Acrysil is the only company in Asia and one of just a the companies worldwide manufacturing
quartz kitchen sinks of global standards. It has no competition in its class in
India. It is India’s only indigenous brand of kitchen sinks made of quartz bonded
with resin, homogeneously moulded by a unique CNC-controlled polymerization process.
That results in a product that is scratch resistance, dent-proof, stain resistant
and heat-proof, with a glossy and truly lasting granite finish in several varieties.
It has truly international looks and styling, and is available in a range of attractive
colors. It is highly functional, easy to clean, and safe in contact with food. Best
of all, it remains as good as new even after years of use. Currently company has
375000 units capacity with 300000 units in Granite category and 75000 units in steel
category. Under the Granite Sink Range the models offered include Jazz Series, Vivaldi
Series, Beethoven Series, Single Series, Swan Series and Tango Entertainment Series.
Company's 80% of sales comes from bathroom category.
Company has launched Stern Hagen brand in bathroom category. Stern Hagen is a premium-brand
for sanitary ware and bathroom fittings from Germany. Stern Hagen faucets incorporate
unique design and innovative technologies for water. Products under this brand are
of premium category with price starting from Rs 20000 to Rs 60000 per sink. The
brand was recently launched in Las Vegas, USA and will shortly be launched in Singapore,
Vietnam and the UK. The product roll out will follow in other countries like China,
Thailand and Germany. The Stern hagen range has already earned accolades from the
industry for its awe inspiring designs and amazing quality and finish during Acetech
2013 in New Delhi. Company is expecting strong spike in volumes with the launch
of this brand. Company is expecting to sell around 6000 units in current financial
year on the back of strong branding and advertising expense done abroad. With the
launch of this brand company has entered in next level of innovation which will
help them to drive the future growth.
Company is very unique in steel category as they manufacture Welded pilot steel
sinks, it is very difficult to manufacture and very few manufactures this product.
Under the Stainless Steel Range the sinks offered include Quadra, Trend, Vogue,
Catwalk, Diva, Glamour and Big Bowl. Further, under VETRO INOX, the range includes
Single Big Bowl and Single Small Bowl. Company is doing expansion in stainless steel
sinks to tap domestic growth. Current capacity of 25000 sinks will be doubled in
next two years. current stainless steel sink sales are at 22000 units. These will
help the company to improve its domestic market share.
The company exports its products to approximately 30 countries, including the United
States, France, the United Kingdom, Greece as well as various European markets,
Far East, Gulf countries. The company has been predominantly an exporter with 75%
of its revenues coming from exports. Acrysil has extended its penetration into new
markets like Israel, Germany, Hungary and Denmark and acquired new high profile
customers in several countries like USA. It is doing well in strategic partnerships
with major companies in USA, Europe and Russia, and its international subsidiary
Acrysil GmbH in Germany is now a trusted and established name in that market. With
the launch of Stern Hagen company has strengthen its presence in European companies.
Acrysil started manufacturing granite sinks through a technical collaboration with
Schock & Co of Germany (it owns 10.15% stake in Acrysil), which is a leading decorative
mouldings company in the world. SCHOCK invented the granite sink and has been one
of the leading manufacturer worldwide for over 30 years. In addition to its own
brand name manufacturing business, the company serves as an original equipment manufacturer
(OEM), supplying some of the leading kitchen furniture and stainless steel sink
manufacturers. Today, around 75% of the 2 million sinks sold every year globally
are produced based on manufacturing procedures developed by SCHOCK. Hence company
has strong investor to support its manufacturing facilities at global level if required.
Company acquired 74% stake in UK-based kitchen sink distribution company Homestyle
Products Ltd for Rs 20.50 crores in December 2014. It helps company to expand its
global footprint and to enter the UK market for kitchen sinks and accessories. Acrysil
plans to use the Homestyle Products’ marketing network to introduce other items
from its bouquet of products like kitchen chimneys and cook tops in the UK market.
The firm will also leverage Homestyle Products’ platform to cater to the European
market and accelerate growth of its exports to Europe.In last quarter Homestyle
Products reported Rs 5.5 crores sales and PAT of Rs 1.5 crores which is very good
performance. Hence company is continuously exploring good opportunities for their
Fair margins and return ratios:
Acrysil earns decent operating margins at 18.31% recorded during the last year.
Its ROCE/RONW is also attractive at 18-20%. Acrysil has grown at CAGR growth rate
of 25% in last 3 years compare to global industry growing at 20% p.a. Company is
expected to increase its margins with the launch of Stern Hagen products as they
are very lucrative in terms of its pricing. Going forward company is expected to
double its sales in next 2 years with hardly any capex to be incurred for the same.