Metals industries are an indispensable part of an economy, they from the backbone of
industrial development of any country. Metal is a key sector as if meets the requirements
of a wide range of important industries. Being a core sector it tracks the overall
economic growth in the long term. The metal industry has two main segments ferrous &
Non-Ferrous. The global non-ferrous metals industry has been witnessing a dramatic shift
in the past few years.
MAJOR KEY FOR GROWTH IN METAL INDUSTRY
• Technology Development
• Development in Organizational Capability
• System Integration
• Grip on Market Trend
• Higher Service Level
• Proactive and Positive Policy Environment
Overview
FY 2015 was another challenging year for the Metal markets, as the total value of
metals sector deals in 2014 fell close to the lowest levels recorded in any reports. Deal
value dropped a dramatic 52% year on year, from US$34.8bn in 2013 to US$16.8bn in 2014,
US$1.7bn above the low of 2009, and immediately post-credit crunch. It’s a far cry
from the 2006-08 periods when total deal value in the sector was an average of more than
five times higher.
In the international markets, the overall sector of metals traded on the London Metal
Exchange (LME) was down 5.5% in 2014.
Base metal prices, as a sector rallied during the first half of the year but the rally
sputtered due to a rising dollar and global economic conditions.
There were some bright spots in non-ferrous metals for the bulls in 2014. Copper is
generally a leader in this sector but the copper price was weak throughout the year. In
2014, aluminum, nickel and zinc prices moved to the upside. All other metals moved lower
led by copper.
Metals Trading Analysis
Copper was in poor health for most of the year. China’s crackdown on financing
transactions using metal as collateral was also said to be a reason for copper’s fall
from grace. The metal had fallen by around 14% since the start of the year.
In relation to copper, aluminium and zinc prices did better with their prices rising by
around 5% and 4%, respectively, in the year. Aluminium metal premiums had been rising
steadily during the year as buyers were forced to pay extra for quicker deliveries. Higher
prices helped the margins of Indian Market.
Zinc was expected to see higher demand in 2014 due to demand for galvanizing
operations. That did happen and zinc use rose 5.9% on the back of higher global demand,
while refined metal production rose by only 3.8%, causing a deficit situation. In
aluminium, reacting to weakening demand conditions, companies had to shutdown unviable
capacities. A tighter supply market has supported prices and metal premiums. In 2015,
metal prices may see some volatility depending on whether supply declines in response to
falling prices. While zinc and aluminium had a good year in 2014, there is gurantee for if
that will continue next year, too. If China’s economic growth continues to slip and
its appetite for non-ferrous metals declined, then major impact on prices could be
expected.
OPPORTUNITIES & STRENGHTS
Being a trading company, opportunities and threats to the company are those which are
applicable to all the companies operating in the Metal Industry keeping in view of the
present market sentiments and government policies.
Aseem Global Limited is a thriving company in the sourcing and distribution of
Non-Ferrous and Ferrous metals. The company provides high quality service and support to a
wide variety of business organizations throughout India and abroad - whatever their
particular interest in metals and wherever they are located.
Majority of the local demand in India is met from Imports .The Company has been in the
trade since long and has a very good sourcing network from the various corners of the
globe. The Company has been able to negotiate best deals with the suppliers.
As the company is working towards its long-term goal of becoming a fully integrated
metals organization, Aseem Global
Limited is able to add value to its customers. We are able to provide them with
flexible settlement terms, advantageous supply arrangements, advisory services and other
standard services.
OUR GLOBAL STRATEGY
Since its foundation, the goal of Aseem Global Ltd. has been to establish close, long
term relationships with its customers which are and mutually beneficial.
Over the years the company has developed good relationships across the globe and has
business associates in Europe, USA, Asia pacific, and Middle East.
Irrespective of which particular industry sector its customers operates in, Aseem
Global is able to provide best solutions to individual needs - and high levels of personal
service. For customers looking for more than just metals from their supplier, a strategic
alliance with Aseem Global provides them with all the supplementary services their
business needs.
This has brought related benefits, By dealing with an organization that is closely
matched to its own, they can be sure of high levels of personal service from key contacts
in each of the Group’s regional offices and considerably less bureaucracy than is
found in more formal organizations.
RISK AND CONCERNS
The Aseem Group aims to address risks, opportunities and threats posed by its business
environment strategically by maintaining sustainable and robust business models and
further improving on them. . The sector is also faced with the increased challenges of
changing expectations in the maintenance of its social license to operate. We have
identified associated risks on several fronts and have formulated policies to
categorically deal with each of them .Aseem global response to these elements is discussed
in the sections below.
Raw Material Risk
As zinc, accounts for the huge cost out of total operating cost in the industry, any
adverse impact on zinc production or extreme price could put pressure on the
Company’s margin. The non-availability of raw materials at appropriate price,
quantity and quality for our energy requirements may also affect the industry. The
Company’s growing contact farming network assures that it receives continued and
adequate access to good quality.
Foreign Exchange Risk
The Company is expected to face strong competitive pressures both domestic and overseas
.The Company is also exposed to financial risk from changes in interest rates, Foreign
exchange rates and commodity prices.The Company also faces challenges with regard to the
currency markets comes from the US Dollar determined pricing of zinc, lead and silver.
Being a trading and manufacturing Company, a large portion of the Company’s purchase
comes from the import. The fluctuations in the Indian Rupee, especially a weakling against
major currencies, could adversely impact Aseem’s Margins. The Company has a foreign
exchange risk management policy which allows it to hedge all foreign exchange exposures.
Competition Risk
Intensity of Competition has increased in almost all the segments of Indian Metal
market-due to entry of new players and expansion plans of Existing Competitors. The
Company is aware of the increasing Competition and add to the risk factor and is taking
measures to remain competitive in the market place.
Safety & Environmental Risk
We faces many hazardous problems while our production activities. Any accident or other
unfortunate happens may cause personal injury or death and damage to property and
environment. To fight with these risks, we are regularly monitoring and reviewing the
worker’s activities and way of working to give high priority to safety, health and
environment. Simultaneously we organize training sections for the workers on regular
basis.
The Group operates in multiple geographies and thus has compliance obligations with
diverse and complex laws regulations and contractual commitments relating to health
safety, environment and regulatory compliance. The risk of substantial costs, liabilities
and damage to reputation related to non-compliance with these laws and regulations are an
inherent part of the Group’s business. The Group has policies, systems and procedures
in place aimed at continuously improving safety performance and minimizing the impact of
the Group’s operations on the environment.
Price Risk
The Global market products are affected by the LME prices i.e. London Metal Exchange.
The fluctuation in prices on LME affects all the metal market. Any adverse fluctuation in
prices could impact on our revenue adversely vis-a-vis our business. Therefore, we are
regularly trying to match with the average LME prices for a month or for a year. Any
fluctuation in the prices of the metals that we produce and sell will have a direct impact
upon our business profitability. According to the board policies, we follow the defined
internal controls, monitor the production & trading mechanism and sell our products at
prevailing market prices.
Operational Risk
The Company has initiated several measures to manage operational risk through
identification, assessment and monitoring of inherent risks in all its business process.
The increased cost of transport services, non-availability of transports, strikes,
equipment failures, delay in supply of raw material, machinery breakdowns, industrial
disputes, power fuel & electricity problems and other interruptions are the major
operational risks. We are highly focused on operational risks. While many of these risks
are beyond our control, still we regularly try to cope-up with these risks by using our
adequate and consistent policies. We move by taking proper time margin to fight back with
the problems such as delay in supply, machinery breakdown, strikes etc.
Political & Regulatory Risk
The government policies related to rates, government assistance for exports, tax
structure, license permits etc. reflects the overall market conditions. Any downfall in
country’s economy and political instability also give impact the business movements.
We try to pre-identify these types of initiatives and policies of government through our R
& D analysis and manage risk. By implementing the rules & regulations of
government on our business activities properly, we make a route to move business
efficiently.
Other Risk
Apart from the risks mentioned above, the Company’s business is expected to other
risks such as mismatch in demand and supply, Cost Risk, Financial Risk, Realization Risk,
Market Risk, Lack in efficiency of Man-power, Insurance Risk, which are mitigated through
regular monitoring and corrective action.
FUTURE TRENDS
China’s uncertain economic situation is likely to hang heavy over the non-ferrous
metals sector in 2015. The country is one of the largest consumers and producers of
non-ferrous metals and its decision to re-balance economic growth from an
investment-focused one to a consumption-oriented one can upset demand-supply balances. As
a result of these reforms, other emerging markets too, could see slower growth. while
Europe’s growth shall also continues to bring in volatility in the metal markets.
On the domestic front, the formation of new stable government at the Centre has
reaffirmed the corporate and consumer sentiment significantly. Moreover, adoption of
various structural and pro-business reforms is likely to put the economic growth back on
track in a phased manner. Expected improvement in domestic GDP growth would improve both
domestic demand for the various base metals such as iron & steel, aluminum and copper.
Additionally, expected reduction in interest rate would likely boost the credit-off
take and improve overall investment and add to the demand of end-user segments in India.
Thus, we expect domestic demand for metals to improve in 2015 following a recovery in the
end-user industries such as industrial construction, civic infrastructure, power,
automobiles, industrial machinery, and consumer goods, among others.
The Company moves forward to enhance its capacity to meet the demand of its customers
and finalized plan for capacity expansion at its manufacturing unit to meet future demand
of the industry.
MANUFACTURING ACTIVITY
The Company managed to sustain its production in comparison to previous year, given the
high competition in the market. It also faced lack of liquidity due to volatile of the
dollar in Indian market. However, given the tough working conditions, company managed to
increase its customer base by 23% and also managed to produce two other brands of high
grade zinc ingots.
Energy Efficiency & Conservation
The Conservation of energy plays a crucial role in performance of business. To lower
the operating cost, the motor efficiency should be higher, we maintain and keep motors
running efficiently and identify the problems before a breakdown. Through our simple
actions, such as building advance energy considerations into the design and development of
new assets and operations, using waste and process outputs as fuel sources, using more
renewable energy sources to support operational power needs and Improving the energy
efficiency of current operations, we will in a better position to control use, avoid high
rates and negotiate with utilities. We have developed a fuel management strategy to profit
from price volatility in fuels, energy efficiency both directly and indirectly add to
manufacture’s bottom line- directly by cutting a Company’s utility bills. Energy
savings means to save water, so the companies use water harvesting system & water
scrubber which leads to cost reduction and environment – friendly.
For the maximization of energy savings and its overall benefits to the company, we have
implemented a comprehensive energy and environmental- Management program.
For the improvement of overall comprehensive energy and to set targets to achieve our
efficiency goals we have designated an energy manager.
Afforestation Activities & Pollution Control
As the world is in forefront of facing global problems such as "Global
Warming" & "Energy issues"
Aseem Global Limited has accorded the high priority to ecology development and
pollution control. Aseem believes that a clean environment in and around the workplace
fosters health and prosperity for the individual, the group and the larger community to
which they belong. Environmental protection is an integral part of the planning, design,
construction, operation and maintenance of all our projects.
Aseem Global Limited is trying various activities such as plantation and cultivation in
the factory premises and in the nearest areas of the factory. We understand that in a
production factory the polluted air or gases come out from the chimneys or otherwise.
Therefore, continuous monitoring in respect of liquid/ gaseous effluents control is
carried out at units and treated effluents meet all the statutory requirements. A
pollution level in air is being continuously monitored through continuous checking. In the
premises, we have set- up a nursery for the fresh air & to reduce the bad impact on
the environment through gases. Simultaneously, the above mentioned activities affect the
pollution also. The Company follow the pollution control policies as charted by the
Management. The factory has proper pollution control plant and we have obtained pollution
control certificate from the Authority on its effective techniques and efforts to control
the pollution. All the guidelines of the Central Pollution Control Board have been adhered
too.
Government Initiatives
Abu Road is located in Distt. Sirohi (Rajasthan), which is a backward district and
enjoys host of privileges including subsidy @50% of development charge on land cost,50% on
electricity for tribal area, 1% on sales Tax and other tax incentives from the state
government. Many Schemes have been formulated to develop marketing infrastructure in this
area.
Aseem Global Limited has also fulfilled all criteria & norms and is following all
rules & regulations prescribed by the government to get the subsidy and the Company
has successfully achieved the same.
The main objectives of these schemes are to promote the direct marketing, to strengthen
the existing business environment, to provide better infrastructure facilities for
standardization, to stand with the competitive scenario etc.
Employee Development
The Company gives high priority towards training of executives, supervisors and
workers. Apart from utilizing the training facilities available in-house, the employees
are encouraged to go to other training centers within India. Training facilities provided
by the equipment manufacturers within the country/abroad are also utilized.
In house and on the job training fulfills the Training needs of all Categories of
Employees and benefits by developing the Skills, Knowledge and Attitude. In-house Training
Programmers are planned systematically.
Industrial Relations
AGL continues to maintain cordial industrial relations. The Management has a regular
system of discussions on common matters which help to maintain good industrial relations
and to create mutual trust and belief among the employees. Company is also a member of
Bombay Metal Exchange, where all the government policies or grievances are addressed.
Health & Safety Measures
The Company continually assesses its norms on the health & safety measures and
collects the feedback from all the employees. The Company involves in the activities of
prevention, information and training workers particularly to:-
1. Avoid risk or manage those risks that cannot be avoid;
2. Give appropriate instructions to workers by promoting common protective measures;
3. Adapt working conditions & equipment carefully.
In the factory, there are a spaniel section of staff to take care of hygiene related
issues such as the canteen, bathrooms etc. We provide the masks, helmets, shoes, hand
gloves and spects to all workers during their production activities to protect them from
any unwanted disease which can be come out from the gases and other type of elements. We
provide first aid facilities to our employees and workers. Aseem’s occupational
health centers carry out pre-employment and periodic medical checkups as well as other
routine preventive services. Specialized tests like biological monitoring, health risk
assessment studies and audits for exposure to various materials are also performed. Health
education and awareness form an integral part of the health care programme at Aseem.
In the Company’s factory, there is proper fire fighting equipment to fight with
any mis-happening. All the workers are properly insured and the Company follows the rules
& regulations of the ESI.
Location Suitability
The manufacturing unit is very closed to the well flourishing markets of Gujarat &
Maharashtra. Abu Road is located almost on the border with Gujarat. Abu Road is well
connected with other parts of the country by both rail and road. All superfast trains
including Rajdhani stop at Abu Road. The city is also located on a 4 lane Notional Highway
no: 27 and is part of the proposed Delhi Mumbai Industrial Corridor (DMIC).
In compassion with other parts of Rajasthan, the area receives reasonable rainfall and
is on the foothill of the famous tourist and religious destinations of Mount Abu (Hill
Resort).
The manufacturing unit is ideally located very closed to sea parts of the country. The
raw material comprising of aluminum, zinc, brass, & copper scrap can be conveniently
and early sourced from overseas destinations.
Manpower Welfare & Women Empowerment Measures
The welfare measures involve three major aspects which are occupational health care,
suitable working time and appropriate salary. There are approx 200 workers in our factory.
The factory has a canteen for workers, in which four times meals are provided to the
workers and their families. The Company provides the quarter to all workers and their
families. The Company also provides uniform to all the workers.
Workers or employees have two components in their life: social life and work life.
Invariably, there is a reciprocal influence between these two components. The management
has left –out of such measures in certain areas where there is an imbalance of the
two components and consequence stress and strain for the stakeholders. The Company prefer
to the physical, mental, moral & emotional wellbeing of its workers. The welfare
measures aim at integrating the socio- psychological need of employees.
The Company follows rules & regulations of all governments established acts, laws
& legal process such as The Factories Act, Employees Provident Fund Act, Employees
State Insurance Act, Industrial Dispute Act etc. Most importantly, there are approx 50
women workers in the factory premises. The Company takes care of the women workers
especially and gives equal environment to them. We are strictly against the child labour.
The Company provides the preventive services and counseling to women employees time to
time. There is the facility of regular health checkup of women in factory. Women employees
are also actively participating in various culture and extra- curricular activities
organized by Aseem from time to time. Aseem Global Ltd. has also instituted the annual
Woman Exemplar Award to honour women who have taken development initiatives against all
odds in the fields of education and literacy, health and micro enterprises.
Our management takes care of the women from any type of harassment at work place.
Training is imported to woman employees in the field of technical as well as
administrative matters. The Company has adopted the principal of equal opportunity to the
women employees or workers in the matter of employment.
Social Initiatives
As the business environment gets increasingly complex and stakeholders become vocal
about their expectations, good social initiatives practices can only bring in greater
benefits, some of which are as follows:
Our initiatives in terms of employment and skills development; they cover matters such
as job tenure, benefit systems, and worker protections; they also cover educational,
charitable, and artistic provision; they may include the participation and representation
of employees and other groups in the governance of the enterprise.
Internal activities for social initiatives related to employment, training and welfare
measures undertaken by organizations for their own employees. AGL provides policies
related to higher levels of training and provide greater job security.
AGL covers external initiatives which are undertaken by company for those outside the
Organization. This can be for individuals, for groups, or for their organizations. This
can be for individuals and groups might cover family members of employees or past
employees such as pensioners’ .Outside Organization here might include business
partners and sub contractors, suppliers and customers; they might also extend to local and
national community groups and voluntary organizations such as charities.
INTERNAL CONTROL SYSTEMS
The Company has adequate internal control procedures commensurate with its size and
nature of business. Their objective is to ensure efficient usage and protection of the
Company’s resources, accuracy in financial reporting and due compliance of statutes
and procedures.
The Company has well documented policies, procedures and authorization guidelines
commensurate with the level of responsibility and standard operating procedures specific
to the respective business. The Company has a full-Fledged in house internal audit and
post-Audit checks and reviews are carried out to ensure follow up on the observations made
by the Audit teams. The Audit Committee of the Board, in its periodic meetings, reviews
the Internal Audit Reports, the progress in implementation of their recommendations and
the adequacy of Internal Control Systems.
HUMAN RESOURCES
At the core of Aseem Global Human Resource Management (HRM) policy is the underlying
belief that employees are our primary source of competitiveness. Hence the focus is on
enriching the quality of life of its employees, developing their potential and maximizing
their productivity. With the unique attributes of our policy are climate of openness,
equity, fairness and respect for the individual, freedom to experiment, mutual trust, and
teamwork and strives to attract the best available talent and ensure diversity in its
workforce.
FORWARD LOOKING STATEMENTS
The Management Discussions and Analysis’s statements that address expectations or
projections about the future, including but not limited to statements about the
Company’s strategy for growth, product development, market position, expenditures,
and financial results, are forward-looking statements. Forward-looking statements are
based on certain assumptions and expectations of future events. The Company cannot
guarantee that these assumptions and expectations are accurate or will be realized.
The Company’s actual results, performance or achievements could thus differ
materially from those projected in any such forward looking statements. Important factors
that could make a difference to the Company’s operations include economic conditions
affecting demand and supply and price conditions in domestic and international market,
changes in Government regulations, tax regimes, economic developments and other related
and incidental factors.
+91-9892691696
