Accent Microcell Ltd

- Global MCC demand is approximately 250,000 metric tons annually; Indian demand is about 50,000 metric tons. - Indian demand is growing at roughly 5-7% per year, with global growth rates around 7-7.5%. - New capacities totaling 30,000-40,000 metric tons likely to come online in India over the next two years. - Company expects 15-20% CAGR growth over 3-5 years, with possible higher near-term growth due to ramp-up of new plants. - New plants expected to achieve about 60% utilization in the first year. - Peak revenue potential estimated around INR 700 crore from all three units running fully, with top-line from the new plant around INR 150 crore at peak. - Expansion plans (phase 1 and 2 of Unit 3) supported by orders in hand, aiming for ramp-up within the next year. - Focus on export markets alongside domestic growth to mitigate geopolitical and tariff risks.

- The company expects a 15-20% CAGR growth over the next 3 to 5 years, with potentially higher growth in the near term. (Page 23) - Peak revenue potential from the new plant is estimated around ₹150 crore, with ramp-up expected over the coming years. (Page 32, 23) - CCS product segment is expected to deliver around 25% PAT margin, higher than MCC, enhancing profitability. (Page 33) - Expansion plans (Phase 1 and Phase 2 of Unit 3) aim to increase capacity, supporting revenue growth without significant price pressure expected due to balanced demand-supply. (Page 21, 34) - Export market growth and increased domestic demand (~5-7% annually) will contribute to top-line and margin expansion. (Page 34) - EBITDA margins for premium products are expected around 20-22%. (Page 25) - Current focus on ramping up new capacities assures gradual improvement in earnings and profits aligned with capacity utilization. (Page 30, 23)

- The company already has 5 to 6 months of orders in hand for the new products. - They expect to achieve around 60% capacity utilization within the first 3 to 4 months of operation. - For phase one and phase two expansions, orders and business are secured, with no threat perceived to the order book. - The company has good visibility and confirmed orders aiding in ramp-up plans post expansions.

- The company recently completed a rights issue raising around ₹40 crores. - The total estimated cost for Phase 2 expansion is roughly ₹55 to ₹60 crores. - For completing the expansion, management mentioned it is premature to comment on technical accounts but indicated that a nominal amount of debt may be considered to meet working capital needs for Phase 1. - They are currently almost debt-free with minimal outstanding borrowings. - The management is funding the Capex mostly through equity (rights issue) and aims to avoid significant additional debt. - Future fundraising needs will be assessed based on project progress and working capital requirements while prioritizing the best interest of the company and stakeholders.

- Total capex for Unit 3 (Phase 1 and Phase 2, excluding land) is around ₹105-110 crore. - Phase 1 includes a new plant with ₹110 crore approx. capex. - Phase 2 of Unit 3 involves a 12,000 metric tons MCC plant with a capex of ₹55-60 crore (excluding land). - The company has funded the capex largely through rights issue, minimizing significant debt. - Nominal debt may be considered for working capital requirements. - Land purchase (~₹6 crore) was made adjacent to the Pirana plant for warehouse/inventory storage. - Management is evaluating upgrading existing units for spray-dried MCC catering to export markets as part of Phase 2 expansion. - Adequate land is available currently for Phase 1 and 2; further expansions will be taken as per future needs and stakeholder interests.