­Telangana based, Inchem Laboratories Private Limited (ILPL) was incorporated in the year 2006 by Mr. K. Srinivas Reddy with manufacturing unit located at Kondapally, Andhra Pradesh. Inchem Laboratories Private Limited is engaged in manufacturing of Active Pharmaceutical Ingredients and Pharma Intermediaries. The company generates 20%-30% of sales from export of its products to European and Middle Eastern countries. The Directors of the company are Mr. Srinivas Reddy Kasam, Mr. Rajashekar Reddy and Mrs. Madhu Bhumalingam Talla. They develop, manufactures and markets innovative products. Company has a strong presence in India and exports its product to Latin America, Asian, Far East, Egypt, Tunisia, African countries, Mexico and China. Company manufactures produce quality API`s using cost efficient processes. The Company has in house R&D centre with dedicated pool of qualified scientists to develop processes for complex molecules. Over the years ICL has demonstrated technical capabilities by developing simplified processes for complex molecules thereby creating a niche for Inchem. The company is in possession of TUV certified and GMP certificate. Presently the facilities are under upgradation to meet WHO GMP guidelines as per ICH Q7 norms. The company is also certified as AEO and a Start Export House.

­Inchem Laboratories Private Limited (ILPL) is engaged in the business of manufacturing of APIs, intermediates, speciality chemicals and offers a wide range of products for diverse industrial applications. It has an established operational track record of one and half decades. Leeds Enterprise (LE) is a partnership firm established for manufacturing of drugs from Semi-finished API’s and sell to customers for exclusive products. The group is promoted by Mr. K Srinivas Reddy who possesses more than two decades of experience in the chemical and pharmaceutical industry. 

• ­Continuous improvement in the scale of operations while maintaining profitability.

• Stretch in working capital cycle, leading to an increase in working capital borrowing and weakening of financial risk profile.

­Inchem groups has adequate liquidity marked by adequate net cash accruals to its maturing debt obligations and moderate bank utilisation. The company generated cash accruals of Rs.12.54 Cr during FY23 against the debt repayment obligation of Rs.1.45Cr. The cash accruals are estimated to remain around Rs.12 Cr to 18 Cr during 2024-26 with debt repayment obligations are expected be in the range of Rs.1.50 – 2.40Cr for the same period. The group operations are working capital intensive with GCA of about 139 days in FY23; moderate cash accruals led to moderate reliance on working capital borrowings at ~78 per cent during the last 12 months’ period ended August, 2023. Inchem group has unencumbered cash and bank balances of Rs.3.28 Cr as on, March 31, 2023 providing additional liquidity comfort. The current ratio stood moderate at 1.26 times as on March 31, 2023.
Acuité believes that the liquidity of the company is likely to remain adequate over the medium term on account of sufficient cash accruals against its repayment obligations and its internal accruals and liquid surplus to be sufficient to meet its incremental working capital requirements

­Acuité believes that Inchem group will maintain a ‘Stable’ outlook in near to medium term on account of its experienced management and improving operating performance. The outlook may be revised to 'Positive' if the group is able to achieve higher-than- expected growth in revenue and profitability while effectively managing its working capital cycle and keeping the debt levels moderate. Conversely, the outlook may be revised to ‘Negative’ in case of moderation in liquidity profile and its profitability margins, and deterioration in debt protection indicators

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in

• ­Inchem Laboratories Private Limited
• Leeds Enterprise