TVS Srichakra Ltd Management Discussions

COMPANY PROFILE

TVS Srichakra Limited (hereinafter referred as "the company" or "your company") is one of Indias largest manufacturers and exporters of two-wheeler, three-wheeler and off highway tyres (OHT). Domestically, the company is a leading supplier of tyres to Original Equipment Manufacturers (OEMs) as well as the replacement market, through a network of depots, distributors and retailers. The companys growing OHT business is focused on global markets. The company accesses international markets through sales to more than 86 countries world-wide.

The company manufactures tyres in manufacturing sites located in Tamil Nadu and Uttarakhand. Products are precision engineered to provide superior performance in different conditions. Product range includes two and three-wheeler tyres, industrial pneumatic tyres, farm and implement tyres, floatation and other multi-purpose tyres. The companys tyres are designed to global standards with high-quality and advanced technology and are sold under the brand name of "TVS Eurogrip", "TVS Tyres" and "Eurogrip".

FY24 also saw your company make an acquisition of a business entity in the United States of America (USA). This company operates as a subsidiary of your company, and is focused on the OHT segment in USA.

GLOBAL ECONOMY

After the upheaval caused by the COVID - 19 pandemic, the global economy seems on the path to recovery. However, ongoing geopolitical tensions such as the war in Ukraine and the conflict in Gaza have the ability to negatively impact this recovery.

The Global Economic Prospects Report published by the World Bank has forecast global growth to be 2.6% in the fiscal year 2024-25, expected to edge up to 2.7% in 2025-26. IMF had estimated the growth to be at 3.2% for the year 2024 too similar to that of 2023. Latest forecasts for global growth five years from now is at 3.1% at its lowest in decades. Global headline inflation is expected to fall from an annual average of 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025. Advanced economies are expected to return to their inflation targets sooner than emerging market and developing economies.

GROWTH IN THE ASIA PACIFIC REGION

As per the Regional Economic Outlook Report of the IMF, growth in the Asia Pacific region outperformed expectations in late 2023, reaching 5.0% for the year. Inflation has shown variability across the region with some economies seeing sustained price pressures, while others are facing deflationary risks.

INDIAN ECONOMY - OUTLOOK

Amidst global tensions and uncertain global growth rates, India remains a bright spot. As per CRISILs India Outlook 2024 Report, the Indian economy is set to grow by 6.8% in FY 25. The RBI Governor, when reviewing the Monetary Policy on 7^th June 2024, increased this forecast for FY25 to 7.2%

ICRA published its FY25 outlook in March 2024. The chart below shows the macro outlook as per ICRAs analysis.

MACRO OUTLOOK

GDP

Real Growth FY 2024: + 7.6% FY 2025: +6.5%

Real GVA Growth FY 2024: +6.9% FY 2025: +6.2%

INFLATION

CPI Inflation FY2024: +5.3% FY2025: +4.6%

WPI Inflation FY2024: -0.7% FY2025: +2% to +4%

REPO RATE

Earliest rate cut foreseen in Oct 2024, amidst shallow rate cut cycle limited to 50 bps at best

FISCAL DEFICIT

Fiscal Deficit/GDP

FY 2024: 5.9% FY 2025: 5.2%

10-year-G-sec Yield: 6.8 - 7.1% in H1 FY 2025

EXTERNAL ACCOUNT

Current Account/GDP

FY 2024: -1.0% FY 2025: -1.2%

INR: 82.5-83.5/$ in near term

Source: ICRA Research

ICRA also published its sectoral outlook in March 2024, shown in the illustration below. ICRA places the tyre industry in the "stable" category

ICRAs Sectoral Outlook as on March 2024

Positive

Hotels

Negative

Power - Distribution Media - Print Telecom Towers

Chemicals

(Basic, Petrocchemicals) Cut and polished diamonds Bulk Tea

	Stable
Construction & Construction equipment	Tyres	Media - Broadcasting & Exhibitors
Cement	Renewable Energy/Power Transmission/Thermal	Dairy
Ferrous Metals	Upstream Oil and Gas	Retail (Fashion, Consumer Durables & Electronics)
Non-ferrous metals	Oil Refining and Marketing	Insurance (Life & General)
Roads & Road Logistics	Gas Utilities	Airlines & Airport Infra
Real Estate - Residential, Commercial & Retail	Ports	IT Services
Jewellery - Retail	Pharma	Telecom Services
Brokerage	Healthcare	Chemicals (Speciality)
Automobile and Automobile Dealership	Fertilisers	Bank
Auto Components	Sugar	NBFCs (Infra, Retail NBFCs, HFC, MFI) and SFC

The next 7 fiscals (2025-2031) should see the Indian economy crossing the $5 trillion mark and inching closer to $7 trillion. India should be the 3^rd largest economy in the world. Per capita income should rise to the upper middle income category by 2031. Continuous increase in the capital stock (or the productive capacity of the economy) is one of the cornerstones driving this growth.

GLOBAL AUTOMOBILE INDUSTRY

S&Ps Global Mobility report forecasts 88.3 million new vehicle sales worldwide in 2024, as the recovery rolls on. New auto demand is expected to benefit from ongoing output gains from restocking of inventories, as supply chains normalize.

Europe concluded CY 2023 on a strong note with the Western and Central European markets showing robust momentum, achieving 14.7 million units. This marks a 12.8% year-on-year increase. Improved vehicle production aided in easing delivery times and replenishing inventory levels. Looking ahead to CY 2024, S&P Global Mobility forecasted a modest growth to 15.1 million units, a 2.9% year-on-year rise. However, challenges loom, including economic recession risks, tightening credit conditions, and high car prices. The region faces a dynamic electrification transition alongside competition from Chinese OEMs, energy challenges, and upcoming EU elections, all influencing market dynamics.

In the United States, CY 2024 is expected to see an uptick in sales volumes to 15.9 million units, a 2.0% increase from 2023 levels. Consumer affordability concerns persist due to high interest rates and slow adjustment of vehicle prices, impacting market dynamics. Despite these challenges, the rollout of new EV models is expected to drive consumer interest, with nearly 100 models available by year-end, double the number from CY 2022, broadening consumer choice across various segments.

Mainland Chinas automotive market closed CY 2023 with 25.3 million units sold, up 4.9% year-on-year, bolstered by government incentives and recovering local production. Forecasts for CY 2024 remain optimistic, expecting a further increase to 26.4 million units, driven by pent-up demand and gradual consumer confidence recovery. EV affordability improvements, coupled with continued tax exemptions and declining battery costs, are set to boost EV penetration to 44% of passenger vehicles, up from 36% in CY 2023, underpinning sustained growth in the sector.

The global electrification shift looks unstoppable, despite near-term uncertainty in Europe & US. Global sale of battery electric passenger vehicles is projected to reach 13.3 million units in CY 2024, comprising 16.2% of global passenger vehicle sales.

Major markets are expected to drive most of this volume, with smaller markets also seeing incremental growth.

BEV Share Estimates, 2024	BEV Share Estimate in Region	YOY Change (2024 v. 2023)
Europe (Central/Western)	22.2%	+41%
US	13.2%	+66.4%
China	28.6%	+28%
India	4.1%	+39.0%
Global	16.2%	+39.5%

Source: S&P Global Mobility, BEV share estimates, December 2023. @2023 S&P Global Mobility

INDIAS AUTOMOBILE INDUSTRY

India is the worlds third-largest automobile market, the largest manufacturer of three-wheelers and tractors, and the second-largest manufacturer of two-wheelers. (Source - IBEF). The Indian automobile industry has historically been a good indicator of how well the economy is doing. This sector plays a key role in both macroeconomic expansion and technological advancement.

Source: Society of Indian Automobile Manufacturers (SIAM), The Economic Times

Growing demand- Rising middle-class income and a huge younger population is a factor in the demand for vehicles in India.

In FY24, the passenger vehicle segment led the growth with overall sales touching almost 5-million units including 4.2 million domestic (growth of 8.4%) and 0.7 million exports. The two-wheeler segment continued its recovery path with growth of over 13% in domestic sales to almost 18 million units, even though lower than the earlier peak of 21 million units in FY19. The domestic commercial vehicle industry had a marginal growth to 0.97 million units. Within that, some drop was experienced in LCVs and SCVs due to degrowth in the CNG segment. Growth in Commercial vehicles was also impacted due to migration to higher tonnage trucks which created higher payload capacity, that is not reflected in the number of units. The three-wheeler industry was close to the earlier peak of 0.7 million units in FY 19.

The domestic electric vehicles (EV) market is expected to grow at a compound annual growth rate (CAGR) of 49% between 2022 and 2030 and is expected to hit one crore units annual sales by 2030. India is on track to become the largest EV market by 2030, with a total investment opportunity of more than US$ 200 billion over the next 8-10 years.

Policy support has been critical in aiding Indias automotive growth. The Automotive Mission Plan 2016-26 drafted jointly by the Government of India and the Indian automotive industry targets industry growth to US$ 300 billion by 2026. (Source - IBEF). Other Government of India policy initiatives like - The National Electric Mobility Mission Plan (NEMMP 2020), Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme, Production Linked Incentive (PLI) Scheme for Automobile and Auto components have bolstered the domestic demand contributing to the overall growth of the Indian Automobile Industry.

INDIAN TYRE INDUSTRY:

With the rapid expansion of the Indian automotive industry, the nation is set to become the worlds 3^rd largest market in the next 5 to 6 years.

India stands as one of the leading global manufacturers of tyres. The Indian tyre market is anticipated to reach 192.3 million units by 2026, exhibiting a CAGR of 3.81% from 2021 to 2026.

Domestic tyre volume growth is expected to moderate to 4-6% in FY25 from an estimated growth of 6-8% in FY24 As per ICRA. ICRA estimates this moderation in growth to be caused by an elevated base and subdued growth in the commercial vehicle segment (CV). ICRA anticipates domestic demand from OEMs in certain consumer segments like passenger vehicles (PV) and two-wheeler (2W) as well as replacement market demand to remain healthy, supporting overall volume expansion in FY25.

Domestic demand to be supported by replacements

Tyre demand is expected to be driven by stable growth in replacement while OE volume growth is expected to moderate, given the high base. Volume growth is expected to be driven by consumer segments while the impact of the General Elections on Government capex in the initial few months of FY2025 will drive growth in commercial segments.

Export demand expected to be subdued in the near term

Tyre exports, which represent around a fourth of total industry revenues, have grown at a sharp pace till FY2022. However, exports have fallen since Q2 FY2023 amid economic slowdown in key overseas markets. Exports recovered sequentially; however, export volumes are expected to remain subdued in the next two quarters. The Red Sea crisis is also expected to impact the recovery in exports.

New expansion plans on hiatus

Industry players are expected to pause before undertaking any new capacity expansion on account of weak export demand and headroom available in the existing capacities. Industry is expected to focus on debottlenecking and R&D.

In addition to domestic demand, the Indian Tyre industry is aiming to increase its export value to $5 billion-plus and emerge among the top-3 global Tyre hubs by 2030 (Source: Automotive Tyre Manufacturers Association)

COMPANY INITIATIVES DURING FY 2023-24

A. Overall

During 2023-24, your company consolidated its position as a leader in the domestic OEM segment. The year saw the domestic EV segment gaining ground. Your company made significant inroads into this segment and has emerged as a major supplier to 2-wheeler EV manufacturers. Your company sustained market share in the replacement market in the face of intense competition. Your Company also achieved significant share in the growing E-rickshaw segment. Your Company also continued to grow its presence in the global markets – for the full range of its products.

In FY24, your company acquired the business of Super Grip Corporation in the United States of America (USA). Super Grip operates in the industrial tyre segment (within the broad OHT segment) in select markets of USA. This acquisition by your company is targeted at increasing its global footprint in the OHT segment.

B. Technology, Research and Product Development

Your Company has established systems to accelerate and proactively expand its product portfolio to meet market requirements.

In FY 24 your company introduced 37 New products in critical cohorts addressing global market needs. A new adventure touring product, "Trail Hound" was showcased in Europe aimed at addressing the needs of the high-performance adventure touring segment.

With the success of Climber XC tyres, designed for off-road Enduro and Motocross applications in global markets, your company widened its product offerings for smaller Enduro and Motocross bikes with launch of 12" and 14" off-road tyres aimed at providing superior products to budding motocross enthusiasts, globally.

In addition, the focus on developing tailor made low rolling resistance products for the electric two-wheeler segment has fructified in achieving product approvals and business in leading electric vehicle OEMs.

Premium product lines for Indian Market were further enhanced by launch of a full range of steel belted radials.

Your company developed a technologically superior product, Protorq Extreme, with demonstrated benchmark performance leading to its approval as a single source with a European OEM for the worldwide launch of their 450+ CC bike. Your company also achieved OE approvals in 8 new models launched in FY24 and commenced supplies.

Your company executed an aggressive product development plan in the OHT segment including, steel radial tractor tyres, steel radial flotation tyres, row crop tyres, harvester steel radial tyres etc., A meticulously executed New Product Development process resulted in launch of over 73 products in these product lines for global sales. In the OHT segment, your company is now developing products at the rate of 20 new variants per month, significantly improving its global competitiveness. The new variants developed by the company have been received well in global markets, receiving excellent reviews by end users and in trade fairs.

The companys dedication to innovation, focus on developing sustainable technologies has resulted in the grant of 6 patents in FY 24.

C. Market and Channel Development:

Continuing its efforts at expanding globally, the company has appointed 40+ new channel partners. This strategic move aims to strengthen the distribution network and increase market penetration. Your company has successfully entered several new geographies, including Brazil, Argentina, Chile, Morocco, Turkey, Australia - adding to the list of countries where our products are now available.

In the ASEAN region, your Company has made significant progress by expanding into Malaysia & Taiwan. These new market entries present valuable opportunities for the Company to tap into the growing demand for its products in these dynamic markets.

Your company continued its expansion in the European Union (EU) market by adding Germany & Greece to its list of countries serviced. By entering these markets, the Company aims to capitalize on the strong demand for its products in the EU and further strengthen the Companys position in the region.

With this expansion into key markets such as ASEAN, LATAM and the EU, the company is well positioned to capture new business opportunities and drive sustainable global growth

In the domestic aftermarket (AM) segment, the company continues to grow its channel partner network. Your company successfully added 140+ new channel partners, strengthening distribution reach and enhancing the ability to serve customers effectively. The retail network was also expanded, by adding almost 2000 new retailers. Expansion of reach in this manner positions the company well in terms of establishing a wider retail footprint pan India, ensuring that our products are easily accessible to customers across various locations. Furthermore, we have achieved extensive district coverage, with approximately 438 districts covered as of March 2024 (an increase of 11 districts over last year).

In the off-highway tyres segment (OHT), your Company has developed an extensive network in key markets in Europe. Eurogrip Branded

OHT products are now used by tractor, trailer, and farm implement manufacturers globally. Your Company is also expanding its presence in other key markets in the Americas.

D. Raw Material Trends

Raw material prices account for about 55-65% of the turnover of tyre manufacturers. Natural rubber (NR), carbon black, nylon tyre cord fabric (NTCF), styrene butadiene rubber (SBR) and polybutadiene rubber (PBR) are among the main raw materials used to manufacture tyres.

The industry is raw material intensive. Natural rubber, which is a major raw material, is an agricultural commodity and is subject to price volatility and production concerns. Most other raw materials are impacted by the movement in crude prices. Changes in crude oil prices reflect in changes in raw material costs thereby affecting the profitability of the company.

Crude oil softened 12% in FY24 vs FY23, leading to price stabilisation of downstream petrochemical based raw materials. Multiple initiatives were undertaken to optimise the companys raw material purchasing strategy. These initiatives included a structured risk mitigation drive for reducing dependency on single source & single plant suppliers which involved spreading the sourcing base. Your company continued to engage extensively with strategic partners and selectively entered into long term contracts to protect price volatility. Inventory was maintained to ensure material cost optimisation and to ensure material availability to address market dynamics and supply security due to logistics challenges for imports.

E. Capacity Expansion

Your companys investment in the OHT segment saw commercial production increasing over the year, with increase in capacity utilization – both in the bias and radial category.

F. Opportunities

The global tyre market provides growth opportunities, in addition to the domestic market. Ministry of Commerce statistics indicate tyre exports from India in FY24 stood at a little over 23,000 Crores. Although this figure matches the previous years (FY23) figures, it should be seen in the light of severe headwinds in the first half of FY24. The first half of the year saw falling demand in view of slowdown in advanced economies, geopolitical uncertainties, and inflationary pressures. Tyre exports from India made a sharp recovery in the second half of FY2023-24 and went up by 12% in value terms against the year-ago period.

Tyre exports from India represent over 25% of the total tyre industry turnover – making this industry one of the few industries in India to have such a high export to turnover ratio.

Your company operates in the two and three-wheeler as well as off highway tyre segment. Both present exciting global growth opportunities.

? Your company is a market leader in the export of two and three-wheeler tyres from India and continues to pursue this growth aggressively. Development of market specific product ranges, suited to the geographies being serviced, is a key element of the companys strategy.

? The off highway tyre segment is an area of emerging opportunity for your company. The recent expansion program that the company has undertaken allows for not just an increase in volumes but also a more modern and advanced product range.

The domestic market continues to provide opportunities.

? Your company is a leading supplier to Indian two and three-wheeler manufacturers. This leadership position is being extended to the emerging EV segment.

? The domestic after market is the other segment that provides growth opportunities that your company is pursuing

G. Challenges

While the overall outlook is positive, this needs to be seen in the context of near challenges.

? Domestically, demand is still to pick up meaningfully in the rural and semi urban areas.

? Global markets are seeing volatility driven by economic recovery that is still to fully play out, while dealing with the challenges of long drawn-out conflicts in the European arena.

? Raw material costs, after a short period of stability, are rising again.

H. Risk Management

In compliance with Regulation 21 of the SEBI (LODR) Regulations, the Board of Directors of your Company has established a Risk Management Committee. This Committee is tasked with addressing the evolving and dynamic risks present in todays business environment.

In an effort to proactively manage and mitigate risks, your company has implemented a risk management framework. This framework aids in the identification, prioritization, and mitigation of risks.

By establishing the Risk Management Committee and implementing a risk management policy that combines strategic and operational risks, your company demonstrates its commitment to proactive risk management and ensuring the resilience of its operations in the face of evolving threats.

Details of the potential risks the company faces are in the BRSR section of this report. A summary is shown in the table below.

S.No	Risk Area	Nature of Risk	Risk Mitigation Actions
1	Business concentration	In the past the Companys operations have been concentrated in a few product and market segments and limited geographies	The company has established a mid term plan focusing on: Diversifying its top line to reduce dependence on any single product segment
			Aggressively seeking growth in the global markets to mitigate against the risk of geographical concentration Mitigation actions taken by the company include actions related to:
2	Management of cost	Costs have seen volatility - in the form of core raw materials but also sources of energy	- Alternate materials
			- Alternate vendors
			- Alternate geographies as sources of materials
			- Alternate fuels
			- Increased dependence on "green energy" sources
			- Internal actions to improve operating efficiencies
		Global markets continue to see volatilily, drive by:
3	Global geo political conditions	: Varying pace of economic recovery post the ravages caused by COVID	To mitigate against these risks the company has been working to expand its global footprint, including by inorganic actions such as the recent acquistion of a business in
		: Continuing conflicts in Ukraine and Gaza
		: Shipping and supply chain risks following the closure of the Red Sea route	U.S.A.

I. Energy

Your company maximises the use of renewable energy sources. Renewable power consumption in the companys Madurai plant increased to about 74% in FY24.

To further increase renewable energy usage, your company has invested in the equity of a company setting up a ground mounted solar plant and wind turbine generator project. This company will supply to our company electricity under the Group Captive Power Purchase (GCPP) framework – further enhancing your companys usage of renewable energy.

Your Company uses 100% biomass fuel for steam generation in its Uttarakhand plant, thus eliminating the generation of Co2.

Energy conservation projects are continuously evaluated and implemented. Some of the projects implemented in FY24 include:

? Conversion from electric heating to steam heating ? Reduction in compressed air consumption ? Replace conventional lighting with LED lighting. ? Reduction in idle running of machineries

? Boiler efficiency improvement, by reducing heat loss through flue gas and furnace modifications

J. Quality Assurance

Your Company continues to be a preferred supplier for OEMs manufacturing traditional internal combustion engine (ICE) driven two and three wheelers. In addition to this, your Company has been assessed and cleared for supplies by a vast majority of the new clutch of OEMs manufacturing electric (EV) two wheelers.

Quality is assured at every stage of the process by enforcing a documented quality standard through the entire chain of receiving materials, manufacturing, and logistics.

The Total Employment Involvement (TEI) initiative started at the company a few years back continues to be used as a tool to motivate employees towards a culture of quality consciousness and continuous improvement.

K. Environment, Occupational Health & Safety

Your company views occupational health and safety (OHS) as an integral part of its operations.

? Employee safety is taken as the most important operating metric.

? By establishing strong internal controls and governance mechanisms, your Company has been able to continuously enhance the safety and well-being of its workforce.

? A strong governance mechanism is in place to ensure action plans are being implemented and that the risk mitigation efforts are on track.

Similar importance is given to protection of the environment. The high proportion of green energy sources in the companys energy mix is a testament to the importance the company places on being a responsible corporate citizen. Over the year, some of the specific efforts taken by the company include:

? Tree plantation drive

? Reduction of water consumption by over 10%

The companys efforts at environment conservation have also been recognized in the form of awards received. Your company got the following awards in the Tamil Nadu Sustainability Leadership Awards organised by Solar Quarter

? Best Corporate Green Portfolio award (Auto Industry) ? Energy Consumer Climate Action award (Platinum)

Your company is also in the process of establishing a comprehensive Sustainability Policy Framework to guide all operations.

L. Awards and Recognition

Some of the noteworthy awards and recognitions achieved during FY24 are mentioned below:

? CII - National Championship trophy - Champion of Champions ? CII - National Challenger trophy - Super Challenger ? HMSI - Annual Suppliers NH Circle Competition Winner ? BAJAJ BAVA Convention 2023 24 Award Platinum

? CII - 36^th TN QC Competition - Best in Teamwork

? QCFI - TQM - INDIA SUMMIT - Gold

M. Internal Control & Systems

Your Company maintains risk management processes and protocols. The company also maintains adequate internal controls to safeguard stakeholders interest and the Companys assets. Processes exist to identify, evaluate and manage risks that impede the realization of the Companys objectives. The Company has also established an Internal Financial Control Framework which addresses internal controls over financial reporting and operating controls. This framework is duly supported by well-defined policies, processes, and procedures. This control framework is reviewed periodically by the management, audited by an Independent Internal Audit team, and placed before the Audit Committee and the Board. The CEO and CFO Certification provided in the Annual Report also discusses in detail the adequacy of Internal control systems and procedures.

N. Financial Performance

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes in key financial ratios. The Company has identified the following as key financial ratios:

	Particulars	Units	31st March 2024	31st March, 2023
(i)	Debtors Turnover	Times	13.02	13.70
(ii)	Inventory Turnover	Times	3.98	3.68
(iii)	Current Ratio	Times	1.04	1.05
(iv)	Debt Equity Ratio	Times	0.73	0.61
(v)	Net Profit margin	%	3.76	2.45
(vi)	Debt Service Coverage	Times	2.57	2.40
(vii)	Return on Investment	%	0.23	0.07
(viii)	Return on Equity Ratio	%	9.61	6.92
(ix)	Net Capital Turnover	Times	63.89	18.56

The Companys revenue from operations decreased to 2754.03 Crores in the year 2023-24 in comparison to 2865.39 Crores in the previous year, a decrease of 3.9% over the previous year. However, Your Company has increased its profit before tax to 138.95 crores from 91.29 crores, an increase of 52.2% year on year. EPS has increased to 135.25 in March 2024 from 91.58 in March 2023 a 47.7% increase year on year. There has been an increase in the borrowings of the Company from 636.94 Crores in the previous year end to 817.53 crores during the current year. Finance cost has increased from 38.4 Crores to 42.53 Crores on the back of increased borrowings.

O. Human Resources Management

At TVS Srichakra, people are central to our business. We continued to focus on people related priority and undertook several initiatives through the year. These initiatives spanned multiple dimensions such as leadership, employee training & skill enhancement, employee welfare, building high performance culture etc. Our total permanent employee headcount as of 31^st March 2024 was 2762.

P. Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys views, projections and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions, geopolitical uncertainties, macro-economic conditions, global and domestic supply and demand situations, input prices and their availability, changes in government regulations, tax laws and other factors such as industrial relations, economic developments among others. This may influence the Companys operations or performance in the final analysis.