Amith Gowda Profile picture
techo-funda-mental-investor-trader / Automobile enthusiast / TATA fanboy

Oct 26, 2022, 13 tweets

Business Analysis of Yash Pakka

Waste isn't waste until we waste it

lets deep dive
1) #yashpakka
D- not invested

2)What made me look into this company is basically the promotor background?

Pradeep Vasant Dhobale

He is a prominent person in the paper industry,While working at ITC he moved from trainee to board level.
He was the person behind ITC's paper division &expanded it to new heights

3)Yash Pakka is involed in business of recycled paper and packaging products

the product contain low-carbon and are fiber based products made from bagasse which are recyclable

it markets molded tableware products under brand CHUK

4)products and applications

Industrial 30-80GSM bleched and unbleached papers are used for food and pharmaceutical sector packaging, interleaving, and wrapping.

Compostable mineral-based film pellets for carrying food and moulded pulp-based products are used in food services.

5)Value Chain
co collects raw materials which is sugarcane waste called Baggasse in & around its plant in ayodya

sends it for cleaning & storage later it gets converted into pulb and finish product is made for transportion

attaching videos fo references

6)CHUK table ware products
these are molded products alternative to plastics which are lightweight,flexible

these are mainly used in food transportation and storage

eg: plates,parcel covers,cutlery,egg trays etc

7)financials
Revenue Split:

Paper - 88%
Moulded Product - 12%

Geographical Split:

Within India - 83%
Outside India - 17%

FY22 highlights👇

8)expansion & Growth opputunities
- US subsidiary ,Pakka inc could help export

- co has guided for expansion of plant capacity in 3 stages based on demands

- Since many FMCG companies are considering sustainable packaging, this industry might be the next leg of growth

9)thesis pointers
- strong promotor background
- location adv
- Cost-eff production process
- market shift towards sustainable packaging ,bio-degradable and recycled products

10)Anti-thesis pointer
- extensive competation from pvt market
- alternatives from different raw materials like arecanut leaves

near my hometown, i can find small firms making plates,cultery with arecanut leaves

watch this video for better understanding

11) I'm closing tracking this co as the promotor background is very sound and shall see how future products launches would pan out

end of the thread

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