Nirav Commercials Ltd Management Discussions.

Industry sector and development

Your Company is engaged in manufacturing of Aluminium Grills, Doors & Windows etc. and has two manufacturing units namely ‘Elesar Focchi, one of them is situated at Daman (UT) & another at Taloja, Dist; Raigad (Maharashtra).

Opportunities

The Indian real estate market is expected to reach in coming years. The housing sector alone contributes 5-6 per cent to the countrys Gross Domestic Product (GDP). Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs. Cities are engines of economic growth. With the rapid rise in the proportion of people living in urban areas, there is an increasing requirement for sustainable cities. The Government of India along with the governments of the respective states has taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for the real estate companies. The Indian window and door (all material) market is running good & it is expected to reach in coming years also.

This will mean demand of aluminium doors & windows for real state sector will continue. Our analysis of proposed / ongoing projects indicates that there would be a strong order inflow in this sector.

Your Company is in single segment of manufacturing of Aluminium Doors & Windows etc. and trying to increase its revenue.

Major threats

While significant investments are planned by the Government of India, there has always been a lag in the planned investments and in the actual implementation and execution of those investments. The Company operates in a highly competitive environment. While the Company is well placed in this segment, with increased competition realizations may be hit going forward.

Outlook

As mentioned in the earlier paragraph with the government initiating investments in the Housing for All sector, there seems to be a positive outlook for our products.

Risk and concern

As always, volatility in the price of aluminium which may affect the performance of the Company.

Internal control system and their adequacy

Manufacturing unit of the Company namely Elesar Focchi, is an ISO 9001: 2015 certified unit. Your Company has a real time system of monitoring its targets as well as expenditure.

Performance

Your Company has constantly trying to increase its sales as well as profitability

Development in human resource / industrial relations

The Company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment. Industrial relation in both the units was satisfactory