Look it up in Alibaba for the wholesale price. Most of the Chinese suppliers sell a pair for $0.50 to $10. That’s roughly 34rs to 670rs.
I took the higher range since the quality of lenses produced by Aksh are A grade (as per the corporate presentation and AR2017).
According to the corporate presentation, 95% of the Indian demand is met by Chinese imports. China exports AB, B grade lenses to Indian market.
Aksh’s plan is to shift Indian market to A grade lens at competitive price.
Indian Optical lens market is estimated at 7 lac lens pair per day with no significant organized player in Indian market.
That’s 25.5cr pairs per year. Aksh’s plan is to start with 2.5cr pairs per annum. Roughly 10% of the Indian demand.
Not sure about the competitors. I also see a lot of unorganized players. Even according to Aksh’s AR2017 and corporate presentation, the demand is mostly met by unorganized players and Chinese imports.
Bhiwadi, India - 3Mn FKM
Jafza, Dubai - 4Mn FKM (commissioned in Feb 2018) will reflect in Q4 results.
Total OF capacity = 7 Mn FKM vs 15Mn FKM of Sterlite Tech.
Total number of shares outstanding of Aksh is 16.26cr, whereas for Sterlite, it’s 39.83cr.
So, 7 Mn FKM of Aksh is equivalent to 17.5 Mn FKM (vs 15 Mn FKM of Sterlite) if you take Sterlite’s total no. of shares outstanding.
Bhiwadi, India - 9Mn FKM
Silvassa, India - 1 Mn FKM (should have been commissioned in April 2018 according to Q3 press release)
Mauritius - 0.7 FKM (April 2018)
Total OFC capacity = 10.7 Mn FKM vs 30 Mn FKM of Sterlite Tech.
So, 10.7 Mn FKM of Aksh is equivalent to 26.25 Mn FKM (vs 30 Mn FKM of Sterlite) if you take Sterlite’s total number of shares outstanding.
Jafza, Dubai - 1.4 Mn FKM
Silvassa, India - 0.4 Mn FKM
Reengus India - 2 Mn FKM
Jiangsu, China - 0.4 Mn FKM (April 2018)
Total FRP capacity = 4.2 Mn FKM
Margins from FRP is much higher than margins from OF and OFC.
No, it’s not only due to technical indicators. You can see that huge additional capacity coming online in Q4 and in Q12019. Plus entering into new line of business (Ophthalmic lens). So, it’s fundamental development as well.
Disc: Invested in Aksh and waiting for Sterlite to reach my buying range.