AFERA - Jesons Ind. Ltd.

8/3/2019 AFERA - Jesons Ind. Ltd.

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THE INDIAN WATER BASEDTHE INDIAN WATER BASED

PRESSURE SENSITIVE ADHESIVE INDUSTRYPRESSURE SENSITIVE ADHESIVE INDUSTRY

Mr. Dhiresh Gosalia (MD)

Wednesday, November 10, 2010


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Overview

Indian Industry

Product Chemistry

Current Trends - India

SWOT Analysis

Take Home

CONTENTS

THE INDIAN WATER BASED PRESSURE SENSITIVE ADHESIVE INDUSTRYTHE INDIAN WATER BASED PRESSURE SENSITIVE ADHESIVE INDUSTRY



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The 2nd fastest growing economy in the world

GDP > 8% - over the past four years

Reasons

- Policy reforms- Huge investment in infrastructure

- Investment in capacity expansions etc.

Overview

9 9.4 8.7

6.77.4

8.5

0

2

4

6

8

10

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11

( Estimated )

GDPRate(%)

Source: Reserve Bank of India

Indias Phenomenal Growth Story




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The Indian Industry

Source: RM Manufacturer

EMULSION POLYMER400,000 TPA

EMULSION POLYMER400,000 TPA

Others345,000 TPA

Others345,000 TPA

PSA55,000 TPA

PSA55,000 TPA

PaintTextiles

Wood WorkingPackaging

PaintTextiles

Wood WorkingPackaging

Tape 40,000 TPATape 40,000 TPA Label 15,000 TPALabel 15,000 TPA

Expected Industry Growth @ CAGR - 20 % over next 5 years




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The Indian Industry

Source: RM Manufacturer

Indian Emulsion Industry

Packaging

7%

Paint &

Construction

47%

Paper & Leathers

4%

Wood Working

16%

PSA -Tape

11%PSA - Label

4%

Textiles

11%




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PSA Product Chemistry

PSAProduct Chemistry

PSAProduct Chemistry

AcrylicAcrylic VAM AcrylicVAM Acrylic

PSAs are formulated to meet specific

performance requirement such as;

High Shear High Peel Adhesion Quick Stick

Super Clear Applicable at High & Low Temp. Low Noise / Easy Peel

Mainly inTape Adhesive

Mainly inLabel Adhesive




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The Indian Industry

Others

1050 MT

(29%)

Jesons

2500 MT(71%)

Others

1050 MT

(84%)

Jesons

200 MT(16%)

Indian PSA (Tape) Producers

Indian PSA (Label) Producers




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The Indian Industry

Tape

Packaging

Masking

Surface Protection

Electrical

Label

General Purpose

Bottles

Bar Code

Tamper Evident


Major PSA Tape and Label Applications in India



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Current Trends In PSA

More than 300 manufacturers of Tapes and Labels in India

- 40% in West

- 40% in North

- 17% in South

- 3% in East

Significant growth areas

- Increase in exports

- Organized retail industry

Upgradation to improved products & technologies in manufacturing

Rapid growth in disposable products




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Current Trends

Matured users with over 15 years of experience. The sizes of their plants arenot as per international standards but markets are pushing them to becomeso.

Their USP

- Customization & Strong Regional Presence

- Appetite to innovate and grow

Easy availability of quality RM like plastic films (BOPP, Polyester, Metalised),

face stock, liner stock & plasticizer free water based products

Higher speed and larger width converting machinery.

Versatility of Acrylic Emulsions for use on paper & filmic substrates.




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SWOT Analysis


STRENGTH

Entrepreneual family owned businesswith strong appetite to grow

Quick decisions & strong execution

Low cost of production Large volume players

THREAT

Volatile RM prices

Global competition

Trade policy

Currency fluctuations

WEAKNESS

Low EBITDA margins

Inadequate investment In R & D limited technologies

Short term vision - lack of focus on exports

OPPORTUNITIES

Fast growing Indian Middle Class high disposable Income - drive demands

Can be JV partners - India / EU

New market segments for specialized products

Huge potential Production & Consumption



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Take Home

High volume at economicalcost

Quality Consistency

Ability to add new plants at lowcost

Ability to absorb overseasopportunities

Be a world class volume player

Technology Upgradation onexisting products & R & D fornew products

Access to better processequipments

Entry into European markets

What India can offer What India can gain




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Some of our comments today may include statements about our expectations for the future. Those expectationsinvolve risks and uncertainties. Jesons cannot guarantee the accuracy of any forecasts or estimates, and we do notplan to update any forward-looking Statements.

Disclaimer :

Thank-You


AFERA - Jesons Ind. Ltd.

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