Moldtek is an interesting business where to remain stronger and growing it requires to have competition… in recent concall promotors said many mnc companies didn’t consider moldtek because of concentration risk only when they find moldtek and some other competitors where they can diversify their order they will partner with moldtek!
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Can someone tracking this company for years now answer my queries? I didn’t find answers in recent concalls or above thread…
- anyone met management or attended AGM where management answered why they give free cash flow as dividend consistently even though they had debt to repay!?
- so now when the debt levels are decreased did they mentioned in any concall that they are targeting debt free status in future ?
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Can somebody explain about partly paid shares. When do we have to make the next payment and about the warrants, what is the process (If any) to convert them?
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I observed that Moldtek products have a high reusability in Middle class households… The Asian paint , Berger Paint & Castrol containers are reused as buckets to store water, Ice cream tubs are reused to store other food items. This seems to be a trend for several of its products. I have seen people use their products for several years. This is essentially because of the robust build and durability of the products…
Now, my question is why is Moldtek focusing only on B2B? It can leverage its image and trust in the market & can reach out to end customers directly with offerings of quality plastic containers. Now, I am not sure what are the margins here and how much effort and time it will take to build the distribution system to reach the end customer. But, then again this is a just a thought from a middle class guy. would love to hear thoughts and suggestion on this?
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Hi, Do you mean to say compete with Neelkamal Plastics and Supreme Industries ?? if it is the case then it is a nice idea but its totally a different path, a new business segment, however I feel if they see enough growth opportunities in their own business in which they have hold as on today, then they would not go exploring new segment in business.
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Can any one explain this?
Is this Right issue?
Can we participate in RE?
In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 20 I 5, we would like to infonn you that. the Committee at
their meeting held on 14th July, 2021 has considered and approved the allotment of 75,209 fully paid
up Equity Shares of the Company of Face value of Rs, 5/- each upon conversion of detachable
warrants @ Price of Rs. 184/- per detachable warrant (comprising of Face value of Rs. 5 along with
the premium of Rs, 179/- per Equity Share, being the full amount paid on detachable warrants on
voluntarily basis),
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I do not think so. the rights issue already done in Oct 2020 and now they approved to convert these to Equity shares.
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For those that have already participated, what is the process to follow to convert warrants and remaining amount to be paid (if at all).
Anybody else who has received partly paid shares/warrants, please reply
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As per the Company rep, warrant conversion is complete. You may call them up directly. Details for conversion are given in their website.
One needs to send balance payment to Co with off-line transfer of warrants, acknowledged by DP agent.
No intimation yet on payment of balance payment for partly paid shares.
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Tysm for the reply
Therefore until we receive further notice, nothing is to be done, right?
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If your warrants are converted & equity shares are credited to DEMAT account, yes, nothing needs to be done for now
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I reached out to the company secretary and was told that we can convert the warrants before May 2022 (18 months from issue). So we need to act before that.
For the partly paid-up equity shares, I was told that they might issue a notification for payment around November 2021. So I am waiting till November 2021 and then acting because we might be able to take care of the warrants and partly paid up shares at one go.
Thanks.
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Dear All,
Has anyone here converted their warrants into equity shares yet? I was looking for some help on the process.
I hold some warrants of Mold Tek that I wanted to convert into Equity Shares. My DP is Sharekhan.
When I went to fill in the DIS Slip, there is a Reason Code that we have to provide for the Off Market Transaction. Is anyone aware of what is the Reason Code that one has to provide?
I checked with the DP, but they are not aware and they said to ask the Company.
I asked the Mold Tek Company Secretary and they mentioned a code of 99 OTHERS, but that doesnt seem to be there in the NSDL list of defined codes for Off Market Transactions. Now the Company Secretary is saying to check with the DP.
If you have converted your warrants into shares, what is the code that you provided?
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The reason code you can provide is 28
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I got it checked with Ventura. They said reason code 12 ie buyback. And no consideration amount to be mentioned.
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Thanks Longterm and Ameet. I will submit it tomorrow with the reason code and will provide an update once it goes through.
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I finally submitted the Off Market Transaction with a Reason Code of 29 (Deposit of securities with Escrow Agent and its return). Here is the complete process that I followed
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Filled up the DIS Slip with the DP with the Reason code as 29 and specified execution date as next day. The DP keeps the original slip with them and gives you a counterfoil.
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On the transaction execution day, you must provide your consent, following which the warrants will move from your DP Account to Ventura’s account. Early morning at around 7.30AM I received an sms as well as an email from NSDL with a link to confirm the transaction. Clicking the link takes you to the NSDL eServices website where you have to enter your PAN and then confirm the transaction.While confirming the transaction, you can clearly see the Target DP(Ventura Securities) , Target Client(MTPL Rights Demat Escrow Account Warrants), Quantity, etc.
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After providing consent, by evening, the warrants get debited from your DP and you can no longer see them. Thus you know that your warrants have got transferred into the DP Account.
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I then couriered the application form, demand draft(you can also use cheque/pay order), and a copy of the counterfoil to Mold Tek(Address specified on the application form)
Last week, after putting this post up, I called up the Company again and got a gentleman on the line(couldnt get his exact name and designation unfortunately), but he took the efforts to clearly explain to me the entire process, thanks to that, I was able to complete steps 1-4 seamlessly. He mentioned that the management usually meets in the mid of the month to approve the conversion of warrants into shares, and within a week from that, the shares get credited into your account. So I anticipate that I will get my shares somewhere after 20th September. There may be a delay this time due to ongoing preparations for the AGM.
I was very much wowed by the way in which he took the trouble to explain the process. Most people usually do not provide you with satisfactory information and redirect you to others which was what I was experiencing prior to getting him on the line.
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Slightly dated though.
Mold Tek commands 25% market share and P&G is a client so more likely it is theirs.
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Did not see any post regarding Q1 FY22 results, so am posting the same after going through the Concall recording:-
- July month went better than last year. Pumps have also started picking up pace. Vizag and Mysore plants are running at high capacity
- “Will try to achieve 15-20% volume growth in FY22, aiming at 20-22% margins, We will be able to maintain Rs 40+ EBITDA/kg going forward”
- Lost a couple of tool room engineers due to covid
- Have launched sweet boxes and due to festive season seeing decent demand coming. Any product has a life cycle it takes a couple of years to penetrate and come into a sizeable business quantum - sweet boxes maybe 4-5 Cr this year they can become 15-25 Cr in the next FY.
- Hyderabad plant has been upgraded to cater to the increase in demand for F&F (inaugurated in June 2021)
- Have acquired 2.7 acres of land at Sandila Industrial Area in UP, just next to Berger Paints’ upcoming plant. The plant will get constructed in year 22-23, and will go to production simultaneously when Berger is ready to go with their new plant (this new plant will focus on Berger, Nerolac, and edible oils) (Total Capex around 20 crores)
- Installed capacity is 42,000 MTPA, from 34,000 from the beginning of FY21 (20% growth). Going forward this year, it will grow to 45/46000 MTPA because of Kanpur leased facility.
- Out of the 42,000 installed capacity around 32,000 is in use actively i.e. 75% capacity utilization.
- Revenue Q1 FY22 - 71 cr for paints, 29 cr for lubes, 30 cr for F&F, and 3.5 cr for pumps.
- IML products (40-45 rs/kg) give much better margins to the company than non-IML ones (less than 30 rs/kg)
- Market size for pail packaging in lubes and paints - INR 2,000 crores (long way to go ahead, ample room to grow)
Pumps
- Had started in March/April’21.
- Eyeing 12-15 cr revenue from pumps in FY22. Can go up to 40-50 cr in FY23, and eyeing for 100+ crores after 3-4 years. (which means around 25 crores per quarter which is more than their lubes business as of Q1 FY22!)
- Volume as of July: 1-1.5 million/month, by Q3 FY22, will go up to 2-2.5 million/month and by Q4 FY22 will go up to 3 million/month (which is 50% capacity utilization, max capacity is 6-7 million/month as of now)
- In the FY23, the capacity utilization for pumps will go up to 70-75%, which is similar to other products.
- Margins (in terms of EBITDA/kg) for pumps would be close to or better than margins of F&F.
QR-coded IML Technology
- Can be deployed in all segments. Lubricants are the segments that are most dying for this product because they face a lot of duplication and counterfeit issues. One QR code is present inside (reverse coded QR code) the product container also and that can be scanned only once, and this gives an anti-counterfeit feature.
- Promotion can also be done via QR-coded IML containers, because a single scan can take customers to the website, and companies can give schemes to customers. Some developed countries also have this technology, but they use it more for promotion strategies than anti-counterfeit, as it is not a big issue there. But in India, we have a bigger issue of counterfeiting. The applications are many, just have to see for a few years how this gets evolved.
- Company has also approached the agriculture ministry of Telangana for QR-coded IML to prevent fake seed racquets that they faced recently.
- JLR looks very optimistic about this tech
New additions
- Got a big order from BPCL in Q4 FY21 after a long time, again in business with PSUs. Order worth INR 70 crores to supply products in next 2 FY starting from June 2021.
- Bagged orders from multiple customers - Gulf Oil (worth 15-20 cr), Kem Agro, Ganapathy Herbal, Virtual Packaging & Association, Satyam Food Processing, Bio Veda Action Research Company, Redex Aqua Solutions, etc.
- In F&F, received many orders. Most of the clients gave small orders i.e. 1-2 crores per year business. Some orders also include research products, aqua products, nutrients, etc.
- Plans to add around 6-10 containers of different shapes and sizes for different applications every year, which will keep adding to growth in the coming years.
- Will introduce some cheese and butter packs by October, November and a new range of ice cream containers by December.
Questions (would be great if anyone could provide insights)-
- Asian Paints and Castrol (Castrol has already submitted their artwork) had shown interest in QR-coded IML containers, but have they signed any contract yet? (news had to come in August for Asian Paints)
- How much is the company’s export vs domestic revenue? This website shows 2 shipment orders to Vadilal Industries USA in April’21. (Mold Tek Packaging Ltd | See Recent Shipments | ImportGenius)
Disc. - Invested
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