Key Highlights

Based on user industry, broadly Company's business is divided into various segments such as Fishing, Aquaculture, Agriculture, Geosynthetics, Sports, Coates fabrics, Ropes etc. Fishing is more of traditional business which is about 20% of total turnover, Aquaculture constitute about 15-20%, Agriculture about 15-20%, Ropes about 13%, Sports about 10%, Geosynthetics about 7% and rest would be from various other segments like coated fabrics, jute bags, woven sack, reinforcements etc.

Of the total turnover about 50-55% is exports which are predominately the fishing, aquaculture and sports segment. Management endeavor is to increase exports further to about 65% of turnover in next couple of years.

Fishing is more of steady business. In India, it's more of traditional nets, while globally is more of mechanized active and passive fishing solutions. In Fishing the company's focus is more of acquiring the market share. New technologies and handling of higher tones and volumes of fishes remain the focus. Globally also due to the quota system, the segment is more of increasing the market share and providing solutions rather than a growth segment.

Both Aquaculture and Agriculture are the future growth drivers for the company. In Aquaculture, the company provides variety of advanced solutions and products for aquaculture cages, predator systems etc with a dominant market share and presence in developed markets of Canada, USA, Scandinavia, UK etc. Agriculture includes providing solutions such as anti bird net, insect net, shade net, crop support net, sericulture net, anti hail net, floriculture net and grape net etc. Management expects both Agri and Aqua segments to grow more than 20% every year.

Sports is another segment which has significant potential for the company. Garware Wall Ropes already have significant market share in many countries for Sport nets, be in the field of tennis, cricket, golf, soccer, hockey, basket ball, volleyball, badminton, ski and beach volleyball. Company has about 25% market share in the US sports net market.

Ropes is another steady business for the company growing at steady pace. Company would be looking for strengthening the size and width of ropes so that it can be used in high tonnage vessels particularly high tonnage ships.

Geosynthetics is another area of growth which caters to construction and infrastructure industry offering solutions such as reinforced soil structure, landfills, rockfall protection, coastal and river protection, erosion control and embankment protection etc. The segment although has huge potential is dependent upon government, construction players, industry players and local bodies for orders. So because of the current delay and lag in infra segment, while the scope and potential continues to remain strong, execution is slow.

PP and HDPE are major raw materials for the company. Price of these raw materials are determined in $ and either they are imported or bought from RIL and other local players. The net of exports and imports are fully hedged and there remains no forex open position for the company.

Company's manufacturing plants at Pune and Wai are sufficient to take care for any future growth. Only parallel lines need to be added for any future growth, which would require maximum capex of about Rs 15 crore. The plant is nearly fully depreciated.

After the buyback got over, the Promoter's have increased their equity stake to about 50.5% in the company.

Margins in the new business remain high. Management is confident of regaining the margins if not increasing from current level.

Overall, the company aims to clock turnover of about Rs 1000 crore by FY'16 with Agriculture, Aquaculture and Sports being main drivers of growth.