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Indian Acrylics


Indian Acrylics is in the business of supplying acrylic fibre.

The company has reported somewhat erratic profits on reasonably stable revenues including losses in 2009.  It reported about 56cr of operating profits on revenues of about 410 crores in the last financial year and operated with moderate net debt of about 80cr.

The company was forced to restructure its external loans as a result of heavy losses during the recession implying a lack of strength during hard times.  It is a cyclical business exposed to risks of foreign dumping, Acrylonitrite (raw material) price spikes – which is dependent on crude oil prices, technological obsolescence of existing machinery etc. 

Management have also diverted its attention to non-core ventures such as power generation, carbon credits etc. – in which it doesn’t appear to have demonstrable business experience.  Their lack of stewardship towards minority shareholders is confirmed with the lack of dividends in any of the last five years despite lack of profitable growth and unwarranted diversification as outlined above.
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