Ester Industries zooms on back of blockbuster order
The stock of Specialty Polymer major Ester Industries was locked in its 10 per cent upper circuit following the announcement of a major order win. The company signed a long-term agreement with a US-based firm, the size of the order is expected to be around Rs. 900 million per year.
The agreement with Shaw Industries Group Inc, USA, a leading carpet manufacturer is open-ended with the first order received and shipment scheduled in February 2018. Shaw Industries is a wholly-owned subsidiary of Berkshire Hathaway, Inc. This single order is estimated to be around Rs. 900 million per year which is double the company’s FY2017 Speciality Polymer segment revenues of Rs. 430 million.
The company will supply circa 2,500 tonnes per year of its stain-resistant Master batch MB-03, which is a PET-based and imparts permanent stain resistance to nylon carpets. Ester has received both product and process patents for MB-03 in August 2017. The product provides flexibility to producers of nylon yarns used for carpets to adjust the content of the active ingredient for stain resistance and significantly reduce operating costs.
Meanwhile, the company's concall to discuss the details of the agreement was cancelled. The company's management expects continued pickup for its stain resistant polymer product line. Ester manufactures Specialty Polymers primarily for the European and the US markets.
At 11:13 hours on Tuesday, Ester Industries was at Rs. 67.30 per share, up Rs. 6.10 or 9.97 per cent on BSE.