Exports data suggests strong ~60% growth in pigments businesss in this quarter vs last year, making it one of the fastest growing chemical companies in the industry. There are discrepancies in the export data vs reported data sometimes but the trend is extremely clear. There is supply shortage.
As for acquisition, integrating a large company can be challenging but its very relieving to see that it is all coming in without debt. The mgmt has identified clear levers of cost reduction and I believe this will be an easier fruit to pluck for any inefficiently run business. Sudarshan has the most profitable business in the pigments space globally, by far and do they do seem to posses the traits of bringing down costs. As per the management, there are no contingent or pension liabilities either. So all in all , seems like a good acquisition and it positions Sudarshan as a strong #2 player in the global industrry, not too far from the leader. This has been quite a journey
| Subscribe To Our Free Newsletter |
