Garware Hi-tech films (Earlier Garware polyester)

Garware saw very good growth in their architectural SCF business which improved their margins significantly. The architectural SCF market is actually much bigger than the auto SCF market and it seems that Garware’s Spectra Pro and DecoVista launches have worked very well. Concall notes below.

FY25Q1

• PPF

  • Work with 4-5 big players with their captive demand driving most volumes

  • Use high quality aliphatic TPU based films, backward integration in ongoing

  • Running at 100%+ utilization

• SCF

  • SCF business experienced robust revenue growth due to high summer season demand . Fully backward integrated

  • Recent launches of Spectra Pro and DecoVista series have got favorable market response. The new line has helped them improve supply to the market

  • Running at 100% utilization

  • 25% of SCF revenues is now coming from architectural business (10% of total company revenues), these are very premium and high-end margin products

  • Have also setup a domestic team focusing on architectural SCF business

  • Had increased SCF capacity from 2,400 to 4,200 2-years back

• IPD

  • IPD business observed a recovery in both specialty and commodity sectors from USA and Europe

  • Shifting towards premium products such as newly developed lidding films, PCR and floatable shrink films

  • Running at 100% utilization

• Working very hard to grow in Middle East, Far East and Europe

• 50-50 mix for branded vs white label sales

Disclosure: Invested (no transactions in last-30 days)