Kingfa India has come a long way by growing at a CAGR of 30-40 per cent and recorded sales of Rs 700 crore in FY19. The company which showed 19 crore of PAT last year should double the same in the current fiscal. Top-line could double in next 3-4 years.

Company’s current market share for auto in India 24%. In couple of years it can exceed 50%. Current product mix 80% (auto) – 20% non auto.This mix may be revised to 60% auto – 40% other in long term.

Key focus going forward will be in Engineering plastic and improve margins. Total E.P. market in India is 50 kt and currently kingfa sells 3 to 4 kt. Composite particles( plastic wood) to be launched in India. Already people have been appointed to talk to prospective architects on this aspect.Talks for exports to Malaysia initiated. Nylon, ABS, PCABS are key targets.

It is likely that DSM India will feel pressure once Kingfa focuses on Nylon. DSM purchased SRF E.P. business (12,000 tons per annum), because it was a complimentary fit (4 wheeler presence added to 2 wheeler presence).

Long Glass Fibre projects are taken for specific small projects. Good product and in future it is likely that Kingfa will put Long Glass Fibre line as volume comes in. Also, started manufacturing paint free particles and started supply for Hyundai and Maruti. Bio degradable plastics to be launched in india. Huge opportunity.

Chakan plant has already started production from September this year. July production volume was 6000 tons. Highest in the history of the company. As Chakan ramps small production, Jejuri will likely ramp down.

Motherson key strategic global customer, large volumes rumored to be under discussion. Fiat Chrysler new model to have kingfa material. MG Hectar is about 250 tonnes per month and this will increase in due course. Upgraded new variants of Maruti namely Alto, Ertiga and Baleno, all three will have Kingfa material. At present supply to Maruti is about 500 tonnes per month which will increase to 1000 tonnes per month in next 6 to 8 months. Also, Suzuki potential business could be 12 kt per annum.

Kingfa China may strategically shift some export Business from China to India. Year 2021 supposed to be strong export year. Biggest input of the AGM was – All kingfa china products will be slowly produced in chakan. Kingfa India will be global export HUB for Kingfa group.

Exports will be about 25000 tonnes in next 2 years. IKEA supply is on good traction. The more they scale up the more they will procure from Kingfa.

Company has started it’s three warehousing in Bangkok and Johannesburg. Exports to Johannesburg has also started. First consignment to turkey of about 16 tonnes done. Turkey is also big export target. The company is working on it.

Electric vehicles should be very good for business. Lightweighting is a key initiative, and EP are a key solution. In EV, Battery casing, door panels, metal grills etc. are key products for replacement. Kingfa could be working with some German Tier 1 producer for such projects already.

In the next 4 to 5 years, it is likely that E.P. will be 40% of business, PP will be 60%. Key drivers could be : China market growth to moderate sharply going forward – like a developed market, while India has huge potential to scale.India could be export hub, China US concerns are also creating a long term strategic push for such a move.