Apcotex Industries held a conference call on 28 July 2022 to discuss the results for the quarter ended June'22 and way forward. Mr. Abhiraj Choksey- Managing Director, Mr. Anand V Kumashi- Company Secretary and Mr. Sachin Karwa – Chief Financial Officer of the company addressed the call.

Highlights of the Concall

• Quarterly volumes grew by 32% over 1FY22 with balanced growth across all the industries, geographies and product groups

• Revenue mix was around 55% for latex and balance 45% for rubber

• The company is running at full capacity at all its plants – be it for rubber or latex.

• Both projects in Valia and Taloja bith for latex manufacturing is running on schedule and is expected to be completed in Q3FY22-23

• The company expects that new capacity would take around 6-12 months to completely ramp up the capacity

• The company has received environmental clearance for its NBR project

• Export as a contribution to revenue was around 18% and growth was round 27% on a YoY basis in value terms

• Prices of nitrile latex is a little bit higher than the other latex product

• Pricing and margins has considerably cooled off for the gloves market. Currently the markets is not so favourable but in the long term he medical gloves industry is going to grow at double digit pace. Nitrile latex is going to be raw material that is required for this industry.

• The company mentioned that it is a misconception that synthetic rubber is less environmentally friendly than natural rubber. Natural rubber latex is also not extremely environment differently and everyone is working on how to make these glove biodegradable, and so on.

• Nitrile latex project would cater around 90% of its product for the export market. The company has a market share of around 3% in the global market.

• The company is generally able to pass on the increase in cost of raw materials to its customer albeit sometimes with a lag. Some of its customers are on formula based pricing in which margins remain fixed for some period and whatever increase or decrease in raw material is passed on.