Camphor Powder Manufacturers In India
I am sure many of you might have observed the improving fundamentals of companies involved in the camphor manufacturer in india. I will try to explain the reason behind the changeinfortuneofcompaniesinIndianCamphorIndustry.
1. Natural Production: Made from the wood of Camphor tree, mostly found in Japan, Taiwan, Vietnam. With the growing known uses of camphor in chemical industries, Japan raised the pricesinthelate19thcentury. Thiseventually ledtothedevelopmentofsyntheticcamphor. Camphormadethroughcamphorwoodgivesapaltryyield.
2. Synthetic camphor: Was developed in the early 20th century. Much cheaper and scalable. ProducedfromPinetreewhichisabundantlyavailable.Givesayieldofabout90%.
AlthoughIndiahasabundantpinetreebuttheoutputfromIndiavarietyisjust17%compared to 80% from the imported variety. This explains the import of turpentine for these Camphor companies.
Production through synthetic route is at a fraction of cost and available abundantly. Natural camphorpriceisatleast3xofSyntheticcamphor.
The industry is asset light, without the use of any technology implying very little barriers of entry.Becauseofnothavingtherequirementoftechnologyknowhowthereexistsanumberof smallerplayersrenderingthemarkethighlyfragmented.
Since Resins contribute a meager 10% of sales in FY18, not sure if the turnaround can be attributed to this segment. Mangalam Organics had signed the Terpene Phenolic Resin deal signedwithFrenchgiantDRTinFeb2018.
Its unlikely for the agreement to show the impact on the financials in just one quarter i.e. an EBITDAmarginjumpof6.1%inJune 2018,giventhat ittakesgoodamounttimetofinalizea numberofthingspostsigningagreementbeforethesmoothflowofgoods.
Camphorisaproductthatismanufactured,sold,andprocuredworldwide.Itisaproductwith a wider range in the present market. Scientifically known as Cinnamomum Camphora, Camphor (Kapoor in Hindi) camphor powder manufacturers in india is a flammable translucentwhitesolidwhichhasasourtasteandapiquantsmell.
Some people also like it and consider the smell of the Camphor as nose tingling fragrance or menthol-like smell. The Camphor is an item liked and used by people nationally and is acquiredfromthebarkofthetreeCinnamomumcamphora.Thisblogwillhelpyouexplore all theaspectsofthecamphormanufacturingbusiness.