Agri-inputs maker SML Ltd, formerly known as Sulphur India Limited, is contemplating a stock market listing within the next two to three years to finance the development of new chemical entities (NCEs). The Mumbai-based company, led by Managing Director Bimal Shah, aims to gain clarity on this decision within the next one to two years.
SML Ltd is among a select group of Indian companies focusing on the development of NCEs, which are proprietary new molecules rather than generic formulations. The company expects one new molecule to reach the market soon, with others in the pipeline. The cost of bringing a single NCE to market can range from USD 70 million to USD 80 million, and SML has so far self-financed its research efforts.
The company holds approximately Rs 450-470 crore in cash on a near debt-free balance sheet. These funds could be allocated towards acquisitions, regulatory assets, or strategic partnerships, alongside the NCE program. SML has previously increased its ownership in Rotam India, an active ingredient manufacturing facility, as part of its backward integration strategy.
“We have not completely decided - we are also evaluating it.”
Bimal Shah, Managing Director, SML Ltd
SML has adjusted its revenue target for the current fiscal year to about Rs 1,600 crore, down from an earlier goal of Rs 1,800 crore, due to weaker monsoon rainfall, US tariffs, and shipping disruptions linked to geopolitical conflicts. Despite this, the company anticipates growth from the previous year's revenue of roughly Rs 1,200-1,300 crore, supported by price increases of 15-20% across its product range.
The company has also introduced cricket icon Sachin Tendulkar as its brand ambassador to boost the adoption of its sulphur-based fertilizers. SML estimates that only a small fraction of India's farmland currently receives adequate sulphur nutrition, despite government soil surveys indicating widespread deficiency.
Background
Founded in 1971, SML Ltd has evolved from its strong foundation in sulphur-based crop inputs into a research-driven, innovation-led global agri-solutions enterprise. The company's strategic moves, including its focus on NCEs and potential IPO, are part of its broader efforts to expand its market presence and drive growth.
As SML Ltd continues to explore the possibility of an IPO, the company is also expanding its focus beyond traditional sulphur fertilizers to include crop nutrition, crop protection, and biologicals. The company's strategic moves and potential IPO will be closely watched by industry analysts and investors alike.
