Vybra Automet Ltd Management Discussions

INDUSTRY O VERVIEW:

Forging is a manufacture process where metal pressed, pounded or squeezed under great pressure in to components. The forgings had gone to bad patch for the last couple of years resulting in accumulation of losses that has necessitated downsizing of the operations, gradual optimization/reduction of manpower at all levels. The company initiated measures like rationalization of product mix, restructuring of debts to take advantage of low cost interest to bring down interest burden etc., successfully, thus able to effectively turn around and can reap the benefit of the buoyancy expected by the new policy declared by the Government, which might witness boom in the next financial year. As a result most overseas players may set up their offices in India for Global outsourcing.

Multi utility is in good demand in the country. As an established supplier of diversified forged products to OEMs and the reputation of the company’s products for high quality, the demand for the company’s products remains very encouraging. Hence, the directors are confident of market in the coming period.

The rising input cost are not conducive to the industry and are a cause of concern unless the hole is past on to the buyer by re-working the prices. The company believes the ensuing competition will have to be met only by developing production systems like cost efficiency, high productivity, modern technology, quality assurance and timely deliveries.