Hi All,
I glanced through this co. a bit. The compostable tableware product Chuk! looks like a commodity at best, a lot of small players already in the game. Ecoware is the pioneer of this product in India, it did lots of PR to gain mileage but doesn’t seems to have helped much since sales were in 7-8cr range for fy16 even after 4-5 years in operations. Ecoware’s processing capacity is 2.6 tpd with investment of roughly 20cr. Yash has put up a 11.5 tpd capacity at 55cr CAPEX which it plans to double going forward, assuming at a small CAPEX.
Retail consumption of eco-friendly disposable tableware in India will probably happen at a very slow rate with many players by the time it becomes mainstream, if at all. B2B, in form of huge QSR industry in India (big and small chains both) could present good potential for such product category. But again, expect many players in industry in future. Can Yash make inroads in this market given it already manufactures food-grade paper and claims to be a vendor to big QSR players in India. Exports could be a good opportunity again as some countries are banning use of plastic big time.
Debt seems to be a concern, no significant reduction has happened even with growth in business.
Looking forward to views/insights from folks invested/tracking it.