Some good questions. I think compared with say Spinnova, capex...

Some good questions. I think compared with say Spinnova, capex is quite low as the fermentation process is not likely to be very complex, and then the rest leverages off existing infrastructure, in this case, Birla's. As far as cost competitiveness goes, not really much of an issue, as the early low volume stage targets high end fashion with high margins, and as volume picks up and costs fall, they can broaden the market. It's clear that demand is strong, so with a product that is greener, stronger and finer than existing Lyocell, we should be able to set good pricing. That's what makes this opportunity so compelling. They should be profitable early into the commercialisation phase.

Scaling up shouldn't be too complex, but starting small with high end targets/high margins should allow for organic growth while building competency ,streamlining processes and building the brand. They can then build scale. Looks like they're taking a sensible approach and sourcing supply of raw materials locally in India too - greener and more control of both quality and shipping.

Of course, Birla may wish to build scale faster.