Shree Steel Wire Ropes Ltd Management Discussions

Industry Structure And Development

The Companys major business continues to be with Indian Railways and defence Sector, with a strong legacy and brand image.

The Company is putting increased focus on developing new products as well as upgrading and expanding existing product lines.

Industrial business is likely to increase considering the growth anticipated in various domestic projects in the Railway Sector and Defence sectors and also infrastructure development planned by the Government of India.

In terms of competition, there is a good mix of SMEs, large companies, and multinational players in the market for our various product lines in the railways, defence as well as other industrial product segments.

Infrastructure And New Products Development

Your company is in the process of shifting of Oil furnace to an Induction Furnace. The Company has concentrated on the development of infrastructure for large production volumes for existing products and manufacturing facilities for new products. Your company is in process of exporting of Steel Wire Ropes and Allied Products and also planning to carry our R&D of international railway products. The company has also concentrated on increasing overall turnover and improving efficiency. Your company has purchased two new machineries in wire rope section.

Considering the addition of new products, the focus on securing approvals for new products, and launching the new products will be main focus for the Company.

Opportunities And Threats

The Company has a strong brand and leadership position in the market for Steel Wire Ropes.

While opportunities are emerging with new developments in the Steel Wire Ropes Segment backed by enormous resources of in-house R&D coupled with new manufacturing facilities, the Company can take lead considering the brand name and leadership position in the market, however, increased number of competitors and falling selling prices is a threat for existing product lines.

The Company is an established supplier and with a strong brand name in railways, defence sectors & industrial sector. Market penetration for any new product is possible with existing and new customers.

Risk And Concerns

Some Product lines in the Steel Wire Ropes segment are also affected with the increased competition from the unorganized sector with shrinking margins. There is falling in the selling prices of products and volatility in non-ferrous material prices.

Financial Performance With Respect To Operational Performance

The Company is continuously putting efforts to achieve better results with effective monitoring of operational costs.

Considering the plan of Indian Railways and Defence Sector and improved inquiry from the industrial Sector the Company expect further improved performance in the coming years.

Cautionary Statement

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations, predictions and assumptions may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual result may differ materially from those expressed herein. Important factors that could influence the Companys operations include global and domestic economic conditions affecting demand, supply, price conditions, change in Governments regulations, tax regimes, other statutes and other factors such as litigation and industrial relations.