jaykay enterprises ltd Management discussions

WORLD ECONOMIC OUTLOOK

The conflict in Ukraine has brought significant economic damage leading to slowdown in global growth in 2022 and adding to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest. Global growth is projected to slow down to 3.6 percent in 2022 and 2023. Beyond 2023, global growth is forecasted to decline to about 3.3 percent over the medium term. War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies 1.8 and 2.8 percentage points higher than projected last January. Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential.

INDIA ECONOMIC GROWTH

In the last few years, India had emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. FY 2020-21 was another unprecedented year of demand contraction on back of pandemic while GDP tells an interesting story about the two halves. Looking at the domestic demand potential, India is expected to grow by 7.1% 7.6% in FY22 23 and 6% 6.7% in FY23 24. This will ensure that India reigns as the world?s fastest-growing economy over the next few years, driving world growth even as several major economies brace themselves for a slowdown or possibly a recession.

ORGANISATION OVERVIEW:

Jaykay Enterprises Limited (JKE), part of J K Organisation and part of the 140 year plus old diversified JK conglomerate owes its name to Late Lala Juggilal Singhania and his son Late Kamlapat Singhania, a dynamic personality with a broad vision. Inspired by the cause of Swadeshi movement of Mahatma Gandhi, and driven by the zeal to set up an Indian enterprise, Lala Kamlapat Singhania founded J.K. Organisation in the 19th century ushering in a new industrial era in India. The process of industrialization was worthily and successfully carried by Sir Padampat Singhania in fulfilling the vision and dream of his father and grandfather and made J.K. Organisation as one of the largest private sector group in India. Initially the Company was incorporated under the name ‘J.K. Investment Trust Limited?, and functioned primarily as an investment Company. It ceased to be recognized as investment trust Company in 1959. In 1960 The Company changed its name to J. K. Synthetics Ltd. Later the Company name was changed to

Jaykay Enterprises Limited.

BUSINESS OVERVIEW

JKE was initially engaged in the business of manufacturing of nylon and acrylic fibres and later went into Registrar and Share Transfer Agent activities and now have entered through its associate and subsidiary in various business operations in the area of 3D Printing & Technology. In the global scenario, JKE decided to venture into cutting edge technology services and manufacturing business and invested in M/s Nebula 3D Services Private Limited which is already working in the area of scanning, reverse engineering, benchmarking, Designing and Modelling. The Company has diversified itself into real estate activities and altered its object clause to include inter-alia objects relating to development of products and services in the areas of engineering products across various industry verticals, software designing and development, manufacturing of parts and accessories used in defence and aerospace sector, space technology equipments, to deal in metals, alloys, metal products and other allied products.

JOINT VENTURE:

With an aim to strengthen its leadership position in the metal printing market segment, JKE had entered into a strategic partnership with the global leaders in 3D Metal design and printing market. JKE had signed a Joint Venture and Shareholders Agreement with M/s Additive 3D Pte Ltd(A3D) an affiliate to M/s EOS Singapore Pte Ltd (‘hereinafter referred as EOS?) and consequent upon which a JointVenture (JV) company had been incorporated in the name of M/s Neumesh Labs Private Limited (‘Neumesh?) for the purpose, and the shareholding each of JKE and EOS respectively is 70% and 30% in said JV company, basically to engage, inter alia, in the business of the 3D printing technology in India.

SUBSIDIARY COMPANY/ASSOCIATE COMPANY:

The Company has one subsidiary and one Associate Company, namely (i) Neumesh Labs Private Limited (Subsidiary Company) and (ii) Nebula3D Services Private Limited (Associate)

The in-house Research and Development department enables to achieve cost and leadership. The strong team keeps itself regularly updated to adapt to the latest technologies. Further the JV Company(Subsidiary) ‘Neumesh? has established a Centre of Excellence (COE) in bengaluru, the COE has state of the art EOS Software, Machines & Practices of cutting-edge 3D technology. Any further development in the matter shall be informed accordingly.

HUMAN RESOURCE DEVELOPMENT:

The Company believes that safe and healthy working conditions at premises are as necessary and as important as production, productivity and quality. Company complies with all applicable statutory provisions pertaining to health and safety and takes all possible measures to prevent accidents and occupational hazards. The Company provides the necessary information, promotes awareness and provides training to all employees to carry out their tasks in a safe and responsive manner.

SWOT ANALYSIS:

Strengths:

Promoters have 140 plus years old diversified conglomerate in various fields with presence across the region in India. Technically sound with ultra-modern machineries. Established a good reputation in the market as reliable manufacturer and supplier of quality products.

Weakness

Foreign Market and Business Globally. Opportunity

Potential market and ability to capture the growth by aggressive sale promotion policy. Defence Manufacturing, spare parts indigenization. The indigenization push of the Government of India(GoI) will help in adoption of this technology.

Threat

Threat increasing competition from unorganized sectors and other peers.

ENVIRONMENT & SOCIAL RESPONSIBILITY:

The Company undertakes numerous initiatives, involving employees and providing direction for participation in addition to the office environment. The Company?s concern for the environment is reflected in the following initiatives: Encouraging judicious use of natural resources. Recycling, pollution control to ensure clean air and water, reduction of wastes. The Company is focusing on sustainable manufacturing.