Prima Plastics is one of the largest plastic moulded furniture manufacturers in India with a market share of around 6%. The company exports to countries in Africa, Americas, and the Middle East. It has two manufacturing plants in India and a 50% joint venture in Cameroon, Africa. Prima Plastics is expanding its manufacturing capacity in India and Africa to meet growing demand. The company is also exploring setting up a new joint venture in Central America to expand its international reach. In the past, Prima Plastics diversified into aluminum composite panels but later closed this division due to challenges.
Pidilite Industries | Company AnalysisRohan Bharaj
This presentation gives a in-depth analysis (PESTLE, SWOT, Competition, Market, Industry) of Pidilite Industries and what strategy they should adopt for sustainable growth.
Pidilite Industries | Company AnalysisRohan Bharaj
This presentation gives a in-depth analysis (PESTLE, SWOT, Competition, Market, Industry) of Pidilite Industries and what strategy they should adopt for sustainable growth.
MRF Tyres Strategy Analysis
The company, MRF Ltd., originally started as a small manufacturing unit of balloons, latex cast squeaking toys and industrial gloves.
A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).
The company established its first office in 1949 at Chennai
It began the manufacturing of tyres in 1961.
Market Research Report : Tire industry in india 2014 - SampleNetscribes, Inc.
For the complete report, get in touch with us at: info@netscribes.com
Abstract:
Netscribes’ latest market research report titled Tire Industry in India 2014 captures the overall domestic tire market. The tire industry comprises pneumatic, semi pneumatic, retreads, solid and cushion tyres. Globally, the industry is expected to grow at a steady pace due to the rising automobile demand from all regions especially Asia Pacific. Indian tire industry is also registering steady growth with the passenger car segment having the highest market share. Demand from replacement tire market along with rising automobile sales have provided a boost to the tire industry, which further stimulates the demand for tires across all vehicle segments. Sufficient scope in radial tire market, increasing exports and rising investment in road construction together comprise some of the key factors propelling the tire industry.
However, the industry also has to contend with several bottlenecks. Price volatility and absence of some key raw materials along with inappropriate duty structure of natural rubber pose a hindrance to the growth of the industry. Retreaded and tubeless tires as well as green tires are slowly gaining prominence. Players are also focusing on increasing capacity for manufacturing radial tires. Indian tire industry is poised to grow over the coming years along with the steady economic growth of the country.
Coverage
• Overview of global tire industry with currentand forecast values over 2013 to 2018
• Overview of Indian tire industry with current and forecast values over FY 2013 to FY 2018
• Market Segmentation of the Indian tire industry
• Export – Import Scenario of tire industry including the major exporters and importers
• Qualitative analysis of market drivers, challenges andemerging trends in the industry
• Analysis of the competitive landscape and detailed profiles of major players
• Major opportunity areas for the development of the tire industry
Table of Contents:
Slide 1: Executive Summary
Macroeconomic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2011-12– 2014-15), Inflation Rate: Monthly (Jul 2013 – Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly(Apr 2014 – Sep 2014)
Slide 4: Lending Rate: Annual (2011-12 – 2014-15), Trade Balance: Annual(2010-11– 2013-14), FDI: Annual (2009-10 – 2012-13)
Introduction
Slide 5: Tire Industry – Classification based on Vehicles
Slide 6: Tire Industry – Classification based on Manufacturing Process
Slide 7: Tire Industry – Classification based on Structure
Market Overview
Slide 8: Global Tire Industry – Market Overview, Market Size and Growth (Value-Wise; 2013 – 2018e)
Slide 9: Global Tire Industry – Market Segmentation, Market Size and Growth (Volume-Wise; 2013 – 2018e)
Slide 10: Indian Tire Industry – Market Overview, Market Size & Growth (Value-Wise; FY 2013 – FY 2018e)
MRF Tyres Strategy Analysis
The company, MRF Ltd., originally started as a small manufacturing unit of balloons, latex cast squeaking toys and industrial gloves.
A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).
The company established its first office in 1949 at Chennai
It began the manufacturing of tyres in 1961.
Market Research Report : Tire industry in india 2014 - SampleNetscribes, Inc.
For the complete report, get in touch with us at: info@netscribes.com
Abstract:
Netscribes’ latest market research report titled Tire Industry in India 2014 captures the overall domestic tire market. The tire industry comprises pneumatic, semi pneumatic, retreads, solid and cushion tyres. Globally, the industry is expected to grow at a steady pace due to the rising automobile demand from all regions especially Asia Pacific. Indian tire industry is also registering steady growth with the passenger car segment having the highest market share. Demand from replacement tire market along with rising automobile sales have provided a boost to the tire industry, which further stimulates the demand for tires across all vehicle segments. Sufficient scope in radial tire market, increasing exports and rising investment in road construction together comprise some of the key factors propelling the tire industry.
However, the industry also has to contend with several bottlenecks. Price volatility and absence of some key raw materials along with inappropriate duty structure of natural rubber pose a hindrance to the growth of the industry. Retreaded and tubeless tires as well as green tires are slowly gaining prominence. Players are also focusing on increasing capacity for manufacturing radial tires. Indian tire industry is poised to grow over the coming years along with the steady economic growth of the country.
Coverage
• Overview of global tire industry with currentand forecast values over 2013 to 2018
• Overview of Indian tire industry with current and forecast values over FY 2013 to FY 2018
• Market Segmentation of the Indian tire industry
• Export – Import Scenario of tire industry including the major exporters and importers
• Qualitative analysis of market drivers, challenges andemerging trends in the industry
• Analysis of the competitive landscape and detailed profiles of major players
• Major opportunity areas for the development of the tire industry
Table of Contents:
Slide 1: Executive Summary
Macroeconomic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2011-12– 2014-15), Inflation Rate: Monthly (Jul 2013 – Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly(Apr 2014 – Sep 2014)
Slide 4: Lending Rate: Annual (2011-12 – 2014-15), Trade Balance: Annual(2010-11– 2013-14), FDI: Annual (2009-10 – 2012-13)
Introduction
Slide 5: Tire Industry – Classification based on Vehicles
Slide 6: Tire Industry – Classification based on Manufacturing Process
Slide 7: Tire Industry – Classification based on Structure
Market Overview
Slide 8: Global Tire Industry – Market Overview, Market Size and Growth (Value-Wise; 2013 – 2018e)
Slide 9: Global Tire Industry – Market Segmentation, Market Size and Growth (Volume-Wise; 2013 – 2018e)
Slide 10: Indian Tire Industry – Market Overview, Market Size & Growth (Value-Wise; FY 2013 – FY 2018e)
Prima Plastics, as the name suggests manufactures plastic moulded furniture (PMF). The company manufactures products ranging from chairs, baby chairs, dining tables, stools, teapoys, material handling products etc and competes with the likes of Nilkamal, Wimplast, and several unorganized players.
Till recently the company also had another business line of Aluminum Composite Panels (ACP), however the same was consistently reporting losses and in FY 15 the management
decided to close the same.
The company sells its products through a network of ~200 distributors and over 2000 dealers across India and operates manufacturing facilities in Daman and in Kerala. Besides
domestic sales, company also exports its products mainly to Africa, Middle-East and Central America.
Further, Prima Plastics also has a 50:50 joint venture (JV) in Cameroon, Africa by the name of Prima Dee-lite Plastics and the same manufactures PMF and HDPE Woven Sack Bags
for sale in Cameroon.
Insights Success has shortlisted “The 10 Most Admired Companies in Plastic Industry”, we have presented the prominent companies who have accomplished a remarkable position in the era of plastic industry with their unique products and services.
Gabriel strategy report sp jain school of global managementedwin john
The report is part of a global immersion project included in the MBA course at SP Jain School of Global Management. The Objective of the project was to support a current organisation in expanding its business globally by leveraging unique business expansion strategies.
Outlook and emerging trends in flexible packaging industryUflex Ltd.
The latest evolution in the packaging industry, Flexible Packaging has gained popularity worldwide for its benefits over rigid packaging. With benefits such as functional convenience in handling & transportation, cost effectiveness and brand protection from counterfeiting, flexible packaging industry worldwide is led by a strong growth.
AG Poly Pack project report including company profile, swot analysis, pest analysis, competitors and survey based on customer feedback through questionnaire.
This report attempts to provide reader an overview of the Indian plastic processing industry, its growth prospects, challenges faced and emerging applications of plastics in the market. We also highlight select strategic initiatives to bring about a rapid development of this industry.
The Indian Plastic Industry gained momentum in early 1990's when the economy opened up with liberal industrial policies. Further impetus was added with investments in raw material production from mid 1990's onward. This further fueled investments in plastic processing industry as well as downstream machinery sector.
With the current government's Make In India campaign, the plastics processing industry
can be benefited by presence of global businesses in this domain. There is tremendous scope for growth of this sector in the years to come.
Rudra Shares International Paper Ltd.- Short Term Call Research ReportAnkurShah108
The best stock broker and share broker in India, Rudra Shares & Stock Brokers is member of all the leading Equity & commodity exchanges in india, dealing in stocks, shares, commodity & currency serving clientele in 18 states through 175 business partners.
This report provides an overview of the Indian plastic industry, its past growth, challenges faced, emerging applications and its future growth prospects. The focus of the report is on agriculture (Plasticulture) and Packaging plastic applications. It also highlights the role northern states of India are expected to play as the demand for plastics is expected to double by 2020.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
3. HIDDEN GEMS – MAY 2016
- 3 - SARAL GYAN CAPITAL SERVICES
1. Company Background
Incorporated in 1993, Prima Plastic is one of
the largest player in the Plastic Moulded
Furniture (PMF) industry in India. Company
designs and manufactures plastic moulded
furniture from chairs, baby chairs, dinning
tables, stools and teapoys in a wide range of attractive colors.
Prima Plastics has consistently increased its market share over the last few years and has
consolidated its position as a brand leader in the garden & leisure furniture industry
through careful product development and planned marketing. Company’s state of the art
manufacturing process with virgin compounds made as per specifications ensures
production of high quality and totally weather proof furniture.
The company has received Top Exporter Awards by PLEXCONCIL India in the Moulded
Furniture Category for many years in a row since 1996. Company exports to USA, Africa
and the Middle East.
Prima Plastics is the third largest player in the plastic furniture segment after Nilkamal
and Wim Plast with a value market share of ~6%, it has a presence across India with
network of 275 distributors and over 5000 dealers. The company sells its products in the
northern and eastern markets through the outsourcing model.
Manufacturing plants of the company are in Daman and Kerala in India and in Cameroon,
Africa. During FY06, the company formed a 50% Joint Venture - Prima Deelite Plastics in
Cameroon (Africa), it manufactures PMF and HDPE Woven Sack Bags. The company
started this JV with an investment of Rs 1 crore (Prima’s share) in 2006. Since then there
has been no further investment. This JV is performing extremely well and registered
healthy financial performance in both the businesses of Plastic Articles and Woven Sack
Bags.
To continue growth momentum, Prima Plastics is expanding its capacity under ongoing
expansion in India and Africa. Prima Plastics is setting up new capacity at Andhra Pradesh,
which is expected to be operational by mid of this year. Moreover, ongoing expansion of
African JV is also expected to get completed which will almost double its capacity.
4. HIDDEN GEMS – MAY 2016
- 4 - SARAL GYAN CAPITAL SERVICES
Plastic Consumption & Growth Outlook in India & African Countries
Plastic industry is making significant contribution to the economic development and
growth of various key sectors in the country such as: Automotive, Construction,
Electronics, Healthcare, Textiles, FMCG, etc. It has expanded at 11% CAGR over the last
five years to reach 12.2 million tonnes per annum in FY14.
Since plastic products permeate the entire spectrum of daily use items and cover almost
every sphere of life like clothing, housing, construction, furniture, automobiles,
household items, agriculture, horticulture, irrigation, packaging, medical appliances,
electronics and electrical etc.
Referring to report issued by
Tata Strategic, India’s per
capita consumption of
plastic products is ~10 kg
against 32 kg in Brazil, 45 kg
in China, 65 kg in Europe and
109 kg in US. Current low per
capita consumption level of
plastic products in India as
compared to developed
countries indicates that India
offers a huge opportunity
over long term.
Additionally, rising thrust on 100 smart cities will further propel the growth of plastic
industry. Considering the critical elements of any smart cities such as water management,
infrastructure, waste management, etc. the usage of plastics can bring efficiency in all
such fields and can therefore, make the smart cities more sustainable and cost effective.
Packaging industry in India has seen a strong penetration of plastics as compared to global
standards. However, agriculture sector still hasn't explored the benefits of plastics to a
large extent. Global average for plastics demand in agriculture is 8% while India is
substantially lower at only 2%.
Plastics industry is one of the fastest growing industries in India. Compared to the overall
plastic industry which is growing at 11%, the major thermoplastics like PE, PP, PVC, PS
have grown at 8% per annum over the last five years to reach 8.7 MnTPA (million tonnes
per annum) in FY14 from 6 MnTPA in FY09.
Polyethylene (PE) is the most largely used plastic raw-material by Indian industry. Its
demand has grown at 8% per annum in last 5 years to reach 3.6 MnTPA in FY14. Polyvinyl
Chloride (PVC) is the second largest with the consumption growing from 1.4 MnTPA in
FY09 to 2.6 MnTPA in FY14 at growth rate of 13% p.a.
5. HIDDEN GEMS – MAY 2016
- 5 - SARAL GYAN CAPITAL SERVICES
Commodity plastics comprising of Polyethylene (PE), Polypropylene (PP), Polyvinyl
Chloride (PVC) and Polystyrene account for bulk of the plastic consumption in India.
Polyethylene (PE), accounts for the largest share i.e., 41% of total consumption, while PP
accounts for 25% of total consumption. Others include EPS and PVC compounds.
To manufacture finished products, polymers are processed through various types of
techniques namely extrusion, injection moulding, blow moulding and roto moulding.
Extrusion process is the most commonly used process in India and accounts for 60% of
total consumption by downstream plastic processing industries. Injection moulding is the
second most popular process accounting for 25% of the consumption. Blow moulding is
used for 6% while Roto moulding 1%. The rest of the plastic is processed through other
processes.
India is a growing market for plastics and consumes about 12.8 million tonnes of plastics
annually against the global consumption of 285 million tonnes per year.
The plastics and polymer consumption is growing at an average rate of 10 percent and
expected to grow at higher pace during next 5 years. There are several factors like low
per-capita consumption, manufacturing focus, end use industry growth, availability of
feedstock, increasing urbanization, changing lifestyle, demographic dividend etc.
promoting growth of plastic across India.
Economy of Africa have experienced strong growth in past and is one of the fastest
growing market for plastic products. As per industry reports, the use of plastics in Africa
has grown at a compounded average growth rate (CAGR) of approximately 8.7% during
the past six years. Imports of plastics into Africa have grown between 23% and 41% during
this time. The use of plastics in East Africa is expected to grow by 3 times in the next five
years which indicates potential for strong growth in coming years.
Plastic consumption in many countries of Africa is significantly low and offer good long
term growth opportunity. A growing economy with population of over 680 million and
robust demand for plastic products has made Africa a priority market for many
international companies.
6. HIDDEN GEMS – MAY 2016
- 6 - SARAL GYAN CAPITAL SERVICES
2. Recent Developments
i) Expanding Reach through Joint Venture in Other Countries - Jun 2016
With success of Cameroon JV and experience of exporting to other African and Central
American nations, Prima plastics is exploring the opportunity to set up manufacturing unit
in the Central American market via JV route to expand its geographic reach. The objective
is to increase the presence in the neighboring countries by putting up manufacturing unit
by end of current calendar year.
As per the management, they are at the preliminary stage with local player to establish a
new entity. The targeted capacity is likely to be 1500MT with an investment of Rs. 10-12
crores. The management seems positive on this development and plans to fund this
expansion largely through internal accruals. The moulded plastic furniture industry is
growing at a faster pace in the Central American market and offers good long term
business opportunity for international players.
ii) Capacity Expansion in India & Cameroon (Africa) JV – Jan 2016
Under ongoing expansion, company is putting up a 1500MT moulded furniture plant at
Andhra Pradesh with a capex of Rs. 5-6 crores. The new plant will add 15% to Indian
capacity with an additional revenue potential of Rs. 15 to 20 crores. As per management,
new plant would be operational by July 2016. With additional capacity in place, the
company is also increasing distributors in south to grab market share in southern market.
Considering strong demand and robust growth outlook, Prima Plastics has also taken up
capacity expansion at its Cameroon JV which will almost double its capacity.
iii) Close down of ACP (Aluminium Composite Panel) Division – Jan 2015
Company diversified into manufacturing of high quality PVDF coating Aluminium
Composite Panel with the brand name called “ALUMA” with annually installed capacity
to produce 1.2 million sq. mts in various sizes. Aluminium composite panel (ACP) which
are used in making building’s exteriors and interiors.
The ACP division was started during construction boom to cater commercial real estate
segment. However, ACP division faced severe challenges due to a slowdown in demand
for aluminium panels and higher input cost, which caused the company to incur
continuous losses in FY10-14.
Later in Jan 2015, management decided to shut down its ACP division and sold off the
core plant of ACP Division. The land, building & other machinery were retained to
accommodate additional requirement of factory space of plastic division and also to
expand plastic business.
7. HIDDEN GEMS – MAY 2016
- 7 - SARAL GYAN CAPITAL SERVICES
3. Financial Performance
Prima Plastics standalone net profit rises 135.86% in the March 2016 quarter
Net profit of Prima Plastics rose 135.86% to Rs 4.05 crore in the quarter ended March
2016 as against Rs 1.72 crore during the previous quarter ended March 2015. Sales rose
7.03% to Rs 27.41 crore in the quarter ended March 2016 as against Rs 25.72 crore during
the previous quarter ended March 2015.
On consolidated basis including Cameroon JV Operation, Prima Plastics has reported
growth of 83.4% at Rs 12.3 crore in FY16, while its revenue has grown by 9.32% at Rs
129.2 crore. Its consolidated operating profit (EBITDA) has grown by 43.78% at Rs 19.84
crore along with operating profit margin expanding by 368 bps for FY16 at 15.36%.
Prima Plastics standalone net profit rises 328.17% in the December 2015 quarter
Net profit of Prima Plastics rose 328.17% to Rs 3.04 crore in the quarter ended December
2015 as against Rs 0.71 crore during the previous quarter ended December 2014. Sales
rose 39.60% to Rs 28.94 crore in the quarter ended December 2015 as against Rs 20.73
crore during the previous quarter ended December 2014.
1 2 3 4 5 6
Total Sales 20.73 25.72 19.11 18.57 28.94 27.41
Net Profit 0.71 1.72 1.03 1.51 3.04 4.05
20.73
25.72
19.11 18.57
28.94
27.41
0.71
1.72 1.03 1.51
3.04
4.05
0
5
10
15
20
25
30
35
RsinCrores
Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16
Last 6 Quarters Net Sales & Profit
8. HIDDEN GEMS – MAY 2016
- 8 - SARAL GYAN CAPITAL SERVICES
Current & Expected Earnings
Quarterly Ended Profit & Loss Account (Standalone)
Above quarterly results are on standalone basis and does not include Cameroon JV
financials. Consolidated results are submitted by the company on yearly basis.
We expect company will deliver consolidated revenue CAGR of 20% in the next 3 years
with further improvement in operating margins due to higher contribution from Joint
Ventures. As company is expanding its capacity in India and Cameroon JV, we believe
company will continue to post decent growth in sales and profits in coming quarters.
Particulars
(Rs in Crores)
Jun
2015
Sep
2015
Dec
2015
Mar
2016
Jun
2016 E
Sep
2016 E
Audited / UnAudited UA UA UA UA UA UA
Net Sales 19.11 18.15 28.88 26.98 23.17 24.07
Other Operating Income -- 0.42 0.07 0.42 0.51 0.11
Total Income – Operations 19.11 18.57 28.94 27.41 23.68 24.18
Raw Materials Consumed 12.45 10.59 14.29 13.19 13.71 13.99
Purchase of Traded Goods 0.61 0.41 0.6 0.68 0.67 0.55
Increase/Decrease in Stocks -0.46 0.47 1.35 2.37 0.45 0.48
Power & Fuel -- -- -- -- -- --
Employees Cost 1.17 1.35 1.37 1.44 1.49 1.55
Depreciation 0.24 0.22 0.23 1.08 1.18 1.29
Provisions And Contingencies -- -- -- -- -- --
Other Expenses 4.09 3.91 7.63 6.27 4.54 4.39
P/L Before Other Income 1.02 1.61 3.49 2.37 1.64 1.93
Other Income 0.33 0.33 0.56 2.59 0.35 0.45
P/L Before Int., E. Items & Tax 1.35 1.94 4.05 4.97 1.99 2.38
Interest 0.08 0.04 0.07 0.06 0.06 0.05
P/L Before E. Items & Tax 1.27 1.89 3.97 4.9 1.93 2.33
Exceptional Items -- -- -- -- -- --
P/L Before Tax 1.27 1.89 3.97 4.9 1.93 2.33
Tax 0.24 0.38 0.94 0.85 0.39 0.51
P/L After Tax – Ord. Activities 1.03 1.51 3.04 4.05 1.54 1.82
Prior Year Adjustments -- -- -- -- -- --
Extra Ordinary Items -- -- -- -- -- --
Net Profit/(Loss) 1.03 1.51 3.04 4.05 1.54 1.82
Equity Share Capital 11 11 11 11 11 11
Calculated EPS 0.93 1.37 2.76 3.68 1.40 1.65
Calculated EPS (Annualised) 3.72 5.48 11.04 14.72 5.60 6.62
Public Shares Holding (Crores) 0.45 0.45 0.45 0.45 NA NA
Public Share Holding (%) 41.15 41.15 41.15 41.15 NA NA
9. HIDDEN GEMS – MAY 2016
- 9 - SARAL GYAN CAPITAL SERVICES
4. Peer Group Comparison
PEER GROUP PRIMA PLASTICS WIMPLAST NILKAMAL
CMP 152.30 1903.45 1192.05
52 W L/H 50.00/171.90 1551.00/2499.00 484.00/1561.95
Market Cap 167.54 1142.39 1778.84
Results (in Crores) Mar-16 Mar-16 Mar-16
Net Sales 26.98 99.65 500.00
PAT 4.05 15.89 32.65
Equity 11.00 6.00 14.92
EPS (TTM) 11.16 75.22 75.94
P/E 13.65 25.31 15.70
On valuation parameters, Prima Plastics is trading at significant discount compared to
other listed players in the Industry. Moreover, important financials like OPM (operating
profit margin) and ROE (return on equity) of Prima Plastics is much better compared to
bigger player like Nilkamal Ltd.
5. Key Concerns / Risks
i) Rise in Crude Oil Prices - The rise in prices of crude and similar impact on its bye products
will remain a concern for the Moulded Furniture business being its major input material.
ii) Competition from New Entrants – Plastic Moulded Furniture industry in past has
witnessed many new entrants with low capital base to serve the local market. The new
players are prune to un-ethical practices, such players will impact local market in their
area by offering low quality products at cheap rates.
ii) Delay in GST Implementation – The introduction of GST is expected in a short span and
will integrate the country’s economy into one and provide level playing in every part of
the country. This is expected to boost the growth of Prima Plastics business at pan India
level. However, any delay in implementation of GST could impact Prima Plastics revenue
growth at pan India level as it would be difficult for company to gain market share in
domestic market.
10. HIDDEN GEMS – MAY 2016
- 10 - SARAL GYAN CAPITAL SERVICES
6. Saral Gyan Recommendation
The Per capita income of middle & lower middle class are rising in India and people
living in rural India are also prospering due to higher value of their agriculture produce
& agriculture lands. The per capita consumption of plastic is increasing in India but
still very low when compared to western countries. Plastic moulded furniture is
replacing conventional furniture made of woods and steel due to its various inherent
advantages. Prima Plastics is well placed to take advantage of the sustained growth in
PMF industry in India, the company is focusing to further penetrate in new territories
of southern market with capacity expansion in Andhra Pradesh.
The company’s key markets for international business are Africa, Middle East and
Latin America. The export products are well established in the international market,
the growth in export is very impressive as the company continue to receive repeated
orders from its existing clients. Also, the Joint Venture Company at Cameroon is
performing reasonably well and registered higher sales and profitability in both the
businesses of Plastic Articles and Woven sack Bags. With ongoing expansion in African
JV and expected entry into Latin America market via JV route in near term, we expect
company to register much higher sales and profitability during next couple of years.
As the company was unable to turn around its loss making ACP division, management
decided to close down its ACP business in FY14-15 which was incurring losses since
last many years. Company sold off the core plant of ACP division in Jan 2015. However,
the land, building & other machinery were retained to accommodate additional
requirement of factory space of plastic division and also to expand plastic business.
This was a good move as management decided to focus completely on its core
business i.e. plastic division which is doing well rather than putting continuous efforts
to revive its ACP division. Moreover, it helped the company to strengthen its balance
sheet with better financial performance and cash flow generation.
Company has registered sales CAGR of 15.76% and profit CAGR of 10.09% during last
5 years with ROE of 11.46%. In last 5 years, the ROE (return on equity) looks low at 7-
16%, however the numbers were low as the ACP division delivered negative returns
on capital employed. If we consider only PMF business, return ratios have improved
to above 20% since the last 2 years. Company is debt free with strong balance sheet,
working capital days also reduced from average of 125 days in past to nearly 100 days
which is another positive.
Key Financial Parameters Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015
Return on Equity (%) 6.94 9.71 12.82 16.05 12.04
ROCE (%) 7.48 9.54 12.07 14.98 11.92
Operating Profit Margin (%) 9.75 10.53 7.07 14.15 11.68
Net Profit Margin (%) 4.08 5.79 6.52 7.78 5.54
Debt to Equity (%) 0.12 0.29 0.17 0.21 0.06
Working Capital Days 124 132 100 101 104
11. HIDDEN GEMS – MAY 2016
- 11 - SARAL GYAN CAPITAL SERVICES
As of Mar’16, promoter’s shareholding in the company is at 58.85% which is constant
without any changes since last 4 years without pledging any shares. Institution
shareholding is negligible at 0.03%. Considering recent expansion, debt free status
and robust demand outlook for PMF Industry, we expect company will continue to
grow its sales and profitability, which can bring institutional investment and there
could be re-rating in the valuations of the stock in long term.
Management has rewarded shareholders by paying regular dividend since last 8 years.
The company paid dividend of Rs. 1 per share from FY10-14 and later increased the
dividend to Rs. 1.50 per share in FY14-15 with increasing profitability. As the company
is debt free and plans majority of capacity expansion through internal accruals, we
find dividend policy suitable in terms of sharing profit with minority shareholders and
retaining the balance for future growth.
YEAR Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
EPS 2.60 3.41 4.62 6.91 6.09
Dividend / Share (In Rs) 1.00 1.00 1.00 1.00 1.50
As per our estimates, Prima Plastics can deliver PAT of 15.50 crores for full financial
year 2016-17, annualized EPS of Rs 14.1 with forward P/E ratio of 10.8X for FY16-17.
Company’s valuation looks discounted compared to peer group companies on
account of better financials. With ongoing expansion in India & Cameroon JV and
robust demand outlook in domestic as well as African markets, we believe company
will continue to deliver strong revenue growth and profitability going forward.
On equity of Rs. 11.00 crore, the estimated annualized EPS for FY 16-17 works out to
Rs. 14.1 and the Book Value per share is Rs. 58.48. At current market price of Rs.
152.30, stock price to book value is 2.60.
Considering improvement in financials with better operating margins and debt free status
post closure of ACP division, high earning visibility with capacity expansion in India and
Cameroon JV with robust demand outlook for PMF products and expanding reach into
Latin American market via JV route, Saral Gyan team recommends “Buy” on Prima
Plastics Ltd at current market price of Rs. 152.30 for target of Rs. 290 over a period of 12
to 24 months.
Buying Strategy:
80% at current market price of 152.30
20% at price range of 130 - 135 (in case of correction in stock price in near term)
Portfolio Allocation: 3% of your equity portfolio.