Meeting Overview
• Date: September 21, 2023
• Submission: Transcript submitted to Bombay Stock Exchange and National Stock Exchange on September 27, 2023.
• Participants:
• Chairman: Mohib Khericha
• Whole-Time Directors: Percy Avari, Shanaya Mody Khatua
• CFO: Cyrus Bhagwagar
Key Highlights
• Engineering Division:
• Positive performance with growth in power and petrochemicals.
• Caution regarding future inquiries and project speeds.
• Anticipated 15% growth in fiscal year 2023-24 due to backlog resolution and new orders.
• Food Division:
• Expansion in production capacity and focus on exports.
• Emphasis on customer relationships and strategic investments.
• Recent investment for machinery upgrades to meet FMCG demand.
Market Insights
• Market Share:
• 30-35% in vacuum systems, 8-10% in evaporators.
• Focus on expanding exports, particularly in the Middle East.
• Product Development:
• New products like Nano Bubblers and anti-scaling solutions expected to boost turnover.
• Challenges from increasing competition and pressure on margins.
• Bioethanol Refineries:
• Growth in India with 150-250 operational refineries and 200 more expected.
• Company involvement in supplying products, despite low product value per refinery.
Competitive Landscape
• Challenges:
• Decline in demand for products in dye, intermediate, API, and textile industries.
• Intense competition affecting pricing and margins.
• Strengths:
• Consistency, quality, and integrity in food business operations.
• Loyal customer base since 2005.
Future Outlook
• Strategic Focus:
• Evolving product offerings to enhance market reach.
• Commitment to quality and customer satisfaction.
• Long-term perspective on capacity utilization and market consolidation.
• Financial Position:
• Debt-free status with manageable working capital challenges.
• Aspiration to grow into a 500 crore entity while maintaining reliability.
Q&A Session Insights
• R&D Investments: Continuous evolution and investment in new products.
• Export Opportunities: Focus on Indian market consolidation before expanding exports.
• Operational Improvements: Enhanced factory operations and service responsiveness.
Conclusion
• Overall outlook described as average, with optimism for future business prospects despite competitive pressures. Continuous adaptation and focus on customer satisfaction emphasized as key strategies moving forward.