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  • Accent Microcell Limited files DRHP with NSE Emerge

    Published on November 7, 2023

     Accent Microcell Limited, one of the leading manufacturers of cellulose-based excipients, announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The offering consists of a fresh issuance of 56,00,000 equity shares with a face value of Rs. 10 for each share. Corporate Capital Ventures has been designated as the Book Running Lead Manager to the issue while KFIN Technologies Limited is the Registrar.

    The Ahmedabad based headquartered company intends to deploy the net proceeds from the offering to establish a new plant at Navagam Kheda for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) and Carboxymethylcellulose (CMC) as well as for general corporate purposes. Out of the total proceeds from fresh issue company proposes to invest Rs. 48.39 crore in the current financial year and Rs. 6 crore in FY2025 towards the establishment of Unit-III.

    The company predominantly manufactures Microcrystalline Cellulose (“MCC”), which is widely used as a texturizer, anticaking agent, binder, lubricant, bulking agent, and diluent with an extensive range of applications in pharmaceutical, nutraceutical, food, cosmetic and other industries. In addition to MCC, it produces other excipients such as Croscarmellose Sodium (CCS) and Magnesium Stearate (MS).

    Accent Microcell has established itself as a leader in the production of cellulose-based excipients that fulfil global quality standards. With the help of its premium-quality products, the company has been able to establish an enduring market presence in India and abroad. It caters to various end users, merchants and exporters and it exports products to more than 45 countries, including the USA, Canada, Germany and many others.

    Vasant V Patel Promoter and Chairman of Accent Microcell Limited, said, “Our advanced production capabilities, strategically located manufacturing facilities and strong supplier base for sourcing raw materials place us in an authoritative position in the industry. The demand for our products is propelled by the utilization of microcrystalline cellulose in the pharmaceutical, personal care, cosmetic, food, and beverage industries. To enhance our capabilities further, we are planning to set up a new plant at Navagam Kheda in Gujarat for producing Croscarmellose Sodium (CCS), Sodium Starch Glycolate and Carboxymethylcellulose (CMC) with the help of funds raised from this IPO. The new facility is expected to be commercialised by April 2025.”

    Incorporated in 2012, Accent Microcell has successfully developed a resilient manufacturing infrastructure, supported by an efficient supply chain that caters to the needs of various Indian and global customers. With two state-of-the-art manufacturing facilities located in Pirana (Unit-I), and Dahej SEZ (Unit-II), the company serves various categories of clients from different industries. With the addition of 2,400 metric tonnes to its current annual total installed capacity of 8,000 metric tonnes, the company plans to increase its overall annual capacity to 10,400 metric tonnes including all range of excipients category (including premium excipients products). The expansion of capacity will enable the company to deliver products that are specifically tailored to customer needs and help in entering untapped regions.

    Accent Microcell registered a revenue of INR 204.19 Cr. in FY23, up from INR 165.71 Cr. in FY22. In the first quarter of FY24, ending June 30, the company clocked a revenue of INR 58.81 Cr. Accent Microcell’s profit (PAT) more than doubled to Rs. 13.01 crore in FY23 from Rs. 5.89 crore in FY22.

    The company benefits from various export incentives such as duty drawback and RoDTEP while exporting goods from Unit-I and similar benefits will be available for unit-III.

    Unit-II being a unit in SEZ, the company enjoys the following benefits as well:

    a.    Import of goods without payment of BCD & IGST, resulting in better pricing power and lesser blockage of working capital.

    b.    Benefit under S: -10AA of Income Tax Act, 1961

    Accent Microcell is extremely conscious of maintaining quality standards at all steps of the manufacturing cycle, with its production facilities equipped with a quality control and assurance division that conducts all necessary tests on the raw materials used in manufacturing as well as finished goods. Its quality control process has received certifications and approvals such as EXCiPACT, US-DMF, GMP, ISO 9001:2008, HACCP, KOSHER, HALAL & USP/NF, EP, BP, JP, IP, FCC, FSSC-22000, FSSAI, etc., reaffirming its dedication to delivering top-notch quality.

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