Apcotex Ind...........A turn around story..........

Apcotex Ind

Eq : 5.5 cr
BV : 90
CMP : 61
FV : 10

Apcotex was established in the year 1980 as a division of Asian Paints (India) Ltd., the largest paint manufacturer in India. Apcotex spun-off as a separate company in 1991 and is now part of the 'APCO' group of companies headed by Mr. Atul Choksey, Chairman of Apcotex Industries Ltd. and former Managing Director of Asian Paints. With basic engineering and process know-how from Chemische Werke Huls (CWH) Germany, Apcotex pioneered the production of Vinyl Pyridine Latex, an important raw material for the tyre industry, in India. Subsequently, products such as Carboxylated Styrene Butadiene Latices, Nitrile Latices and Styrene Butadiene Rubbers were developed in-house.


Apcotex Industries Ltd. is one of the leading producers of Synthetic Latices (VP latex, XSB latex, Nitrile latex) and Synthetic Rubber (HSR, SBR) in India. The company has one of the broadest ranges of products based on Styrene – Butadiene chemistry available in the market today. Their range of Latices is used, among other applications, for TYRE CORD DIPPING, PAPER/PAPER BOARD COATING, CARPET BACKING, CONCRETE MODIFICATION/WATER PROOFING and TEXTILE FINISHING. The various grades of Synthetic Rubber find application in products such as footwear, automotive components, v-belts, conveyer belts and hoses.

Over the past several years,they have developed a strong Research & Development base, which has enabled them to develop, manufacture and export products and compete effectively against global players. Through their technical service team and well-equipped application laboratory, they also provide value added services to enable customers to constantly improve the quality of their final product.

Their manufacturing plants are located at Taloja, 50 kms. outside of Mumbai. The manufacturing facilities incorporate state-of-the-art emulsion polymerization technology as well as adequate monomer and finished goods storage facilities and efficient utility support. Additionally, sophisticated DCS control systems ensure fine control over operating parameters.

Apcotex believes in implementing best practices across all departments of the company. They adhere to high quality, safety and environmental standards. Apcotex, an ISO 9001: 2000 certified company, is also in the process of implementing the TOTAL PRODUCTIVE MAINTENANCE (TPM) program under the guidance of the JAPAN INSTITUTE OF PLANT MAINTENANCE (JIPM). They have state-of-the-art manufacturing facilities, with plants strategically located just outside the port city of Mumbai, on the west coast of India.

TECHNOLOGY,RESEARCH&DEVELOPEMENT

Apcotex is constantly incorporating latest manufacturing/processing technologies and introducing new products to meet changing customer requirements. A range of sophisticated laboratory analytical instruments, well-equipped pilot plant facilities and close interaction with renowned institutions like The National chemical Laboratory (Pune), Indian Rubber manufacturer’s research Association (Mumbai) and Central Pulp and Paper Research Association (Saharanpur) for advanced analytical services, helps the company achieve its objectives.
Their Research and Development laboratory is recognized by the Department of Scientific and Industrial research (DSIR), Ministry of Science & Technology, Government of India.

To have world-class manufacturing facilities, Apcotex has been practicing TPM for the last few years with the help of the Japanese Institute of Plant Maintenance (JIPM). The objective is to achieve zero defects, zero losses, zero accidents and zero breakdowns.

Apcotex Ind is making profit since last 3 qr and hence can safely assumed that it can show and EPS of over 10 this year ending Mar 09.While other rubber product co getting valuation higher of around over 20 P/E then with a conservative P/E of 12-15 , Apcotex Ind can touch 110-120 in a year time and hence can be a good buy at this level for a 70-80% return.

Apcotex Ind is available below BV and promoters has increased the stake since couple of years from below 40% to now over 51% which shows the confidence of promoters in the company.

This is my view and due diligence is a must for everybody.One should cross check the information given here and take a call.

Update:
Apcotex Ind recomended dividend after many years and the Div declared is 30%.This again confirms my take that company is now on a growth path and will deliver profits constantly otherwise there was no need for a dividend decalartion and that too as big as 30%.....even 10% div would have been suffice to show the investment community that company is out of woods....
Keeping my fingures crossed.....