bimetal bearings ltd share price Management discussions

Industry Structure and Development:

The Auto Ancillary segment of the industry has established itself with global level of technology and capabilities. The opportunity to be a global supplier for components has also been possible on account of the enhancement of our capabilities. Hence the demand for products continues to grow not only on the domestic market but also in the global market. The emission standards have been aligned with global standards and we see an opportunity in these markets which has started to explore the supply base from India. With the quality, delivery and price have to be competitive, the important requirement of Global warranty also needs to be studied in the background of Warranty clauses which are provided by the OEMs.

Opportunities & Threats:

The increase in new generation of vehicles which have to conform to stringent emission norms call for manufacture of bearings with matching characteristics. Your Company is positioned to meet these challenges. The change in emission norms and the attendant change in inputs to cater to this demand of engines have been recognized in investment in appropriate technology and processes. Your Company commenced supplies to OEM customers as per the new emission norms from the last year. Electric motive power in relation to replacement of IC engines requires speci c attention and focus in order to estimate the extent of shift towards this motive power and the time scale within which it will have signifficant impact on existing volumes. The Government has been very supportive of the EV Industry with many schemes to support their requirements. The Government also made signifficant announcement in the increased use of blends in fuel to reduce dependence on oil imports and prices. Your Company is positioned with necessary technology to cater to the blended gasoline being suggested for use by the Government. Your Company is actively monitoring the developments with Vehicle manufacturers. The new powder facility has been in operation for the last year. It has initially been used extensively to support internal requirements. The development of customers in other areas is being progressively implemented and production increased to cater to the new markets.

Segment-wise / Product-wise performance:

The segment-wise products consist of Original Equipment, After Market and Exports. The Company has a strong share of business in the OE Segment and has been upgrading its capabilities to staying technologically relevant to the segment. Continuous effort to further enhance the capabilities in this area has been in operation. In the After Market and Export Segments, the Company supplies parts to several applications. The Company constantly endeavors to upgrade technology, reduce costs and provide integrated solutions. The products manufactured consist of Bearings, Bushings, Thrust Washers, Strips and Alloy Powder.

Outlook:

The increase in the demand for the Companys products used in segments like Heavy Vehicles, Tractors, Powders & Strips are expected to offer good opportunities for the Company. The outlook for the year is expected to be better than the previous year.

Risks and concerns:

The Company has constituted a Risk Management Committee and it takes care of the external and internal risks associated with the operations of the Company. The Board of Directors oversees the Risk Management process including risk identi cation, impact assessment, effective implementation of the mitigation plans and risk reporting.

Internal Financial Control System:

The internal financial controls followed by the Company are considered adequate and operating effectively. The internal audit of the Company is entrusted to M/s.Gopalaiyer & Subramanian, Chartered Accountants.

Financial Performance:

The prudent management of working capital, treasury operations backed by planned capital expenditure have supported better performance in the current year.

Human Resources and Industrial Relations:

During the year under review, the industrial relations in the Company were cordial. The average number of employees of the Company was 348 during the year.