Short Summary of stuff I found interesting…
Plant currently at 35% utilization …expected to grow to 100% within 1 year.
60 mixing machines (80% in North), 50 more to be added in H2.
Revenue breakup: 67% Italian,25% Unico (MC, thinner etc.),4% wall paint .
New markets being entered in retail …Maharastra, Karnataka, Gujarat, Telengana (started distributing), In final stages of negotiation with WB, Kerala, TN dustributors.
Targeting FY23 End 2000 retail points .
Q4 heavy marketing spends to be balanced with local resin production etc . Ebidta margin may reduce in 2-3 quarters starting Q4 but long sustaining margin should be 23%.
Italian PU resins also to be manufactured post approval from the Italian partners. Team expansion happening new plant, chemists, sales team etc. working capital days were high in H1 because of extra stocking to handle supply uncertainty (war, power shortage in Italy)
Nepal export is showing traction but other export countries are still at nascent stage .
6 products will be getting manufactured in India, which were being made in Italy till now …in next 1 month .
25-30% topline growth expacted 3 to 5 years in conservative estimate . But they expect 40% plus themselves even though they are reluctant to guide that way.
rev share – 60% (North), 25% Maha (OEM), East is least .
New plant getting ready in Coimbatore …8 crore capex …in next 1 year…
Disc: invested
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