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Patent filed under PCT for Master Batch to produce Speciality polyester yarn
Setting up a world class R & D and Innovation complex at Gurgaon
New Delhi, 7th February, 2017: Ester Industries Limited, Indias leading manufacturer of
Polyester Films, Engineering Plastics and Specialty Polymers, announced its financial results for the
quarter and nine month ended December 31, 2016.
Commenting on the performance, Mr. Arvind Singhania, Chairman, Ester Industries said:
We have moved a step forward towards transforming the existing business profile of the Company.
Our efforts towards strengthening the innovation and executional capabilities of Specialty Polymer
business should help us quicken the transitioning phase.
Specialty Polymer business, our key focus area is shaping up well and continues to be extremely
promising. The filing of patent for Master Batch to produce Specialty Polyester yarn, and
Result Release
collaboration with leading global players should help us further improve our proficiencies. The
setting up of innovation and R&D complex will enable us to undertake downstream analytics and
pilot scale manufacturing internally in-turn resulting in lowering the lead time.
We are also working towards improving the performance of our legacy businesses namely polyester
film and engineering plastics through a two pronged approach of value enhancement and optimizing
cost efficiencies. This is reflected in an improving trend for both these businesses
Going ahead, we are confident of delivering strong and consistent returns post completion of our
transition process.
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Key Highlights
Patent filed under PCT for Master Batch to produce Speciality polyester yarn
o Filed a patent for Master Batch to produce specialized polyester yarn - The Master batch
is for a Cationic Dyeable Yarn which offers value advantages both from a quality and cost
perspective
o Product already approved by some Indian Entities
o Overall patent filing under Specialty Polymer business 9
Ester Industries Limited is a public limited company incorporated in 1985 promoted by the Singhania
family. The company is one of Indias leading producers of Polyester Films, Engineering Plastics and
Speciality Polymers having a track record of continually developing new and innovative products for
Result Release
customers across the globe. Ester Industries has state of the art manufacturing facilities in khatima in
Uttarakhand with the capacity of 67,000 TPA of Polyester Resin, 57,000 TPA of Polyester Film, 30,000
TPA of Specialty Polymers and 16,500 TPA of Engineering Plastics. The company currently exports more
than 30% of its production of Polyester Films with sales and distribution network in more than 56
countries across the world resulting in strong customer relationship. Specialty Polymers are manufactured
primarily for the European and US markets.
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For more information contact:
Pradeep Kumar Rustagi (CFO) Gavin Desa / Suraj Digawalekar / Snighter Albuquerque
Ester Industries Ltd. CDR India
Tel: +91 124 2656 100 Tel: +91 22 6645 1237 / 1235 / 1250
Fax: +91 124 2656 199 Fax: +91 22 6645 1213
E-mail: pradeep.rustagi@ester.in E-mail: gavin@cdr-india.com
suraj@cdr-india.com
snighter@cdr-india.com
CIN: L24111UR1985PLC015063
Regd. Office : Sohan Nagar, P.O. Charubeta, Khatima 262308 Distt. Udham Singh Nagar, Uttarakhand
Phone: EPABX No. (05943) 250153-57; Fax No.: (05943) 250158;
Email: info@ester.in; Website: www.esterindustries.com
Result Release
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Q3 & 9M FY17 Results Presentation
February 7, 2017
Disclaimer
2
Index
3
Q3 & 9M FY17
Performance
Key Highlights
Patent filing under PCT for Master Batch to Setting up a world class R & D and
produce Speciality polyester yarn Innovation complex at Gurgaon
Filed a patent for Master Batch to produce Plans to set up R&D and Innovation complex at
specialized polyester yarn - The Master batch is an approx. cost of Rs. 50 crore. This is expected
for a Cationic Dyeable Yarn which offers value to further enhance the Specialty Polyester
advantages both from a quality and cost business and stimulate the existing collaboration
perspective with companies like DuPont for development of
certain other Specialty Polyester polymers
Product already approved by some Indian Entities
To bring downstream analytics and pilot scale
Overall patent filing under Specialty Polymer manufacturing functions in-house, in a bid to
business - 9 lower the lead time
Promoter hikes stake in Company Shift towards being more cost effective by
reflection of confidence in the business ` focusing on Cost optimisation
Purchased 4.92% recently, resulting in The Company has aligned its operational
increasing overall stake in the Company to efficiencies towards meeting the future goals by
59.14% from earlier 54.22%. Heightened stake, optimizing operational cost
indicative of promoters belief and confidence in
long term performance of the business Emphasis on value addition, value added
offerings presently comprise ~15% of portfolio
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PCT - Patent Cooperation Treaty
Performance Update
Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17 Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17
PAT
5
-3
-4
-5
-10
Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17
6
Business Wise - Revenue Contribution
Q3 FY17 Q3 FY16
5% 6%
20%
20%
75% 74%
9MFY17 9MFY16
7% 8%
20%
19%
73% 73%
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PF Polyester Films; EP Engineering Plastics; SP Specialty Polymers
Business Performance.. (Rs. cr)
Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17 Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17
Focus on cost
efficiencies & value Revenue EBIT
enhancement
translating to margin 426
369
Polyester Films improvement
52
& Chips 129 132 33
127
11 10 14
Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17 Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17
Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17 Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17
8
PF Polyester Films; EP Engineering Plastics; SP Specialty Polymers
Chairmans Comments
Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said
We have moved a step forward in transforming the existing business profile of the Company. Our efforts
towards strengthening the innovation and executional capabilities of Specialty Polymer business should help us
quicken the transitioning phase.
Specialty Polymer business, our key focus area is shaping up well and continues to be extremely promising.
The filing of patent for Master Batch to produce Specialty Polyester yarn, and collaboration with leading global
players should help us further improve our proficiencies. The setting up of innovation and R&D complex will
enable us to undertake downstream analytics and pilot scale manufacturing internally in-turn resulting in
lowering the lead time.
We are also working towards improving the performance of our legacy businesses namely polyester film and
engineering plastics through a two pronged approach of value enhancement and optimizing cost efficiencies.
This is reflected in an improving trend for both these businesses
Going ahead, we are confident of delivering strong and consistent returns post completion of our transition
process.
9
Specialty Polymers
Specialty Polymers
respect of 9
Revenues 8.4 10 -15.9 34.8 47.5 -26.7
High entry barriers protected by Intellectual EBIT -0.5 1.4 - 4.8 8.5 -43.1
-400
Property rights Margins (%) -5.7 14.3 - 13.8 17.8
bps
Products
Polybutylene Terephthalate (PBT)
Master Batches
Applications
Carpets Stain Resistant Master Batches
Heat Sealable
12
Polyester Films
Polyester Films
14
Polyester Films Products & Applications
Products
High Barrier Embossable
Flexible Packaging
Applications
Barrier Packaging
Embossing
Lidding
15
Engineering Plastics
Engineering Plastics Products & Applications
Manufacturing capacity - 16,500 MTPA EBIT 3.3 3.1 6.4 7.7 6.6 15.6
170
Margins (%) 8.9 8.8 10 bps 7.5 5.8
Growing at better than industry run rate since the last 3 bps
years
Being an integrated player, Ester is able to offer one of the
Awarded the prestigious Plasticon Gold Award for the
most diversified Engineering Plastics product portfolio
Fastest Growing Enterprise Processing (Engineering
covering most of the polymers in this category
Polymers) at the Plastindia Exhibition in February 2015
Working towards scaling up its presence in the business
Knobs, Panels
Polyethylene Terephthalate (PET)
Switches
17
Vision - 2022
* Over 2 years
18
Strategic shift The new
Ester
Knowledge
New
Innovation
ESTER Customization
Technology
Business Transformation Commodity to Technology
New Product
Value Addition Technology Innovation Customisation
Development
Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company
engaged in the manufacture of polyester films, specialty polymers, engineering plastics and polyester chips with manufacturing
facilities located in Khatima (Uttarakhand). A globally recognized player Ester manufactures and markets its polyester films under
the brand UmaPET and engineering plastics as Estoplast. The Specialty Polymers business is driven by technology and
innovation and the Company presently has many patent applications pending for this business. With state-of-the-art
manufacturing plant, skillfully managed operations and a committed work force Ester continuously strives to meet commitments
towards total customer satisfaction.
Pradeep Kumar Rustagi (Chief Financial Officer) Gavin Desa / Suraj Digawalekar / Snighter Albuquerque
Ester Industries Ltd. CDR India
Tel: +91 124 2656 100 Tel: +91 22 6645 1237 / 1235 / 1250
Fax: +91 124 2656 199 Fax: +91 22 6645 1213
E-mail: pradeep.rustagi@ester.in E-mail: gavin@cdr-india.com
suraj@cdr-india.com
snighter@cdr-india.com
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