Mayur Uniquoters is knitting a new growth story with rugged determination

The artificial leather manufacturer is expanding its high-margin business to tide over the growth slowdown 

The new PU resin plant will help in keeping cost low, fast production and quality control - Suresh Kumar Poddar, MD, Mayur Uniquoters

Self-made entrepreneurs are touchy to questions about their ability to run a business, especially Suresh Kumar Poddar, who has made a mark in the artificial (vinyl) leather business with Mayur Uniquoters. When an analyst interjected during an earnings concall asking: “Sir, the risk is that if you do not succeed in breaking the high-end stuff over time…” Poddar was visibly irked. He replied, “I am not a fool for investing so much money [in the high margin businesses]… I am 100% confident [of its success].” The analyst’s query was related to Mayur Uniquoters’ efforts in creating a premium product in its new product category, PU (polyurethane) leather.

For Poddar, the query was akin to questioning his judgement about a business that he has grown. The Rs.10-billion small-cap was an investors’ darling over FY10-FY18, when it hit an all-time high of Rs.552, generating around 52% CAGR during the period. For FY10-FY20, the compounding was lower but still impressive at 23%.

The analyst’s question may have been justified since the company has been known for its best-in-class polyvinyl chloride (PVC or simply vinyl) leather, which it supplies to the who’s who of the auto and footwear industry. These include clients such as MG Hector, Maruti, Tata, Mahindra, Suzuki, Bata, Paragon, Relaxo and many more. PVC accounts for 61% of its sales and the company is constantly adding new clients.


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