My 2 cents in this:
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It’s very clear opportunity size for Satia is limited:
- In last concalls there was any emphasis on molded cutlery
- Did scuttle butt, talked with ex employee; promoters too see it as side activity. Their main focus is on ensuring supply of raw materials for paper mill & cost optimisation initiatives.
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Satia doesn’t own the brand (unlike Yash Pakka), neither they have expertise/proven track record in brand building.
At the same time, jury is not out whether this Moulded cutlery business turn out to be commoditized business or branded business. If it gets developed as branded business, Yash Pakka will have first mover advantage. -
FSSAI registration is not a show stopper Coming from food industry, can say with conviction that, FSSAI registration takes time, rejection rate is very low. Satia has mature leadership team to get through.
Disc. : Tracking, did scutlebutt as well. Convinced with management quality, not convinced yet with moats of the business & growth prospects.
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