AMI Organics Ltd. IPO

AMI Organics Ltd. IPO - SWOT Analysis

Strengths –

When looking at certain pharma intermediaries like Dolutegravir, Nintedanib and Entacapone, AMI Organics is one of the leading manufacturers.

The company boasts of an extensive global presence and caters to diverse customers.

It has showcased consistent financial performance.

Weaknesses –

The fact that AMI Organics is dependent on certain therapeutic areas to derive a vast chunk of its revenue weakens it. Thus far, the company has been unable to identify and understand the evolution within industry trends.

All of its manufacturing facilities are geographically concentrated in the state of Gujarat.

The business AMI Organics is involved in is capital intensive.

Opportunities –

AMI Organics has acquired two plants (Ankleshwar and Jhagadia) that previously belonged to Gujarat Organics Ltd in March this year for INR 93 Crores. This investment has allowed them to hold three plants with a working capacity of 6060 million tonnes per annum in their entirety.

These new plants will allow the company to expand its offerings and capabilities in the near future, thereby potentially generating more revenue.

Threats -

Serving as a threat to its output is the operations it conducts within a hazardous industry. Operational risks, for instance, pertain to the storage, manufacture, and usage of a number of hazardous materials.