Hi with regards to their expansion – few questions for management (if anyone has access) –
-
Their current gross block of plant & machinery (ex-Land & building) is Rs 135 crore, that is for 450k capacity, if they plan to expand by 1000k, how are they estimating the capex at only Rs 100 cr.
-
Is this to meet primarily export demand (likely as Nitta Inc Japan has aggressive growth plans)? Any timeline by which they will be able to reach full utilization. Going by current run rate, can one expect 1500 cr revenue run rate at full scale? Or will incremental products developed will have lower realization (note that their realizations are at a peak right now)?
-
How should we look at margins for expanded base – difference between export & domestic margins? Their margins have been volatile, and they have regularly mentioned in ARs that supply of crushed cow bones is a challenge, how do they plan to meet the RM need for increased capacity?
-
Stage of completion for expansion – land clearance, ordering of equipment, etc.?
Regards,
Harshit
Discl – Invested, but only tracking amount
| Subscribe To Our Free Newsletter |
