Now Reading: Garware Technical Fibres CEO upbeat on Q2; value-add focus shields margins
-
01
Garware Technical Fibres CEO upbeat on Q2; value-add focus shields margins
Garware Technical Fibres CEO upbeat on Q2; value-add focus shields margins
Garware Technical Fibres' managing director, V. S. Rehman, has said the company expects a positive second quarter, driven by innovation and value-added products. Raw material price volatility, exacerbated by the West Asia…
The Story in Brief
Garware Technical Fibres' managing director, V. S. Rehman, has said the company expects a positive second quarter, driven by innovation and value-added products. Raw material price volatility, exacerbated by the West Asia crisis, and shipment delays remain key concerns. However, the company's value-added model, which accounts for 80% of business, helps pass on cost increases, especially in aquaculture where raw materials are only 30% of costs. Rehman said margins held at historical levels in Q1 despite inflation.
Aquaculture drives 35% of revenue, with Norway the largest market. The geosynthetics business has grown at a 40% CAGR over three years, supported by Indian infrastructure spending. Capacity utilisation is at 80-85%, and the company plans Rs 50-70 crore annual capex, funded internally. Garware aims to double profits every five years.
The Indian Opinion
Headlines about a CEO's 'positive outlook' can sound like cheerleading, but the Q1 margin performance despite raw material inflation gives Garware's story teeth. The narrative around 'value-added products' is not just jargon here, 80% of revenue comes from them, and the 40% CAGR in geosynthetics shows tangible traction. The real test is whether the company can upgrade the remaining 20% commodity portfolio without crimping growth. Watch the quarterly share of value-added revenue, that number will separate the story from spin.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
