Indira Institute of Management, Pune

Master of Business Administration, Semester-I

Batch: 2022-2024
Course Name & Code: GC10101- Accounting
for Business Decision
CCA-I Report
RAIN INDUSTRIES
Index
ABOUT RAIN INDUSTRIES
Rain Industries Limited (RAIN) is a multinational conglomerate based in Hyderabad, India. It is a
leading producer of calcined petroleum coke (CPC), coal tar pitch (CTP), and other advanced carbon
materials. RAIN also produces cement and has a presence in the chemicals industry. The company has
a strong global presence, with operations in India, the United States, Europe, and Africa.
Rain Industries Limited (RAIN)
Business Segments
RAIN operates in three key business segments:
 Carbon: RAIN is one of the world's largest producers of CPC, CTP, and other advanced
carbon materials. These products are used in a variety of industries, including aluminum,
steel, graphite, and refractories.
 Advanced Materials: RAIN extends the value chain of its carbon processing through the
downstream refining of a portion of its output into high-value advanced material products.
These products are used in a variety of industries, including specialty chemicals, coatings,
construction, and petroleum.
 Cement: RAIN produces cement through its subsidiary, Rain Cements Limited. Rain
Cements is one of the leading manufacturers of cement in South India.
Financial Performance
RAIN's financial performance has been strong in recent years. The company has a strong track record
of profitability and has been growing its business through capacity expansions and mergers and
acquisitions. RAIN is a well-positioned company with a strong balance sheet and a strong
management team.
Future Outlook
RAIN is optimistic about its future prospects. The company is benefiting from strong demand for its
products in a variety of industries. RAIN is also investing in capacity expansions and new product
development. The company is well-positioned to continue to grow its business in the years to come.

Turnover - 16898.77

Profit after tax - (-)65.75

EBITDA - 1922.94
BACKGROUND
Rain Industries Limited (RAIN) is a leading vertically integrated producer of carbon, cement
and Advanced materials products. Headquartered in India, RAIN has manufacturing facilities
in eight countries across three continents.

Early History
RAIN was incorporated on March 15, 1974 under the Companies Act, 1956. The company's
early focus was on the production of calcined petroleum coke (CPC), a key raw material for
the aluminium industry. RAIN quickly became a leading producer of CPC, and by the early
1980s, the company was exporting its products to over 50 countries around the world.
Calcined petroleum coke (CPC) opens in a new window

Expansion and Diversification

In the late 1980s, RAIN began to expand its product portfolio beyond CPC. The company
acquired several other businesses, including a coal tar distillation plant, a cement plant, and a
chemical manufacturing facility. These acquisitions helped to diversify RAIN's business and
make it less reliant on the aluminium industry.

Global Presence

In the 1990s, RAIN began to expand its global presence. The company established operations
in Europe, North America, and South America. RAIN also began to invest in new
technologies, such as the production of coal tar pitch (CTP), another key raw material for the
aluminium industry.

21st Century

In the 21st century, RAIN has continued to grow and expand its business. The company has
made several strategic acquisitions, including the acquisition of RÃœTGERS AG, a leading
European producer of coal tar derivatives. RAIN has also invested in new product
development, such as the production of advanced carbon materials.

Today

Today, RAIN is a leading global producer of carbon, cement and Advanced materials
products. The company has a strong track record of innovation and is committed to
sustainability. RAIN is a well-positioned company for continued growth in the years to come.

RAIN is optimistic about its future prospects. The company is benefiting from strong demand
for its products in a variety of industries. RAIN is also investing in capacity expansions and
new product development. The company is well-positioned to continue to grow its business
in the years to come.
Factors affecting business
Economic growth: The demand for Rain Industries' products is closely tied to economic
growth. When the economy is growing, there is more demand for aluminium, steel, and other
products that use Rain Industries' carbon products. Conversely, when the economy is slow,
demand for these products falls, which can hurt Rain Industries' sales.
Raw material prices: Rain Industries' products are made from a variety of raw materials,
including petroleum coke, coal tar, and limestone. The prices of these raw materials can
fluctuate significantly, which can affect Rain Industries' profitability. For example, if the
price of petroleum coke rises, Rain Industries will have to pay more for this raw material,
which will reduce its profit margins.
Competition: Rain Industries faces competition from a number of other companies, both
domestic and international. These companies are constantly innovating and developing new
products and technologies, which can put pressure on Rain Industries to keep up with the
competition.
Environmental regulations: The environmental regulations that affect Rain Industries'
business are constantly changing. These regulations can be costly to comply with, and they
can also make it difficult to obtain permits to build new plants or expand existing ones.
Government policies: Government policies can also affect Rain Industries' business. For
example, if a government imposes tariffs on imports of carbon products, this could make it
more expensive for Rain Industries to compete with foreign companies.
Currency exchange rates: Rain Industries has operations in a number of countries around
the world. The company is therefore exposed to fluctuations in currency exchange rates.
These fluctuations can affect Rain Industries' profitability, as they can make it more
expensive for the company to import raw materials or export products.
Despite these challenges, Rain Industries is well-positioned for continued growth in the years
to come. The company has a strong track record of innovation, a commitment to
sustainability, and a strong global presence. Rain Industries is also well-diversified, with
operations in a number of different industries. This diversification helps to protect the
company from downturns in any one industry.

MAJOR SOURCES OF INCOME

Rain Industries Limited's major source of income comes from the sale of its three main
product segments: carbon, advanced materials, and cement.

Carbon: Rain Industries is one of the world's largest producers of calcined petroleum coke
(CPC) and coal tar pitch (CTP), both of which are critical raw materials for the aluminium
industry. The company also produces a variety of other carbon products, such as graphite and
carbon black.

Advanced Materials: Rain Industries extends the value chain of its carbon processing
through the downstream refining of a portion of its output into high-value advanced material
products. These products are used in a variety of industries, including specialty chemicals,
coatings, construction, and petroleum.
Cement: Rain Industries is a leading producer of cement in South India. The company
produces high-quality ordinary Portland cement (OPC) and Portland pozzolana cement (PPC)
under the Priya Cement brand.

In addition to these three main product segments, Rain Industries also generates revenue from
the sale of other products and services, such as transportation and logistics services.

Here is a breakdown of Rain Industries' revenue by segment for the financial year 2022:

Carbon: 61%
Advanced Materials: 25%
Cement: 14%

As you can see, the carbon segment is the largest contributor to Rain Industries' revenue. This
is due to the strong demand for CPC and CTP in the aluminium industry. However, the
advanced materials segment is growing rapidly and is expected to become a more significant
contributor to revenue in the years to come.

Reasons for growth or lack of performance in recent years

Positive Factors:

Strong Demand for Carbon Products: The demand for carbon products, particularly calcined
petroleum coke (CPC) and coal tar pitch (CTP), has been strong in recent years due to the
growth of the aluminium and steel industries. This has been a major driver of Rain Industries'
growth.

Diversification into Advanced Materials: Rain Industries has diversified its product portfolio
by investing in the production of advanced materials, such as specialty chemicals, coatings,
and construction materials. This diversification has helped to reduce the company's reliance
on the aluminum industry and has provided a new source of growth.

Investments in Capacity Expansion: Rain Industries has been investing in capacity

expansions at its existing plants and in new plants. This has helped to meet the growing
demand for its products and has increased the company's profitability.

Negative Factors:

Fluctuations in Raw Material Prices: Raw material prices, particularly for petroleum coke,
have been volatile in recent years. This volatility has affected Rain Industries' profitability, as
the company has had to pass on higher raw material costs to its customers.

Competition: The competition in the carbon products industry is fierce, with many domestic
and international competitors. This competition has put pressure on Rain Industries' margins
and has made it difficult to maintain market share.

Environmental Regulations: Environmental regulations have become more stringent in recent

years, which has increased Rain Industries' costs. The company has had to invest in pollution
control equipment and to change its production processes to comply with these regulations.
Economic Slowdown: The global economic slowdown in 2020 and 2021 affected the demand
for Rain Industries' products, particularly in the aluminum industry. This slowdown led to a
decline in the company's sales and profitability.

Consolidated Profit and Loss Statement.

Consolidated Balance Sheet –
Consolidated Statement of Cash Flows -