-End of September, the company has entered into an MoU with Welspun Corporation to purchase a 90 acre land parcel along with civil structure in Dahej for a consideration of Rs130 crore. The company hopes to complete the transaction by this quarter itself and this acquisition will
enable future expansion of the business while simultaneously de-risking the operations 
YCPL has been merged into the company after the approval from the court .Last quarter, the company undertook a 21 day shutdown for maintenance at both the units in Mahad. The maintenance was done successfully and the company was able to integrate 2 new manufacturing facilities
that has been capitalized in the 1st half of this fiscal, both the units are running smoothly
The global recessionary environment coupled with the euro currency movement impacted the company’s customers leading to a far lower demand for acetyls products. Transportation and energy costs significantly increased Y-o-Y impacting the business of the company. The situation
has begun to normalize right now with reduction in freight and stability in the currency rates. Acetyls Intermediate business faced both demand and price pressures. Still, the AI business contributed approximately 65% in this quarter and H12023 to the topline. The company plans
to maintain it’s market position in this segment and only doing investments to the extent of debottlenecking. There is a lag in pass-through of acetic acid prices as the company keeps a 45-60 day inventory and this reverses as the trendline reverses
SI business has been robust in this quarter. The SI business now has a basket of 40 to 45 products which is much deeper than the 6 to 8 products which had come during Clariant’s acquisition. The SI business contributed approximately 35% in this quarter and H12023 to the topline.
The maintenance shutdown led to an altering of the product mix leading to a lower contribution margin in this quarter vs previous quarter. Phase 1 of the second large SI plant was capitalized in Q2 and is expected to start production by Q3 FY24. Along with the plant commissioned
in Q1 ,the company expects both the plants to show full performance by Q4 FY23.Strategy in this business is to provide for domestic import substitution and become market leader in India
On the FI side,the works on the site are in full swing and the company is confident to commission the facility and begin production by Q4 FY23. When the company acquired Miteni, it had almost a 100 products in it’s portfolio and after discussions with it’s customers
Laxmi Organics has finalized 10-12 products which the company is already producing at their R&D kilo-lab facilities and at various stages of qualification with the customers. The company plans to manufacture these 10-12 products in their FI facility to begin with.
The FI plant is a flexi plant. Expected revenues of €25 to €30 million euros from this plant at full capacity
Micro Cap Club:
valueeducator.com/micro-cap-club/
valueeducator.com/micro-cap-club/
• • •
Missing some Tweet in this thread? You can try to
force a refresh
