Key takeaways of the meet

The company having broad based its products offerings to engineering components catering to automotive industry and wind energy is not just a fastener company any more.

The company is engaged in manufacture and sale of bolts and nuts, water and petrol pumps, sintered products, cold extruded components, hot & warm forged parts, radiator caps and other parts which largely have applications primarily in automobile industry. The range of high tensile fasteners found application in sectors such as wind energy and aerospace apart from automobile sector.

The high technology products such as warm forging, cold extrusions, and powertrain components developed in last 10 years for domestic and export customers has improved the profitability of the company.

The company continues to grow with the automobile sector of the country which is poised for strong growth in the next 10 years. India's auto sector is expected to reach a size of 10 million cars (up from about 4 million cars now), 60 Million 2-weelers (from current 23 million) in next 8-10 years. The truck and tractor industry is also expected to more than double its size.

The orders and margins are looking good for Chinese subsidiary. The Chinese subsidiary, as backward integration efforts, has set up a 10000 MT foundry in China.

The investments in subsidiary companies are yielding fruits with China Subsidiary and Upasana paying dividend.

The company that has started its journey (commenced operation) with 450 tonnes/ annum capacity has now grown to about 100000 tonnes/annum capacity. The company continues to make investments in creation of capacities for meeting specific requirements of customers to meet projected demand from domestic and international customers. During 2017-18 the Company has incurred Rs 217 crore towards capital expenditure on existing and new projects. The company spends about Rs 200-300 crore of capex in 2018-19 as well. Capital investments were incurred in tandem with production plans of key customers.

Of the total electricity consumption of all the units in India about 44% is met from renewable wind energy in the year 2017-18. Apart from wind energy the company is also sourcing power from bio mass plant to the tune of 3.3%, thus the total renewable energy consumption amounts to 47.3% of total energy consumed. The company has also started installing roof top solar power plants in its facilities. The first roof top power plant has been installed by the company in its SEZ Unit with a capacity of 650 Kwph , capable of producing 9.6 lakhs units of green power per year. Further addition to roof top capacity is planned in the year 2018-19.

The company sources steel from India or overseas depending on the prices. It has an exclusive team for steel sourcing at economical price.