As per this http://www.piindustries.com/sites/default/files/As%20Demand%20for%20Faster_1.pdf PI works with Syngenta.

You can also find other names in there.

For its domestic input business, the company licenses and registers products it
considers to have major potential in India from Japanese players such as Kumiai, Mitsui and Nichino, and markets them on an exclusive basis. Additionally, PI works with multinationals that already have a presence in India, such as Bayer CropScience, Syngenta and BASF, and co-markets their products under the PI brand.

Adi Finechem exports DEODORIZER DISTILLATE (MIXED TOCOPHEROLCONCENTRATE) WITH 08.35% TOCOPHEROLS.
When I check export data it shows declining trend. Adi might be loosing market or demand for there product might be decreasing

adi1.jpg858×657 138 KB

Thanks Sam for your effort! looks promising

Disc: invested and added in the current dip

@pikrohit

Hi Rohit – Agree that this will still be capex. But the point i am making is that it is not maintenance capex. On another note, this capex was not mandatory. An option available to Ambika mills was to go for a dedicated feeder and enter into a PPA with another wind power generator and simply buy wind power. Thus capex was not necessary.

This capex allowed them to improve their operating margins in long term and need to be viewed accordingly. Historical rate of increase in electricity tariff in India is 5.5% (CEA data). Few years down the line the wind mills will help in significant power reduction costs.

On a side note – As per an analysis that I have done on some listed companies in textile space, OPM for textile companies that have their captive wind projects is much higher for textile companies that do not have a captive renewable energy source. Companies on left have captive wind mills whereas companies in right do not (except RSWM which has commissioned a 20 MW wind mill an year ago. However even this 20 MW is equivalent to 4 MW of thermal power project. their existing thermal power project is of 50 MW. I am assuming therefore the impact is not much in this case even after having a windmill

A friend of mine called up and said as per his estimates Ambika cotton consumption is 10% of total production of Pima and Giza variety. I did my calculation independently and came to about same conclusion.

It’s quite possible that there is some error in the way I am looking at the data.

If not then we should worry about 1) opportunity size and possible growth going forward [Am looking beyond 30K spindles capacity expansion] 2) Availability of cotton itself owing to severe drought in California [it produces > 90% of US Pima cotton production]. In 2015 area under Pima has declined from 2 to 1 Lakh acre [read this article http://www.nytimes.com/2015/08/08/business/a-once-flourishing-pima-cotton-industry-withers-in-an-arid-california.html?_r=1] . Even in Egypt area under Giza cotton is declining due to removal of subsidies on cotton. [http://english.ahram.org.eg/NewsContent/3/12/119530/Business/Economy/New-subsidy-cut-may-be-the-end-of-Egyptian-Cotton.aspx]

Here are my calculations:

For USA

So US is around 13crs Kg . See this link for US area under PIMA cotton http://www.supima.com/view-reports/acreage-estimate/ . Pounds per acre is from NYT article referred above.
Egypt produced 370,000 bales during 2014 . One bale = 225kgs. This amount to 8.3crs kgs
[see this link http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Cotton%20and%20Products%20Annual_Cairo_Egypt_3-30-2014.pdf] 90% of Egypt cotton is extra long and long staple variety.
So Pima + Giza amounts to 21crs kg for 2014. As per Ambika website cotton consumption for 2014 was 1.89 cr kg and for 2015 2.23cr kg. So as per my estimates Ambika is already consuming around 10% of global production. Atleast for next 2-3 yrs it seems global production is not going to increase. So to repeat 1) Opportunity size ???? 2) Availability of cotton ????