Hi,
Couple of pointers…
1) Company isn’t using cash flows from kerry (through lactose sale) for setting up Lactulose capacity. Numbers from Capex has just started flowing through and should keep improving sharply over couple of years.
2) Lactulose Capacity has been largely put up through debt (Long Term debt increased from Rs 4.7cr in FY13 to Rs 29cr in FY15.
I had attended the AGM (was among 3-4 shareholders who attended 
)..What I could gather from Atul Maheshwari (MD)…Lactulose market is very exciting given application of the same and company has put up capacity after insistence from the clients. You are right sales from Lactulose will be around Rs 60cr. Demand it seems is largely tied up. I have no idea about whether Lactulose will be sold domestically or exported.
Since company has expanded massively given its size, it would like to stabilize current capex initially. Management had indicated that Kerry has asked them to put up more lactose capacity. To get more idea about Lactulose beyond what capacity has already been put up, one should try meeting the management. What I could gather from secondary sources is Lactulose is niche market.
Hope this helps.
Thanks.
Disc – Invested.
| Subscribe To Our Free Newsletter |
