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United Phosphorus (UNPO.BO)
Alert: Takeaways From Citi India Investor Conference
Takeaways from Mumbai — United Phosphorus presented at the Citi India Investor
Conference in Mumbai. Below are key takeaways.
What's New? – United Phosphorus indicated that the off take during the quarter has
been fairly good so far. Pricing has also been favorable in certain products and, with
low inventory levels in trade, favorable weather should see healthy growth rates.
Acquisition plans key for expansion – UNPO reiterated its stance of not considering
acquisitions with a payback period of more than 3-4 years. Considering the high
surplus cash available to it, UNPO continues to look out for acquisition targets to
enhance geographic presence and product portfolio. It believes that there will be a
fresh round of consolidation among mid-sized firms and that it is well positioned to
capitalize.
Large Generic opportunity awaits – Besides the inorganic initiatives, almost US$4bn
worth of products are expected to lose patent protection in the next few years. UNPO
expects to be a key participant and emerge as a significant player in these products as
well. It expects emerging markets to grow faster that developed markets.
Europe product registration guidelines getting stringent – While this could disrupt
certain products from time to time, this is also likely to accelerate consolidation, as it
would require significant investment and time to get new products registered as well as
maintain existing registrations. Over the long term, this should benefit stronger,
established players such as UNPO.
Product Portfolio Development – UNPO continues to invest in developing products
with a focus on formulations and does not intend to enter the novel molecules space at
this moment. However, their patented/proprietary product portfolio contributes c17% of
their total revenue.
Other Key takeaways – 1) Expects minimal impact of the DEPB benefit withdrawal
and working towards a strategy to tackle this; 2) Expects Europe biz to pick up after a
poor FY11
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
United Phosphorus (UNPO.BO)
Alert: Takeaways From Citi India Investor Conference
Takeaways from Mumbai — United Phosphorus presented at the Citi India Investor
Conference in Mumbai. Below are key takeaways.
What's New? – United Phosphorus indicated that the off take during the quarter has
been fairly good so far. Pricing has also been favorable in certain products and, with
low inventory levels in trade, favorable weather should see healthy growth rates.
Acquisition plans key for expansion – UNPO reiterated its stance of not considering
acquisitions with a payback period of more than 3-4 years. Considering the high
surplus cash available to it, UNPO continues to look out for acquisition targets to
enhance geographic presence and product portfolio. It believes that there will be a
fresh round of consolidation among mid-sized firms and that it is well positioned to
capitalize.
Large Generic opportunity awaits – Besides the inorganic initiatives, almost US$4bn
worth of products are expected to lose patent protection in the next few years. UNPO
expects to be a key participant and emerge as a significant player in these products as
well. It expects emerging markets to grow faster that developed markets.
Europe product registration guidelines getting stringent – While this could disrupt
certain products from time to time, this is also likely to accelerate consolidation, as it
would require significant investment and time to get new products registered as well as
maintain existing registrations. Over the long term, this should benefit stronger,
established players such as UNPO.
Product Portfolio Development – UNPO continues to invest in developing products
with a focus on formulations and does not intend to enter the novel molecules space at
this moment. However, their patented/proprietary product portfolio contributes c17% of
their total revenue.
Other Key takeaways – 1) Expects minimal impact of the DEPB benefit withdrawal
and working towards a strategy to tackle this; 2) Expects Europe biz to pick up after a
poor FY11
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