Key Highlights

For H1 FY'15, strong growth in sales was as a result of increase in exports and an increase in market share in domestic markets. Exports stood at Rs 33 crore in H1 as compared to about Rs 35 crore for entire FY'14. Almost all the growth was volume led growth and there was hardly any price increase.

Higher exports, better capacity utilization and lower raw material costs together with steady rupee all helped in better margins. Management expects the margins to continue to remain around 11% (which is actually never seen in the past) at least for next couple of quarters.

Latex business grew by around 35% while Rubber grew by about 20%. Rubber was a huge surprise to the management, as domestic market has been reducing over the years, but for H1 FY'15 domestic market was steady and also exports of rubber have grown. Lower base of past year also helped.

The growth has come from across industries ranging from around 15% to 40%. So be it construction, carpets, paper boards, tyres, specialty ranges including non woven fabrics, textile, automotive components, etc have grown well and so is the exports.

In Paper boards the company has about 40% market share, in carpets about 60%, construction about 40%, with tyres 30%, rubber is about 40%. The company has gained market share on YoY basis in almost all the segments.

The company has a current installed capacity of synthetic latex of about 55000 tons and rubber latex of about 7000 tons. By capex of about Rs 5 crore, synthetic latex capacity can be increased to about 65000 tons.

The company exports to countries like Middle East, North Africa, and South East Asia and is eyeing more countries for future exports.

Capacity utilization is about 80% and rubber is around 30%

China is never a competition in this industry as its very specific customized product based one.