6 Tweets 14 reads Apr 13, 2022
I dropped the prakash pipes reseach due to CG issues and started researching about SATIA INDUSTRIES.
Here is the list of below point that got me interested -
- Margins improved from 12% in 2016 to 23% in 2021
- Have their own power plants and 41 MW capacity
- Mostly renewable and made from biomass
- Power cost around 2rs/unit as compared to 7rs/unit if they bought from market.
- Sold RECs (Renewable energy credit) worth 8 crore.
- Expanded capacity by 1 lakh, total capacity now at 2.3 lakh tons per annum.
- targeting 1500Cr Topline
- Buy hardwood and softwood pulp from Canada, Chile or USA
- Increasing pulping capacity of agro from 200 to 250 tons and Wood pulp capacity to 300 from current 150 in next six months.
Future triggers -
- schools and collages opening, and due to new education policy
need to print books with new syllabus
- Shifting towards high margin products like photocopier paper, wedding cards, paper cups.
-Govt banning single use plastic from July 2022, that is 60,000-70,000Cr market opportunity.
- Cutlery business growing at 20%
- have tie up with ZUME ( An american company that makes molded paper utensils for food packaging), commerical production have begun but waiting for test results for food safety, 16-17 tests needs to be done.
- Have six machines that can make 2 tons per day.
- Interest on debt is around 6.5%
- Paper prices have gone berserk, newspaper print paper was around 40,000 rs per ton but have moved to 55,000rs a ton.

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