Thanks Sumit, nice points for discussion. Couple of points though –

1. How can we generally have both deflation and volume expansion de-growth? With prices falling shouldn’t people start buying more of what they need (pent up demand)?

2. With economy turning around (IF), I’m looking at this high volume growth to offset the no/lesser annual price hikes.

3. IF there is volume de-growth coupled with inability to increase prices for a company like PAGE, imagine what will happen to other consumer companies like Whirlpool, Hawkins -> Disaster!

4. Asian paints with 10% (approx.) growth commands a good high PE, so I think Page could sustain premium valuations ALBEIT may not be as much as we are used to?

Any updates from the AGM?

Ok – thanks – i stand corrected. if the company is sourcing its quartz from a third party, it begs even more questions.

look at ceaser stone’s RM cost it is 50% of sales at a realization that is at least 2-3 x of pokarna’s as per this thread.

Pokarna claims gross margins of 70% incrementally – that means their RM cost has to be 20-25 % of their sales – which by itself is only 50% of that of caeserstone’s in terms of yield. So, that begs the question – if chettinad being a rational seller can sell anywhere in the world, why would they sell to pokarna at a lower price when cesaer stone claims to be sourcing from india too and chettinad might as well sell to them for a logically higher price.

And in any case they had this bretton stone agremeent from 2010, why is it that only after april 2014, their sales soared ?

And for such an important subsidiary, why are detailed financials not given – what about environmental clearances, PCB clearances etc. on the subsidiary ? Also, why take a FCCB and loan it to the subsidiary in turn – why could’nt the subsidiary itself have raised money on its own with corporate guarantee ? Was it to prevent detailed disclosure ? So many RPT all over between pokarna and PES

The first question would be to understand the entire supply chain and how they are managing all these clearances in the subsidiary and what has changed post FY 2014. I pass no judgements – when facts change I change my mind.

“2.QUARTZ:*
a.Raw materials:
Currently compay has applied for quart license and does not have any captive quarries.All of the quartz is sourced from a quarry owned by chettinad group(from Tamil Nadu) in Vizag.No risks with raw materials even if the quarries are not approved.
Company calls this quarry as strategically located because of the proximity to the port and its manufacturing facility.This reduces transportation costs as well.emphasized text**

This was shared by @Sambat 3 weeks back.

Sir, where did you find out they have captive Quartz mines and they are mining it? can you share?
@Sambath found out they dont have any Quartz mine yet and all the natural quartz raw material is sourced from quartz mining supplier.

Thanks-Mahesh