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6 Dec 20
Sunday #Pharma Brew!

Attended amazing session by @AdityaKhemka5 and have compiled key understandings and takeaways in a small thread!🧵

Thanks @AdityaKhemka5 sir for such insights!
1/ Pharma Industry

-Only sector where India has global competitive advantage, companies in this sector are one of the best in the world with ace qualities.

-Global pharma market is $1100 billion.
-#US market accounts for $500 billion (5% population covers 40-45% of total markt)
-#China is a $150 billion market (15% population covers 15% of total market)

-#India is only $20 billion compared to strong global pharma market (15% population covers only 2% of total market). This leaves a huge #growth.
Read 21 tweets
27 Nov 20
1/ IPO Details
2/ Indian Market

-Management has 2 decades of experience (From Canada to all other countries)

-They entered India 5-6 years ago which is a Brahmastra market for them due to young population advantage.

-They have 268 stores with 200 stores opened currently due to COVID.
Read 24 tweets
27 Nov 20
#Lauruslabs Management Interview 📝🧵

Talks about:

-Formulation Journey
-API and all other segments
-Revenue mix & Guidance
-New Growth Areas

@punitbansal14 @drprashantmish6 @Investor_Mohit @AnyBodyCanFly @rdkriplani @caniravkaria

1/ Strategy from beginning

-Strategy is to start putting resources into development, create large scale manufacturing and then grow that biz

-They first did API then focused on custom synthesis then in 2014-15 they focused on formulations.
-From no revenues in 2016-17, they crossed 800-900 cr revenue in this first half and going to do very well ahead.
Read 38 tweets
26 Nov 20
#ITC Paperboards eyeing on sustainable packaging solutions!

@dmuthuk @Prakashplutus @AnyBodyCanFly @Panks_Arora @SwarnashishC @prabhusaurabh91
1/ #ITC Paperboards

-ITC Paperboards & Specialty Papers Division of ITC group is a leading manufacturer of packaging & graphic
boards in South Asia.

-Paper division closed last fiscal with ~10% of its produce being exported. Exports will go up. In value terms, exports is 15%
2/ Focus

-Packaging industry will grow at a CAGR of 7.5% from 2020-25.

-It is focusing on sustainable packaging solutions with development of innovative B2B value added paperboards & import substitution given the unfolding opportunities in new segments of the packaging biz.
Read 9 tweets
26 Nov 20
1/ Why #Richcore?

-#Laurus is more chemistry based company and they do have biology but India is not that developed in this category whereas #china and #korea are way ahead of us.

-Laurus has no expertise in biology. They do accept this and #Richcore completes this expertise.
-When they do acquisition, they acquire target’s management also who has that expertise and laurus complements them with additional requirements like reaching customers and scale as laurus has advantage in geography footprints.
Read 35 tweets
25 Nov 20
#Marico clearing its ways to optimize costs and focus on margins!

@SumitResearch @unseenvalue @datta_arvind @Panks_Arora @AvinashGoraksha
1/ What happened?

-The company is eyeing cost savings to the tune of ₹150 crore as it partly absorbs the price increase in key raw materials like copra, sunflower and rice bran.
2/ How will it do?

-It has cut back on over 100 stock keeping units (SKUs).

-These SKUs were contributing nearly only 1% of turnover and hence it made no sense to continue with such a long tail.
Read 7 tweets
25 Nov 20
#Rubber Industry - Inverted Duty Structure!

High import duty on raw materials and low import duty on finished products is hurting the domestic manufacturing industry, making it noncompetitive in the international market.

@VijayKedia1 @Arunstockguru @anshulbahl21
🧵 Image
1/ Import Duty

On Raw Material:
-Natural latex liquid has 70%import duty

On Finished Products:
-Latex products have only 5% and gloves 0% under the FTA with ASEAN countries.
2/ Duty Effects

-This has led to rising imports, hitting the domestic industry badly.

-The inverted duty structure has forced many rubber product manufacturers to turn traders of rubber goods and stop manufacturing because products have become uncompetitive.
Read 5 tweets
25 Nov 20
#Gulf Oil Lubricants Management Interview 📝🧵

@varinder_bansal @parasbehl7 @sonalbhutra @karansharma_09 @anandchokshi19

1/ Business

-Replacement lubricants account for 95% of topline. Lubricants are used in cars, bikes, tractors etc.

-Have usually grown at 2-3x of the market growth rate.

-#2 brand in the overall private market. (55% is B2C)
-Doesn't supply to brand new vehicles, as for new vehicles the oil comes from OEMs.

-Where Gulf has tie-ups with 15 OEMs (Bajaj, Ashok Leyland, Mahindra), so if customers are buying more of Bajaj, Leyland, Mahindra then Gulf will benefit.
Read 15 tweets
21 Nov 20
1/ Performance

-Q2 FY-21 had the highest quarterly sales of 68 Cr, a growth of 84% y.o.y. Top 10 products contributed 71% of topline and Top 5 contributed 45% of topline.

-Growth reasons: Market share gain + Growing demand.
-Company’s traditional products are mainly responsible for this growth.

-Entire growth was led by volume growth of traditional products. They used newer capacities to manufacture traditional products.
Read 44 tweets
20 Nov 20
1/ Performance Image
2/ V Next Biz

-It has picked up as lockdown ended

-Digitization has helped

-Utilization is 70% & EBITDA% is 15%

-They have been working in this segment since last 10 years and currently the are banking on good margins and this year they expect to post 15-20% higher biz
Read 26 tweets
19 Nov 20
#FMCG: Safety is augmenting the growth!

#HUL pivoting to healthier food products and on other side #Emami enters home hygiene segment!

@blitzkreigm @AdeParimal @rishidarda @StraightTalk73 @Vivek_Investor

🧵 ImageImage
1/ #HUL

-Making changes to its product composition, including continued lowering of calorie, salt and sugar levels across all food products.

-Objective is to help people transition towards healthier diets and to reduce the environmental impact of the food chain.
-Foods portfolio will support a diet providing a max of 5g of salt intake a day by 2022.

-In packaged icecream,95% of products will contain no more than 22g of total sugar and 250 Kcal per serving by 2025.
Read 8 tweets
19 Nov 20
#Cement Sector: Rural & Govt are driving the demand!

@gvkreddi @SandipGhose @nid_rockz @nakulvibhor @saketreddy

🧵 Image
1/ Demand Drivers

-The fundamentals in the cement industry are strong.

-Demand outlook is positive, supported by the underlying demand in rural housing and government focus on infrastructure.

-Prices are a function of market dynamics
-Lower interest rates will aid infrastructure and real estate demand in the medium to long term.

-Post severe disruption during lockdown, there have been healthy volumes supported by government measures.
Read 6 tweets
19 Nov 20
1/ #PLI scheme

-They believe once these policy initiatives are executed on the ground, it will be positive for food processing exports.
2/ #Capex Plans

-Announced plans to invest ₹2600 cr in next 3-4 yrs, with a sharp focus on productivity improvements.

-New factory in Sanand, Gujarat is under construction

-They seek more nutritious and immunity boosting propositions in pandemic times.
Read 5 tweets