Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/2faf0a9e-9367-44ce-a460-ad7f082cc2f0.pdf
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Nitta Gelatin Expansion Plans
- In the past, they talked about increasing their production of Collagen Peptide, a substance they make. They were planning to add 1000 metric tons (MT) of it.
- However, they’ve changed their plans. They looked at the project again because of things happening around the world, like worries about a global economic downturn. These concerns are affecting the demand for Collagen Peptide from customers overseas.
- After discussing it, they decided to increase their Collagen Peptide production by 550 MT per year (on top of the original 1000 MT plan). This means they’ll be making 550 MT more of this substance every year.
- To pay for this increase, they’ll use a mix of things: a Rights Issue (a way to raise money from existing shareholders), their own earnings, and a term loan (a type of loan).
- They’re also thinking about expanding their production of gelatin, another substance they make. But they’ll make a final decision once they’ve finished the plan for it.
The company is changing its plans for making Collagen Peptide, and they’re thinking about expanding another product, gelatin. They’re also figuring out how to pay for these changes.
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You are right, this company pops up on my radar a lot of times. However I have stopped myself due to the risk of potential alternatives and regulation on animal products.
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The alternatives to conventional sources of gelatin will not easily replace the animal source because (1) Vegetable sources are far less nutritional than animal/fish sources. The vegetable source is relatively low in vitamins and essential nutrients. (2) The application needs specific preparation. (3) They cost 3 times that of Gelatin from animal and fish sources.
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