Domestic Marketing

With the total sales to OEM segment in Domestic market, registering an increase of 25% over last year, the Auto segment had an increase of almost 110% over the last year. To some extent your company concisely reduced the volume in Drums & barrels segment, in order to improve realization in the OEM sector. By focusing on Auto segment, the overall quality of your company products and services have improved considerably and today we are very well accepted in the Auto industry as a leading supplier of CRCA Sheets/Coils.

As informed to you during the last Annual General Meeting, our decision to reach out to the OEM customers in Auto segment has been very well timed and has coincided with the growth in that sector. Both the Car and Two-Wheeler industries are having an unprecedented growth of more than 25% and this trend is expected to continue. More over the Indian Auto ancillary industry is being developed into an export hub for most of the large Car manufacturing units in Europe and US. This will again give your company very good opportunities for further growth.

This year also saw your company entering into annual contracts with Key OEM customers Godrej & Boyce Appliances, Mahindra & Mahindra (Farm Equipment Sector), Bajaj Auto, Bajaj Tempo etc. and with this trend a major portion of your production for local sales will be booked in advance. With our foray into value added products like Semi-processed steel for electrical industry, high carbon steel for chain and other related industries, hi-tensile steel for auto industry, realization from the OEM segment will make us competitive.

In view of the above success of your company in auto industry and considering the growth of this segment in the next few years, we are planning few de-bottlenecking and expansion of some of our facilities to meet requirements of Auto segment in particular and OEM in general.

OPERATIONS:

During the year under review, your Company has achieved higher production of 3,31,803 MT compared to 2,50,373 MT in previous year i.e increase by 33% and recorded a higher turnover of Rs. 828 crores over the previous year's turnover of Rs. 573 crores i.e increase by 45%.