MANAGEMENT DISCUSSION AND ANALYSIS REPORT
While the Global recovery is still sluggish, the Indian emergence from the slowdown of2009 has been quite dramatic. India has now emerged as the World's 2nd Largest FoundryProducer and the trend seems to be further getting reinforced.
DISA's major markets - Indian Foundries - are currently facing a major demand boom, butagainst a background of severe crunch in availability of labour 8c power. This is nowdriving a clear move of upgrading towards High Productivity Automated High pressureMoulding Lines. Additionally, with the Global Merger of the Wheelabrator Group with theDISA Group in 2009, we now start focusing on Automotive & Steel Processing Industriesfor the whole range of Surface Preparation Equipment.
Your Company is well poised to capture a significant majority of these opportunities,as it covers the whole range of technologies within the DISA & Wheelabrator Groups.
The New DISAFLEX80, which was successfully commissioned during the year, has expandedthe range in the Horizontal Flask Lines Category.
Your Company also developed 8c installed the Automatic Mould Handling (AMH) Systems inIndia, for the New range of Medium &. Large DISAMATCH machines, which came fromDenmark.
The Company also launched the First Made in India DISAMATIC Vertical Moulding Machine -DISA 030 - which was very well received in the IFEX in Feb'2011. Your Company has alreadyreceived two orders for this DISA 030 machine and is hopeful of a good response from theIndian Foundries in the coming years.
The first machine (HB-l) from the Wheelabrator range was localised for the IndianNon-Foundry markets and has been well received for many of its novel features.
All these new product introductions 8c the continuing capacity upgrade / expansiontrends by all Major Customers, lead to expect a good revenue growth for the Company inYear 2011.
To match this growth potential, your Company has already started further investments -since mid 2010 - into expansion of our manufacturing equipment & facilities, at boththe Tumkur &. Hosakote Plants. During the year, the company increased its teamstrength significantly and are continuing to do so.
While the growth engine in India seems quite strong now, the high inflation and theInterest rate hikes have the potential to slow down this growth. The high inflation isalso likely to hit margins, with major impact expected from steel price spikes.
The Company has adequate internal control systems as part of the Management InformationSystem in place. Regular Audits are being conducted on all fronts by the Statutory andInternal Auditors.
Persons constituting Croup coming within the definition of "Group" as definedin the Monopolies and Restrictive Trade Practices Act, 1969 include the following:
Name of the Company
1 Norican Holdings ApS (Denmark)
2 Norican Group ApS (Denmark)
3 DISA Holding A/S (Denmark)
4 DISA Holding II A/S (Denmark)
5 DISA Holding AG (Switzerland)
6 DISA Holding Acquisition LLC (Michigan USA)
7 DISA Industries A/S (Denmark)
8 DISA Industries AG( Switzerland)
9 DISA Industries, Inc. (Illinois, USA)
10 DISA Industries s.r.o. (Czech Republic)
11 DISA K K (Japan)
12 DISA Machinery Limited (China)
13 DISA Trading (Shanghai) Co Limited (China)
14 DISA Technologies Private Limited (India)
15 WGH Holding Corp. (BVI)
16 WG Global LLC (Delaware, USA)
17 Wheelabrator Group, Inc. (Delaware, USA)
18 Wheelabrator Group (Canada) Ltd, (Canada)
19 Castalloy, Inc. (Delaware, USA)
20 WGH UK Holdings Ltd. (UK)
21 WGH UK Limited (UK)
22 Wheelabrator Technologies (UK) Ltd (UK)
23 Wheelabrator Group SLU (Spain)
24 Wheelabrator Group Holding GmbH (Germany)
25 Wheelabrator Group GmbH (Germany)
26 Wheelabrator Group SAS (France)
27 Matrasur Composites SAS (France)
28 Wheelabrator Group Limited (UK)
29 WG Plus de Mexico S de RL de CV (Mexico)