Garware Hi-tech films (Earlier Garware polyester)

[Debojit_Kangsa_Banik]

Adding to this:

Did a perplexity deep research on this, below is the generated explanation

----- Start of AI content -------

Target Demographics: High-End Vehicle Owners

Based on the available market research, PPF products in the US are predominantly targeted toward and adopted by owners of high-end luxury vehicles rather than middle-class consumers.

Luxury Vehicle Focus

PPF is marketed primarily as “a must-have for your high-end, luxury car” with emphasis on its ability to preserve significant automotive investments3. Industry messaging clearly positions PPF as essential for vehicles priced over $50,000, suggesting that "not investing in PPF particularly those spending over $50,000, would be a grave oversight"3.

The product’s value proposition centers on protecting substantial financial investments in premium vehicles, with marketing materials highlighting how "PPF offers high-end protection for your luxury vehicle resulting to potential buyers be impressed by the impeccable condition of your luxury car’s paintwork, resulting in higher resale prices and increased market desirability"3.

Popular Vehicle Applications

The most common vehicles receiving PPF treatments belong to luxury and premium brands, specifically:

• Porsche
• Land Rover
• Mercedes Benz
• BMW
• Tesla
• Lamborghini3

This focus on high-end vehicles suggests that PPF remains primarily a product for affluent vehicle owners rather than middle-class consumers, though the expanding market may indicate some penetration into upper-middle-class vehicle owners who view their automobiles as significant investments.

----End of AI content----

So seeing this, I feel Garware might not be affected in this front. Riches wont have such issues.

Gold card got sold out. More riches coming to US (just a joke)

If it comes to support level with the PE its trading, personally I feel will be a good buy

Disc: holding <1% of pf.

[Pratham_Kankariya]

Garware Hitech Films - Q4FY25 Business and Concall Updates

FY25

• Revenues at INR 2,109.4, 26% YoY

• EBITDA at INR 495.5 crores, up by 54% YoY

• PBT at INR 445.5 crores, up by 65% YoY

• PAT at INR 331.2 crores, up by 63% YoY

Q4

• Revenue at INR 548 Cr, 22.7 % YoY

• EBITDA at INR 121 Cr, 35% YoY

• PAT at INR 75.8 Cr, 34.6% YoY

Business Updates

• 77% revenue from exports and 88% from Value added products across both IPD and CPD.

• Cash reserves at 660 Cr.

• ROCE of 22.7% and ROE of 20.6% excluding revaluation reserve.

• Collection at 7 days.

• Share of CPD increased to 68% in FY25 up from 65% in FY24.

• Launched E-Portal for D2C PPF Sales for USA market.

• Revenues Surpassing INR 2000 Cr for the first time.

• Strong growth in SCF, PPF and stable performance in IPD division

• Introducing Garware home solutions for all residential films.

SCF

• 37.6% growth YoY, driven by new market expansion and new products (Automotive, spectrapro, decovista)

• Enhanced global presence by participating in conference, dealer network.

• Expanded reach to Middle east, Africa

• Expect continued strong demand in architectural films

PPF

• Operating at 135% Capacity Utilization

• 25% Revenue growth this year,

• Launched Color PPF last quarter. See strong potential in new products and across broader ppf range.

IPD

• 15.1% YoY

• Stable Performance

• Last quarter received patent for floatable shrink films. Share of rising Value added will offset commoditized IPD business.

• Significant growth in Europe.

Remain confident of the products due to innovation, quality.

Capex

• Work on Second PPF Line is on track and expected to commission in Oct 2025 and may even start sooner.

• TPFU is also progressing well with a capacity of 360 LSPA, expected to commence by Oct 2026.

• Peak revenue potential with 2nd line - 450 crore estimated.

• 3000 Cr at peak utilization after commencement of each line.

QnA Session

Business Guidance

FY26 - 2500 Cr Revenue

FY27 - Expect growth of 20-25% CAGR - backed by expansion, starting from September 2025 - 2nd PPF line - Infact can start from early also

Want to set up New business vertical to maintain 20-25% growth CAGR for next 5 years - but will more detail on in FY26 on New products currently in RnD.

Magin’s expect to remain 25% ± 3%

• Growth driver will be Arch SCF, secondly PPF and third as a broad - ARCH PPF like Garware Home Solutions.

• Geography wise - Automotive growth from Europe and Middle East.

TPFU capex will start contributing from oct 2026 - will be margin accretive (150 - 200 Bps on consol level) and some revenue also can be booked from that line

Business Update

• Added new resources in Europe, Middle East is shoeing good growth in Automotive and Architectural - targeting customers of our peers in Middle East.

US Strategy

• Current 48.5% of Revenues to North America.

• Around 80% of this goes to USA.

US Tarriff Impact

• In worst case scenarios, working with some players in USA to counter the impact if any. SA, ME and Europe and Africa expecting strong growth - added man power their.

• Many products are exported from US, which will be done directly from India.

• US Manufacturers like 3M imports - some of the components they import, and these will keep the cost of manufacturer of US some high and Garware will benefit big advantage of Cost due to backward integration.

• In future if problem persist, Garware will cater to USA from Mexico or Canada.

• Lots of Companies - 3M not named explicitly but they are getting backward integrated work in other countries like China and Korea and other nations.

• Trying to get market share from other players

• If current cost is considered as compared to if one is to make in US it will go up to around 30% to 40%.

PPF in USA Competition

• Only two countries are strong - Korea and China supplying PPF.

• Garware Product comes under superior range - Korea and China supply lower range products For example - Garware’s aging is 10 years and even for lifetime for some products.

• More than 50 producers in China and Korea - Garware is using Deep-dyed technology which is the major difference, others are chip in SCF.

• In PPF - Advantage is own components other than TPU.

Historical Perspective

• Prior to 2020, Garware was very well known in Automotive segments and now expanded in SCF and completed products line into Architectural films via commission of new lamination line.

• Now Surpassed the biggest seller into India, By volume become no.1 in India (3M)

• New vision is to be solution provider rather than be SCF provider like -

Garware Home Solution

• Growth from B2B to B2C and now directly to customer.

• Also doing the same for US market.

New Product Launched

• All NPD are high margin products.

• Going forward, the New line will lead to 75%-80% revenue from CPD in coming years.

• Want to divert beyond into medical, automotive and architectural for other glass applications. Currently working on Zeroing on new products in FY27 and FY28.

Cost Control

• There are components of PPF, which took us almost 1 and 1.5 years to completely integrate and that benefit is slowly coming into PPF .

GAS and Domestic Markets

• Domestic market has grown almost 50% put together both.

• Expect another 30-40% growth in Domestic markets, driven by strong brand, digital, social media campaign and other marketing initiatives like Garware Application Studio - Each GAS - doing some PPF and SCF

• Have presence in even in small cities like Jammu, lucknow, raipur etcc.

• North East region has also contributed in the growth.

• Have now 1K trained tinters in India - Trained by Garware.

Growth in Domestic Markets

25% PPF

Automotive SCF - 60%

Architectural SCF - 90% in Indian Markets.

D2C Portal in USA - Launch of Website

• Implemented 3 months bac

• In line with DIY culture in USA and this cuts down the requirement for Dealer and Distributors and may even aid margins to some extent.

Revaluation Reserve

764 Crores.

Distributor Network

• Trying to add 5 new big distributes from existing companies in USA to expand. 1 or 2 are converted.

• Will try to add - Whitebox and distributors.

UK FTA

• Increased the team.

• Seeing if any duty or taxation benefit to us.

• But UK potential market is not that great but to grow from here many new bucket addition are going like D2C.

Customer Testimonial

• Customer put Garware PPF in 2009 - he is changing the car but film is still intact - Posted on LinkedIn.

Disc - Invested and Biased

[Markmaker]

Management’s take on Tariffs and if US companies set up plants Hypothetically..

[Folok]

Here’s a summary of the striking points from the Garware’s Q4 FY25 concall and presentation (based on end to end reading of the transcript):

Revenue Mix:

1. ~26% growth y-o-y in revenues and PAT growth of 63%. 77% of revenues were from exports.

2. Growth was majorly driven by SCF and PPF which grew by 38% and 25% annually.

3. SCF growth came due to launch of new products and increased market reach.

4. The IPD division also showed a 15% growth y-o-y.

5. US consists of 50% of the Co’s business and ME and Europe are fadt growing markets.

Guidance:

1. Two expansions ongoing. First the new PPF line for Q2 FY26 and TPU extrusion for Q2 FY27.

2. 2500 Cr sales growth guided for FY26 and 20-25% for FY27. The second expansion of the TPU unit will particularly lead to margin expansion owing to full backward integration of the PPF line and strong R&D and new product launches.

3. Company expects EBITDA margin to go up to 23% from present 21%.

Business Updates

1. The mgt insisted that the Co has had very less impact of tariffs and that other countries were also levied by tariffs. And given that Garware is highly backward integrated they have more leverage.

2. The mgt guided that the Co intends to transcend to a solution provider from a film supplier. Wherein they will give full solution to the entire building where the glass is handled and all the films related applications.

3. The Co confirmed that any product additions in the future will be high margin products.

4. Upon being asked about the Indian markets, mgt explained that the window flilms and PPF segment had grown by 50% y-o-y. And mgt expects another 40% growth next year. By segmental growth in India: 25% for PPF, 60% for automotive window films and 90% for architectural windows.

5. Mgt confirmed that the PPF and SCF capacities were fungible and that with the 2nd PPF line the peak revenue could be up to ₹3000 crs. Also the TPU extrusion would lead to introduction of new products. Its not for backward integration alone.

6. On being asked about setting up a mfg plant in the US, management explained that setting up a unit in the US does not make sense as manufacturing costs would go up by 30-40%. Whereas even if tariff of 26% (worst case) gets implied the Co would be able to still make it cheaper in India compared to the US given its high backward integration.

7. Three qualitative things that are judged in an SCF film. UV protection, control of visual light which comes from different colors and heat protection. Garware Films trumps on all 3 aspects, as per mgt.

8. Mgt guided that commodity prices such as petrochemicals may have as little as 20% impact on the prices due to the immense backward integrations specially after the new PPF line (I guess he meant TPU line). Second many of the products which are made in IPD is supplied to the CPD side which also garners growth for the IPD line.

[Ashutosh_Sancheti]

One of the analysts mentioned another domestic competitor of BBOP starting the production of PPF and SCF. Does anyone have any idea who that is?

Disclosure : Invested

[shramansiyal]

I think it’s Cosmo First

[dinesh111a]