Key highlights

Of the total 27% net sales growth for FY'14, about 60-65% was volume growth and the rest was value growth. Sales of ATBS grew by 30% YoY, Isobutene was up by 50%, IBB was up by 20%.

The company is the largest producer of ATBS. ATBS is a specialty monomer. Company has a market share of about 45% and the rest market is dominated by a Japanese and a US company. About 30-35% of total sale for ATBS would be to oil and gas industry, in which management expects a multifold growth to happen. As per management, demand for ATBS worldwide is expected to remain strong due to development of enhanced oil recovery polymers.

ATBS is predominately used in oil & gas industry, paints, cosmetics, water treatment, textiles, personal care, paper, mining etc.

Capex for next 18 months is expected to be about Rs 150 crore of which about Rs 100 crore will be spent on de bottlenecking of existing facility and on new products which are derivatives of the existing product and rest will be on cogeneration power plant. The capex of about Rs 100 crore has a potential to generate additional revenue of about Rs 200 crore in next 3 years.

The entire capex will be funded through internal accruals.

For FY'15, management expects the company to register net sales growth of 20% YoY with stable margin at operating level.