Key Highlights

NBR would account for around 35% of total sales, Synthetic Latex would contribute around 50% of total revenues and Synthetic Rubber would be around 15% for FY 18. Exports mostly is from sale of Latex.

Some rise in raw material costs seen in June 18 quarter. The company is able to pass on the increase in raw material costs to customers. Currently the company is seeing around 13% margins however with expansions and power unit coming up, margins should go to around 15% thats what managements internal goal is.

All raw material prices are linked to oil. So its difficult to predict. Things are stable now.

The company commenced the sale of new product XNBR Latex for Gloves which is the future growth driver for the company. Market is very large. Not a widely made product and technology is very unique. Margins will be better than the existing overall company margins.

The company is operating at 80% at Taloja and 100% at Walia plant.

Capex plan of Rs 70 crore is going as per the plan and will be completed by March 19 and all will be from internal accruals. Large chunck of the capex will be towards improving margins which includes setting up cogen power plants which can help margins by atleast 150 bps.

Continue to grow in exports. It exports more than 35 different countries. Exports will continue to grow but some hikupps will continue. Like in June 18 quarter, one of the main exporter client had a fire in his factory which led to lower exports to that customer. But overall exports will continue to grow strong going forward as well.

New product line in latex industry was launched in FY 18 for Gloves industry. Huge opportunity exists globally for this product. Highest demand in South East Asia. The company doesn't have sufficient capacity to meet the kind of demand. The company will be the only company to manufacture in India.

The company had market share of NBR of 17% at the time of acquisition and that has increased to 25% as on Mar 18. Expects market share to improve further from here.

Open for inorganic acquisition.

In long term say by FY 20, the company has plans to invest around Rs 250 crore for increasing capacity of latex by 40000 tons and NRB by around 25000 tons. This will take around 18 months time from the start of the project and can generate around Rs 500 crore of additional turnover.