The annual report is out. The below lines caught my eyes which helps to understand the nature of the business.
Blockquote
The industry structure in the field of polymers processing is spread wide, from miniscule to fairly large capacities. There
is usually no direct thumb-rule in terms of “size vs. profitability”; it is possible for players to work out their own viable
economics depending upon various factors, mainly a combination of product mix and market segment or niche. Supply
chain linkages to clients play an additional role for some. Since polymers are generally freely available at prices
synchronized to global prices, market focus besides technical and service competence has been the key to success. It is
fair to say that the Company is a mid-sized player with significant strengths in its market segments, but remains subject
to usual market pressures. In the overall, the Company’s operations are relatively capital intensive; raw material and
power constitute the largest proportions of direct costs. We believe that opportunities are substantial both in terms of
market growth and product diversity and that threats from replacement products are not significant. The main raw
materials used by the Company are Thermoplastic Resins (such as Polypropylene, including special grades for dielectric
films, Styrenic Polymers and LD/LLD Polyethylene, etc.).
Blockquote
| Subscribe To Our Free Newsletter |
