNSATURATED POLYESTER RESINS AND VINYL ESTER RESINS developed and manufactured by Refnol find extensive use in the manufacture of corrosion resistant process equipment & storage tank, filament winding, pultruded & molded articles; in cultured marble; architectural & construction products and in the automotive and transportation industry. SATURATED POLYESTER RESINS manufactured by Refnol include water- and solvent-based polyesters for use in Coil and Can Coatings, Stoving Enamels and in other high performance paints. Other products in the range are polymeric and speciality plasticizers for PVC and fiber sizes. This division received the ISO-9002 accreditation in 2001.

Garment Wash Chemicals:

Refnol also manufactures and markets its own range of Garment Wash Chemicals & Textile Auxiliaries. These are handled by a dedicated team and have assumed market leadership in most of markets where they operate.

Textile Auxiliaries:

The complete range of chemicals for all stages of the textile manufacturing process – from pre-treatment to dyeing and printing and finishing.

Laundry & Cleaning Chemicals:

A full range of products of choice for the institutional Laundry & Cleaning Chemicals and building maintenance markets. Contemporary formulations designed to provide the best solutions.

Refnol is the sole distributor for South Asia, Gulf Co-operative Council (GCC) Countries, Egypt and Kenya for marketing the Textile Processing Enzymes of AB Enzymes Finland Oy, a member of the British ABITEC Group. Company has ECOSTONE® and BIOTOUCH® enzyme formulations under exclusive arrangement with A B Enzyme, Finland, Oy. Well known for product quality and reliability backed by professional after sales and technical service, Refnol's marine grade resins and gelcoats have been approved by Lloyd's Register, UK. The Company was the first, and is today the largest Indian exporter of Unsaturated Polyester Resins, delivering successfully to major customers in the Middle East, Europe & South Asia. Its resins meet the demanding requirements of a diverse customer base in these regions.

Valuation:

At current market price, stock is trading at 2.24 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy “Refnol resins & chemicals limited” with medium to long term investment horizon.