Bhansali Engineering Polymers Ltd (BEPL)
BEPL is a vertically integrated petrochemical company that Manufacturs ABS which acts as a raw material for leading companies dealing in automobiles, home appliances, telecommunications, luggage, bus body and various other applications.
With Joint Venture (50:50) front with Nippon A & L, Inc, Japan, a Sumitomo Group Company, company has started production of latest grades like ASA, AES, Transparent ABS and alloys like ABS PMMA and ABS PC enabling the company to have entire range of “product basket” for catering the pervasive requirement of clients and actively contribute towards import substitution.
Company has established state of the art research and development center at its Abu Road Plant, Ahmedabad. Nippon A&L Inc is a specialized company focusing on polymerization of styrenics and enjoys high reputation in the field of manufacturing and marketing of ABS, AES, ASA resins and SBR/PBR Latices.
Customers list include Auto:Bajaj Auto , Hero Motocorp,TVS Motor. Applicances: LG Electronics ,Samsung India ,Whirlpool Of India, Electrical:Anchor Electricals, Havells India ,Larsen & Toubro etc.
There are handfull of manufacturing companies in India which produce ABS and are not able to cater to the whole demand of ABS in India, so the deficit in supply is fulfilled through imports. Some of the key players in market are DSM engineering plastics, BASF India, Bhansali Engineering Polymers, Styrolution India and now Kingfa.
Demand and Outlook : The global carbon fibre reinforced plastic (CFRP) market is expected to reach $ 27.98 billion by 2024 from $ 11.6 billion in 2015, according to a new report by Grand View Research Inc (GVR). Increasing composites demand in the automotive industry is expected to remain a key driving factor for global CFRP market. Automotive is the fastest growing segment of carbon fibre reinforced plastic market with a market share of 19.7 percent of the total volume in 2015.
Government initiatives including ‘Make in India’ to encourage domestic engineering industries including electronics, construction material and automotive is projected to propel the demand for thermoplastic elastomers (TPE) in the country. Asia Pacific thermoplastic elastomers market is estimated to reach over $ 7.82 billion in 2022 from $ 4.63 billion in 2014 due to growing consumption from auto part production. And India is expected to witness the highest growth of over 5.6 percent between 2015-2022.
Market is to witness significant growth over the next seven years owing to increasing automotive production and most automotive OEMs have been replacing metal and alloys with plastics from manufacturing of vehicle components to make vehicles light weight, thus propelling demand for TPE. Demand for ABS market during F.Y 2014-15 was 205000 TPA which increased to 235000 TPA during 2015-16 registering a growth of around 15%.
Future : To meet ever growing demand in Automative and Home Applicances first phase of expansion has been completed in the month of Mar-16 with the installed capacity of company from 51KTPA to 80 KTPA. Further expansion of 120 KTPA is proposed at some port based location with a view to save a lot on transportational expenses by March 2019 will take total capacity to 200 KTPA.Requisite project work has already commenced
Financial :
Debt/Equity is 0.2,
Interest Cover is 3.1
Cash reserve about 11+ Cr
Its operates with handsome ROCE=21%+
ROIC=22%+
MCAP/Sales=0.7
Its Fixed Asset turn over has constantly on upswing from 1.42 to 2.29 over three years, Another interesting data itself receivable days is about 85 days far less than payables days of about 120 days..shows its operational and cost efficiency combined with superior realisation of its product. It capacity expansion from 51 to 200 KTPA will mostly through internal accruals and small debt show capital management by firm..
Management : Mr. Babulal M. Bhansali, Promoter and MD of the Company, is a first generation entrepreneur and a visionary leader in the business arena of ABS & SAN Poly
Promoter buying from open mkt
I bought with 30k worth shares on 28 rupees what to do now
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