Bhansali Engineering Polymers – An Import Substitution Story!

I actually have a very basic question wrt oversupply.

1. Total import substitution demand is 175 kTPA and say, the market will grow by 7-8% and the demand will reach 200 kT by 2026
2. Now, the new facilities coming online are 300kTPA – 100k (Styrenex), 80k (Supreme), 125k (Bhansali eng). Basically, a 100k oversupply
3. Another factor is threat of imports. Custom duty on ABS is just 6-6.5% and there’re low cost producers in nearby countries. Also, China’s demand is 5 mil T (14x), meaning even a small drop in demand there could lead to dumping in India. The situation is too predicated on things going exactly right for sales improvement.

Also, the company’s margins significantly higher Styrenix since FY24, which wasn’t the case in FY23. If someone can shed some light on this.