Garware Polyester jumped 6.04% to Rs 339 after the company informed that it has a commenced the production of paint protection films (PPF) for automobile paint protection.
PPF is designed to give automobile paint coatings the highest level of protection and impact resistance, and these films are clear and self-healing. Currently, PPF has an estimated global market size of $500m and is dominated by global giants like 3M, Llumar (from Eastman), XPEL etc.
With no major domestic competition, the company estimates PPF to contribute 20% of FY23 revenue estimated at an incremental Rs 300 crore. The company said its PPF will also be more competitively priced than those available in the Indian market as it is manufactured in highly efficient, integrated manufacturing set-up.
Commenting on the PPF line production commencement, S.B. Garware, chairman and MD of Garware Polyester said, "Garware has been the pioneer in polyester film manufacturing since 1974 and after our strong second quarter performance we expect the commencement of the PPF line to contribute significantly to our topline. The product will be available to both our domestic customers as well as export markets. We plan our product lines very carefully with an aim to acquire global leadership in any specialty product that we manufacture. I am confident that we will achieve the same with our PPF line as well."
Garware Polyester makes specialty performance polyester films in India and has its manufacturing facilities at Aurangabad in Maharashtra.
On a consolidated basis, the company's net profit jumped 41% to Rs 37.76 crore on a 0.3% decline in net sales to Rs 249.20 crore in Q2 September 2020 over Q2 September 2019.
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