Nice video. A little old but answers a lot of questions. Their main focus is to move towards more specialty films. By this year end 60% specialty volumes and in less than two years targeting for 70% specialty sales volume.
On Pet Care: Repeats most of the things mentioned in presentation about pet care.
- A business idea that solves a problem faced by 20% of India’s population
- One of fastest growing industry in India ~ 20-22% growth YoY. With rise of disposable income and nuclear families, pet adoption is going to increase.
- Pet population in India one third of US pet population, but the industry size is one thirtieth part of US markets. So early mover advantage.
- Will be a B2C technology portal/platform which will provide services and sale of products to pet owners and will also provide answers to questions like where to adopt, which breed to go for, right food for pets, vaccination, grooming services etc.
- Is part of Cosmo films because it is comparatively tax efficient and plan to hive off this into a separate entity in next 2-3 years.
- Also answers a question on pet care that not much capex/opex for pet care. At best 100 cr in 4-5 years. Then it becomes self sustainable and starts making money. It’s more of brand building in that business rather than opex/capex.
- Appointed a business head for pet care business. Form this link, Mr. Ambarish Sikarwar seems to be heading pet care.
There is question about too much diversification like in specialty chemicals and pet care to which he says we are appointing business heads for all verticals. Also question about why pet care as it is completely different from current business. But other than saying huge opportunity and growth he doesn’t provide any concrete answers to why pet care business.
Disc - Invested from lower levels. I am not a SEBI register advisor. The above note is not an investment advice but an educational post to discuss a business model.