GLAS Reasons 1. new ownership changes
Blackstone is ultimate parent company. growing demand for glas products due to market developments in USA. able to come new investment and new technology. expand production capacity level fulfill market higher demand. 2. Market development
piramal glas continuously developing their market and try to maximize their market share. New Product Development and inroads into new markets such as Mexico, Angola and Indonesia, UK, Colombia, Netherlands etc. main export destination countries like Newzeland, Australia, Mexico, Angola, Indonesia, Colombia, Netherland, USA, East Africa, Kenya, UAE, Philippines, Maldives, UK, Mauritius worldwide. 3. Super growing glas industry
covid19 pandemic spreading. present market situation really support growth for glas products. researcher identified that,potential super growth in glas industry.
https://primefeed.in/news/5441669/glass-vial-for-vaccine-market-share-growth-forecast-global-industry-outlook-with-top-key-players-such-as-schott-agdwk-life-sciencesrichland-glassnipropacific-vial-manufacturingorigin-ltdstevan/ 4. global Eco-friendly product
presently, most of countries ban single use plastic bags. Sri Lanka also ban plastic with effect from 01.01.2021. they change substitute product instead of plastic. 5. higher acquisition price
acquisition price is higher than market price. it provide guaranteed for prevalling market price. May be they will give mandatory offer or buy back shares increasing holding % rather than 56%. Everything going on beyond acquisition prices. 6. Market monopoly
Benefits from govt. policy on banning glass imports and encouraging domestic industries with assistance. Piramal glas is sole monopoly glas maker locally. No competitor. Still survival with super profits. 7. Utilization of local natural resources
Most of raw material scrutinize from Sri Lanka. GLAS
mainly uses resources dolomite and silica which is being obtained locally (Naththandiya). govt. told that govt. will give benefit and incentive packages for local resources used by manufacturing companies. 8. Incentives for export orientate product
Govt. give incentives for export oriented business. Govt. budget were shoed so many proposal motivate this kind of business.
GLAS will perform well with superlative performance. potentially most valued share. it will trade beyond acquisition price level as soon. be hope higher dividend payout