Unfortunately I have no idea how much chemical is needed to treat a yard of material and don’t have the time to research that at the moment but if anyone can do it we’d get a pretty solid insight into revenue.
If I had to ballpark it, let’s use tenting as an example. I believe Ascalon was being used to treat outdoor textiles, so that’s $1.50 per yard. A 2 person backpacking tent is about 2kg, say half that weight is FR chemical (sounds like too much but we overestimate here to build in a margin of error), that makes 1kg of FR chemical and we’re currently manufacturing 13.6 million kgs of chemical.
Now we need to know how many yards of fabric go into a 2 person tent. A yard of fabric is 36 inches long and between 32-60 inches wide (take the median as 46). In other words 91cm x 117cm.
I found a 2 person domed tent with dimensions: base - 210cmx150cm height - 110cm which would suggest at least 2 yards for the base and 3 for the walls = 5 yards of fabric at $1.50 revenue per yard and costing 1kg of chemical.
So we have revenue of $1.50 x 5 = $7.5 per kg of chemical and $13.6 million kgs of chemical.
Revenue = USD $102 million
Now we need to take into account wastage and treatment may mean more than 1kg of chemical per product. We also need to take into account the $1.50 price per yard is a target so perhaps it’s only $1 (which would suggest USD$68 million revenue). Then we need to consider that some proportion of this chemical is being used in free test phases to acquire new customers (i.e. plant trials) so perhaps not all of the chemical is revenue-generating. Say 50% is, that suggests USD$34 million revenue. Then consider that the weight of chemicals being manufactured doesn’t necessarily mean it’s instantly sold – it becomes inventory.
But unless my assumptions are miles off, that amount of chemical suggests a lot of revenue.
AJX Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
