Nilkamal in joint venture with Bhoomi Realty has successfully completed it project in Borivali named AURABIPLEX which also homes the famous Kalyan Jewellers. This was a 21 storey Premium project build with an unique and innovative techinques. As far as Moulded Furniture is concerned, Nilkamal is a recognized name in the industry with a market share of 39 % amongst organized players. The demand for moulded plastic furniture is expected to improve owing to its cost effective nature vis-à-vis traditional wooden furniture. Plastic products have application in various industries as well as in households. As per a report by India Brand Equity Foundation (IBEF) on the India plastic industry, the per capita consumption of plastic in India is very low. According to industry reports, the plastic processing industry is highly fragmented with approximately 35,000-40,000 plastic processing units in India, most of which can be classified as small-scale operations. The Annual household income in India is expected to increase from $2632 in 2005 to an estimate of $3823 in 2015 and $6790 for 2020. Citing these increases in household incomes, the usage of plastic across various industries and households would increase also the per capita consumption of plastic is expected to double in the next five years. As per a FICCI 2014 report, the plastic industry is one of the fastest growing industries in India. It has protracted at around 8 % CAGR to reach 8.5 mtpa in FY2014 from 6 mtpa in FY2008. Currently, the Indian plastics industry employs about 40 Lakh people and India has over 2,000 exporters. India operates more than 30,000 processing units, of which 85 % to 90 % are small and medium enterprises (SMEs). India is one of the most promising exporters of plastics among developing countries. The Indian plastics industry produces and exports a wide range of raw materials, plastic moulded extruded goods, polyester films, laminates, moulded-soft luggage items, writing instruments, plastic woven sacks and bags, PVC leather cloth and sheeting, packaging, consumer goods, sanitary fittings, electrical accessories, laboratory-medical surgical ware and travel ware, among other products. Due to change in government at the centre, which has started focusing on development of Infrastructure including power sector, it is expected that Plastic companies will be benefited substantially in near future. Nilkamal has already done a capex of Rs. 460 Cr & has decided to go slow on @Home brand business and may even look at divesting its stake, it will focus on its core business. Nilkamal’s other business segments are also on the verge of a turnaround. Management has expressed confidence that all negatives like aggressive capex, moderation in volume and the pressure on margins is factored in its valuation at present and that likely improvement in volumes and margins and free cash flow generation can lead to a re-rating of the stock.
|SALES (₹ Crs)||1,610.65||1,654.76||1,800.57||1,951.82|
|NET PROFIT (₹ Cr)||31.20||40.03||36.50||40.31|