New Year Greetings

 

Dear Blog Members,

My heartiest new year wishes for you and your family. May all your dreams and wishes come true in 2024.

Diwali Greetings

Dear Blog Members,

May this Diwali  Bring  Peace and  Prosperity to You and Your Family

Wardwizard Innovations & Mobility Ltd.

 

CMP = 49

Wardwizard’s flagship brand Joy e-bike peddled its way into the EV segment by first introducing electric bicycles in the year 2016. And within no time, they received great demand from the youths. This success further charged to introduce low-speed two-wheelers like Gen-Next, Glob, Wolf, and Monster, which didn’t require any license or registration to drive. These electric vehicles gained a tremendous amount of popularity amongst everyone right from 16 to 60 years. 

Saath Chalein | Bharat Ka Joy | Joy E-bike

https://youtu.be/B-8LNmque50

https://youtu.be/5ZlDo77qyIc

In year 2019 Wardwizard acquired BSE listed entity  'Manvijay Development Company Ltd'. Later in year 2020 name of the company changed to Wardwizard Innovations & Mobility Ltd. The company increased the authorised capital and alteration of memorandum of association of the company to manufacture & marketing of EVs and related parts. In 2020 Wardwizard Innovations and Mobility Ltd become the first listed company from the sunrise EV manufacturing sector. So  prior data ( stock price and earnings) before FY 2021 is not relevant to Wardwizard Innovations & Mobility Ltd.

https://www.bseindia.com/xml-data/corpfiling/AttachHis/cb694871-5bfa-4f3d-812f-68382972e3a5.pdf

https://www.bseindia.com/xml-data/corpfiling/AttachHis/6dbf2653-728b-4fe6-a1ef-62ebdfdca608.pdf

Investment Rationale

The company has its state-of-the-art production plant based out of Vadodara, Gujarat. In year 2021 Wardwizard inaugurated one of India’s largest electric two-wheelers plant. New plant started with a capacity of 1 lakh  units per annum and further upgraded the  new plant with  automation and increased the production capacity to 2 lakhs per annum in a single shift. At present the new plant has the capacity to manufacture  6 lakh units per year in full capacity. The plant is well equipped to fulfil the growing demand for high-speed e-bikes and to achieve the green mobility objectives. 

Joy e-Bike | Electric Vehicle OEM Plant at Vadodara

https://youtu.be/-9ZZ15CB1go

Earlier company introduced E-Monster, Thunderbolt, Hurricane, Beast, and Skyline. In  2023  three new product launches. MIHOS and Rockefeller are the two new completely ‘Made-in- India’ vehicles of Joy e-bike. These vehicles are made up of Poly Dicyclopentadiene (PDCPD) which is known for its high durability.  MIHOS has set high standards of durability for the riders and comfort across various road conditions and is a striking combination of comfort, luxury and technology. 

Joy e-bike | Bharat Ka Unbreakable Joy with Saif and Kareena

https://youtu.be/K9-4i8DATew

https://wardwizard.in/

https://www.joyebike.com/home/

The third new launch is in the 3-wheeler segment – Joy e-Rik – which has set the bar higher in the EV innovation field. With cutting edge features and reliability, comfort and safety as its USP, Joy e-Rik can be designated as ‘An Evolution of the Green Revolution’

JOY Electric Rickshaw

https://www.youtube.com/watch?v=uTP6CXwYca0

The e-bikes are equipped with smart and intelligent features like anti-theft, and reverse mode, and the products are well suited to Indian roads. The product range of electric two-wheelers caters to diverse population groups – in terms of affordability, speed, design, utility – for age groups ranging from teens to retirees. 

Wardwizard’s EV ancillary cluster

In year 2022 the company determined  to develop India’s First Ever Electric Vehicle Ancillary Cluster.  Wardwizard has acquired 4 million sqft land along with its Promoters & Promoters Group for development of an EV ancillary cluster project in Vadodara Gujarat. The project aims to provide a unique solution to localise and strengthen the supply chain of raw materials for EV manufacturing.

In conversation with Mr Kumar Sanjay, CNBC_Awaaz

https://youtu.be/kG9Vzs2sUIs

Through the creation of the EV Ancillary Cluster, manufacturing partners will be invited to set up their production unit for manufacturing ancillaries in the EV cluster for the production of essential components like motors, batteries, chassis, steel parts, chargers, controllers, etc. Wardwizard will be supporting the industry by providing ultra-modern facilities including land, manpower and other essential resources.

The year 2023 can be reckoned as the year of EV mobility in the country. Wardwizard has established India’s first EV Ancillary cluster in Gujarat by aligning its objectives to the ‘Make in India’ initiative. The company has started the operations of a lithium-ion battery assembly line with a capacity of 1 GWh/year. This is the initial phase of the plan for the development of the EV cluster and facilitates the Company to keep a check on the quality and standard of the batteries. The next phase is scaling the capacity of the battery assembly, R&D operations and production of electronic components in the EV Ancillary Cluster.

Lithium-ion Battery Assembly Plant

https://www.youtube.com/watch?v=n4NeqhCrf88

Wardwizard Electric Vehicle Ancillary Cluster is a unique concept and a solution to eliminate the ongoing challenges of raw materials supply for electric vehicle manufacturing in the country. The vision invites all those who produce essential EV components and grants them everything they need to maintain the supply-chain process consistent including land, state-of-the-art facilities, human resources and other essential benefits. Electric Vehicle Ancillary will facilitate the growth of the Electric Vehicle industry by reducing the dependency on imports. Apart from the opportunity to supply to Wardwizard, the partners will further benefit by supplying raw materials to other OEMs in the industry.

Advantages of the EV Ancillary Cluster

• Indigenisation of the Indian EV Industry with global benchmarks

• Strengthening the EV supply chain in India

• Market linkage for MSME in the EV space

• It will reduce the production cost and enhance competitive advantage.

• Expected job creation for 6000+

• Opportunities for exports of EVs and EV parts

The development of the Ancillary Cluster will focus on manufacturing the most essential components for the EV industry such as:

• Joy e-Rik Passenger Segment Assembly Plant

• Chargers and controllers

• Lithium-ion battery assembly

• R&D, Designing and Production of Electronic Components

• Joy e-bike High-Speed Electric 2-Wheeler Assembly Plant

• Chassis and Steel Parts and Steel Subparts

• Plant for prospected 4-wheeler Project

The Ancillary Cluster is a backward integration measure and a game-changing strategy. The two manufacturing plants will help the Company become a large industry player and export a part of the production.

Last week on October 26, 2023  Wardwizard signs INR 2,000 Cr MoU with Gujarat Govt to develop EV Ancillary Cluster. 

The memorandum of understanding (MOU) was signed at the Vibrant Gujarat Global Summit 2024 in Gandhinagar, symbolising a pivotal step towards fostering green mobility and reinforcing the 'Make-in-India' initiative.

https://auto.economictimes.indiatimes.com/news/industry/wardwizard-signs-inr-2000cr-mou-with-gujarat-govt-to-develop-ev-ancillary-cluster/104727536

Last year company has raised the fund through Rights Issue of up to 59,62,373  equity shares of face value of Rs 1 each for cash at a price of Rs 82 per rights equity share in the ratio of 1:43 fully paid-up equity shares held by the eligible equity shareholders. 

https://www.bseindia.com/xml-data/corpfiling/AttachHis/4451503e-a52b-4b23-99ac-683751e378cf.pdf

The company is working on 4 wheel-electric car project. It is expected that EV charging infrastructure would be far more developed within next two years, given that both the government and private sector are working on it.  The prototype would be ready in next 12 -15 months. Wardwizard looking to make it mass product, which would be cheaper and affordable. Wardwizard R&D has already started work on the electric car and hired professional team of vehicle design engineers with all agreements in place to meet the project deadlines. 

Established its first global R&D centre in Singapore through Wardwizard Global Pte Ltd, a wholly owned subsidiary of Wardwizard. This centre will focus on EV technology advancements, including cell chemistry, pack assembly, and battery systems. Over 30 global scientists and engineers will develop products meeting international standards.

The company is involved in the development of testing facilities for various electrical, electronic and mechanical components. There is continuous testing in place for on-road performance of products. Developing concept vehicles with innovative designs for showcasing and studying market response is yet another move by  Wardwizard. The plant, processes, quality checks and R&D are a part of the internal value chain and are completely owned by the company.

Exclusive Conversation with Yatin Gupte - Zee Business

https://youtu.be/aDnvQvhaTWY

The massive potential of the country for producing and using  EVs cannot be denied. India is gradually becoming the largest EV market for electric 2-wheelers, 3-wheelers and cars. The sunrise sector is catering to the sustainability and green goals of the nation, redefining the travel and transport systems.

Wardwizard Innovations & Mobility Limited is one of the leading manufacturers and distributors of electric vehicles in India. As one of the leading players in the industry, Wardwizard focuses on developing and promoting electric mobility solutions that are sustainable, eco-friendly and technologically advanced. The company aims to address the growing need for clean and efficient transportation options in the country. 

In last month Wardwizard  appoints renowned leadership (Tejas Mehta and Sanjay Sablok) to drive innovation in The Electric Vehicle Industry. 

Sanjay Sablok the newly appointed President of operations  has  had a three-decade-long career in operational excellence. An alumnus of Warwick University, UK, he held pivotal roles at Hero Motocorp, Tata Motors, and NEI Limited.

https://ceoworld.biz/2023/09/25/teja-mehta-and-sanjay-sablok-the-big-names-of-wardwizard-group/

Conclusion

Wardwizard is one of the largest player in the electric 2-wheelers market in India, backed by experience of its promoters, well-established ‘Joy’ brand in this space as well as a pan-India distribution network. The company has network of over 750 dealers and over 25 owned showrooms along with service centres across the country, enabling customers to access their products and receive timely support and maintenance services. Wardwizard has massive growth potential in sunrise EVs industry. The company is developing huge infrastructure and very wide range of EV products. The company envisioned for capitalizing 25% of the total market share of electric 2-wheelers by 2030.

Wardwizard Innovations & Mobility Limited  stock at cmp Rs 49 is excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 10 %  allocation.

Happy Dussehra

Dear Blog Members

      Wishing very Happy Dussehra to you and your family

Ajanta Soya Limited

 

CMP = 29

Ajanta Soya Ltd (ASL) is primarily engaged in the business of manufacturing of Vanaspati and various kinds of cooking oil with shortening products for bakery like biscuits, puffs, pastries and other applications. The manufacturing facility is located at Bhiwadi (Rajasthan) with a total installed capacity of 1,65,000 mtph. Since inception, the company is focused on continuous expansion, across all business verticals to consolidate its industry leadership.

The company has a strong portfolio of brands viz. Dhruv, Anchal, Parv, Nutri ,  Pure & Fine Fingers. The brands have a reputable market share particularly in northern Indian market i.e. Rajasthan, Delhi, Haryana, UP, MP Bihar, Bengal, Assam etc

Product Portfolio

The company's product portfolio includes Vanaspati oil and various kinds of cooking oils made of soya bean, mustard,  palm, rice bran, cotton seed, sunflower and groundnut in various packaging sizes. It also manufactures various kinds of shortening products for bakery like biscuits, puffs, pastries and other applications. 

Vanaspati & refined cooking oils accounted for ~98% of revenue and other by-products and bakery applications accounted for the rest ~2% revenue.

Contract Manufacturing

The company also manufactures refined oils for third party / contract manufacturing for various renowned brands. In total, it caters to over 100 different packing sizes for more than 10 brands. However, it also sells directly to customers through its own brands. 

The company's clients include Godrej, Britannia, Bikano, Anmol, United Biscuits, Sungold, Harvest Gold, Parle, PriyaGold, PepsiCo, ITC, Haldirams, Cremica etc.

Manufacturing and Sales

Since inception ASL has never let go of an opportunity to expand and modernise to keep up with the changing technologies & market trends. ASL has the state-of-the-art manufacturing plant with latest technology. The plant has the facility to manufacture Vanaspati, cooking oil & bakery shortening for puffs, biscuits, pastries and table margarines. The plant is strategically located 100 kms from Delhi in industrial town of Bhiwadi, Rajasthan. 

ASL takes pride in its boastful market share in northern India. The brands of ASL are backed by an extensive distribution network as the company operates though its strategically located dense populated area in north India. ASL has penetrated deeply in the market with its emphasis on providing value goods to consumers through its CnF agents and dealers  who are operative in major cities and rural areas of India.

Quality

Superior procurement and trading skills, continuous innovation, an endeavour to meet consumer needs and stringent quality control standards have enabled ASL to emerge as a highly-respected and admired edible oil company. ASL witnessed significant progress in terms of market penetration and brand recognition in the past years. 

Its commitment to quality and continuous improvement has helped it to gain customer trust and loyalty. Looking ahead, company aim to expand its distribution network, explore new product categories, and invest in technology to enhance productivity and sustainability.

Investment Rationale 

India is the largest importer and consumer of edible oils globally, around 50 - 60% of domestic consumption demand is met through imports.

In Feb - March 2022, there was disturbance in supply due to Russia-Ukraine conflict as edible oil prices jumped following huge rally in global edible oil market. 

From April 2022 there was continuous correction in edible oil prices for next 5 quarters. All major edible oil manufacturing and marketing companies have posted losses in India due to high cost inventory. In recent months edible oil prices are bottomed out and started stabilising.  Edible oil consumption will also pick-up in coming festive season and winter, it will bring the growth back on track.  Edible oil consumption is expected to grow at 6-7 % and is likely to continue this trend in future as well.

In consumer packs, ASL leads the Rajasthan market with an established credibility in other states. The most popular brand of Vanaspati / cooking oil are 'Dhruv' and 'Anchal' & they enjoy a reputed market share particularly in northern India market i.e. Rajasthan, Delhi, Haryana, U.P, Bihar and some parts of eastern India like Guwahati. ASL also offers its quality products as food ingredients to serve food manufacturers and food service industry. The bakery products are preferred by all range of customers and are popular till the region of J&K

By way of periodical expansion, ASL has increased its production capacity from time & again to cater to changing business environment & varied customer needs. The company’s turnover has increased manifold over the decades and is expected to maintain its growth in coming  years. ASL also focuses on in-house research and innovation to be a low cost manufacturer with high-quality products and innovative customer offerings.

The company has completed the expansion in its refining capacity is now focusing on increasing the capacity utilisation by market expansion for its different products and their variants for growing market demands.

ASL is catering to third party/contract manufacturing for various renowned brands exemplifying the units capability to produce all kind of varieties.  ASL is catering with over 100 different packing sizes for more than 10 brands.

ASL has a diversified product portfolio of refined oil (palm oil,  soybean oil, cottonseed oil, groundnut oil, mustard oil etc.), Vanaspati, and bakery products. Around 40% of revenue is generated from sales under own brands. 

ASL corporate customers boast names of the biggest manufacturers in food industry with the most stringent norms for products, including but not limited to, biscuits, cookies, indian snacks/ namkeen, bakery items & other customers with different applications of  products.

The company is promoted by well established group having and proven track record in the fields of cooking oils. The three-decade long experience of the promoters in the edible oil industry, their understanding of local market dynamics and healthy relationships with suppliers and customers is very positive for ASL future business growth.

 

Conclusion

Ajanta Soya is a leading manufacturer and marketer of vanaspati, cooking oils and bakery products since three decades.  ASL has strong portfolio of brands viz. Dhruv,  Parv, Anchal, Pure and Nutri and enjoys reputed market share.  The company has focused on continuous expansion, across business verticals to consolidate, and its industry leadership over the years. 

Indian edible oil industry has numerous potential as deficit between production and consumption of edible oils is increasing rapidly. India will continue to import edible oils to bridge the gap between demand / supply. There is good opportunity for the Ajanta Soya to address the growing the demand and supply gap imbalance.

Ajanta Soya stock is corrected more than 50% since April 2022 due to above mentioned temporary reason.  Ajanta Soya stock at  cmp Rs 29 is giving excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 10 %  allocation.

Happy Independence Day

Dear Blog Members,

Feedback on Suggestion for Improvement

 

Dear Blog Members, 

We have received numerous valuable insight for betterment of this blog. These inputs are based on your real experience and feelings. We are also concerned that our community is not getting the actual benefit of all the efforts we are putting in to maintain the blog. We have involved our blog members for 'Suggestion for Improvement' to address  the issue on time.

Below are the key takeaways based on your inputs.

1) Select the stocks above 500 Cr market cap

Now we will  prefer the stocks with 500+ Cr market cap but it will not be taken as fixed rule. It has major drawback because  90% of the stocks in our watchlist are below 500 Cr market cap. We may miss several great investment opportunities. 

2) Posting the stock without fixed timing 

Now we will post next 2-3 stocks without pre-fixed timing. It may be posted any time during market hours or off market hours. Only month and week will be communicated on the blog.

3) Stock guessing or clue

Now we will not entertain any comment for stock guessing or clue. Even though it is good brainstorming exercise but in present scenario it has more demerit then its benefits for our blog members.

4) Increase the buying limit from 15% to 20%

Now our blog members can also buy at 20% upper limit. Same time you have to remember that never place full quantity order at once but place only partial quantity order. In this way with 5% extra cost you will be able catch any opportunity and avoid the regret for missing the opportunity. As happened in recent stock even with one million trading volume, our blog members were unable to buy it. 

5) Your love and affection will always keep this blog alive. 

Shree Rama Multi-Tech Limited

 

CMP = 13

Shree Rama Multi-Tech Limited (SRMTL) is  an ISO 9001:2015, ISO 15378:2017 and DMF-type III certified company, began its journey in 1987 as a simple extrusion coating line and has grown into an international scale organisation offering state-of-the-art packaging solutions to a large customer base. The company provides primary packaging solutions for oral care, pharmaceuticals, cosmetics and fast-moving consumer goods (FMCG) sectors.

Shree Rama Multi-Tech Limited (SRMTL) is acquired by  Dr. Karsanbhai  Patel of Nirma group in 2014 after long legal battle of 10 years. Dr. Karsanbhai Patel is one of the most successful entrepreneur in India, he started his business journey as one-man operation in 1969. Today Nirma Group is a diversified conglomerate with major business interest in chemicals, detergents, soaps, cement, healthcare, education, packaging , cosmetics, salt, soda ash, real estate development etc.

https://youtu.be/6l7ZX_D_tMQ

Shree Rama Multi-Tech Ltd has invested heavily in the most modern plastic process technologies and have one of the largest integrated facility for laminated and plastic tubes in the world. The manufacturing facility is located in Gandhinagar, Gujarat.  The company has installed  manufacturing capacity of  950 million multi-layer Lami Tubes per annum and 15,000 metric tons of laminates (tube & flexible)  per annum. The company has more than 150 clients in India and abroad. 

The company currently manufacture a wide and diverse range of packaging products such as Lami Tubes, tube laminates and flexible laminates. The products are primarily used for oral care, pharmaceuticals, cosmetics and fast-moving consumer goods (FMCG) sectors. Company products are available in different sizes, diameters and circular shape as per the specifications to customers. Company’s major product is laminated tubes and laminates, which is used for packing products in paste or gel form. 

Investment Rationale

Takeover  by Nirma Group

Shree Rama Multi-Tech Ltd was originally promoted by Vimpsan Investments Private Limited, Sanket Estates & Finance Private Limited , Vikram and Sharad Patel (Former Promoters). The company made an initial public offering (IPO) at price of Rs. 120 per share in the year 2000 and listed on the NSE and BSE.

In  the  year 2002, the Former Promoters of Shree Rama Multi-Tech Ltd borrowed a sum of Rs. 48.94 crores from the Nirma Industries and Nirma Chemical Works ( Current Promoters) and pledged 24.25% of equity shares of SRMTL  as security.  Nirma group  ( Current Promoters) invoked the pledged shares of Shree Rama Multi Tech in 2005 after the Former Promoters defaulted in payment. As a result of this  action  Nirma Group stake has gone upto 24.25%  in the company and it triggered the mandatory open offer  under  Regulation of  SEBI. 

On  becoming  aware  of  certain  misconducts  and  financial  irregularities  during  the  management  of  the  Former Promoters, the acquirers  ( Current Promoters) tried to withdraw from the Open Offer but SEBI  denied it. After 10 years of legal battle, Supreme Court  has given order to proceeded with the Open Offer. Finally  Nirma group ( Current Promoters) has completed the open offer at price of Rs 18.60 per share and  became  the Promoters of  Shree Rama Multi-Tech Ltd in year 2014.

Nirma Group had received the company in very bad shape with huge debt. Nirma group has gradually transformed the sick company into one of the largest integrated facility  for laminated and Lami tubes in the world and upgraded it with latest available technology.  

Recently, company has came up with right issue for the payment of old debt given by promoters. At present Nirma group holds 42.51% stake in the company, it is expected that promotor shareholding will go-up above 50% after completion of recent right issue because old retail shareholders are already fed-up after long waiting period of 22 years. 

Diversification of Products and Customers Spread 

The Company  is  engaged  in  the  manufacturing  of  packaging  products  for  oral  care, pharmaceuticals,  cosmetics  and  FMCG sectors. With over 25 years of operations, The Company have been able to diversify its product offerings across a wide spectrum of  applications  and  customer  requirements.  The Company  have  the  ability  to  address  the varied and expanding requirements of  customers. 

The company sell its products to the customers situated in India as well as overseas. The customer base is spread across various markets which include Belarus, Bulgaria, Indonesia, Nepal, Saudi  Arabia,  Singapore,  Switzerland,  Sri  Lanka,  Slovenia,  Tanzania,  Tunisia,  UAE,  USA etc.  The customers majorly  consist  of  medium  and  large-scale  manufacturers  of  oral  care,  pharmaceuticals,  cosmetics  and  FMCG products. Total exports of  accounts around 26% of revenue from operations.

Fully Integrated Manufacturing Facility

The Company  own  and  operate  a  fully  integrated  manufacturing  facility  in Moti  Bhoyan,  Dist.  Gandhinagar,  Gujarat which enables it  to manufacture a wide and diverse range of packaging products such as tube laminates, flexible laminates and Lami Tubes. The integrated facility allow it to benefit from economies of scale, reduce input costs, reduced reliance on third parties for raw material, improve quality of  products and improved operating margins. Additionally, it also allows to  change our  product  mix  within  the  same  set  of  machineries  for  manufacturing  similar  products  with  certain differentiation and cater to the requirements of  customers from different sectors. The company has already built large capacity based on future demand so no major capex requirement in near future. At present capacity utilisation for Lami tubes  ~  60%  and Laminates  ~  30%.

Robust Quality Control System

The company has  quality management system across the value chain right from procurement of raw materials till delivery of final products to the customer’s location.  The manufacturing  unit  is  a  fully  integrated  facility  which  ensures  maintenance  of  quality  standards  for  packaging products.  The Company  have  received  various  quality  accreditations  including  ISO  9001:2015,  ISO 15378:2017 and DMF-type III. The company employ an extensive and stringent quality control mechanism at each stage of the manufacturing process to ensure that the finished product conforms to the exact requirement of the customers.

Experienced Management Team

The company is led by a Board of Directors who have expertise in the packaging industry. The Company is managed by a team of experienced personnel having long operational and business development experience.  The  Nirma  group  is  a  well-known name with strong brand equity. The Company believe that the management team’s experience and their understanding of the packaging industry will enable the company to continue to take advantage of both current and future market opportunities, introduce new products to capitalise on the growth opportunities in packaging industry and help it in addressing and mitigating various risks inherent in the business.

Upgradation of Manufacturing   Capabilities and  Infrastructure   

The company believe that addition and upgradation of  infrastructure, machines & equipment and technology which allows it to enhance  the  product  offerings,  reduce  operating  costs  and  drive  sustainable  productivity.  The company  believe  in  making investments  for  achieving  excellence  in   products  and  implement  dynamic  and  diverse  specifications  of the customers. Packaging plays a crucial role to promote any product and hence  customers require frequent changes in packaging products. The varieties of customisation in any product keep on demanding technological upgradation as well  as  changes  and  additions  in  infrastructure. In line with this strategy, in fiscal 2019, The company added new tubing lines to cater to the pharmaceutical sector which has opened new markets for Lami Tube business.

Financial Flexibility for Being Part of the Nirma Group 

Up till now Nirma Group has not left any stone unturned to revive this company It is continuously poring the money since long period and now subscribing the maximum portion of the right issue. The Nirma group has continuously given unconditional and irrevocable guarantee for external bank loan facility to SRMTL which ensure the smooth operation and timely servicing of debt. The company will use the all fund raised through the recent right issue to pay the old debt after that negligible long term debt will left on the company.

Strengthening and Expanding the Business Relationship

Some  of  the  customers  are  associated  with  the Company  for  more  than  10  years. It is the key objective of the company to  build  long-term sustainable  business  relationships  with  customers.  The Company  plan  to  continue  to expand  the  range  of   products  to serve  the  existing  customers  and  add  new  customers  in  different  industries.  In  addition,  The Company  intend  to  continue  to expand its footprint in pharmaceutical segment of Lami Tube market without hampering our existing business of oral care segment.  The Company also intend to continue to build relationships with various pharmaceutical companies and multinational companies, which can help it in expanding the business in new segment.

Strengthening the  Global Presence

With  combination of  wider range  of products adhering to global  standards,  marketing initiatives,  competitive pricing  and  more  efficient  use  of  resources,  The company  intend  to  strengthen the  global  presence  and  become  a  renowned supplier of packaging products in international markets. For last year 26 %  of    revenue  from  operation  was  on  account  of  export  sales  in international  markets  like Belarus,  Bulgaria,  Indonesia,  Nepal,  Saudi  Arabia,  Singapore,  Switzerland,  Sri  Lanka, Slovenia, Tanzania, Tunisia, UAE, USA etc. The company intend to further strengthen its presence in international market like U.S.A., U.K., European countries and Asian countries etc. The company believe that export market provides better margin for the products and going forward the company intend to focus more on export markets.

 Technology Tie-ups

The Company  believe  that  it  has  been  able  to  diversify  the  product  range  mainly  due  to  its  diversified  range  of  plant  & machineries  and  technological  capabilities. The company intend to  continue  to  focus  on  and  make  investments  in  plant  &  machineries  and  technology  to  improve  our  operational efficiency, customer service, reducing manual intervention and the risk of system failures and  improving reliability and efficiency of the business and operations.  The company has several technical collaboration and agreement with world leading technology firms like  AISA Switzerland for tube making technology, Taiyo Kikai, Japan for printing technology, Reifenhauser Germany for laminate web technology and multi-layer film technology.

Shree Rama Multi-Tech  works with best machine and equipment from leading technology providers to ensure that the products offer the performance advantages and flexible integration capabilities customers require for success. The company engage with technology partners on joint development work and projects to create seamless "Best of Breed" solutions.

Large Diversified Client Base

The Company has major clients from medium and large scale manufacturers of oral care, pharmaceuticals, cosmetics and FMCG segment.  The company has a well diversified customer base with top 10 clients contributing ~60% of total revenues. 

The company serves to 150+ clients in India and abroad in the countries like Belarus, Bulgaria, Indonesia, Nepal, Saudi Arabia, Singapore, Switzerland, Sri Lanka, Slovenia, Tanzania, Tunisia, UAE, USA etc. For last year exports is accounted 26% of total revenue. The company strongly believe living up to the expectations of its customers and provide them superior quality and advanced packaging products, comparable with international standards.

Future Growth

India is a one of the largest consumer economy, with rapidly growing  middle class population. In such a widespread and diverse marketplace,  Nirma group has strategy since beginning for concentrating all its efforts towards creating and building a strong consumer preference towards its ‘value-for-money’ products. The future growth of the company is being propelled through the development of new products and creation of new markets, both domestic and international. 

Shree Rama Multi-Tech Ltd is rising Indian Company in the world of packaging industry with diversified portfolio such as Tube Laminates ABL & PBL Variety of Flexible Laminates Multilayer Tubes, Monolayer Seamless Tubes, Self-Adhesive Labels Paper, HIPS Cups, Tarpaulin etc.  The company is adopting the latest technology swiftly so that it can be well prepared in advance to accept and overcome the challenges of future. i.e packaging industry is moving towards  recyclable and bio-degradable products.

Conclusion

Shree Rama Multi-tech Ltd manufacture  wide and diverse range of packaging products which are primarily used for oral care, pharmaceuticals, cosmetics and fast-moving consumer goods (FMCG) sectors, these are ever-green, ever-growing sectors. The company has competitive position in the international market and  proven track record of supplying products and services to its customers at market competitive price.

Nirma Group promotors  have very successful track record for developing small business into very large scale business, they have already done it in different business like detergent, cement, soda ash and education.  Shree Rama Multi-tech Ltd is also grown from small extrusion coating line  into an international scale organisation offering variety of primary packaging solutions to a large customer base of different industries. All these positives are indicators  of good turnaround for the company.

Shree Rama Multi-tech Ltd stock at cmp Rs 12 is excellent investment opportunity for both short term and long term. It can be bought within 15% from cmp with 10 %  allocation.