Ganesha eco
MOATS
1…Economy of scale
=Leading market position among RPSF manufacturers
=– With an installed capacity of 108,600 metric tonne per annum
(MTPA), GEL continues to be the largest manufacturer of RPSF in the country.
= Supported by its large scale of operations,which results in economies of scale and augments bargaining power with suppliers, the company has demonstrated
healthy and steady profitability over the years.
=: Apart from us there are 35-36 more recyclers in the country having varied kind of capacities.
= Of course, we are the largest one and we are having the advantage because of our large production
base and large customer base.
= Our company is commanding 18% of the Indian market share of this recycled fiber. We are
making all kinds of fiber. So, if a customer has any requirement of any kind of fiber our company
can supply that. It is our Speciality.
2…Value added products
=Strong focus on R&D and development of
value added products – expend the current value-added product portfolio from the current 25% to 50% over next 2-3 years
=…incremental margin will come from the value-added products,
=Increasing the share in Non-woven and technical textile sector where prices are more stable and margins are better.
=Share of revenue
of value-added
products, 2014-15
21%
=Share of revenue
of value-added
products, 2019-20
25%
3…New products and .Strong r nd
=Presently, we are working on development of certain specialty fibres. It is like flame retardant
fibre, antibacterial fibres and biodegradable fibres. All these fibres are specialty fibres and are
being introduced for the first time in India in the recycled fibre segment. All these specialty fibre
products will fetch up around 35% to 40% extra margins.
= This flame-retardant fibre finds its
application in certain critical applications where the fire hazard is more and the
=antibacterial fibres it can kill 99.99% bacteria on the fabrics and the
=biodegradable fibre has been introduced
just now. It is fully capable to biodegrade under landfill and ocean in one year and the soil left
behind from the degradation will contain no plastics and it will remain perfectly fertile.
=We are also going to introduce a fibre which is another sort of the specialty fibres and it will be
having its application in cement and paper industries, so all these products are under different
stages of developments and the trial sampling has already been done.
=We have also executed certain orders in the European markets and in the Indian markets and the customers are
evaluating our products.
=Further, we have also sent all these samples in European labs for testing so that it can have
international acceptance and acquisition.
=Focusing on new product developments
more particularly -
Anti –microbial Fibre with licensed
technology
Bio-degradable Fibre
High tenacity Hollow conjugated
fibre
Micro Fibre
Dope dyed high tenacity Fibre
=Right now, all these specialty fibres are under introduction stage. We are at trial stage in the Fire
Retardant, antibacterial and in the biodegradable fibre, after having approval of the European
labs we will be further expanding all over the world and also in the Indian market. It will take
some time but certainly the initial outcome is very encouraging
4…South plant@improved margin
=Once we ramp up the new in South we would be getting some freight advantage and apart from this we are going for products which are value-added products, like filament yarn and recycled chips. So, there
the realizations and margins are much higher. So, the blended EBITDA margins of 25% we are
looking from the South facility.
5… …south plant.less competition…good demand
=It would be having
…44% capacity for the fibre and
… 27% for the filament yarn
…27% for the chip.
So, it is bifurcated into three segments.
=
A…PSF
=Demand
…There is a large market for PSF and filament yarn. In PSF the recycled capacity is quite large,
and the market is expanding. So, the incremental demand is being met by the recycled fiber
which is around 40,000-50,000 tonnes per annum. And south market there is a big textile market.
.=Demand shift
So far, the textile market was dominated by cotton and virgin polyester. Now the market is
shifting from cotton to PC Yarn (polyester cotton yarn), blended yarn, they are shifting. So, the
demand is increasing for polyester also. The kind of capacity which we are putting up there is
not very big capacity. So, we don’t see any problem there. We are already having the customer
base.
B…Filament yarn
=And as far as the filament yarn, there is not much recycling capacity in the country, only 1
or 2 players are there so far.
=And market is larger than the PSF market. And with the kind of
requirement of recycled stuff by the brands and the large manufacturers, the demand is muchmuch higher. So, we don’t see any problem in selling the filament yarn.
C=Chips
=In chips side also there
is a very high demand in developed countries like Europe and US. So, we are having some good
enquiries and we are also trying with few brands. So, the capacity is not very high in terms of the demand, so we don’t see any problem in selling the entire material and ramp up the capacity
in six months period. We are very optimistic to ramp up the capacity in six months period after
the plant is operational
=The chips plant which we are putting state of the art plant. We are already getting the US FDA
approval for this product. And quality would be at par with the virgin fiber, with the recycled
tag. So, there is 35%-40% premium for the recycled chips as against the PET chips.
=If a new player comes with new capacities so how easy or difficult is it
for them to on-board a new customer or let’s say replace us there?
=Actually, about selling the products of this South project we are already having serious inquiries
from several customers. Basically, it is from abroad. So, they are very-very seriously asking
when we can supply them chips and flakes and the filaments, etc. So, at present we don’t at all
anticipate about any problems in selling the products which will be manufactured in our south
plant. It will be sellable in India also.
6…Big basket of products
=We are making all kinds of fiber. So, if a customer has any requirement of any kind of fiber our company
can supply that. It is our Speciality.
…if our competitors give a slightly lower price so this business can go there, right?
= Actually, every customer has to understand his pricing also much so far little bit variation is there, then the customer will always buy from me, not from a competitor.
=We are having a big basket of products with us, we are having product for every application for the customers. So, customer benefits because we are having ready products for them, so they
prefer to buy from us,if there is not much price difference