Investment Hypothesis in CPaaS companies
:Crossed the technology adoption chasm
:Huge addressable opportunity - Industry growth estimates 30-50%
:Profitable Unit Economics, Cash Generating, Incremental Cost Low
CPaaS growing at 40%
Indian Investing Conclave Day 1 @IIC_2020
:Route Mobile
:Philip Carbon Black
:Borosil Ltd
:Arvind Ltd
:Hawkins Cooker
:Repco Homes
:Shaily Engineering Plastics
Investment Hypothesis in CPaaS companies
:Crossed the technology adoption chasm
:Huge addressable opportunity - Industry growth estimates 30-50%
:Profitable Unit Economics, Cash Generating, Incremental Cost Low
CPaaS growing at 40%
:Applications served by route mobile - Facebook, Instagram, Whatsapp, Google Pay to name a few
:Route mobile platform used for : 2 factor authentication, Notification for customer engagement across portfolio of apps
:Scaled upto 1200cr of revenue from internal accruals
:Huge runway for growth
:Multi geography and Omni-Channel presence
:Cash available for M&A
:Scope of margin improvement
:Demonstrated ability to move up the value scale
:Indias largest carbon black manufacturer
:Where is carbon black used, Tyre Rubber(73%), Non Tyre Rubber (20%), Non Rubber Speciality Carbon (7%)
Industry Size & Capacity Addition
1.3 Million Tonnes capacity and PCB has 43% market share
:Launched 40 grades of speciality carbon
:FY 16 Sales : 4825 MT, FY 20 Sales : 19,378 MT
:Diversified Application : Consumer appliances, Packaging Industry, Food Packaging, Agriculture Pipes, Construction Pipes, Construction pipes
:Company has spent 40cr over the last 3 years on R&D
:Company having almost all tyre companies in India as their customers
:Almost all major tyre companies to increase capacities over next 2-3 years
Segments
:Glass & Microwave (Market Size 5.5 Bn, Growth 10%)
:Storageware (Market Size 7Bn, Growth 15%)
:Opalware (Market Sie 6Bn, Growth 15-20%)
:Kitchen Appliance (Market Size 90 Bn, Growth 10%)
:Cookware (Market Size 40 Bn, Growth 20%)
:Acquired Klasspack to leverage its reach with pharma companies & expand its glass expertise into everyday consumables
:Total Addressable Market Size : 10,000 cr
Borosil Vs Glassco (Laboratoryware)
:Leveraging on strong brand equity
:Protected its leadership in glassware segment
:Consistently expanding its products outside glassware
:Pharma Packaging is set for substantial growth
Size of Opportunity
:Kitchenware market size : 15000 cr
:Hawkins addressable market size : 2500 cr, growing at 6%
Entry Barriers
:Duopoly market in cooker
:High supply chain costs
:New entrant to fight on pricing with higher costs and working capital
:Introduction of LPG (Ujjwala Yojana)
:Nuclearization of families
:New product launches
Hawkins Vs TTK Prestige
Business Segment
:Textiles - Denim, woven, voiles
:Technical Textile - Advanced Material Division
:Waste water treatment (Through Arvind Envisol)
:Suitings, Shirting etc.
:Demand for advance material growing at 10% CAGR
:Exports constitutes of 50% of total AM revenue
:Targeting to reach sales of 2500 cr in AMD by FY24/25
:Huge potential to generate valuable IP and has great domestic and export growth potential
:Domestically textile is expected to grow at 8-10% over next 5 years
:Rapid shift to branded apparels in India
:Possible textile orders from clients moving out of china
Revenue Segment
Lending nature
:Affordable HFC (12 l ticket size)
:50% are non salaried
:Lending rates in double digit
:Location : Small towns and outskirts
:Best in class RoE player with PSU valuations
:Available at extremely cheap valuations
:New CEO is focused on minting balance between risks and growth
Valuation Study
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"I lied about my basic beliefs in order to keep a prestigious job. Now that it will be zero-cost to me, I have a few things to say."
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
As a dean of a major academic institution, I could not have said this. But I will now. Requiring such statements in applications for appointments and promotions is an affront to academic freedom, and diminishes the true value of diversity, equity of inclusion by trivializing it. https://t.co/NfcI5VLODi
— Jeffrey Flier (@jflier) November 10, 2018
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".