FUTURE GROWTH TRIGGERS(Jyoti resins)
1…HEAVY INVESTMENT IN WORKING CAPITAL
=Its requirement for fixed assets has been low, but heavy investments have been done in Working Capital (mainly receivables and inventory) to grow the business
2…SALES PROMOTION BY DISCOUNTS/SCHEME
=We had run many sales promotion programmes through, which
we got a good push. That is the reason why we have a discount structure.
Like our margins are quite handsome and raw material is also down.
So, we have acquired many customers with those sales promotion offers
in this quarter. (2024)
=That is not only for this quarter. That is for the entire four quarters. Like
that, the prices of raw material, which were there two years ago, have
been reduced and we have passed that advantage to acquire customers.
But for the quarter four, we have increased the aggression in sales.
3…EXPAND IN NEW STATES AND MATURE STATES
=Today it services 14 states in India through 35 branches and 60 distributors, catering to 12,000 active retailers and 3.5 lac carpenters
=We added two new states last year, that is, including Delhi and UP.
=We are looking to expand and increase our penetration in existing states with increase in branches and distributors with an eye on improving
our market share.
= Foray into new states & increase efficiencies in established states.
4…ENHANCE PRODUCTION CAPACITY FURTHER
=The company has steadily increased its plant (at Santej, Ahmedabad) capacity to 1000 Tonnes per month, expanded capacity to 2000 TPM (24,000 TPA) in Aug’22.
= Company is in the process of setting up a warehouse for enhancing storage of raw materials and finished goods.
5…GROWTH OVER NEXT 3-5 YEARS
=Over the last 5 years, we have grown at CAGR of 38%, 103%, 113% on Revenue, EBIDTA, PAT.
=We are targeting 20-25% Volume CAGR over the next 3 years (Base Year: FY2024)
6…ERP SYSTEM
=We have introduced ERP, CRF systems in this year, which has created very good data.
=So we can go with the detail, which customers are using which product, how much growth or de-growth they have given us, what is the satisfaction and what is the dissatisfaction. So, we have improved a lot on this data
as well.
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