A few snaps from XPEL’s Q3 concall (8th Nov) that maybe of relevance to Garware:
- XPEL CEO addresses the Entrotech-PPG JV and how the product compares with PPF in quite a bit of detail. The competing product is called Aero, a demo video can be seen here – https://www.youtube.com/watch?v=OQ3YDZh_tlw
- XPEL CFO highlights that one of their suppliers has had quality issues as a result of which they had to increase supplies majorly from alternate suppliers during Q2-Q3 CY23 (Apr-Sep). They don’t specify which product line, I assume the supplier was present in both segments. Coincidentally, this timeline coincides roughly with Garware’s spike in PPF exports. Could it be that Garware has been the beneficiary of this mishap at the other supplier’s end? If so, then the question to be answered is, is this PPF run-rate sustainable beyond Dec when XPEL expects inventories to get normalized?
- XPEL is opening an India facility (I assume its an office rather than a factory) with a view to taking a more direct approach to the Indian market. How will this play out vis-a-vis Garware’s own ambitions of dominating the local market? Would there be any collaboration here or pure competition?
It would be nice to get Garware management’s thoughts on these aspects in upcoming management meets or concalls.
Disc: Invested.
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