Global supply chain industry is set to expand in the second half of 2024, with Allcargo Logistics at the forefront of this growth. Despite the addition of 1 million TEUs to container shipping capacity this year, freight rates continue to rise. Warehousing capacities in key countries are decreasing as inventory restocking occurs in anticipation of demand recovery.
Express business has seen significant improvement, with cost reduction leading to healthy exit rates on operating costs. Apcotex Industries is also gearing up for growth, with revenue forecasts of Rs 18.0-20.0 billion and margins of 12-14% in the next three to five years. The company expects to increase its share of exports from 30% to 50% over the same period.
Meanwhile, APL Apollo Tubes faced challenges in FY24 but still managed strong performance with volume, EBITDA, and PAT growth. The company aims to achieve an EBITDA/tonne of Rs 5,500 when volumes reach 5 million tonnes, with a target EBITDA margin of Rs 10,000/tonne and a capacity of 10 million tonnes.
Apollo Pipes is focusing on expanding its presence in domestic markets through capacity expansions and acquisitions. The company recently acquired Kisan Moldings and is targeting sales of around Rs 9 billion with an EBITDA margin of 10%.
3M India is eyeing growth opportunities in the PV segment production and automotive electrification. The company is working closely with OEM players on product development tailored to their models. 360 One is launching a new HNI business segment, while Action Construction Equipment is projecting revenue growth of 15-20% in FY25.
Ashok Leyland expects strong demand in traditional ICE segments and plans to expand its distribution network. Astral aims to double its revenue over the next five years, driven by growth in various segments including pipes, adhesives, and water tanks. Aurobindo Pharma anticipates high single-digit revenue growth and is focusing on overall portfolio growth rather than depending on one product.
Overall, these companies are positioning themselves for growth and success in the evolving market landscape.
