PG ELECTROPLAST:
PGEL specializes in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM) and Plastic Injection Molding, catering to 30+ brands
The Company has grown ~2.7 times in five years at 22% CAGR. EBITDA has grown at 20% CAGR. Capex done is last 5 years is ~ INR 220 Crores.
Business Breakup:
Plastic moulding contributes 60% in PGEL’s topline followed by product sale, electronics, mould manufacturing & others contributing 27%, 6%, and 7% respectively.
Plastic moulding includes plastic body for
consumer appliances such as washing machines, ACs, refrigerators, ceiling fans and sanitary ware products. Under Product segment, company provides ODM services for Air cooler, washing machines and ACs.
PGEL’s AC manufacturing capacity includes 1.25lakh units/month of IDU and 50,000 units/months of ODU. Company is also going to manufacture control assemblies for IDU/ODU, cross flow fans, heat exchangers, sheet metal components, plastic moulding components all under PLI scheme.
PGEL envisaged capex of 320 crore over next five years for manufacturing AC components under the PLI scheme. Company has guided PLI revenues to start flowing from FY23 onwards.
115 Cr Capex is expected in FY22 in PGTL, a 100% subsidiary for AC component manufacturing. Company is confident of touching minimum incremental revenue target each year under PLI guideline (i.e. 250 Cr, 500 Cr, 750 Cr,
1000 Cr & 1250 Cr through FY23 to FY27)
The good:
🔎Despite passing on PLI benefits to customers, the company is likely to maintain EBITDA margin at 7% due to increasing revenue from ODM services
🔎Plastic moulding & Product sales together account for 87%. Both are likely to grow at high CAGR (~15% & 50%).
The bad:
🔎No entry barriers in third party manufacturing
🔎Higher dependence on seasonal products, RM price fluctuations
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The shipping cycle, like any commodity cycle presents effect of supply and demand on shipping assets & freight rates. Here is how the cycle works: 1/n
At peak supply i.e. rock-bottom:
-> freight rates hit the bottom
->weaker players get destroyed
->stronger companies get to buy dirt cheap assets
-> industry consolidates
2/n
Recovery phase begins with:
-> old/inefficient assets getting scrapped
-> Ships are employed for longer trade routes to avoid uncertain spot prices
Both factors contribute to tightened supply and freight rates improve.
3/n
On a special day, lets talk about a special situation. Now since NCLT has approved the demerger of Piramal Enterprises' Pharma business from Financial Services business, we have a special situation at our hands.
Piramal Enterprise Limited consists of two entirely different businesses- Financial services business & Pharma business. This is how Pre-demerger structure looks like –
PEL will become separate listed NBFC post demerger of pharma business –
Indonesia’s recent decision to include crude palm oil (CPO) in the scope of its export ban starting 28 April is likely to affect both supply and prices of edible oils globally.
The move could remove about 2 million tonnes of palm oil supply from the global market every month, which is nearly 50% of the global monthly trade volumes. businesstoday.in/latest/story/e…
India is dependent on imports to meet its edible oil requirements and is the largest importer of edible oils in the world. During 2020-21, India imported around 133.52 lakh tonnes of edible oils costing around Rs 80,000 crore.
Alicon Castalloy (erstwhile, Enkei Castalloy Ltd) runs one of the largest aluminium foundries in India.
In a foundry typically, you manufacture metal cast components that find application in various sectors.
But wait…What’s special in a foundry business? There are apparently 5000 foundry units in India, 90% of them can be classified as MSME and 70% are of grey cast iron.
Let's find out what's special about ACL (if any)
ACL is a combination of European engineering (Illichmann Castalloy) + Japanese quality (Enkei Corp) + Indian innovation (Alicon group). ACL provides aluminium casting solutions using Low-Pressure Die Casting (LPDC) and Gravity Die Casting (GDC).
Remember 3 Idiots? Don’t we still crack up every time we think of Raju answering his professor, how an induction motor started?
The company that we are studying today has something common with this scene. So lets start...BRRRRRR
In 1887, legendary innovator Nikola Tesla developed an induction motor that ran on alternating current (AC). It was a simple self-starting design that did not need a commutator, thus avoiding sparking and the high maintenance of constant servicing and replacing mechanical brushes
Westinghouse Electric & Manufacturing Company owner, George Westinghouse negotiated a licensing deal for Tesla’s Induction motor and also hired Tesla as a consultant for the company. Here is the famous photograph of the two:
The fact that chickens usually come home to rest and sleep has long been known, but the idea was used figuratively only in 1809, when Robert Southey wrote, “Curses are like young chickens, they always come home to roost”.
Debt-laden Shapoorji Pallonji group is exiting/divesting one after other good business to save itself from default. The group is now, about to separate its Hygiene product and water purifier maker Eureka Forbes Limited.
The Structure:
The transaction:
🔎Merger of ATPL & EFFSL with EFL
🔎Merger of EFL with holding company FCL
🔎Finally, demerger of EFL business with it's listing