80% mix of semi-specialty and specialty looks extremely difficult. The management said so in the call too. Also, my views have been clear on this specialty nomenclature. Lot of specialty becomes semi-specialty in a while, and lot semi-specialty becomes commodity in a while (maybe a year or so). Competition comes in, except in a very few products, which also don’t have big volumes. One needs to understand that business is cyclical, specialty or no-specialty.
I think that is one of the reasons company is spawning new business like pet care, etc. If it succeeds it can be a high-growth opportunity. This biz remains a high-risk bet. We will know in future whether it was good capital allocation or a diworsification. One needs to keep tracking closely.
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