Thread by @tycoonmindset05

Amber enterprise Concall was today at 11:00 am

Here are the key highlights of the Conference call 😃

@drprashantmish6 @safiranand @darshanvmehta1 @gvkreddi @rajeshpalviya @nbalajiv

Notification issued by DGFT
Air conditioners haver been moved from free to prohibited category

- This is a positive step taken for atma Niobrara bharat abhiyaan

- This will lead to reduction of imports of AC

- Rs 4k cr AC are now being imported to India. These units will be catered through domestic manufacturing.

- There is increasw in demand of inverter and energy efficient air conditioner.

- Amber is well placed to satisfy the increase in the indigenous demand.

- Successful completed QIB
300 crs for green field projects in acs manufacturing
55 crs for Sidwal acquisition; post that it will become 100% subsidiary

- Fully geared up to grab the increased market share.
& because of being cost competitive Amber enterprise is ready to export

- If anyone has to import ac without refrigerant then that ac is bought into India and then Gas has to be filled in india.
- The low cost of imports is now negated by increased charges. So now imports will not be beneficial

- Cost Arbitrage would be rs 1k to rs 800.

- 75 percent would CBU and remaining would be Indoor units.
- New two facility coming up the company would able to grab up the new market share

- In phase 1 who wants to manufacturing in india. Amber can do assembly for them.

- Gradually, in the phase 2 when the customer has set up their plants. Amber can manufacture components for them.

Amber has sufficient capacity for increased demand. There is no worry for capacity shortage
-The two greenfield projects will be fully functioning. By the end of next fiscal the Pune plant will be fully functioning with a lag of a quater south ndia plant would be fully ready

- Total capacity is 4.5 million
- Company does not do capex for one customer. company invest on long term basis and feasibility report how the segment will grow. Company will become cost competitive for export.

- Industry is going to grow in good number. Amber can cater the demand in the components in finished goods and in assembly.
- On the domestic front demand is going to increase.
- There is 3-4 times growth coming in next 7-8 years.

- When government imposed duty from 10 to 20 percent in 2018, there was dip in imports but for a short period of time. But the shipment started coming from Thailand because it being a favoured nation.

- Complete backward integrated plant in Northern india.
- Pune plant is also being ramped up.
-The capacity in assembly line is not a problem as company is operating on single shift , they can easily shift to double shift.

- In last 6 years, the trend is of outsourcing and being asset light.
- Comapny has shifted to component manufacturing which has benefited them.
- Out of 100 acs in india 24 of them are manufactured by Amber in components segement.

- China did shift their strategy when the import duties were increased but this time because prohibition of import, it would be much difficult to import the container filled acs.
- Only component without refrigerant filled can only be imported

- Competitive advantage that the amber has is that it is the most backward integrated company.
- 6years back the company had 16 percent market share and now it is 24 percent.

-Total industry, in 2018 the ac industry 17k crs.
- Bill of material is closed to 11k crores. And removing the compressor part it would be 9k crs.