The company held its AGM on 30th July'15 and was addressed by Dilip Dandekar Chairman and Ex. Director
Key Highlights
As per the management, Kokuyu Camlin has stabilized and is back on growth trajectory. The Parent is confident about the company to do extremely well in coming years. Parent has provided a target of achieving sales of about Rs 1000 crore in FY'18-19.
With increased awareness of education and literacy in India, together with Government's program of Female education, Primary education etc, and increase in Pre primary education schools and Nursery and consumers shifting towards branded and better products, the company expects its overall stationery business which includes colours, inks, notebooks, fine arts, office stationery, markers, drawing and technical instruments etc to do well in coming years.
While raw material prices have come down and company has received some benefits as well on lower raw material costs, some benefits will be passed on to consumers. Competition is extremely high in Stationery segment and large corporate houses are entering aggressively in this segment, which can lead to some raw material benefits to be passed on and increase in marketing and advertisement expenditure.
Notebook accounts for about 5% of total sales. As per latest notification by Government of India, Notebook has come out from SSI Reserved category lists and now can be expanded and marketed by any corporate house. Management expects the Notebook sales contribution in overall total sales, to increase significantly in coming years as due to these restrictions, the company was not able to go beyond a particular capacity. Margins in notebook stationery category are higher than rests.
Major countries of export are SAARC Countries, Middle East, Far East, CIS Regions and USA. The Company is aggressively focusing in OEM business in CIS countries and branded business in Middle East, SAARC and Far East Countries for Hobby and Fine Art products.
The capital expenditure at Patalganga MIDC is going as per the plan and will be operational in H2 FY'16. Management expects a capex of around Rs 100 crore for this project of which about Rs 65 crore will be spent on plant and machinery.
Once the plant will be operational, the Vashi plant which is on rental basis will be closed. Further some of the products from other plants will be more streamlined. Overall, at peak level, the Patalganga plant can generate revenue of around Rs 300 crore.
Overall, management expects the growth momentum to kick start in the company and expects to do well in future.
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