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Nirmal Bang Report
We hosted Rossari Biotech Ltd.’s management at our annual investor conference in order to understand the overall demand outlook across segments, effectiveness of pass-through mechanism under an inflationary environment, update on Unitop and Tristar and overall growth drivers going forward.
The management stated that the growth prospects for the home, personal care and performance chemicals segment are robust. Addressing investors’ query on the possibility of saturation in home and personal care segment, the management stated that growth would be largely driven by this sub-segment only as there are ample opportunities with various clients, including multi national companies.
Other sub-segments of HPPC like paints, ceramics, rubber etc. are still smaller in size. However, they should also pick up pace over the next two years.
There are short-term challenges regarding pass-through of the entire cost burden to clients, especially in the formulations business, which is the core strength of Rossari Biotech.
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