Any reason why the stock is falling particularly?
One more point , They have spent 60 cr but nothing suggested in balance sheet. Asset is more or less same from few years. Why not reflected in balance sheet? Anyone has any clue ?
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https://www.bseindia.com/xml-data/corpfiling/AttachLive/f9d76005-fd3e-4954-9a18-9f08e6f43261.pdf
Results declared. continued growth and the commentary by management seems to be positive. Company has kick off marketing for newly commissioned Polyacrylamide liquid and solid. Trial runs have been going on which according to management has been successful so far.
Interesting update on Corona virus provided by company is that because of virus break out, price of the key raw material has been falling down and price of acrylamide powder which is only manufactured in China has been going up. This could be positive for the company however it might be temporary. New capacities of Polyacrylamide solid and liquid can be the growth driver for company in near future.
Disc.
Invested
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agreed. not visible in the H1’20 cash flow statement as well.
Anyone has any idea from where BlackRose gets its Raw material (Acrylonitrile) from? and where does it sell the final products (Polyacrylamide)
Please see page 4 of the linked report, it says it gets raw material from reliance and other international manufacturers. It’s probably derived from petrochemical so probably Middle East (I am guessing)
http://breport.myiris.com/SKPSEC/ASIFAB_20150604.pdf
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Extremely informative presentation by the company. Structured thought process of Mr. Anup Jatia Corporate Presentation.pdf (1.8 MB)
Disc. Invested
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Does anyone have any idea about SNF’s upcoming capacity for Acrylamide and PAM? Last I read they were in process to get Environmental Clearance.
@Pratik_Patel9 , i got this news link, which may be useful to you and all.
https://www.projectstoday.com/News/SNF-Flopam-Indias-Varsana-project-ready-by-March-2020
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@salonihemnani011 I fully agree with you and also good to see the company probably for the first time have come up with an investor presentation, which will help all the stakeholders as to where the business is headed.
As i looked at the presentation; and apart from their main trading business, if we talk about their Indian manufacturing operations; my views are;
- Acrylamide is operating at 90% capacity utilization, but there are many domestic and global players for the product, so there is a competition. However, thanks to their internal consumption for the manufacture of polyacrylamide.
- As regards to Polyacrylamide liquid, also has a lot of domestic and global players. So the competition may be stiff.
- Polyacrylamide solids looks a potential opportunity, where it has no competitor in India, South Asia, middle east or Africa. Whilst it will have first mover advantage for this product, i fail to understand why they planned only a small 10000 MTPA capacity (still under commissioning) versus domestic demand is 100000 MTPA?
Does anyone has any thoughts for point 3?
Acrylamide’s production can only be done from the technology licence granted by either Mitsui chemicals or Mitsubishi chemicals … blackrose has exclusive rights in India from mitsui and snf has from Mitsubishi…Majority of snf’s acrylamide is captively consumed, so there are not too many players. The company is trying to inculcate Indian players to consume acrylamide in liquid form since it is not contaminated as it is in powder form and is economical.
As mentioned in the presentation, market for water treatment is 10,000 MT and 90,000 MT for oil field in polyacrylamide solids. The company mentioned in the last agm that it was focusing more on the water treatment side to cater rather than the oilfield for now.
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SNF’s current production might be used for captive productions currently but dont you think the huge capacity of acrylamide and PAM coming online will be negative for Blackrose?
400 crore project started building in August 2019 and going live in 6 months, ha
Is there any other source of information as it looks a bit unbelievable to me
All of their production is for captive consumption as their site does not offer it for sale
So if snf doesn’t buy from market, the rest of the companies are going to source from where exactly ?
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@salonihemnani011; It made no sense to me that the company decided to focus only in water treatment demand which is 10% of the total domestic demand and leaving out 90% market opportunity in oilfield demand. Which business would think that is wise; that to in the absence of no other manufacturer in India for Polyacrylamide solids ?? And how does it matter for Black rose as a manufacturer and supplier of Polyacrylamide solids, unless they believe oil field product is completely different and difficult for Black rose to produce. Just my views.
So targetting a market that has demand of 100k with a capacity of 10k, the 10k which is more than double the current revenue is not prudent !
Why not make one computer for all, instead of having a laptop, pc, server, etc etc. Ideally it’s a good thought but markets don’t operate like that
@edwardlobo; what makes you not to believe ? I tried to google their plant location and here below the picture i found. It looks a massive facility in terms of size.
Exactly that
The size of construction unless they started it much earlier and is part of a lot of other products
A small bridge takes 2 years
Of course, it is a risk in terms of pricing, given SNF’s size. However, it looks like the market size of 1 lakh tonnes and 1.2 lakh tonnes seems to cover poly solids and liquids for these players. In acrylamide, the company seems to be exporting 45% of its production, so I don’t know if there is a material risk on acrylamide side.
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Poly solids required in oilfield is a volume driven segment with upstream oil companies having a lot of bargaining power. Like for example, Cairn a while ago gave an Expression of Interest (EoI) for partially hydrolyzed polyacrylamide (PAM) in powder form to bidders with at least 40,000 MT capacity. At present, the company is starting off with a smaller capacity and is focusing on markets like water treatment where entire 10,000 MT is imported with no player to cater to it.
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