"2.QUARTZ:*
a.Raw materials:
Currently compay has applied for quart license and does not have any captive quarries.All of the quartz is sourced from a quarry owned by chettinad group(from Tamil Nadu) in Vizag.No risks with raw materials even if the quarries are not approved.
Company calls this quarry as strategically located because of the proximity to the port and its manufacturing facility.This reduces transportation costs as well.emphasized text**
This was shared by @Sambat 3 weeks back.
right. in the past, it used to fall by about 10% from peak. now by 25%. but i feel it shouldn't have gone to 17k in first place. thats why the fall looks steep. for long term investors with buy and hold strategy, these kind of things can create a lot of confusion.
Sir, where did you find out they have captive Quartz mines and they are mining it? can you share?
@Sambath found out they dont have any Quartz mine yet and all the natural quartz raw material is sourced from quartz mining supplier.
Thanks-Mahesh
Good to be contrarian and ask questions. I actually thought otherwise. I thought it was much easier to get a Quarry, mine and was much difficult to process , create Brand, export and compete internationally. Thats just my perception. I think you have raised valid questions and some could be just assumptions. Like for example, nobody in India would even know Quartz Stone and its advantages, so Quartz stone manufacturer has to mostly export. And to export you should be on par with Quality of some one like Caesar Stone and Cambria. And especially American customers are very conscious. So, building that process and network of dealers and market may not be easier for a plain Quart raw material supplier, unless he know what it take and how long it takes.
And what makes you believe granite mines could not have been bought with debt years back?
I think we should find how much do they pay for natural Quart supplier and whats the contract.
Thanks-Mahesh
Exactly .
http://pib.nic.in/newsite/PrintRelease.aspx?relid=95247
why are they not paying royalty on their captive quartz mines - if they are, where is it reflecting ?
Granite mines are not be confused with natural Quartz mines. And also, they pay royalty to Govt for their Granite mines.
Disclosure: Invested, could be biased.
Looking at pokarna's precarious financials over the years, I am wondering how they got the money to buy these - they have been in debt and hardly have had cash. who are these supplier mines - why did they choose pokarna ? why can't they themselves forward integrate and do this
The toughest is to get a quartz mine - not process it - sort of similar to cellular spectrum. once you got the spectrum, equipment and all else only make a marginal difference.
for any mineral, getting access is the biggest moat - not processing it. AFAIK, this brettton stone etals is good marketing spiel but the real question is how do they get such low cost quartz and if they had all of this before, how did things change only in 2014
Hi, good question. I cant confirm but I think they dont have a quartz mine yet where they can mine, they have applied for a license of quartz mine, its under process. Currently they source the qurtz from a supplier mine close to Vizag.
And PESL is like a factory, not a mining subsidiary as you think , it processes natural quartz material into a manufactured stone. Please read more about how Quartz stone is made.
And the company is 2-3 decades old, I believe they have acquired and developed granite mines over the years, but I think its good to ask them.
Thanks-Mahesh
Plus one to above post - Looking for AGM updates held today. Kindly provide. Thanks.
The revenue share from various segments was mentioned in reports that I head read about this company but there was no mention on the B2B and B2C split. This comprehensive report by Motilal Oswal (http://www.researchbytes.com/Indo-Count-Industries-Limited-I0159.htm) clearly mentions that the revenue split is:
81% - bedding
16% - spinning and
3% - consumer goods and that going ahead they are focusing more on the bedding business and its various verticals.
Its major customers are Walmart, JC Penny and Bed,Bath and Beyond. Also its top ten customers contribute to 50% of the revenues (from the Key Risks page of the same report), so I think it is safe to assume that it is currently working as a B2B type company until their direct outlets have a large chunk of the overall business.
@amitnagar If you have data on the B2B and B2C split then please share the same.
Disc: Not invested in this company. Currently tracking it. I request others to kindly mention if they are invested in this company in their replies (at least in the first reply) so that other readers may take that into consideration while reading your posts.