The document discusses the state of the glove industry and the company's position. It notes that while glove demand remains strong, current oversupply is putting pressure on margins. The company is focused on ramping up new nitrile latex capacity and gaining customer approvals to maintain market share and healthy margins over the next 5 years. Freight cost increases currently benefit the company due to its major export markets being in the Middle East and Southeast Asia.
The document discusses the state of the glove industry and the company's position. It notes that while glove demand remains strong, current oversupply is putting pressure on margins. The company is focused on ramping up new nitrile latex capacity and gaining customer approvals to maintain market share and healthy margins over the next 5 years. Freight cost increases currently benefit the company due to its major export markets being in the Middle East and Southeast Asia.
The document discusses the state of the glove industry and the company's position. It notes that while glove demand remains strong, current oversupply is putting pressure on margins. The company is focused on ramping up new nitrile latex capacity and gaining customer approvals to maintain market share and healthy margins over the next 5 years. Freight cost increases currently benefit the company due to its major export markets being in the Middle East and Southeast Asia.
2. Glove industry is in deepest downturn, because of lot of inventory created in previous years 3. Additional capacity planned was put on hold in latex and glove industry but we are already near completion 4. Glove industry is growing in double digit but presently there is a dip. 5. In Present economic scenario where glove industry is struggling, Volume of sales will not be challenge, challenge would be in maintaining the margin 6. ROC (post tax)of 20-25% over the next 5 years 7. Next few month challenges a. Higher freight cost for import competition is going down. For last 2 years it was high, which benefitted us b. Stuck with higher cost inventory c. Recession in Europe and USA 8. New facilities a. 50000 tones Valia, Gujarat Facility only for Gloves. b. 10000 tonnes at Taloja is fungible c. Can further expand the glove capacity by 60% with 15% incremental investment d. 6month to one year to fiully ramp up the capcity 9. Total Capacity a. Valia – i. 21000 NBR ii. 50000 Nitrile Latex ( can take it to 80000 with minimal investment b. Taloja i. 10000 Fungible ii. 65000 – Synthetic Latex iii. 7000 – Styrene Rubber 10. Entry to barrier a. Approval takes long -> all including from customer 11. Focused on a. market share b. on managing our healthy balance sheet. c. Focus on customer approval even at cost of low margin d. Focus on Nitirile latex capacity ramp up 12. Even in bad scenario we are looking at 20-25% ROC on nitrile Latex 13. With in some time in 2023 glove market will turn 14. Freight Cost a. No domestic compettioer for 40-45% of our business b. Our major export in Middle east and Southeast Asia -> Frieght cost is not large as % of total cost of production c. So Increases freight cost help us 15. It’s probably easier technology to getting into the gloves industry then it is to the latex industry an=> latex industry is not necessarily link completely you know, directly proportional to the gloves industry is what I am trying to say 16. Nitrile latex will continued to be a growth driver, the issue is margin not too much volumes. Advantage over competitor
Statement Showing The Final Merit List of District Consultant Quality Monitor For Quality Assurance NHM Scheme Under The Administrative Control of District Medical and Health Officer, Vizianagaram