Iykot Hitech Toolroom Ltd Management Discussions.
INDUSTRY STRUCTURE AND DEVELOPMENT.
The company is in the business of manufacturing plastic moulded components for white goods, automobile and entertainment, electronics. The company has it factory at Unit-1 No.131/2, Thiruneermalai Road, Nagalkeni, Chromepet, Chennai - 600044, Unit 2 No. 5C, Dr. Abdul Kalam Cross Street, Nagalkeni, Chromepet, Chennai - 600044.
The company manufactures moulded components from 200 grams to 3000 grams of different sizes. It has installed seven (7) moulding machines in this facility of capacity ranging from 150 Tons to 850 Tons.
The company has initiated a two tier quality control system for all its products. The supervisors and operators check the quality of the product as it comes out of the machines. Any defect in the product for deformation, color mismatch or faded color identified, declared defective and sent to reprocessing.
In the second stage a separate inspectors checks for this dimension and fitment of the product and then affix his seal of approval.
The company visits every other plastic component user on a regular basis and tries to add them as customer and then try to retain them by timely supply with quality products.
OPPORTUNITY AND THREAT :
The growth of Chennai as a automobiles and white goods manufacturing centre generates lot of opportunities for plastic component manufactures like our company. However a 40% power cut plus evening peak hour restrictions between (06.00 p.m. to 10.00 p.m.) for the last four years put untold miseries for all plastic manufactures. It is very difficult to meet the existing demand. The company resort to generate power using a generator which is prohibitively expensive. This prevent us from making use of the opportunities. However the good news is ,the power cut has been revoked from June 2014 and we are in taking up marketing of our service to new areas.
The general manpower problem affecting all manufacturing industries is a cause for worry for the company. The all round increase in price and the salary level prevalent due to growth of I.T. Industries in and around Chennai, is affecting the profit margin of the company. The labour turnover and non availability of unskilled and semi skilled labour is another area of concern. The migrant labour from other part of India gives some relief but causes problems also.
RISK AND CONCERN
The main raw material used is ABS. The price of raw material is highly fluctuating according to the price of crude price. However, we have an agreement with our customers to increase/decrease the price as and when the raw material price change.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The company made a turn over of Rs.984.95 lakhs and a net profit of Rs.-1,01,270.40 after tax. The management is trying every means turn around the company by adopting cost cutting methods in addition by getting more job orders from the market.