EMMBI INDUSTRIES :- A BLUECHIP IN MAKING

Emmbi Industries began as a twinkle in the eyes of first-generation
entrepreneurs, Makrand and Rinku Appalwar. An opportunity spotted in 1994
saw the birth of Emmbi in the November of 1994 with one small
manufacturing unit in Silvassa. Since then, Emmbi has grown from strength to
strength, transforming into a leading global polymer company.
∆ Emmbi Industries is one of India's largest technical textile and specialty polymer processing company
manufacturing (1) woven sacks and FIBC (Flexible Intermediate Bulk Containers) which are used in transportation
of bulk commodities like chemicals, fertilisers, cereals, detergent (2) advanced composites of
pharma and food grade, such as anti-carcinogenic, anti-bacterial, anti-corrosive and tapered-proof FIBC, with an
R&D center recognized in Apr 2016 by India's Department of Scientific and Industrial Research (DSIR) to
differentiate from its other peers in the fragmented industry as well as various technical
textiles and advanced composites such as container liners, protective irrigation system, canal liners, first to
introduce flexible water tanks (patent registered), car covers used in water conservation and agriculture products.
∆ Established in 1994 by first generation owner-operators and husband-wife team, Makrand and Rinku Appalwar,
Emmbi is based in Maharashtra with its manufacturing facility located at Silvassa in Gujarat in which 48% of their
product sales are derived from international markets. Emmbi’s customers include established consumer and
industrial companies such as Hindustan Unilever, Tata Chemicals, Godrej Industries and ITC, as well as ecommerce
players like Flipkart, Amazon and eBay.
∆ In recent years, Emmbi launched an increasing number of innovative products whose applications can be found
in food, safety, water conservation, agriculture, infrastructure, e-commerce, crop protection, hazardous & nuclear
power plant waste management and solid waste management. For instance, Emmbi recently inaugurated the
world’s widest width pond lining facility at its Silvassa plant in Gujarat in Apr 2017. Emmbi will produce 4,380
pond liners per year under "Jalasanchay Brand", creating an extra water storage capacity of 48 million litres per
day for rural India. The states of Maharashtra and Rajasthan where the company is presently active in the
business, has a plan to produce 110,000 & 50,000 pond liners per year respectively for the next five years. This is
the new market segment for Emmbi with a potential size of Rs2,000 crore (US$310 million). Emmbi is a top 3
players in pond liner business and aspires to get 10% of the market share of pond lining business in the coming
years. Emmbi is also working with five banks to make funds available for farmers for its pond-liner business, which
the management expects to bring in huge opportunities going forward.
∆ Upcoming new innovative products to drive Emmbi’s growth include: (1) Advanced composites: The start of the
clean-room food and pharmaceutical grade packaging plant in July 2017; Pneumatic human safety fall arrest
systems & dunnage systems; E-commerce tamper evident multi trip packaging; Infrastructure road & roofing
underlayment, Fire retardant scaffolding; (2) Water conservation: Retail distribution of pond liners, flexi tanks;
canal liners, check dams, lapeta pipes; (3) Agro-Polymers: Export substitution crop protection, mulch fi lms, silage
incubators, agro sheds.
New innovations :- Emmbi Wool Pack
• Application- Emmbi Woolpack will be used
for packaging of Raw Wool
• Speciality - Traditionally “Wool” waspacked in nylon which is very expensive. AtEmmbi, we have developed a Special Blend of Polymer which offers all the
properties of a conventional woolpack at50% of the cost.
• Market Size- US $ 360 million.

∆EMMBI MAKING WORLDS WIDEST WIDTH POND LINER AND REVENUE FROM THE  BUSINESS EXPECTED TO GROW AT CAGR OF 145% FROM 650 POND LINERS TO 10000 IN 2020.
∆ Revenue in 2017 is 240.99 crore vs 2013 is 140.19 crore which around 70% total growth in last 5 years.
∆ Net profit in 2017 is 12.73 crore vs 2013 is 3.24 crore which almost 400% total growth in the last 5 years.
∆ EPS in 2017 is 7.2 vs 2013 is 1.91 which is almost 400% growth in eps.
∆ Promotors holding :- 57.78
∆ one of the Fii Hidden champions fund already holding 699690 (3.96%) stake and also increasing his stake from open market which is another Positive for long term investors.

∆ I think Emmbi Ind will grow minimum 15-20% CAGR for the next 5-7 year's and looking forward to future Outlook of the company price seems to be cheap so long term investors with time frame of 3-5 years consider around cmp 193 and dips towards 165-170 if any for conservative target price of 400+ all the best guys and happy investing...

[ Disclosure :- holding from 17 level's hence my view maybe biased so kindly do your own research before taking any positions in Emmbi. ]