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Key Meeting Takeaways

Consumer Division :

* Expect the consumer division to grow at CAGR of 15-20% over the short term

* Approved an expansion of capacity for Opalware in Jaipur from 42 tons per day to 84 tons per day. This would entail an investment of about Rs.175 crs. We can expect output from expanded capacity in 3QFY23.

* Setting up Borosilicate glass capacity, first of its kind in India with a total investment of Rs.75crs, which is likely to come up 1QFY24.

* The company entered the appliance space to be seen as an everyday-use kitchen player, along with increasing its presence in Tier 2- 3 cities, where demand for glassware product relatively low.

* Opalware margins in the range of 25-30%, likely to be sustained going ahead; expect margins for glassware products to start tending towards opalware margins once in-house production starts.

Scientific Division

* Laboratory business growing steadily at mid to high single-digit and generates good cash flow which helps to fund other business.

* Expect this division to grow at 13-15% PA.

* Klasspack (pharma packaging ) has seen strong traction, also seeing good demand from COVID related products. Expect growth to be strong in the next 1-2 years.

* Labquest instruments offer products which where earlier being imported.

* See export as good opportunity for Lab Glassware products, as products are highly competitive and of high quality.

* Expected capex of around Rs.100crs in the next couple of years.

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