Key highlights

• The Parent Cookson Group is strong in technical expertise and innovation and is a leader and pioneer in innovation and providing new casting solutions. Thus in India, Foseco India has a strong brand and through its Parent is pioneer in introducing new technologies and solutions for casting for various foundries.
• Despite competition, due to pioneer in providing solutions, Foseco India commands premium in terms of pricing and hence is able to maintain or even increase margins despite higher raw material costs and other general inflationary environment.
• Top 10 customers constitute about 25% of total turnover of the company and all its customers are fairly equally dividend among various industries.
• Globally, the Parent has shut down the capacities in Paris and Polland and shifted them to India during CY'11. The key plant and machinery have been dismantled and shifted to India. So overall there is hardly any gross block increase in India. While the Indian capacities will predominately target the Indian market, the Parent will look at some exports to its customers to whom earlier the supply was made from the closed down facilities.
• So going forward, export will increase; though will remain a small proportion as compared to overall sales.
• Royalty constitute about 5% of total sales. Parent has no plans to change its policy.
• Overall, despite tough domestic conditions, the company will continue to perform well.