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Apcotex Industries Annual Report 2023 Summary

  • Apcotex is a prominent manufacturer of synthetic rubber and synthetic latex in India. They offer a wide range of emulsion polymers.

  • The synthetic rubber is used in various applications such as automotive components, hoses, gaskets, rollers, friction materials, belting, and footwear. Apcotex's latexes find uses in paper coating, carpet backing, tire cord dipping, construction, and various types of gloves.

  • Their manufacturing plants are strategically located on the western coast of India. They provide value-added services through technical support and an application laboratory to assist customers in improving their final product quality.

  • 2019: Entered into Nitrile Latex business for Gloves application. 2021: Taloja Latex plant capacity increased to 65,000 MT p.a. (wet) & Valia plant NBR capacity to 21,000 MT p.a. (dry)

  • 2023: New Nitrile Latex capacity of 50,000 MT p.a. (wet) at Valia will be further expanded to 80,000 MT p.a. (wet) in the next phase. Taloja Latex plant swing capacity increased to 100,000 MT p.a. (wet).

  • Export to over 45 countries, including the Indian Subcontinent, South East Asia, the Middle East, Turkey, Japan, Africa, Europe, USA and Latin America.

  • Apcotex produces synthetic latex, including various types such as Styrene Butadiene, VP, Styrene Acrylic, and Nitrile latex.

  • These latexes serve different industries like paper, carpet, construction, tyres, and specialty applications. The latexes are also used for manufacturing gloves and in specialty applications like gaskets, non-woven fabrics, abrasive paper, textile finishing, and cork sheets.

  • APCOBUILD It is the B2C Construction Chemical business of Apcotex, provides Waterproofing & Tiling solutions in India. With 4 decades of experience in polymer mfg and strong R&D, Apcotex ensures high-quality products & has seen significant growth in value sales & market expansion.

  • Apcotex aims to achieve various environmental targets over the next decade & reduce GHG emissions in the supply chain. Despite short-term challenges in the gloves & synthetic rubber product industries, Apcotex remains optimistic owing to strong business volumes & diversification.

  • The company continues to invest in R&D and digital transformation to drive growth, efficiency, and performance improvement. The outlook for the financial year 2023-24 is cautiously optimistic.

  • RISKS New Plant Risk: Nitrile Latex: Delays in obtaining customer approvals for products from the new plant may impact sales targets. Margins are currently lower than pre-pandemic levels but expected to normalize in the medium-term. Procurement Risk: Dependence on key raw materials like Styrene, Acrylonitrile, and Butadiene. Disruptions in the supply of Butadiene could adversely affect production. To mitigate this, the company maintains relationships with multiple suppliers and keeps sufficient inventory. Competition Risk: Excess capacity and inventory of Nitrile Latex globally & Styrene Butadiene Latex in the domestic market may impact volume & margins in the short term. Mitigation strategies include filling capacity & maintaining market share while expanding in export markets.



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1 Comment


Harsh Lodha
Harsh Lodha
Jul 29, 2023

Crisp and apt description about the entity enabling to get a 360degree view about the major products and operations along with potential risks. Very useful!

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