Mewar Hi-Tech Engineering Ltd Management Discussions

Your Company is committed to excellence in quality of its equipment and dedicated to customers and associates. We are committed to provide the best quality crushers, screens & customized size reduction equipment and satisfactory after sales services at competitive prices. We timely deliver out highly quality equipment to meet customer requirement. We provide professional advice to our customer, find innovative solutions to their specific requirements and treat them us our business partners, out professional approach, after sales service and timely supply of spare parts at most reasonable prices make us ideal choice as business partners.

GLOBAL INDUSTRY OUTLOOK:

The global stonc-erushing equipment market was valued at USD 7.27 billion and is expected to surpass a net valuation of USD 10.1 billion by 2031 end, registering a solid CAGR growth of 7.25% over the forecast period, driven by infrastructure development, urbanization, and construction waste recycling.

The construction and mining industry is highly dynamic, and numerous factors, such as the overall economy, budgets, and global economic scenario, tire influencing the markets growth. Volatility in these aspects affects the businesses of stone-crushing equipment OEMs, which will, in turn, affect the construction equipment demand.

The global mining industry has been experiencing strong growthfor the past few years, owing to a rise in mining exploration activities and the initiation of new mining projects in countries, such as Canada, the United States, Australia, India, Russia, and South Africa. Various players active in the market are launching their updated models with improved performance and capacity.

INDIAN INDUSTRY OUTLOOK:

Stone crushing industry is an important industrial sector in the country. The crushed stone is then used as raw material for various construction activities i.e. construction of roads, bridges, buildings and canals. Over the last 10 years, the Construction sector has been registering strong growth rates in the range of 7-8%. Housing and construction is one of the major drivers of growth in more than 40 allied industries including STONE CRUSHING.

The Indian Stone Crushing Equipment Market size was valued at $96.1 million in 2022 and is projected to expand at a CAGR of 10.72% from 2023 to 2032. Rising government funding for development of roads & highways, increasing investments in transportation projects are likely to propel the demand for stone crushing equipment during the forecast period.

The rapid development of the mining sector will significantly contribute to the stone crushing market growth. Stone crushers play a crucial role in breaking down rocks and minerals for extraction for facilitating the mining processes. The surging adoption of technology and automation for enhancing the mining operations has steered the higher demand for advanced and high-capacity crushers. The rising global demand for minerals and metals along with the rapid expansion of the mining sector will also act as significant market drivers for the stone-crushing equipment industry.

MEWAR HITECH ENGINEERING LIMITED

Our performance for the year underlines the effectiveness of our resilient and differentiated business model that is anchored by the strength of the Mewar Hi-Tech Engineering Limited brand and the ability that gives us to attract partners and customers across. Our presence in Udaipur is strong brand equity and large numbers of new projects are handled by us which leads us to a good position in market.

OPPORTUNITIES:

The India Stone Crushing Equipment Market size was valued at $96.1 million in 2022 and is projected to reach $264.8 million by 2032, growing at a CAGR of 10.72% from 2023 to 2032. Rising government funding for development of roads & highways, increasing investments in transportation projects are likely to propel the demand for stone crushing equipment during the forecast period.

There is a high demand for mobile and compact stone crushers lor more flexibility, mobility, affordability, and on-sitc crushing applications. Mobile crushers arc flcxihlc as they arc easy to move in various locations. Mobile crushers reduce transport costs, making them a more cost-effective option, and are suitable for small construction businesses. The rising on-site crushing applications make mobile crushers more appealing, as they reduce the requirement for material transportation to a fixed crushing plant. The rising trend for convenient, more flexible, and sustainable stone crushing solutions has increased the popularity of mobile crushers, contributing to opportunities for more innovations and developments in stone crushing equipment.

The jaw crusher segment dominated the stone crusher market with the largest share in 2024 due to its wide use in construction, mining, cement, and quarrying applications, driven by its cost-effectiveness, reliability, efficiency, and versatility. Jaw crushers can handle large and tough materials, making them ideal for various industries. Ongoing innovation in advancing jaw crushers supports segmental growth.

The cone crusher segment is expected to grow at the highest CAGR during the forecast period.The mining and construction industries heavily used cone crushers due to their high efficiency and performance. Technological advancements in cone crushers, including hydraulic adjustments, better wear-resistant materials, and automation systems, arc expanding their scope of applications. The popularity of mobile cone crushers is rising clue to their flexibility and portability, boosting the segment s growth.

The management believes that Government of Indias efforts to improve economic growth in the Country by providing opportunities for start-ups and infrastructure development is giving hopes to entrepreneurs for exploring new opportunities. The Company is also looking to tap such opportunity at the right moment.

CHALLENGES

The India stone crushing equipment market faces the challenge of stringent environmental regulations and a shortage of ski Hal labor. Crushing operations generate a considerable amount of dust and noise, leading to environmental concerns and potential regulatory restrictions. Complying with these regulations while maintaining efficient operations poses a challenge for the industry. Additionally, the availability of skilled labor in operating and maintaining stone crushing equipment is crucial for uninterrupted production. Companies in this market must invest in technology to reduce environmental impact, promote sustainable practices, and focus on workforce development.

Any grow ing economy offers a host of opportunities. The challenge comes from the fact that competition also keeps increasing alongside and this is becoming all the more prominent with the continuous arrival of newer entrepreneurs in the market. While this is good for the larger population and the economy, it does put pressure on profitability of business.

The rising cost of raw materials is a major hurdle facing the crushing and screening industry. Setting up a crushing unit involves high cost and unavailability of raw material on time only adds to the cost. Another challenge facing this industry involves strict government regulations. Ban on mining activities in the past had dealt a severe blow to the industry. Since environmental issues involving quarries in various states are yet to be entirely resolved, overall demand will continue to suffer.

SEGMENT REPORTINGS:

The Company is exclusively engaged in manufacturing of construction equipments and revenues are mainly derived from this activity. Accounting Standard 17 regarding Segment-wise Reporting issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Rules, 2006 does not apply to your Company since revenues are derived from only one segment.

RISKS AND CONCERNS:

Your Company is exposed to internal and external risks. The internal risks relates to the risks within the Company due to change in management, personnel and policies, lapses / inadequacy in existing infrastructure facilities, delinquencies on the part of employees, staff attrition, misfeasance etc. The external risks can be associated to those factors which arc not within the control of the Company like change in interest rates, government regulations, competition from others operating in similar business etc.

RISK MANAGEMENT:

Comprehensive risk management practices form an integral part of the operations of Company. With ups and downs, volatility and fluctuations in the business in which Company operates, is exposed to a slew of complex, variable risks and uncertainties in the normal course of business.

Since such variations can cause deviations in the results from operations and affect our financial state, the focus on risk management is high. The rapid and continuous changes in the business environment have ensured that the organization becomes increasingly risk focused to achieve its strategic objectives. Company policies ensure timely identification, management and mitigation of relevant risks, such as credit risk, liquidity risk, interest rate risk, operational risk, reputational and regulatory risks etc., which help the Company move forward with vigor.

INTERNAL CONTROL SYSTEMS & ADEQUACY:

Company has always focused on maintain a strong internal control system which is commensurate with our size and nature of business. The Company s internal controls are structure in a manner that ensure reasonable assurance with regardto maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, executing transactions with proper authorization anil ensuring compliance of corporate policies, laws, accounting standards for ensuring reliability of financial reporting.

DISCUSSION ON FINANCIAL PERFORMANCE AND OPERATIONAL HIGHLIGHTS:

The financial and other operational performance of the Company for the year under review has been discussed in detail in the Directors Report The Cash-Flow Statement and the Balance Sheet arc annexed to this Annual Report.

HUMAN RESOURCES:

Human resource development is considered vital for effective implementation of business plans. The Company aims to align HR practices with business goals, motivate people for higher performance and build a competitive working environment Productive high performing employees are vital to the company s success The Board values and appreciates the contribution and commitment of the employees towards performance of your Company during the year. In pursuance of the Companys commitment to develop and retain the best available talent, the Company continued to offer in house training program to staff members in executive development, leadership and management skills.

CAUTION A R Y STATEM ENT:

Statements in this report on Management Discussion and Analysis describing the company s objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company s operations include economic conditions affecting global and domestic demand supply, finished goods price in the domestic and overseas markets in which the Company operates, raw-materials cost and availability, changes in Government regulations, tax regimes, economic developments within or outside India and other factors such as litigation and industrial relations, natural calamities, etc. over which the company does not have any direct control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, infonnation or events or due to change in internal or external factors.