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ACRYSIL Ltd Analysis !
#Acrysil

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#StockMarket #investing

About -

Acrysil is one of the world's leaders in manufacturing & marketing of composite quartz sinks, engineered with German technology & markets products under the brand name of "CARYSIL"

Financial Summary -
Q3FY22 (YoY)

Revenue at Rs 130cr ⬆️48%
PAT at Rs 17cr ⬆️43%
EPS at Rs 6.4 ⬆️42%

Acrysil is the sole manufacturer of quartz sinks in Asia. Globally, quartz sink manufacturers are limited to only four players, namely, Blanco, Franke, Acrysil & Schock. The company is the sole manufacturer in India and Asia with a global standard of quality, durability & visual

appeal. The technology and know-how acts as a strong moat for the company and remains an entry barrier in quartz sinks in the domestic as well as in international markets.

Strategic Partnerships -

~ In 2018, the co entered into an agreement with German brand, GROHE for the supply of quartz kitchen sinks

~ In 2020, co entered into a strategic partnership with IKEA Supply AG (Switzerland) for manufacturing & supply of quartz kitchen sinks globally

Strong Distribution Networks -

~ Acquisition of 100% stake in Homestyle Product Ltd, UK which outsources sinks & sells to top customers

~ Vital access to key customers based in European markets

~ Current Domestic Market : 1500+ Dealers, 80 Galleries & 82 Distributors

Manufacturing Facilities -

~ Quartz Sinks: 500,000 pa , Stainless Steel : 90,000 pa & Appliances : 7,000 pa

~ Co enjoy in-house capability extends to manufacturing & assembling chimneys, hobs, hob-tops & food waste disposers

Business Product Overview -

~ Quartz sinks :

Co is only company in Asia that manufactures quartz kitchen sinks with global standards of quality. There has been an increase in demand for quartz sinks which are now preferred over their stainless-steel counterparts due to their

high durability. This trend has been observed in America, Germany, UK & France. Quartz sinks remain a major contributor to the company’s revenue.

~ Stainless steel kitchen sinks :

The co continuously innovates its products to offer an unmatched lifestyle with its premium kitchen sinks. Last year, the company introduced a new range of innovative products like square sinks and micro radius sinks. The manufacturing capacity

of steel sinks stands at 90,000 sinks p.a. out of which Press sink capacity stands at 60,000 sinks p.a & quadro sink capacity at 30,000 sinks p.a.

~ Kitchen appliances & Bathroom fittings :

Co is well-placed to become a major player in the overall kitchen industry. They have a variety of products including dishwashers, ovens, hoods, etc. Co is continuously working on innovation, research and development & designs to

attract customers & stand out in the market. They plan to increase its global footprint in the kitchen appliances segment. The co’s wholly owned subsidiary, Acrysil GmbH, offers the Sternhagen brand range of quartz wash basins, premium bathware fittings & sanitaryware.

Key Risks -

~ Slowdown in real estate:

The slowdown in the real estate market can impact Acrysil as it is primarily a building materials provider.

~ Adverse movement in raw material price:

Acrysil’s profitability remains vulnerable to adverse movement in the price of key

raw materials i.e., resins because of its inability to pass on any increase in prices for ongoing orders.

Conclusion -

Partnerships with IKEA & GROHE have the potential to be a game changer for the company as it is well positioned to capture a larger pie of the home

improvement market. Co's strong brand image, wide distribution network, expanded capacity in quartz sinks and stainless-steel sinks & revamped product portfolio in the bathroom segment through its brand Sternhagen have the potential to result in strong growth for the company.

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