Ineos Styrolution conducted conference call on 16 November 2018 to discuss the results and future.
Managing Director & Chief Executive Officer- Sanjiv Vasudeva, Chief Financial Officer- Sanjeev Madan and Company Secretary, Head- Legal and Compliance- Haresh Khilnani addressed the call
Highlights of the call:
INEOS Styrolution is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties.
The company provides styrenic applications for many everyday products across a broad range of industries, including Automotive, Electronics, Household, Construction, Healthcare, Packaging and Toys/ Sports/ Leisure.
It saw good growth across all segments in line with the market
The company expects various budgetary schemes continue to drive demand growth
During the six months, it strengthened its position in Specialties.
The company changes the product mix to maximize margins.
The company has added new grades to its product portfolio. It utilizes its R&D capabilities to develop new products for automotive, household and electrical industry to create more value and innovative solutions.
With the acquisition of K Resin by INEOS Styrolution in Korea, it will now be in a position of promoting K-resin (SBC) in India.
It continues to optimize distribution network through third party logistics.
The implementation of the distribution strategy has resulted in consistent performance and good control in market place.
Its newly developed Absolac DP29 M Q633 grade has been selected by TVS Motor Company. It has been working closely with TVS Motor for more than 10 years.
The company is seeing pressure as countries like Korea are exporting to India as market like China is slowing down.
Auto industry is seeing slowdown but there are other sectors like household electronics, halmets, small appliances which are seeing rise in demand. It sees ABS demand growing 15-20% for the next few years.
The company revises prices every week, month, quarter depending on OEM to OEM.
Prices of gas have increased, so is fuel and other costs. Transportation cost is also increasing but not significantly.
ABS price has fallen by 10% or $ 200 in the last quarter.
Can't comment on future price movement on styrene.
The company had announced expansion of Moxi plant by 35000 tonne taking total capacity to 100 thousand tonne. The company is looking to start the operations by Q3 of 2019.
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