# Q4FY23 Concall Notes
1.Garware Hi-Tech Films Limited is a high quality, high margin producing specialty films Company.
2. Products overview – They are mainly sun-control films, paint protection films, shrinkable films and low oligomer films.
3. Export oriented business with with 33% being North America, almost 33% in India and 20% in Asia 11% to Europe and other countries.
4. Transition of the Company from 2017 to 2023, in 2017, company was mainly into polyester film manufacturing like their most years in industry.
In ‘23 now,they are highly value-added specialty film manufacturer. Earlier revenue from operation used to be Rs. 874 crore in 2017, which is now Rs. 1,438 crore. And their EBITDA margins were 9% in ’17, which is now double to 18.7%.
5. Global is their primary brand which is one of the most reputed brands in sun control and PPF in America market and European market.They have 23 trademarks registered, in many countries and exporting to more than 90 plus countries.
6. It is India’s first Company to produce PCR grade shrink films and APR, which is American Plastic Recycler certified for ecofriendly shrink films.
7. They have been Rank 1 in Tint Off last year in USA. They have the second largest global capacity of sun control
films. And since last 34 years, they have been winner of Top Exporters Award from Flex Council of India.
8. In consumer product division(CPD), they have automotive sun control films, paint protection films, safety films and architectural films.
In In industrial product division. They have shrinkable films and low oligomer films for electrical and electronic applications and company have released liners, PRU widely
used in various applications of similar products. And company have some commodity products which
are called thermal lamination, plain film, packaging and lidding films and metallizers.
9. Company is fully backward integrated: That means whatever product company produce, that’s raw material and its components are produced in house, starting from petrochemicals of PTA and MEG, company produce their own pet resins. Then company produce their own metallized film, their own dye
films and their own lamination. Similarly, these films are also used to produce all components of
paint protection film.
10. only manufacturer of paint protection film in India and probably only one of the few producers who have the dedicated paint protection line,with 50% capacity utilization.
11. Currently they have 300 lakh square feet per annum capacity, which is currently being utilized at 50%. But that was for the last year and they are seeing continuous
growth in that business. So, that is growing. If we see the penetration rate in USA, so it is 10%.
So, for every 100 cars sold, 10 cars are wrapped with PPF. We see the same volume in China. The estimates are 12% to 13%, whereas in India, it is less than 0.5%.
12. In order to increase the sales of paint protection film in India, company had a unique concept called Garware Application Studio, it had an aim to open 200 studios in 2 years.
So,they have already done 65 plus studios in India. And they are on the course to meet the target of 200 in in 2 years’ time. And company have currently OEM brands like dealers who sell their product directly at their dealership. They have 100 as of now and in 2 years they have the target to reach to 500 such players.
Note: PPF was insignificant befor GHTF entered into manufacturing.
13. Now manufacturing footprints. As I said, company have 2 fully vertically integrated manufacturing locations which makes polyester chips plant for polyester lines, extrusion coating lines, thermal line, metalizers, sun control film plans for automobile, architectural, safety films and paint protection.
14. Garware is committed for high R&D, they are working for many new products, which includes already produced PPF. They have recently developed the matte PPF,
then recently developed the shrinkable pearl float that is floatable shrink film. Then they have recently launched decorative and designer films and some windshield protection films, so which are the examples of innovation by our R&D team.
15. They have engaged Boston Consulting Group, BCG for sales and branding services to drive the CPD business, that is sun control and PPF business in domestic market.
And they have started initiative to reduce cost and increasing productivity through major initiatives. And in terms of PPF, we have tied up with 2 major car manufacturers and in advanced talks of some more.
16. For PPF, growth in USA and europe has been stagnant from last 2 years but company is focussing more for architectural usages and more products are in pipeline.
17. Competitors don’t have in-house effeciency as compared to Garware Hi tech films.
18. As 70% of the revenue is from export from USA and UK, both were in slow down,it impacted the SCF business reveune.
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