MAR-24 CONCALL NOTES
1.They had made a dedicated plant for Procter and gamble for manufacturing oral b toothpaste and one plant for detergent also. but as the toothpaste didnt took off, the whole scheme failed and then there was a series of litigation bw the two and they suffered cz of it and the detergent plant also was not utilized by procter. this led to their downfall as other companies also maintained distance from them.
2.Now the things have changed, the have on boarded reliance,hul and amway as customers.
3.Dabur ,chicco, patanjali are already customers.
4. have started a talcum plant.(manufacturing nycil)
5.exports have also started after covid.
6.added people in senior management.
7.they are currently operating at 30% capacity only, no capex needed for 2-3 years.
8. have an order book of about INR110 crores for the current financial year. can further increase.
9. targeting mid teen ebidta margins.
10. have negotiated payment terms with the suppliers and customers
11. have let go low margin customers.
12. 50% price pass-on contracts and 50% are full year fixed contracts
13. Canteen store departments, we started very small. Now, today, we have a reasonable chunk.
14. toothbrushes being capex heavy has an entry barrier.
15. Most of the big brands have their own manufacturing for toothpaste, but none of them have their own facility for toothbrushes.
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