project report mega project bil final 17.12.09

Bedmutha Industries Ltd (BIL)Detailed Project Report for Term Debt

Financing

IMPORTANT NOTICE

Nov 2009

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Bedmutha Industries Limited

This Information Memorandum (IM) contains proprietary and confidential information regarding Bedmutha Industries Ltd. (BIL). The IM has been prepared by SYNERGY FINANCIAL SERVICES based on the information provided by BIL and the published information available.

The financial projections in the Information Memorandum have been prepared for the limited purpose of circulation among the potential investors. The financial projections represent, to the best of knowledge and judgment, BIL’s expected financial position, results of operations and cash flow situation for the projection period as relating to its proposed expansion project. These projections should not be construed as future earnings guidance for the Company as they may be affected adversely by various risk factors inherent to the Company’s business, changes in economic conditions, legislation and other force-majeure circumstances.

SYNERGY FINANCIAL SERVICES has not independently verified all of the information contained in this IM and the work performed by SYNERGY FINANCIAL SERVICES is not in the nature of audit or due-diligence. Neither SYNERGY FINANCIAL SERVICES/ BIL, nor any of the directors, employees or advisors make any express or implied representation or warranty and no responsibility or liability is accepted by any of them with respect to the estimates or forecasts set forth in this IM or the underlying assumptions on which they are based or any credit decision taken on the basis of this IM.

Estimates, statistics, opinions and forecasts contained in this document are based on BIL’s own information and knowledge. They are provided in good faith, but by their nature, are based on a number of assumptions and are subjective.

This IM is furnished on strictly confidential basis and is for the sole use of the person / Company to whom it is addressed. Neither this IM, nor the information contained herein, may be reproduced or passed to any person or used for any other purpose other than stated above.

Financial Advisor:

Synergy Financial ServicesPlanet Home Building, 2nd Floor,

85 M G Road, Camp,Pune 411001

Mr. Shridhar S ShindeCell: 09922707373

E-mail: [email protected].

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mailto:[email protected]


CONTENTS Page Nos1 Executive Summary 072 Introduction 13

2.1 Company Profile 132.2 Our Existing Business Operations 15

2.2.1 Manufacturing facilities 152.2.2 Steel Wire Division 162.2.3 Consultancy Division 192.2.4 Power Division 19

2.3 Share Capital and Shareholding 202.3.1 Authorized Share Capital 202.3.2 Shareholding details 20

2.4 Organogram of BIL 212.5 Board of Directors 22

3 Financials of Existing Operations 243.1 Division-wise and Product-wise Revenue Break-up 243.2 summary of past financial performance 253.3 Financial Position 263.4 Key Performance 263.5 Banking Facilities 27

4 Key Management Personnel 295 Industry Background 31

5.1 Steel & Steel Wires 315.2 Application of Steel Wire and Wire products 325.3 Global Scenario 335.4 Indian Scenario 335.5 Industry Demand 34

5.5.1 Power Sector 345.5.2 Infrastructure Sector 355.5.3 Automobile Sector & Engineering 355.5.4 Agriculture and Horticulture 365.5.5 General Application 365.5.6 Peer Group 36

5.6 Future Outlook 376 Expansion Plan 38

6.1 Project Scope 386.2 Galvanizing Wires 386.3 LRPC Wires 396.4 Spring Wires 426.5 Aluminum Conductor 42

7 Project Economics 467.1 Project Location 467.2 Project Cost 477.3 Means of Finance 51

8 Implementation Schedule & Implementation Strategy 538.1 Project Schedule 538.2 Project Implementation Strategy 53

9 Raw Material and Utilities 569.1 Raw material 569.2 Utilities 575.3 Manpower and Staff Strength 58

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10 Marketing and Distribution 5910.1

Marketing and Distribution 59

10.2

Clients 60

11 Project Financials 6111.1

Financials for new Project 61

11.2

Assumptions 61

11.3

Key ratios for project on standalone basis 61

11.4

DSCR for Project on stand alone basis 62

11.5

Security Margin/ Assets Coverage Ratio 62

11.6

Key Ratios for Project on consolidated basis 62

11.7

DSCR for Project on consolidated basis 63

11.8

Repayment Schedule 63

11.9

Sensitivity Analysis 64

12 SWOT Analysis of Proposed Project 65ANNEXURE

Synopsis of Group Concerns 66Philanthropy 72

Table No.

TABLES Page Nos

1 Corporate Snapshot 122 Capacities Achieved by BIL 133 Milestones Achieved by BIL 144 Manufacturing capacity of BIL 155 Business Segment of Bedmutha Industries Ltd 166 Wire portfolio of BIL 177 Industry Snapshot 198 Details of Capital of BIL as on 30th Sept 2009 209 Top ten shareholders as on 30th Sept 2009 2010 Board of Directors of BIL as on 30th Sept 2009 2211 Banking Details of BIL as on 31st March 2009 2712 Key Management Personnel’s of BIL 2913 Peer Group Snapshot 3614 Total Mfg Capacity of Galvanised wire (Post-expansion) 3815 Cost of Proposed Project and Means of Finance 4716 Details of Area Planning 4817 Project Estimate for Land Development and Construction 4818 Details of Plant and Machinery 4919 Estimate of cost of Misc. Fixed Assets 49

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20 Estimate of Electrical Installation Cost 5021 Estimate of Prelim Expenses 5022 Estimate of Pre-operative Expenses 5023 Provision of Contingency 5124 Term Funding Details 5225 Details of IPO 5226 Project Schedule 5327 Status of Govt Approvals/ Consents/ Applications 5428 Details of source of key raw material 5629 Manpower Composition of BIL 5830 Details of Manpower requirement 5831 Assumptions 6132 Key ratios for project on stand alone basis 6133 DSCR for Project on stand alone basis 6234 Security Margin/ Assets Coverage Ratio 6235 Key Ratios for Project on consolidated basis 6236 DSCR for Project on consolidated basis 6337 Repayment Schedule 6338 Sensitivity Analysis 6439 SWOT Analysis of Proposed Project 6540 Corporate snapshot of KIEPL 6641 Board of Directors of KIEPL as on 30th Sept 2009 6642 Capital Structure of KIEPL as on 30th Sept 2009 6743 Shareholding pattern of KIEPL as on 30th Sept 2009 6744 Corporate Snapshot of Ashoka Pre-Con Pvt. Ltd 6745 Board of Directors of Ashoka Pre-Con Pvt Ltd 6846 Capital Structure of Ashoka Pre-Con Pvt. Ltd as on 30th

Sept 200968

47 Board of Directors of Ashoka Pre-Con Pvt Ltd as on 30th Sept 2009

68

48 Details of Elme Plast Company 6849 Details of Partners as on 30th Sept 2009 6950 Financials of Elme Plast Co 6951 Corporate Details of Usha Chemicals 6952 Financials of Usha Chemicals 6953 Corporate details of Kreepa Steel Industries 7054 Financials of Kreepa Industries 7155 Corporate Snapshot of BSRVPL 7156 Corporate Snapshot of KRBTA Pvt Ltd 7157 Financials of KRBTA Pvt Ltd 7258 Corporate Snapshot of Vinita Computers 7259 Corporate Snapshot of Ganesh Manufacturing Company 7260 Corporate Snapshot of Kamal Transport 7261 Corporate Snapshot of Jagruti Architects 7362 Corporate Snapshot of Precrete Technologies 73

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Exhibit No.

EXHIBIT Page Nos

1 Overview of activities of BIL 162 Client-mix in Revenue terms of BIL 183 Orgonogram of BIL 214 Application of Steel Wire 325 Classification of the steel wire grade 326 Grades of Plain Carbon Steel 337 Grades of Plain Carbon Steel 358 LRPC wire 409 Mfg process of LRPC 40

10 Galvanized Steel and MS Wire 4111 All Aluminum Conductors (AAC) 4312 All Alloy Aluminum Conductors (AAAC) 4313 Aluminum Conductors Steel Reinforced (ACSR) 4314 Location Map 46

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1 Executive Summary

1. Company Background

Bedmutha Industries Limited (BIL) is a one of the leading and broad based producers of steel wire and wire products in western India. Bedmutha Industries Ltd, the flagship company of Bedmutha group, was incorporated in 1990 and is promoted by Vedmutha family of Nashik.

2. Business profile

The primary business of Bedmutha Industries Ltd. is manufacturing of galvanized wire, both low and high carbon, for power transmission sector especially for State Electricity Boards (SEBs), automobile sector and agriculture sector. The plant has a total capacity of 60000 MTPA. The company periodically upgrades its facilities and augments its capacity keeping in view the market demand and customer needs. The company is already one of the top 10 producers of steel wire in the country.The company has embarked upon major expansion plan with a view to become one of the top five producers of steel wire. It is planning to install Hi-speed Galvanizing plant with uniform coating and with capability of very heavy coating having an annual capacity of 49000 MTPA. Further they plan to set-up LRPC wire manufacturing plant, with an annual capacity of 36000 MTPA and spring manufacturing plant with a capacity of 18000 MTPA, by importing latest machines. They also plan to set up a manufacturing unit for manufacture of Aluminum rod and conductor with an annual capacity of 42000 MT. In the financial year 2012-13 the company proposes to set up another LRPC line with a capacity of 36000 MTPA and spring wire of 18000 MTPA from their internal accruals. Post-expansion BIL will be one of the top five producers of steel wire both in terms of capacity and product portfolio.

3. Management The Board of directors consists of six members composing three Promoter Directors and three Independent Directors. The team consists of three professional, one from computer field and other two from finance background. The key promoters are:

- K R Bedmutha: Chairman - An Electrical Engg, with an experience of over 30 years in corporate business. He laid the foundation of the group and was instrumental in steering the Company to its present form.

- Mr Vijay K Vedmutha: Managing Director - An Industrial and production Engineer, with more than 20 years of experience in industry. He oversees marketing and finance operations of the Group.

- Mr Ajay K Vedmutha: A Mechanical Engg, has more than 18 years pf experience in industry. He oversees

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production, planning and control operations of the Company.

4. Financials of the company’s existing operations

(Rs in lacs)06-07 07-08 08-09

Capital 334.95 899.58 899.58Resource and surplus 411.51 478.93 1064.97TNW 746.46 1331.12 1926.66Secured loans 2390.09 3646.58 3815.53Unsecured loan 470.07 806.09 918.87Fixed assets(Net) 479.28 1681.42 2310.30Sales (net) 7251.54 11454.26 14678.93PBT 59.01 480.33 1074.45Current ratio 1.49 1.32 1.36DE ratio 0.51 0.57 0.47

5. Existing

banking arrangements

(Rs in lacs)Bank Working Capital Term Loan Total

FB NFB

PNB 1200 620 625 2445BOI 900 415 634 1949Andhra Bank 900 340 180 1420

Total 3000 1375 1439 5814

6. Industry Overview

- The Global wire business is expected to grow to a capacity of 54 million tons by 2010 and in Dollar terms it is expected to grow to US $ 25 billion.

- North America, Europe and South East Asia each account for approximately 25% each of the Global demand for the Steel Wires. Steel wire market in Asia-Pacific is estimated at $9.4 billion as stated by Global Industry Analysts Inc.

- In tune with the developed countries, demand of Steel Wires from India is also growing at 5% due to the growth in infrastructure and the automobile sector.

- Although there is a steady increase in the export of steel wires from India, it only forms 1% of the total global exports of wire business.

Steel Market

- India is the 5th largest producer of steel globally. - Producing about 55 million tonnes (MT) of steel a year,

today India accounts for a little over 7 per cent of the world's total production.

- India is the only country across the world to post a positive overall growth in crude steel production at 1.01 per cent for the January-March period of 2009. The recovery in steel production has been aided by the improved sales performance of steel companies.

- The steel sector grew by 5.3 per cent in May 2009.

Production

- Steel production reached 28.49 million tonne (MT) in

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April-September 2009. Further, India, which recorded production of 22.14 MT of steel during April-August 2009, is likely to emerge as the world's third largest steel producer in the current year, according to Goutam Kumar Basak, Executive Secretary, Joint Plant Committee (JPC).

- The National Steel Policy has a target for taking steel production up to 110 MT by 2019–20. Nonetheless, with the current rate of ongoing greenfield and brownfield projects, the Ministry of Steel has projected India's steel capacity is expected to touch 124.06 MT by 2011–12.

Consumption

- India accounts for around 5 per cent of the global steel consumption. Almost 70 per cent of the total steel used is for kitchenware. However, its use in railway coaches, wagons, airports, hotels and retail stores is growing immensely.

- India's steel consumption rose by 5.7 per cent to 26.49 MT in the first six months of the current fiscal over the same period a year ago on account of improved demand from sectors like automobile and consumer durables.

- A Credit Suisse Group study states that India's steel consumption will continue to grow by 16 per cent annually till 2012, fuelled by demand for construction projects worth US$ 1 trillion.

Source – IBEF (Indian Brand Equity Foundation)

7. Company’s Plans

- In line with its philosophy of quality upgradation, value addition and increasing the range of products to cater to the market demands, the Company plans to set up a mega unit with state of art machinery. They have already been awarded the status of “Mega Project” by Industries, Energy and Labour Department, Government of Maharastra vide its letter dated 06th July 2009 along with several incentives. The proposed state-of-the-art plant will be located on Ghoti-Sinnar Highway, near Sinnar, Nashik Dist., Maharashtra State. They are planning to

- increase the galvanized wire capacity by setting up state-of-the-art plant. It plans to install Hi-speed Galvanizing plant of 49000 MTPA capacity with uniform coating and with capability of very heavy coating.

- set-up LRPC wire and spring manufacturing plant of 36000 MTPA and 18000 MTPA capacity respectively by importing latest machines.

- set-up Aluminum rod and conductor manufacturing plant (with furnace) of 42000 MTPA capacity.

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- Set up an additional LRPC line with a capacity of 36000 MTPA in 2012-13 and spring wire of 18000 MT PA from internal accrual.

8.a.

Project Status

- The project has been awarded the status of “Mega Project” by Industries, Energy and Labour Department, Government of Maharastra.

- The Company is in the process of procuring on outright purchase basis, 100 acres of land on Ghoti-Sinnar Highway near Sinnar, Nashik, Maharastra.

- After procuring land all the remaining statutory obligations would be got fulfilled.

8.b.

COPCost of Project

INR in Lacs

Land 1500.30Factory Building 5292.31Plant & Machinery 14045.65Miscellaneous Fixed Assets 1011.43Furniture & Fixtures 25.08Electrical Installations 1579.19Preliminary Expenses 2050.00Pre-operative Expenses 450.00Contingencies 638.54IDC 1070.00Margin for Working Capital 3200.97

TOTAL30863.4

9

MOF Means of Finance INR in Lacs Equity:Internal Accrual 363.49IPO 10500.00Subtotal 10863.49Debt:Term Loan/ DPG 20000.00Subtotal 20000.00Total 30863.49

Source of equity funding

Out of the equity contribution of Rs. 10863.49 Lacs, the company plans to bring Initial Public Offering of Rs. 10500.00 Lacs & balance from internal accruals. BIL has appointed SEBI registered merchant banker M/s. Ashika Capital Pvt Ltd vide Appointment letter no.ACL:MUM:2009-2010:0091 dated 27.10.09 as lead managers for the management of the issue. The issue is to be underwritten. The company intends to hit the market by March end. The entire process is finalized and DRHP is proposed to be filled within one week of the appraisal of the project.

8.c Financial Highlights-

(Rs in lacs)06-07 07-08 08-09

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existing operations Capital 334.95 899.58 899.58

Resource and surplus 411.51 478.93 1064.97TNW 746.46 1331.12 1926.66Secured loans 2390.09 3646.58 3815.53Unsecured loan 470.07 806.09 918.87Fixed assets(Net) 479.28 1681.42 2310.30Sales (net) 7251.54 11454.26 14678.93PBT 59.01 480.33 1074.45Current ratio 1.49 1.32 1.36DE ratio 0.51 0.57 0.47 Average DSCR 5.34

8.d Financial

highlights of the proposed project

(Rs in lacs)2011-12 2012-13 2013-14

Capital 10500.00 10500.00 10500.00Resource and surplus 419.3

5 3,617.58 8,230.23

TNW 10,919.35

14,117.58

18,730.23

Secured loans 23,924.07 20,961.23 17,573.69

Unsecured loan 0.00 0.00 0.00Fixed assets(Net) 24,345.4

6 25,865.1

7 24,442.7

7 Sales (net)

63,496.13 74,651.4

0 99,268.0

7 PBT 1,698.1

4 5,341.26 8,070.65

Current ratio 1.28 1.48 1.55DE ratio 1.83 1.24 0.76 Average DSCR 1.91

9. Credit requirement

The requirement of the Company by way of term loan is Rs. 20000 lacs. The consortium has already shown interest to take up the term loan in the ratio of working capital sharing.

10. Security

For the existing facilities TL WC

For the proposed TL

Primary Collateral Personal guaranteesCharge on existing plant & machinery of the Company.

Charge on existing land and building along with other personal assets of the directors

Mr Vijay VedmuthaMr Ajay Vedmutha Mr K R Vedmutha

Charge on plant & machinery of the Company to be procured from Bank finance.

Extension of the above charge.

-do-

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Corporate Details Table 1: Corporate Snapshot

Corporate Snapshot

Year of Incorporation 1990

Constitution Public Limited company (Unlisted)

CIN U31200MH1990PLC057863

Registered Office A-32, Sinnar Co-op Indl Estate, Sinnar, Nashik 422103

Corporate Office B-302,Sai Classic, Gavanpada, Mulund East ,Mumbai 400081

Manufacturing Units Unit 1: Plot No. A-31-35/57, STICE, Musalgaon, Sinnar, Nashik 103.

Unit 2: Plot No. A-70/71/72, STICE, Musalgaon, Sinnar, Nashik 103

Unit 3: Plot No. B-140, STICE, Musalgaon, Sinnar, Nashik 103

Unit 4: Plot No. B-113, STICE, Musalgaon, Sinnar, Nashik 103

Quality Certification ISO 9001:2000Industry Membership The Steel Wire Manufacturers Association of India

(SWMAI) EEPC Small Scale Wire Association Indo Italian Chamber of Commerce and Industry Jain International Trade Organization Nashik Industries and Manufacturers Association

Awards and recognition

“Bhartiya Udyog Ratan Award” for energy conservation“Indian Achievers Award” for industrial development“Sinnar Udhyog Gavrav Award” for Industrial development “Eminent Women Engineer Award” for Ind. Contribution

Board of Directors Mr.K.R.Bedmutha, ChairmanMr. Vijay K Vedmutha, Managing DirectorMr. Ajay K Vedmutha, Joint Managing DirectorMr. Shital Nahar , Independent directorMr. A Balsubramanian, Independent directorMr N M Kadu, Independent director

Auditors M/s. Patil Hiran Jajoo and Co. NasikBankers Punjab National Bank, Nashik

Bank of India, Nashik and Mulund, MumbaiAndhra Bank, Pune

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2 Introduction

2.1 Company Profile:

Bedmutha Industries Limited (BIL) is a one of the leading and broad based producers of steel wire and wire products in western India. Bedmutha Industries Ltd, the flagship company of Bedmutha group, was incorporated in 1990 for manufacturing galvanized wire, both low and high carbon, for power transmission sector especially for State Electricity Boards (SEBs), automobile sector and agriculture sector.

BIL is a part of Bedmutha Group, spearheaded by Mr. K.R. Bedmutha and has diversified business interest in Steel wire sector, Technical Consultancy, Chemical, Agriculture, Power and infrastructure sector. The day-to-day operation of the group is managed by Mr. Vijay Vedmutha and Mr. Ajay Vedmutha, the sons of Mr. K.R. Bedmutha, the founder of Bedmutha Group.

Since its inception the company has grown from 300MT/ month capacity with total wire drawing capacity to 5000 MT/ month with 4 lines.

Table 2: Capacities Achieved by BILMT per annum

Year Capacity

Wire Drawing Of total wire drawing, used for

Direct sale of wires

Galvanising including

stranding wire

Wire nails PC Wire Total

1992-93 - - 3600 - - 3600

1993-94 - - 6100 - - 6100

1997-98 16800 5300 11500 - - 16800

2003-04 16800 - 16800 - - 16800

2005-06 18000 1200 16800 - - 18000

2007-08 42100 15000 25300 1800 - 42100

2008-09 60000 22100 25300 1800 10800 60000

Upto 2000, the company’s key clients were State Electricity Boards (SEBs). Almost 60% of the production was supplied to Electricity Boards but with delay in payment from SEBs, the company also developed new clients in the private sectors. Today the company has diversified client portfolio with each product segment amounting not more than 25%. The company has invested heavily in plant automation and in eliminating bottlenecks in the manufacturing process. The company has excelled both in terms of financial and physical performance over the years.

BIL has 14 offices and branches across India and widespread dealership all over India. With the consolidation of the steel wire business within the group, the company now ranks among the top ten producers in steel wire segment of India.

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The company achieved following milestone since its incorporation:

Table 3 ; Milestones Achieved by BIL

Year Milestone achieved1990 Year of Incorporation

1992 Commenced commercial production with 3600 MTPA

1994De-bottling of existing plant, thereby increasing the Capacity from 3600 MPTA to 6100 MTPA

1994 Approved Vendor of Maharashtra Electricity Board

1996Approved Vendor of Gujrat Electricity Board and Karnataka Electricity Board

1997Expansion by adding Galvanized Plant no-2 of 5400 MTPA and total Capacity of 11,500 MPTA

1998Backward intregration by acquiring the Wire Drawing Capacity from M/s. Kamal Wire with a Capacity of 16,800 MTPA in Sinnar, Nashik.

1999 Approved Vendor of Rajasthan Electricity Board

2000M/s. Test Engineers and Associates was taken over by Bedmutha Industries Limited

2001Acquired Deemed Export Order from REC (Rajasthan Electric Board) under World Bank Tender

2003 3rd Galvanizing plant was installed adding 5300 MTPA2004 Company acquired ISO 9002 2005 Wire Drawing Capacity has enhanced from 16,800 MPTA to 18,000 MTPA2006 Approved Vendor of Power Grid Corporation

20084th Galvanizing plant was installed taking total galvanizing capacity from 16,800 MTPA to 25,300 MTPA

2008

Expansion of Wire & Wire Products Capacity from 18,000 MTPA to 42,100 MTPA and Wire Nails Capacity of 1800 MTPA by way of merger, amalgamation of M/s. Ajay Wire Private Ltd., Kamdhenu Wire Private Ltd. and Shreeram Wire Private Ltd with Bedmutha Industries Limited. u/s.391-394 of companies Act.

2008 Set up Wind Mill in Karnataka with power generation Capacity of 0.225 MW

2008In order to Concentrate more on manufacturing Business the Consultancy Division demerged

2008Wire Drawing Capacity has enhanced from 42,100 to 60,000 MTPA and P.C.Wire Line with a capacity of 10,800 MTPA during March,2009

2009 Name changed to Bedmutha Industries Ltd Acquired 51% stake in Kamlasha infrastructure and Engineering Pvt. Ltd. in order to expand business activities. Joint Venture Agreements with Ashoka Buildcon Ltd. To manufacture Cement prestress concrete poles

Over the years the operations of the company have been taken over by Mr. Vijay Vedmutha and Mr. Ajay Vedmutha, the sons of Mr. K.R. Bedmutha, the founder of Bedmutha Group. The promoters have been in this business line for about three decades and are well-known and well established business group now.

In order to achieve the economies of scale and to reap its benefits, the Company has recently completed major restructuring exercise wherein all its group companies in the wire and wire products segment were consolidated into one single entity. Accordingly all the group companies viz. M/s. Ajay Wire P. Ltd., M/s. Kamdhenu Wire Pvt Ltd and M/s. Shriram Wire Pvt. Ltd. have been merged with BIL as per High Court order dated 28th Sept 2009. The valuation was done by M/s. Dalal and Shah, Chartered Accountants.

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2.2 Our Existing Business Operations:

2.2.1 Manufacturing Facilities

The company has its manufacturing facilities located in the industrial estate (STICE) at Sinnar, Nasik. The merged company has in all four units in the same area. The units have locational advantage in terms of connectivity:

Being located in a backward area, the company is eligible for all the benefits applicable to the industries located in backward area.

Strategic location advantage in terms of road and rail connectivity. Close proximity to important cities such as Mumbai, Pune, Nasik and Surat. Mumbai Sea Port is at a distance of 200 KM from Sinnar, leading to raw material

transport.

Table 4: Manufacturing capacity of BIL

Units Location ProductInstalled Capacity

Unit IPlot No. A-31-35/57, STICE, Musalgaon, Sinnar, Nasik 422 103.

Wire Drawing Galvanized Wire

25300 MTPA

Unit II Plot No. A-70/71/72, STICE, Musalgaon Sinnar, Dist: Nasik

Wire Drawing Spring Wire PC wire

22100 MTPA

10800 MTPAUnit III Plot No.B-113, STICE, Musalgaon,

Sinnar, Dist Nasik 422 103. Wire Nail Chain link

1800 MTPA

Unit IV Plot No. B-140, STICE, Musalgaon, Sinnar, Dist Nasik 422 103.

Stranding Capacity Chin link Barbed Wire

2400 MTPA (capacity included in capacity of unit II.)

Post-expansion BIL will be one of the top five producers of steel wire both in terms of capacity and product portfolio. Over a period of time the Company has diversified its activities into related technical field such as consultancy and power. In order to reflect diversified interest of the company, the name of the company was changed from Bedmutha Wire Company Ltd (BWCL) to Bedmutha Industries Ltd (BIL) in Oct 2009.

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Details of the Wire, Consultancy and power division are as under

Exhibit 1: Overview of activities of BIL

Table 5: Business Segment of Bedmutha Industries Ltd

Business Division Productions Capacity/ Assets Location 1 Steel wire and wire

productsMS wire, GI Wires, PC wire, spring wire, wire nails

60000 MTPA Sinnar, Nasik

2 Consultancy Division NA NA Mumbai

3 Power Division Power Assets Windmill 225 kva LoI for small Hydro

Power project

Gadag, Karnataka

2.2.2 Steel Wire Division

Post-merger, BIL has wide product range in wire and wire product segment. Starting from manufacture of galvanized wire way back in 1992, the Company has gradually added to its products portfolio to cover a wide range of steel wires used by various industries such as infrastructure, power, automobile, engineering, horticulture and defence:

Table 6: Wire portfolio of BILType of wire Application

Galvanized steel and M.S. wire Telephone, Agriculture, Wire Netting, Barbed Wire, Welding Rods, Fasteners, etc

Cable Armour wire, Round Wire and Flat Wire Power Cables

A.C.S.R. wire, Wire Single and Stranded Power Conductors

Stay wire Power Lines

Earth wire H.T. Transmission Lines

Chain link fencing Defence, border fencing, farm and industrial fencing

Barbed wire Defence, border fencing, farm and industrial fencing

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- Capacity

The commercial production commenced in 1992 with 300 MT/ month capacity having single galvanizing line. In 1994 the company did its first expansion by de-bottling of the existing galvanizing plant thereby enhancing the total galvanizing capacity to 508 MT/month. In 1997 the capacity of galvanizing plant was further expanded by 450 MT/month by adding plant No.2. In 1998, the Company went in for backward integration by acquiring the Wire drawing capacity from M/s. Kamal Wire with a capacity of 1400 MT/month in Sinnar, Nashik. The third and fourth galvanizing lines were added in 2003 and 2008 increasing the galvanizing capacity by 1150 MT/month. In 2005 the wire drawing capacity was expanded by 100 MT/month. In 2008 the group companies, M/s. Ajay Wire Private Ltd., Kamdhenu Wire Private Ltd. and Shreeram Wire Private Ltd were amalgamated with Bedmutha Industries Limited. u/s.391-394 of companies Act and the company expanded their wire & wire products capacity by 2008 MT/ month including Wire Nails Capacity of 150 MTPA. During March 2009, the wire drawing capacity was enhanced by 1492 MT/month including P.C.Wire Line by 900 MT/month.

- Facilities

With a view to consolidate their existing wire and wire products manufacturing activities all the group companies viz. M/s. Ajay Wire P. Ltd., M/s. Kamdhenu Wire Pvt Ltd and M/s. Shriram Wire Pvt. Ltd. have been merged with BIL as per High Court order dated 28th Sept 2009.

-- Major Customers

Some of the key customers of company are:

Polycab MK Spring Ltd RPG Cables Ltd Suprajit Industries Finolex Cables Ltd Tata Johnson Ravin Cable Ltd Mand M Vendors Universal Cable Bajaj Auto Vendors Tata Fecaso Bharat Wire Rope Bajaj Electricals Sterlite Industries Ltd SEBs of Gujarat, Maharashtra and Kerala. Bharat Glass Tubes Ltd.

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The client-mix in the terms of revenue is as follows:

Exhibit 2: Client-mix in Revenue terms of BIL

- Potential:

Table 7: Industry SnapshotIndustry Highlights Industry Structure

• The Steel wire Industry is growing at a rate of 5-7% p.a. However the growth in this sector is expected to increase in leaps and bounds in the years to come.

• Out of the per capita consumption of steel in the country, per capita consumption of steel wire is only 5%.

• However with the expected pace of development this figure is likely to go up to 7-8%.

• Total number of Wire Drawing Units registered with Steel Ministry was 100 with annual installed capacity of 1,475,750 tonnes.

• Out of these registered units, 26 with annual installed capacity of 502,585 tonnes were found to be in working condition.

• The total production of Steel Wires across various grades was to the extent of 400,000 tonnes in the organized sector.

Current Statistics• Total Installed Capacity 2.118 Million Tons• Capacity Utilization 80%• Total Production 1.694 Million Tons• Export 0.12 Million Tons (7%)• Import 0.05 Million Tons• Total Demand in the country 1.624 Million Tons

Source Steel Wire Manufacturers Association of India (SWMAI Industry Source

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Industry Demand:- The demand for the steel wire is derived demand. - The key end-users of steel wire are:

1. Power Sector

i. Power Transmission and Distributionii. Power Cableiii. Conductorsiv. Power Line

2. Construction Sectori. Bridgesii. Roadsiii. others

3. Telecom Sectori. Telephone lines

4. Automobile Sector5. Agriculture and Horticulture Sector.6. Engineering Sector7. General Application

2.2.3Consultancy Division

The company also has a technical consultancy division. The activities of the technical consultancy division are categorized as Inspection activities and Consultancy activities.

The main services provided are of Stability and Safety Certification, NDT Services, 3rd

Party Procurement Inspection and Failure risk assessment. They also render the services as Chartered Engineers, Surveyors, Loss Assessors and Government approved Valuers. They are Competent Persons (Agency) under the Factories Act and Petroleum and Explosives Safety (PESO) and provides safety programme against fire and explosion.

Some of the major assignments carried out by Consultancy Division are.

The technical consultancy division is empanelled with companies such as HPCL, BPCL, IOC, Gujarat Refinery, Gandhar Oil Mills, Thermax, Godrej Soaps etc. In March 2009 the Consultancy Division has been demerged in a separate entity named as K.R.Bedmutha Techno Associates Pvt Ltd.

2.2.4 Power Division

Wind Mill Project,

The company recently embarked into the production of power by setting up a single windmill at Gadag, Karnataka, which is wind proven site in Karnataka. It is one of the best sites in India for best return on Investment. Installing windmill in Karnataka has the following benefits:

o Karnataka purchase price is at Rs.3.40 per unit o Karnataka allows the sale of power to 3rd Party in certain cases.o Electricity Duty/Tax is exempted

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o Wheeling and Banking facility allowed

All the activities in Power sector is carried out through Power division of the Company. The installed capacity of the wind turbine generator of SWL (Southern Wind Farms Ltd.) make installed by the Company is 75 Kw. The windmill is being maintained by Tejasri Developer (P) Ltd. The Company has plans to install two more windmills in the near future.

The commercial and other benefits accruing to the Company are:

o Generation of approx 6.00 Lakhs +/-5% units o Power purchase by KPTCL @ Rs.3.40 per unito Carbon Credit revenue accrues @ 30 paise per unit generated o 100% tax exemption for 10 years under Section 80 IA of IT Act.

The Company has power purchase agreement with Karnataka government and is considering downstream integration into distribution business as company is already producing steel wire which is the basic requirement for power transmission and distribution.

2.3 Share Capital and Shareholding:

2.3.1 Authorized Share CapitalThe details of the authorized and paid-up capital of BIL as on 30th Sept 2009 are as under:

Table 8: Details of Capital of BIL as on 30th Sept 2009Particulars Rs. In

LacsAuthorized Share Capital 1,50,00,000 Equity Shares of Rs. 10 each

1500.00

Issued, Subscribed and Paid up Share Capital 89,95,838 Equity Shares of Rs. 10 each

899.58

2.3.2 Shareholding detailsBIL is a closely-held company. The entire equity is held by the Bedmutha Family. Top-10 shareholders of BIL as on 30th Sept 2009 are as under.

Table 9: Top ten shareholders as on 30th Sept 2009Sr. No Top-10 Shareholders % of holding

1 Mr. Ajay K. Vedmutha 9.60%2 M/s Bedmutha Sons Realty Ventures P. Ltd. 9.32%3 K R Bedmutha (HUF) 2.66%4 Kachardadas R. Bedmutha 8.63%5 Miss Divya Ajay Vedmutha 8.71%6 Miss Lavina Ajay Vedmutha 8.48%7 Mrs. Kamalabai K. Bedmutha 4.32%8 Mrs. Usha V. Vedmutha 9.95%9 Mrs. Vinita A. Vedmutha 8.48%

10 Miss. Sneha V. Vedmutha 8.71%

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2.4 Organogram of BIL

Exhibit 3: Orgonogram of BIL

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2.5 Board of DirectorsThe Board has six members composing three Promoter Directors and three Independent Directors. The overall management of the company vests with the Board of Directors. The day-to-day management of the Company is looked after by the Managing Director and the Joint Managing Director under the overall guidance of the board. They are assisted by a team of qualified and experienced executives and professionals.

Table 10: Board of Directors of BIL as on 30th Sept 2009Name of Director Age Position Classification Qualification

1 Mr. K.R. Bedmutha 74 yrs Chairman Promoters Group B.E. (Electrical)2 Mr. Vijay. K. Vedmutha 45 yrs MD Promoters Group B.E., MBA-Fin3 Mr. Ajay. K. Vedmutha 42 yrs Jt. MD Promoters Group B.E. (Mech)4 Mr. Shital Nahar 38 yrs Director Independent BE Computer 5 Mr. A Balasubramanian 61 yrs Director Independent B Sc, FCA6 Mr. N M Kadu 60 yrs Director Independent M Sc., CAIIB

Brief profile of Directors:

i) Mr. K.R.Bedmutha, 74 is Electrical Engineer by qualification. He is a founder of Bedmutha Group. Under his able leadership the Bedmutha Group has grown from single product to multi-product group.

Mr. K.R. Bedmutha has worked with leading companies such as Birla Group, Heavy Engineering Corporation, and Indian Tools etc before venturing in the industry. He is a member of Institute of Engineers (India), Indian Institute of Industrial Engineers, Institute of Works Managers (London), Board of National Safety Council and Industrial Safety and Health Association.

Mr. Bedmutha promoted Bedmutha Wire Company Ltd in 1990 along with his sons. He has promoted other group companies ‘M/s.Elme Plast, ‘M/s. Kamal Wires’ K.R. Bedmutha Techno Associates etc. K R Bedmutha is Executive Chairman of the company and represents the promoter group.

ii) Mr. Vijay. K .Vedmutha, 45, elder son of Mr. K.R. Bedmutha is Industrial and Production Engineer by qualification. He has done MBA with specialization in Finance. He is a member of ‘Institute of Engineers India’, ‘Associate Member of Institute of Valuer's (India)’, ‘Institute of Surveyors and Loss of Assessors’, ‘Associate Member of the Society of Non-destructive Tester Institute’ and ‘Indian Institute of Plant Engineer’.

Vijay Vedmutha is Managing Director of the company and represents the promoter group. He joined the company in 1985 and oversees Marketing and Finance operations of the company.

iii) Mr. Ajay K. Vedmutha, 42, younger son of Mr. K.R. Bedmutha is a Mechanical Engineer by qualification. He is member of ‘Institute of Engineers of India’, ‘Deccan Sugar Technologies and Association’, Life Member of the ‘National Safety Council’ and ‘Institute of Energy Engineers’.

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Ajay K Vedmutha is Joint Managing Director of the company and represents the promoter group. He joined the company in 1987 and since then has been on the board of directors. He is responsible for Production, Planning and Control operations of the company.

iv) Mr. Shital Nahar – 38, is a B.E. Computer and Diploma in Electrical Engg by qualification. He is a past President of Computer and Media Dealers Association (CMDA) and is currently a member in advisory capacity. He is engaged in the business of computer Hardware and networking.

He joined the company’s board in 2007-08 as an Independent Director. His area of expertise is Information Technology, Computer Networking and latest technology applications.

v) Mr. A. Balasubramanian, 61 is a Charted Accountant by qualification and is a former Chief General Manager of Punjab National Bank with vast and varied experience in banking and industry.

He joined the company’s board on 14.11.2009 as an Independent Director. His area of expertise is Banking, Finance and Risk Management.

vi) Mr. N M Kadu, 60 has Master degree in Science with additional qualification of, CAIIB (Certified Associate of Indian Institute of Bankers). He is a former Assistant General Manager of Punjab National Bank with vast experience.

He joined the company’s board on 14.11.2009 as an Independent Director. His area of expertise is Banking, Finance and Risk Management.

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3.0 Financials of Existing Operations

3.1 Division-wise and Product-wise Revenue Break-up

(INR in Lacs)Sr No For the year ending 31st March FY07 FY08 FY09

Particulars Pre-Merger Post-Merger Audited

A Wire and Wire Products

GI Wire/ GI Patented Wire 4,074.29 5,382.18 9,940.01

MS/ HC Wire 360.69 232.05 1,913.66

Deemed Export Sales 2.20 - 16.3

4

GI Wire Sale (Exempted) 961.26 1,224.48

MS Wire Nails / Wire Nail 0.10 433.45 463.70

GI Chain Link 2.0

3

Subtotal 5,398.53 7,272.16 12,335.74

B Ancillary Sales

Conversion Charges 166.58 180.18 59.1

5

Zinc, Lead and Ash Sales 56.98 13.1

1 18.7

1

Scrap 36.18 37.5

0 76.0

7

Subtotal 259.74 230.79 153.92

C Subtotal (A + B) 5,658.27 7,502.95 12,489.66

D Trading Sales:

Trading Activities 95.30 2,381.67 1,157.65

Factory Building 31.7

6

Plant and Machinery 23.7

1

Wire Rod Sales 1,192.02 708.68 -

Highseas Wire Rod Sales 449.13 368.22

Subtotal 1,287.32 3,539.48 1,581.34

E Energy

Wind mill Energy Sales 0.5

7 10.2

7

F Consultancy

KRBTA Division 256.46 312.32 488.28

G Other Sales

Professional Charges 70.0

3

Electronic Component Sales 58.7

7 -

Misc Sales 14.36 18.7

5 24.7

6

Mechl Repairs and Main Sales 3.4 -

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2

Machine Division 27.53

Subtotal 41.89 80.

94 94.

79

H Grand Total 7,243.94 11,436.26 14,664.33

Excise Duty, S.tax and Levies 1,086.24 2,030.80 2,981.81

Carriage Inward 6.73 17.7

9 14.6

0

I Total Sales 8,336.9

1 13,484.84 17,660.74

3.2 A summary of past financial performance is presented here under:

(INR in Lacs)For the year ending 31st March FY07 FY08 FY09

ParticularsPre-

MergerPost-Merger Audited

Sales8,336.94 13,484.90

17,660.74

less: Excise Duty and Taxes1,085.28 2,030.64

2,981.81

Net Sales 7,251.5611,454.26

14,678.93

Other Income 13.06 91.91 52.

50

Increase/ (Decrease) in Stocks (134.50) (18.20

) 446.

28

Total Income7,130.12

11,527.97

15,177.71

Expenditure6,749.86

10,370.98

13,351.65

EBIDTA 380.25 1,156.

99 1,826.

06

Depreciation 84.55 218.

83 267.

03

Interest 259.96 467.

63 473.

74 Profit Before Extraordinary Item/Prior Period Items

35.75 480.

53 1,085.

29

Forex Losses (23.51) 0.00 0.00

Prior Period Expenses0.23

0.20

10.84

Profit Before Tax59.03

480.33

1,074.45

Corporate Tax 24.65 51.5

4 271.5

6

Deferred Tax 4.29 64.4

2 98.

29

FBT 3.30 6.0

0 4.2

6

Profit/ (Loss) After Tax 26.78 358.

37 700.

34

Profit/(Loss) brought forward 160.11 148.

60 376.5

4 Amount available for Appropriation 186.89 506.9 1,076.8

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7 8

SalesBIL registered net sales of Rs.14679 lacs, Rs. 11454 Lacs and Rs. 7252 Lacs respectively in FY 2008 and FY 2007. The net sales of FY 2009 and FY 2008 of BIL shows a growth of almost 28% and 58% over net sales of FY 2007 and FY 2008 respectively. The net sales growth is principally on account of merger and better marketing.

Profitability: The Company has registered a PBIDT margin of over 12% in as compared to over 10% in FY 2008 and over 5% in FY 2007. The PAT Margin has moved up to over 4.7% and 3.1% in FY2009 and FY2008 respectively. It has been on the back of better realizations and on account of synergies derived from merger.

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3.3. Financial Position

(INR in Lacs)For the year ending 31st March FY07 FY08 FY09

ParticularsPre-

MergerPost-Merger

Audited Audited AuditedCapital 334.95 899.58 899.58Reserves and Surplus 411.51 478.93 1064.97Shareholders Fund 746.46 1,378.51 1954.55Secured Loans 2,390.09 3,646.58 3815.53Unsecured Loans 470.07 806.09 918.87Loan Fund 2,860.16 4,452.67 4734.40Deferred Tax Liability 64.54 121.85 220.14Total Liabilities (TL) 3,671.16 5,953.03 6919.09

Gross Block 1,192.47 3,061.40 3957.31Accumulated Depreciation 713.19 1,379.98 1647.01Net Block 479.28 1,681.42 2310.30Capital work-in-progress 40.72 33.72 0.00Investments 10.77 16.58 19.26Goodwill on account of Merger 86.51 101.11 89.99Current assets, loans and advances 3,268.69 5,295.71 5865.48Less: Current Liabilities and Provisions 220.54 1,186.21

1429.65

Net Current Assets 3,048.15 4,109.50 4435.83Misc Exp to the extent not written off 5.73 10.70

63.82

Total Assets 3,671.16 5,953.01 6919.09

3.4 Key Performance

For the year ending 31st March FY07 FY08 FY09

Particulars Pre-Merger Post-MergerAudited Audited Audited

EBIDTA Margin (%) 5.33% 10.04% 12.03%EBIT Margin (%) 4.15% 8.14% 10.27%PAT Margin (%) 0.38% 3.11% 4.61%Raw Material (%) 76.85% 77.0% 78.0%Current Ratio 1.49 x 1.32 x 1.36 xTOL: TNW 3.50 x 3.63 x 2.72 XD:E Ratio 0.51x 0.57 x 0.47 X

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3.5 Banking Facilities

BIL is enjoying the credit facilities under consortium of Punjab National Bank, Bank of India and Andhra Bank. PNB is the lead bank of the consortium. The status of facilities enjoyed by the company is:

Table 11: Banking Details of BIL as on 31st March 2009(INR in Lacs)

Bank and Branch

TL C.C.Non-Fund

Based TotalSancti

on o/sSancti

on o/sSancti

on o/s o/sPunjab National BankRaviwar Karanja Branch,Nasik city, Nasik 422 001

625.00409.4

1 1200.00

978.35 620.00 176.2

01563.9

6

Bank of IndiaNasik Main Branch, Mundada Market, 203 A, M.G. Road, Nasik 422 002.

Mulund East Branch Shree Vallabh Apartment, Hanuman Chowk, Mulund (East), Mumbai 400 081

540.00

360.00

199.01

194.12

900.00

445.00

628.38

434.53

415.00

345.00

313.41

222.22

1140.80

850.87

Andhra Bank610, Sachapir Street,Camp, Pune 411 001

180.00124.4

2 900.00 851.07 420.00

287.40

1262.89

Total Exposure1705.00

926.96

3445.00

2892.33

1800.00

999.23

4818.52

Corporate Term Loan of PNB, BOI and Andhra Bank is secured by 1st Pari Passu charge on Land, Building and Plant and Machinery of the company.

Working Capital facility of PNB, BOI and Andhra Bank is secured by way of 1st Pari Passu charge on Stock and Book Debts and 2nd Pari Passu charge on Land and Building and Plant and Machinery of the company.

Term Loan outstanding as on 30th Sept 2009 is Rs. 999.31 Lacs.

Fund Based Working Capital facility utilized as on Sept 2009 is Rs. 3172.61 Lacs.

Non-Fund Based Working Capital facility utilized as on Sept 2009 is Rs. 1962.18 Lacs

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The Company has been sanctioned the following loan facilities:(Rs in lacs)

Bank Sanction letter

Fund based Non fund based

Facilities Limit (Bal O/s) Facilities Limit

Punjab National Bank

Letter No NIL dated 15.06.09 issued by its Nasik City, Nasik Branch

T/L 1

T/L II

T/L NEW

Cash Credit

(Enhanced from Rs.1200)

240 (174.88)

225 (187.32)

220

1800

BG

FLC

(Enhanced from Rs.500.

110

780

Bank of India

Letter No NIL dtd 09.09.2009 issued by its Nasik City, Nasik Branch

T/L 1

T/L II

T/L (Windmill)

T/L NEW

Cash Cr


180 (121.18)

360 (345.79)

360 (54.43)

225

1800

BG

(reduction from Rs.90.00)

FLC

(Enhanced from Rs.330.)

110

780

Andhra Bank

Letter No 906/52 dtd 21.05.2009 issued by its Pune Branch

T/L 1

T/L NEW

Cash Cr


180 (115.70)

325

1300

BG

(enhanced from Rs.40.00)

FLC

(Enhanced from Rs.375.)

80

540

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4. Key Management Personnel

The broad guidelines are formulated by the board of directors and day-to-day management of the company is looked after by the MD assisted by the team of professional qualified and experienced executives. The details of the key management personnel are

Table 12: Key Management Personnel’s of BILName Designation Department Age Qualification

Mr. Vijay K Vedmutha Managing Director Commercial, Marketing and Finance

45 yrs BE, MBA (Fin)

Mr. Ajay K Vedmutha Joint Managing Director Production, Planning and Control

42 yrs BE

Mrs. Vinita A. Vedmutha Chief Executive Officer General Administration and HR

40 yrs BE

Mr. S. M. Shinde Dy. General Manager Production 32 yrs BE (Mechanical)

Mr. C B Gupta Asstt. General Manager Commercial 59 yrs B.Com, LLB

Mr J C Misaal General Manager Commercial 40 yrs DME, DMM, DBM

Mr. Sibasis Bhadra General Manager Marketing 45 yrs BE Mech

Dr. Kumar Bhagchandani

Vice President General Administration and HR

58 yrs PhD in HRD

Mr Soumitro Mukherjee Finance Head Finance 49 yrs CA

Mr. Vikas Nair Sr. Manager Acctts and Finance 28 yrs M.Com, DCA

Mr. Nilesh Company Secretary Legal and Secretarial 25 yrs ACS, M Com

1. Mrs. Vinita A. Vedmutha, Chief Executive OfficerMrs. Vinita is a Computer Engineer by qualification. She is over all incharge of finance division and also controls manufacturing activities at BIL. She has been declared as ‘Eminent Woman of the Year 2008’.

2. Mr. S. M. Shinde, General Manager –Production Planning and Control (PPC)

Mr. Shinde is an Engineering graduate by qualification. Mr. Shinde is in charge of manufacturing (technical and commercial) activities. He is with the Company since inception and has widely traveled across the country as well as abroad and is aware of the latest manufacturing techniques involved in manufacturing high speed galvanizing wire as well as LRPC wire.

3. Mr. C B Gupta, AGM Commercial.

Mr. C B Gupta, is a Commerce as well as Law graduate. He has 35 years experience in Wire Industry. He deals with Government supplies and is well conversed with legal formalities involved in procuring tenders of global status.

Mr. Gupta is also managing order processing system, production planning and distribution of the Company through godowns located at Silvassa, Daman and Bangalore.

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3. Mr. JC Misaal, General Manager - Material

Mr. Misaal, aged 40 years, is a DME, DMM, DBM by qualification. He is having more than 15 years of experience in material procurement and management.

Mr. Bhadra is the head of Material procurement and management Division of the Company.

4. Mr. Sibasis Bhadra, General Manager Marketing.

Mr. Bhadra is an Engineering Graduate by qualification. He has also completed Diploma in Business Management and is a trained Internal Auditor for Quality Management System. He is having more than 25 years of industrial experience in Wire Industry. Mr. Bhadra has worked with Bandel Thermal Power Station and Usha Martin Ltd..

Mr. Bhadra is the head of marketing Division of the Company.

5. Dr. Kumar Bhagchandani, Vice President. Mr. Kumar is doctorate in HRD from Asian Institute of Management, Manila, Philippines, affiliated to Harvard Business School. Dr. Kumar has received “Lead Auditor Certification” from worldwide Quality Management Networks, London in 1998 and National Status Award for intellectual development 2007 from ‘Intellectual Peoples and Economic Growth Association’, New Delhi.

Dr. Kumar Bhagchandani is having more than 30 years of industrial experience. Dr. Kumar is responsible for supervision of new project development and overseas corporate affairs of the company.

6. Mr. Soumitro Mukherjee, CA – AccountsMr. Mukharjee (aged 49 years). is a Chartered Accountant by qualification. He has 18 years experience of working with a leading companies like Voltas Ltd., Float Glass India Ltd., Eternit Evertest ltd. etc., besides 5 years of independent practice in taxation.

He is in incharge of finance division.

7. Mr. Vikas Nair, Sr. Manager – AccountsMr. Nair (aged 28 years). is a Commerce graduate. He has four years experience of working with a leading CA in Nashik.

He is part of finance division. He also looks after Company Law matters and is a member of Internal Audit Committee.

8. Mr. Nilesh Amrutkar

Mr Amrutkar (aged 25 years) is Company Secretary as well law graduate by qualification. He has recently joined the Company and is incharge of Company Law and Secretarial matters of the Company.

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5. Industry Background

5.1 Steel & Steel Wires:

Among all the metals steel is most widely used metal in manufacturing wires having vast application because of its abundant availability strength and multiple applications. Steel is one of the most widely consumed metals. Because of the critical role played by steel in infrastructural and overall economic development, the steel industry is often considered to be an indicator of economic progress. The steel industry's business cycles reflect the general economic activity of a nation.

Steel wire being a part of steel industry is highly dependent on the buoyancy of its end-use industries. Conditions in construction and automotive industries largely determine demand for wire products worldwide. Growing investment in infrastructure and higher disposable incomes in several developing economies are key factors driving growth in steel and its derivative products.

Steel wire has many uses. As a result, the product range of steel wire manufacturers is being continuously widened. An indicative list of the various types of steel wire and wire products produced in India is given below:

Hard Bright Wire Galvanized Wire Ball Bearing Wire

Alloy Steel Wire ACSR Core Wire Cycle Spoke Wire

Lock Washer Wire Sectional Wire Tyre Bead Wire

Umbrella Rib Wire Spring Steel Wire Wire Nail

Card and Gill Pin Wire Piano Wire Electrode Wire

Stainless Steel Wire Signal Wire Cable Armouring Wire

Rivet Wire Binding Wire Bolt Wire

Needle Wire Netting Wire Barbed Wire

Pre-stressed concrete Wire and Strands

Stitching Wire Telegraph and Telephone Wire

Weldmesh Wire Staple and Pin Wire Panel Pin Wire

Roping Wire Animal Shoe Nail Wire Reed Wire

Screw and Nail Wire Ring Traveler Wire Cold Heading Quality Wire

Stay Wire Hair Pin Wire Heald Wire

Source: Steel Wire Manufacturers Association of India (SWMAI)I

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Application of Steel Wire and Wire products:

Steel wire has many applications. Steel wire in all its variants and alloy finds application in Power, Automobile, Engineering, Construction and other sectors. Steel wire and its allied products find application in the some of the industry:

1. Automobile Industry2. Construction Industry3. Power Industry 4. Engineering Industry5. General Application6. Railways etc7. Others.

Exhibit 4: Application of Steel Wire

Source: Keynote Research

The steel wire grades are classified into Plain Carbon steel wire, Stainless steel wire and Alloy Steel wire grades.

Exhibit 5: Classification of the steel wire grade

Classification of Steel wire

Plain Carbon Steel Grade

Stainless SteelAlloy Steel Wires

Source: Steel Wire Manufacturers Association of India (SWMAI)

The Plain Carbon steel grade is further classified into Black/ Uncoated wires which form around 75 to 80% and Galvanized Wire, Copper Coated, Bronze Coated or other material coated which forms around 20 to 25%.

Exhibit 6: Grades of Plain Carbon Steel

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Source: Steel Wire Manufacturers Association of India (SWMAI)

Global ScenarioIn 2005 the Global wire business was to the tune of 43 million tons and in terms of Dollars it was around US $ 20 billion. This market is expected to grow to a capacity of 54 million tons by 2010 and in Dollar terms it is expected to grow to US $ 25 billion. North America, Europe and South East Asia each account for approximately 25% each of the Global demand for the Steel Wires. Steel wire market in Asia-Pacific is estimated at $9.4 billion as stated by Global Industry Analysts Inc. In tune with the developed countries, demand of Steel Wires from India is also growing at 5% due to the growth in infrastructure and the automobile sector. Although there is a steady increase in the export of steel wires from India, it only forms 1% of the total global exports of wire business.

It is for the wire industry to meet the challenges both in the domestic and the global world by taking full advantage of their capacities, updating the technology, going for more value added products, reduction in cost and striving for continuous improvement, look for export opportunities with innovation and creativity. Some of the leading companies in the steel wire sector are:

NV Bekaert SA, Belgium Global Steel Wire S.A. Santander, Spain Arbed. Luxemburg (Now part of Arcelor Mittal Group) Tata Wires, India (Division of Tata Steel Ltd) Shanghai Baosteel Group Corporation, China

Indian ScenarioSteel Wire Industry was established in India in 1920s and has progressed remarkably. It has been successful in achieving a wide product range comprising of various types of high carbon, alloy steel and special steel wires, in addition to mild steel wires. Versatility has been achieved by the industry for meeting the requirements of numerous consuming sectors. This sophistication has been possible due to continuous and well-planned R and D efforts on part of the manufacturers. The result has been that the industry is in a position to manufacture and supply steel wires, both in the domestic and the international markets, in accordance with ASTM (American Society for Testing and Materials), DIN (German Institute for Standardization), JIS (Japanese Industrial Standards), etc. in addition to ISS.

Radical Economic Reforms introduced since 1991 aimed at deregulating the productive sectors of the economy for more efficient and faster growth and opening up of the Indian economy to global competition through liberal trade and investment policies have ushered in far-reaching changes in industrial, financial and trading sectors which have added important dimension to the growth of the steel wire industry. As a result, the product range of steel wire manufacturers is being continuously widened.

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http://www.moneycontrol.com/mccode/news/searchresult.php?search_str=Bekaert%20SA&datesel=2


Some of the major players in steel wire production in India are: Tata Steel Limited (Wire Division) Usha Martin Ltd. Ramsarup Industries Ltd Rajratan Global Wires Ltd Bedmutha Industries Ltd. Indian Steel and Wire Products Ltd Miki Steel Works (P) Ltd. Vidushi Wires P Ltd The Indian Steel Works (P) Ltd. HD Wire

Industry DemandThe demand for the steel wire is derived demand. Conditions in the infrastructure, construction and automobile industries largely determine demand for wire products. Growing investment in infrastructure and other sectors in India are key factors driving growth in steel wires products. The key end-users of steel wire are:

1. Power Sectora. Power Transmission and Distributionb. Power Cablec. Conductorsd. Power Line

2. Construction Sectore. Bridgesf. Roadsg. others

3. Telecom Sectorh. Telephone lines

4. Automobile Sector5. Agriculture and Horticulture Sector.6. Engineering Sector7. General Application

Power Sector:India requires additional capacity creation of at least 1 Lakh MW (close to 80% of the capacity) by 2012 in order to bridge Demand-Supply mismatch. Increase in generation capacity also requires increase in transmission and distribution capacity. With the government emphasis on transmission and distribution (APDR Program) the proposal is for the larger investments in Tand D. As a result, India would be required to invest Rs. 900 Billion across the value chain in the power sector. This will create demand for cables for about Rs. 270 Billion in the next 6 years.

Power sector is also the largest consumers of the budget spent with around 30% share in the total spend. Products which are used in power distribution and transmission are G.I. wire, Earth wires, Cable Armoring wire, Conductor wire, and Stay wires, etc.

Infrastructure Sector:After power sector, the next biggest consumer of steel wire is infrastructure sector. With the government focus on the infrastructure, construction of ‘The Golden Quadrilateral Project’, and the 7300 km NSEW corridor, the boom in residential and

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commercial construction, the developments of new airports at all the major cities have all increased the consumption of steel wire products.

Steel wire products such as LRPC wires are widely being consumed in the construction of bridges, roads and other heavy constructions.

Telecom Sector:Today India is the fourth largest telecom market in Asia after China, Japan and South Korea and Indian telecom network is the eighth largest in the world. Telecom sector has undergone the major process of transformation and currently one of the fastest growing sectors. In terms of teledensity India ranks lowest (1.29 telephone lines per 100 people) among the major developing economy providing enormous opportunities.

Telecom sector account 10% of the total budget spend. Galvanized steel and MS wire is extensively used in the telecom companies in laying telephones cables etc.

Automobile Sector & Engineering:The Indian auto component industry has been navigating through a period of rapid changes with great élan. Driven by global competition and the recent shift in focus of global automobile manufacturers, business rules are changing and liberalization has had sweeping ramifications for the industry. The global auto components industry is estimated at US$1.2 trillion. The Indian auto component sector has been growing at 20% per annum since 2000 and is projected to maintain the high-growth phase of 15-20% till 2015.

High carbon forms of wires are extensively used in the auto components industry such as spring manufacturers and in shock absorbers, clutch wire, wires used in fasteners, etc. The second form of high carbon wires are used in wire ropes which have various applications. Medium carbon forms of wires are used in nail manufacturing, fasteners, trolleys, etc. Some of the applications of these wires ropes are in surface mining wire ropes, underground mining wire ropes, lift elevator wire ropes, general engineering wire ropes, oil drilling wire ropes, etc.

Exhibit 7: Grades of Plain Carbon Steel

Agriculture and Horticulture:Indian Agriculture sector accounts for 27% of the GDP, contributes 21% of total export and raw materials to several industries.

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Steel wire and wire products such as galvanized wire, barbed wire, chain link fencing, etc are widely used in grape growing, etc. A supporting net is prepared by the farmers using galvanized wire to support delicate climbers like grapes, strawberry, tomatoes etc.

Barbed wires are also extensively used in the horticulture, etc for fencing and Chainlink Fencing is used in horticulture for storing of fruits and vegetables.

General Application:High carbon content wires as well as galvanized wires are extensively used for general industrial purpose such as knitting needles, knitting rings, spring for mattresses, etc which are supplied according to the customers specifications across various industries. Barbed wires are also extensively used in the defense, etc for fencing. Chainlink Fencing is used in the fencing the boundaries of the railway lines.

Peer GroupIn India, some of the companies in the steel wire segments are:

Tata Steel Limited (Wire Division) Usha Martin Ltd. Ramsarup Industries Ltd Rajratan Global Wires Ltd Bedmutha Industries Ltd. Indian Steel and Wire Products Ltd Miki Steel Works (P) Ltd.

The top players based on capacity are:

Table 13: Peer Group SnapshotCompany GI and Others

wiresCapacity (MT)

LRPC wire Capacity

(MT)

Spring wireCapacity (MT)

Aluminium Conductor

Capacity (MT)Tata Steel Ltd. @ 199,700 72,000

Usha Martin Ltd. $ 97,200 36,000

Ramsarup Industries Ltd. #

197,000 36,000

Bedmutha Wire Co. Ltd. 109,044 36,000 18, 000 42,000

Post-expansion BIL will be one of the top-five producers of steel wires in the country. Other leading manufacturers are Tata Steel, Usha Martin and Ramsarup Industries.

Source:@: As per Annual Report 2008$: As per Annual Report 2008#: As per Research Report

Future Outlook

From the above, it is apparent that the demand for the steel wire is more dependent on the key infrastructure sector rather than the steel sector. Though steel wire producers consume steel yet the final product is not steel per se. With the double

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digit growth in power, construction and telecom sector the steel wire sector is undergoing a major process of transformation.

While the demand for steel will continue to grow in traditional sectors such as infrastructure, construction, housing automotive, steel tubes and pipes, consumer durables, packaging, and ground transportation, specialised steel will be increasingly used in hi-tech engineering industries such as power generation, petrochemicals, fertilizers, etc. The new airports and railway metro projects will require a large amount of stainless steel.

According to an estimate, with the growing need for oil and gas transportation infrastructure, a US$ 118 billion opportunity is waiting to be tapped by steel manufacturers in the next five years. Indian steelmakers are set to make the most of booming global demand for steel pipes and tubes with the government withdrawing the 10 per cent duty on the exports of these products. According to a study by ICICI Direct, Indian steel companies are likely to get 19 per cent of the total global demand in the years to come.

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6. Expansion Plan

6.1 Project Scope

Having established as one of the leading players in the industry and with the completion of corporate restructuring exercise the company has earmarked a major expansion plan. The company is planning to set-up state-of-the-art plant for manufacturing:

Expanding existing Galvanizing wire production by installing Hi-Speed galvanizing plant

Adding new product ‘LRPC and spring wire’ by setting-up state-of-the-art production facilities

Adding new product ‘Aluminum conductor wire’ by setting-up state-of-the-art production facilities.

The proposed expansion has been classified as ‘Mega Project’ by Industries, Energy and Labour Department, Government of Maharashtra vide its letter dated 06th July 2009 . The copy of the letter is annexed.

6.2 Galvanizing Wires

In order to meet current requirement of galvanized wire from the power sector which is witnessing tremendous growth, the company plans to set-up new plant by installing Hi-Speed galvanizing machines with uniform coating and with the capability of handling very heavy coating. This High Speed Galvanizing plant, which is proposed to be set up, will have a capacity of around 49,000 MTPA. Post-expansion, the company will be one of largest manufacturers of galvanized wires in the country having combined manufacturing capacity of 74,100 MTPA.

Table14: Total Mfg Capacity of Galvanised wire (Post-expansion)Capacity MTPA

Existing Capacity 25,100 MT

Proposed Capacity 49,000 MT

Total Capacity 74,100 MT

Some of the key benefits accruing to the company with the installation of latest Hi-Speed Galvanizing machines are:

1. Close control on zinc coating: Galvanized wires produced from the existing machines have excess zinc coating of around 20-30% which is beyond requirement as close monitoring is not possible with the existing machines. However, with the new machines tolerance level of upto 5% can be maintained as these machines have in-built zinc control facilities. This will lead to huge saving in terms of the zinc consumption. Hence with zinc, one of the expensive raw materials under control, would see a lot of saving and would make company’s products more competitive.

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2. Cost savingZinc is one of the expensive commodities and with the control on the zinc coating the cost of the final products will come down, making the company’s products more competitive.

3. Minimal Man-power requirementThe machines are fully computerized including computerized setting of the operations and with minimum human intervention.

4. Flexibility of Product-mixWith the latest plant the company will be able to produce galvanized wire with low, medium, high and very high coating from the same set-up with ease.

5. Packing and coil size:With this plant the company will be able to produce jumbo coil of 800 kg to 1000 kg, which is, must for export market.

6.3 LRPC Wires

In order to increase its product portfolio, BIL is planning to set-up ‘LPRC wire’ manufacturing plant with installed capacity of 36,000 MTPA by importing latest machines from Europe. They propose to increase the capacity by 36000 MTPA from financial year 2013-14, for which the machineries would be procured from internal accruals. Some of the features of the proposed plant will be as follows:

The Company proposes to set up a plant having the latest technology with superior output rate for the manufacture of LRPC wire and strands.

1. Highly versatile plant composed of a spool pay-off, din 1600, capable of 6600kg of wire, and a coil pay–off to allow using coils arriving from the wire drawing line.

2. Double set of dies, first set of 4 meters capstan, a four planes straightening unit to have a perfectly straight wire.

3. Second set of 4 meters capstans unit with pinch roller set to bunch the wire during cutting cycle, made with hydraulic shear

4. 600kw induction furnace having highly efficient cooling quench with perfect drying of the strand.

5. Double take-up unit to make the final packing.The benefits derived out of this machine are as follows:

Wire Drawing is expected to have better quality due to improved wire cooling.

Single length joint free strands having a length of a couple of kms can be derived from this plant

Synchronized induction furnace will help in the manufacture of best property wire as per international standards

A total trouble free machine as the entire plant is thoroughly integrated.

PLC operated machine with optimum manpower requirement

There are in all about 50 plants of this kind set up all over the world

Only Company with similar product line in India is M/s. Usha Martin

Has an output capacity of 36,000 mtpa.

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A. Details of LRPC WiresLRPC wire uses the stress relaxation property of steel. By treating the steel through a thermo-mechanical process known as stabilizing, the propensity of the steel to "relax" under a stressed condition is controlled to a great extent and LRPC wires are thus made.

Properties of LRPC Wires High strength. Consistency of physical properties. Consistent coil characteristics with uniform winding. Close tolerances on unit mass to length ratio. Higher breaking loads. Higher proof stress loads. Higher fatigue and corrosion resistance. Better performance at elevated temperature. Lower relaxation losses. Joint-less long length strength.

Exhibit 8: LRPC wire

Exhibit 9: Mfg process of LRPC

Source: Tata Wires

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B. ApplicationA steel member that is pre-stressed, i.e. LRPC wire, and embedded in concrete, loses the initially applied stress exponentially with the passage of time. Hence they can be used in a lot of applications including pre-stressed concrete girders for road, river and railway bridges and flyovers, pre-stressed concrete domes, slabs, silos, hangars, aquaducts, viaducts and railway sleepers.

Low Relaxation PC Stranded wires are used in Pre-stressed concrete girders for road, river and railway bridges and flyovers, Pre-stressed atomic reactor domes, slabs, silos, hangars, aquaducts, high rise buildings, viaducts and railway sleepers.

Exhibit 10: Galvanized Steel and MS Wire

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C. MarketsLRPC has wide application in the infrastructure sector. It is widely used as a new steel material taking in place of traditional construction material in the construction sector. PC wire strand is used in the upper plates of bridges, for the maintenance of bridges and flyover. It is also used in the floor and roof reinforcement of sports stadiums. Beside the general use, the products are essential in large cargo recovery and offshore platform jobs in which cranes and other recovery equipment cannot be used.

In India today, LRPC wire segment today is one of the fastest growing segments in the entire steel wire segment because of its wide application in the entire infrastructure segment. The leading companies producing these wires in India currently are Tata Steel, Usha Martin Ltd and Ramsarup Industries Ltd.

6.4 Spring Wires BIL is planning to set-up ‘Spring Wire’ applicable for manufacturing shock absorbers in automobile industry. The installed capacity for the proposed ‘Spring Wire’ is 18, 000 MTPA. They propose to increase the capacity by 18000 MTPA from financial year 2013-14, for which the machineries would be procured from internal accruals. The company has strong relationship with leading automobile companies such as M and M, Tata Motors and their vendors.

6.5 Aluminum rod and Conductor

With a view to exploit the business potential of Aluminum conductors, BIL is planning to manufacture Aluminum rod from which they would manufacture Aluminum conductors by setting up a manufacturing plant with installed capacity of 42,000 MTPA. The machines would be procured domestically as well as by importing latest machines. The plant would have the latest technology.

A. Details of Aluminum Conductor Wires

Aluminum Conductors are used in Transmission and Distribution system to carry the generated electrical energy from generating station to end user. They are mainly of the following types:

(i) All Aluminum Conductors (AAC)

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Exhibit 11: All Aluminum Conductors

This conductor is also known as aluminum stranded conductor. This conductor is manufactured from electrolytically refined (E.C.GRADE) aluminum, having purity of minimum 99.5% of aluminum. This conductor is used mainly in urban areas and the spacing is short and the supports are close. All aluminum conductors are made up of one or more strands of aluminum wire depending on the end usage. These conductors are also used extensively in costal because it has a very high degree of corrosion resistance.

(ii) All Alloy Aluminum Conductors (AAAC)

Exhibit 12: All Alloy Aluminum Conductors

This conductor is made from aluminum-magnesium-silicon alloy of high electrical conductivity containing enough magnesium silicide to give it better mechanical properties after treatment. These conductors are generally made out of aluminum alloy 6201. AAAC CONDUCTOR has a better corrosion resistance and better strength to weight ratio and improved electrical conductivity than ACSR CONDUCTOR on equal diameter basis.

(iii) Aluminum Conductors Steel Reinforced (ACSR)

Exhibit 13: Aluminum Conductors Steel Reinforced

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This conductor consists of a solid or stranded steel core surrounded by strands of aluminum (E.C. GRADE). ACSR CONDUCTOR is available in a wide range of steel varying from as low as 6% to as high as 40 %. The higher strength ACSR CONDUCTORS are used for river crossings, overhead ground wires, installations involving extra long spans etc.. against any given resistance of conductor, ACSR conductor may be manufactured for having a wide range of tensile strength as per requirement. The principal advantage of these conductors are high tensile strength and light weight with longer spans as well as with lesser supports. Due to the greater diameter of ACSR CONDUCTORS a much higher corona limit can be obtained causing big advantages on high as well as extra high voltage overhead lines.

The Electrical energy is normally generated at the power stations far away from the urban areas where the consumers are located. There is a large network of conductors between the generating stations and the consumer.

The network is called the Transmission and Distribution system. The Transmission system is to deliver bulk power from power stations to the load centres and large industrial consumers beyond the economical service range of the regular primary distribution lines where as distribution system is to deliver power from power sector or substations to the various consumers. This transmission and distribution system can employ either overhead system or underground system. Transmission of power, overhead system mainly due to low cost and some other advantages ACSR generally used or transmission line and AAC and AAAC conductors for distribution of power carry out mostly the high voltage transmission. The favorable attributes of aluminum for electrical applications are: relatively high electrical and thermal conductivities, low density, nonmagnetic properties, ease of drawing down to the smaller wire sizes and high resistance to weathering.

Because of technological advances and favorable price as compared to copper, there has been continuous significant growth in the volume, sizes and varieties of aluminum conductors.

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B. Application

ALL ALUMINIUM CONDUCTORS (AAC)

- Used as bare overhead conductor for distribution lines. - Because of its poor strength to weight ratio, AAC has limited

use in Transmission lines. - AAC is extensively used in urban areas where spans are usually

short but high conductivity is required.

ALL ALUMINIUM ALLOY CONDUCTORS (AAAC)

- Used as bare overhead conductor for power distribution lines. - Designed utilizing a high-strength aluminum alloy to achieve a

high strength -to-weight ratio; affords better sag characteristics. - Aluminum alloy gives AAAC higher resistance to corrosion than

ACSR.

ALUMINIUM CONDUCTOR STEEL RE-INFORCED

- ACSR has the established reputation for economy and dependability in power transmission lines.

- Also used for primary and secondary distribution lines. - Wide range of steel content from 7% to 40% can be achieved

by different stranding, to meet desired strength.

C. Markets

India is a developing country with a fast growing population. The economic growth of the country and the demand for any essential items grows as a function of population. Electrical power demand also grows as a function of population. In today's modern world the dependence on electricity is so much that it has become a part of our life. The ever increasing use of electric power for domestic commercial and industrial purposes necessitates to provide bulk electric power economically. Our present generation capacity is about 1,05,000 MW but projected demand by 2012 is 205000 MW that means an extra 1,00,000 MW has to be produced to meet the demand. The electrical energy is normally generated at the power stations far away from the urban areas where consumers are located. In order to evacuate this generated power at the door steps at end user, there is a large net work of Transmission and Distribution system including the Aluminium Conductors. ACSR conductors are generally used for transmission line and AAC and AAAC conductor for Distribution purpose. Due to massive rural electrification programme and the commitment of the Central and State Government to electrify each and every house in a remote village and also the reforms and efforts and to ensure electricity to all section of the society on demand, brighten the demand and scope of the conductors.

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7. PROJECT ECONOMICS

Project LocationThe project will be located on Ghoti-Sinnar Highway, Near Sinnar Nashik, Maharashtra State. Nashik (or Nasik) is located in the northwest of Maharashtra state, 200 km from Mumbai and Pune. It has a population of over 1 million. Sinnar is situated at a distance of about 180 kilometers from Mumbai & 202 Km from Pune. The 3 national highways (NH -50, NH-3 and NH-211) passing through Nashik district.

Exhibit 14: Location Map

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Nashik is industrally well developed The HAL plant is an aircraft manufacturing plant located 10 miles (16 km) from Nashik employing about 7000 people, so making Nashik a hub with good prospects for aircraft manufacturing. World-renown manufacturers who have set up plants in the Nashik MIDC area are: Bosch India (leader in auto ancillaries), Crompton Greaves Limited, ABB Ltd, Mahindra & Mahindra Ltd, Kirloskar Oil, Ceat Tyres, Schnider, Jyothi Structure, Shanmukha Laboratories, VIP Ltd, Graphite India Ltd,'Surya Murphy', Glaxo Pharma, Coca Cola, and Victor Gasket Ltd. As well, IT sectors have entered.

The Indian Security Press – The India Security Press (the National Treasury Press) was the biggest employer in Nashik for many decades until the late eighties when a service-based economy started to thrive. The existence of the India Security Press is very beneficial to Nashik citizens. It has provide employment to thousands of residents for the past few decades, and has stimulated the surrounding economy and protecterd the green canopy of the city. There is an adjoining Gymkhana and a large playground, which is a favorite games/exercise spot for both children and adults. Hindustan Aeronautics Limited has a presence at Ojhar Township in the Nashik District of Maharashtra State, where it is designs, manufactures and overhauls a variety of aviation products from basic trainers to highly sophisticated supersonic fighters, helicopters, transport aircraft, engines, accessories and systems.but growth is slow due to the lack of infrastructure and technical support.

Nashik is now popular for the wine industry, with around 60% of Indian wine production at Nashik. Nasik Wine Park is a grape wine park administered by the Maharashtra Industrial Development Corporation (MIDC).

Project Cost:

The total cost of the fixed assets for the project is estimated at Rs. 30863.49 Lacs including pre-operative expenses, contingency provisions and margin money for the Working Capital.

The project is proposed to be financed on DER of 1.84:1x. The equity portion of Rs. 10863.49 lacs will be brought in by way of Initial Public Offering and Internal Accruals.

Table15: Cost of Proposed Project and Means of FinanceCost of Project INR in Lacs

Land 1,500.30

Factory Building 5,292.31 Plant and Machinery 14,045.65

Miscellaneous Fixed Assets 1,011.4

3 Furniture and Fixtures 25.08 Electrical Installations 1,579.19 Preliminary Expenses (incldg. Public Issue Exp) 2,050.00

Pre-operative Expenses 450.0

0 Contingencies 638.54 IDC 1,070.00 Margin for Working Capital 3,200.97

Total Cost of Project 30,863.4

9 Means of Finance

Internal Accrual 363.49

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http://en.wikipedia.org/wiki/Maharashtra_Industrial_Development_Corporation

http://en.wikipedia.org/w/index.php?title=Nasik_Wine_Park&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Ojhar&action=edit&redlink=1

http://en.wikipedia.org/wiki/Hindustan_Aeronautics_Limited

http://en.wikipedia.org/wiki/1980s

http://en.wikipedia.org/wiki/Information_technology

http://en.wikipedia.org/w/index.php?title=Victor_Gasket_Ltd.&action=edit&redlink=1

http://en.wikipedia.org/wiki/Coca_Cola

http://en.wikipedia.org/wiki/Coca_Cola

http://en.wikipedia.org/wiki/Glaxo

http://en.wikipedia.org/w/index.php?title=Surya_Murphy&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Graphite_India_Ltd&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Shanmukha_Laboratories&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Shanmukha_Laboratories&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Jyothi_Structure&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Schnider&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Kirloskar_Oil&action=edit&redlink=1

http://en.wikipedia.org/wiki/ABB

http://en.wikipedia.org/wiki/Crompton_Greaves

http://en.wikipedia.org/wiki/MIDC

http://en.wikipedia.org/wiki/HAL


Initial Public Offering (IPO) 10500.00Term Loan/ DPG/ Buyers Credit 20000.00Total Means of Finance 30863.49

Details of Items of Project Costi. Land Cost:

The company has identified a plot situated at Ghoti-Sinnar Highway, Near Sinnar Nashik, Maharashtra State, District admeasuring about 100 acres. The land would be acquired on outright purchase basis and would be sufficient for the present as well as near future expansion of the company.

The total provision for acquisition of land including stamp duty, registration and Premium to MIDC is Rs. 1500.30 Lacs.

ii. Factory Building including Civil work and DevelopmentBIL is constructing factory buildings, office block, sheds and godowns / tanks. The total cost of factory building, godown etc. admeasuring 45445 Sq Mts is estimated at Rs. 5292.31 Lacs which is as per the estimates prepared by Government approved Chartered Engineers/ Architect firm viz.

The average construction cost works out to be Rs.11100/- per Sq mtr. and is considered reasonable. The area planning is given:

Table 16: Details of Area PlanningArea Planning Unit

Plot Area 100 Acres

Constructed Area45445 Sq

MtsBalance Area 88.78 AcresConstruction Area/ Plot Area 11.22%

Table 27: Project Estimate for Land Development and Construction INR in lacs

Particulars (Rs in Lacs) Area (Sq Mts) Rate/Sq Mts Total Cost

Fencing (RM) 2800 1800 50.

40

Leveling and Filling 500.

00

Internal Roads (Sq Mtrs) 14000 750 105.

00

Total Land Development Cost 655.

40 Construction Cost Area (Sq Mts) Rate/Sq Mts Total Cost

Main Building (Construction Cost) 30000 11100 3,330.0

0

Office Block (Admin Building) 1000 11100 111.

00

Pickling Shed 1140 12100 137.

94

Die Polish Shed 40 11100 4.

44

Maintenance 40 11100 4.

44

Production 40 11100 4.

44

Store 50 11100 5.

55

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Scrap, Wire Rod storage 10000 3500 350.

00

Guest House 1000 15000 150.

00

Residential quarters 1875 20000 375.

00

Testing Lab 60 5000 3.

00

Water gal + W/d Gen 30.

00

Lime 50 3000 1.

50

PHOS 50 3000 1.

50

BORAX 50 3000 1.

50

Zinc + Lead 50 5000 2.

50

3 x storage LPG tanks 5 ton x 4 (10 x2) 80.

00

Nitrogen 10 ton 15.

00

ACID 10 t* 2 15.

00

ACID Hcl 15 tons 10.

00

Toilets to staff, workers, officer, guest, rest room 4.

10

Total Construction Cost 45,445.00 4,636.

91

Total Factory Building Cost 5,292.

31

iii. Plant and MachineryThe selection of the machines is based on the past experience of the company and on the technical specifications as well. All the items of plant and machinery are being procured from reputed suppliers. Details of the plant and machinery to be acquired by the company, its cost, name of the suppliers, etc are furnished at Annexure

BIL proposes to import LRPC, Spring and High Speed Galvanizing line from Europe. The company has already finalized the suppliers and the cost of imported machineries is as quoted by the suppliers is Rs. 6243.61Lacs.

The cost of indigenous machineries is estimated at Rs. 7133.20 Lacs. The cost is based on quotations obtained from reputed suppliers. All the indigenous machines are readily available.

Table 18: Details of Plant and MachineryCost of Plant and Machinery Total Cost

INR in lacs

Imported Machines 6243.61Domestic Machines 7133.20Cost of installation & Commissioning 668.84

Total Cost 14045.65

iv. Miscellaneous Fixed AssetsThe company will require miscellaneous fixed assets apart from above plant and machinery. The miscellaneous fixed assets comprises generator, cooling

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tower, forklifts, mobile crane, Mono crane, ETP Pumps, Water pumps, Gas Pipes, Acid Pipes and others misc. items.

The estimated cost of these assets is Rs. 1036.52 Lacs.

Table 19: Estimate of cost of Misc. Fixed Assets

Cost Total Cost

Units

Unit Basic Price Total BP

Excise Duty VAT VAT

Freight

Total Cost

(INR in lacs )

Nos. INR INR INR INR INR

8.24%2.00

%12.50

% 3%

DG set 1 26.85 26.85 2.21 0.58 0.00 0.89 30.53

AMFC Panel 1 8.00 8.00 0.66 0.17 0.00 0.26 9.10 Cooling Tower water circulation 12 1.38 16.56 1.36 0.36 0.00 0.55 18.83

Forklift 4 8.63 34.52 0.00 0.69 0.00 1.06 36.27

Mobile Crane 2 11.88 23.76 1.96 0.51 0.00 0.79 27.02

EOT Crane 5 17.65 88.25 0.00 1.77 0.00 2.70 92.72

Compressor E-45 1 7.67 7.67 0.63 0.17 0.00 0.25 8.72

Electronic weigh bridge 1 10.60 10.60 0.87 0.23 0.00 0.35 12.05

Computer 1 9.26 9.26 0.76 0.00 1.25 0.34 11.61

SAP/ERP 1 119.60 119.60 9.86 0.00 16.18 4.37 150.01

Borig MC for water 1 5.00 5.00 0.41 0.00 0.68 0.18 6.27

SCADA 1 200.00 200.00 16.48 0.00 27.06 7.31 250.85

Gas pipes 1 15.00 15.00 1.24 0.00 2.03 0.55 18.81

Acid pipes 1 5.00 5.00 0.41 0.00 0.68 0.18 6.27

Etp Pumps (sets) 1 245.90 250.00 20.60 0.00 33.83 9.13 313.56

Water Pumps (sets) 1 8.00 8.00 0.66 0.00 1.08 0.29 10.03

Capacitors 1 7.00 7.00 0.58 0.00 0.95 0.26 8.78

Furniture 20.00 20.00 1.65 0.00 2.71 0.73 25.08

SUB TOTAL 1,036.52

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v. Electrical Installation

Table 30: Estimate of Electrical Installation Cost

Cost unit INR in Lacs

Transformer 1 71.89 Power sub. Station 1 695.68 Power distribution 1 521.76 Cables 1 289.87 SUB TOTAL 1,579.19

vi. Preliminary Expenses

An amount of Rs. 2050.00 Lacs has been provided towards fund raising expenses, fees to merchant bankers and charges etc including IPO expenses.

vii. Table 24: Estimate of Prelim Expenses

Cost INR in Lacs

Fund Raising expenses:

IPO related expenses1050.0

0Project Report /Preparation Fees and Bank charges

1000.00

Total Fund raising expenses2050.

00

vii. Pre-Operative ExpensesPre-operative Expenses have been estimated at Rs. 450.00 Lacs. These include the personnel cost incurred during project implementation, upfront payment, banking charges, legal fees, security creation charges and other related expenses.

Table 22: Estimate of Pre-operative Expenses

Cost INR in Lacs

Traveling Expenses/hotel charges 100.00Salary and Consultant's Fees 250.00Startup Expenses 100.00

SUB TOTAL 450.00

viii. ContingenciesA contingency provision of Rs. 638.54 Lacs has been made. BIL has received firm quotations for imported machines. However, a provision @ 3.00 % on Construction work, Plant and Machinery, Misc. fixed assets, Electrical installation and Furniture has been provided to off-set any adverse sensitivity towards price escalation during the implementation period.

Contingency provisions and its allocation to the project cost have been appended in financial part of this report.

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Table 23: Provision of Contingency

Particulars Firm CostNon-Firm

Cost % of

EscalationContingency

Provision INR in lacsLand 1500.30 0.00 3.00% 0.00Land Development 0.00 655.40 3.00% 19.66Civil Work 0.00 4636.91 3.00% 139.11Imported Machinery 0.00 6243.61 3.00% 187.31Indigenous Machinery 0.00 7133.20 3.00% 214.00Misc. Fixed Assets 0.00 1011.43 3.00% 30.34Furniture and Fittings 0.00 25.08 3.00% 0.75Electrical Installation 0.00 1579.19 3.00% 47.38SUB TOTAL 1500.30 21284.83 638.54

ix. Interest During Construction PeriodIDC of Rs. 1070.00 Lac has been estimated for 15 months duration of the Project implementation.

x. Margin for Working CapitalThe requirement of working capital in the first year of operation on completion of the new project is estimated at Rs 3200.97 Lacs. The working capital requirement has been estimated based on 30 days requirement of raw materials (Wire Rod, Zinc, Lead and Wastage), 8 days of work in process/ semi finished goods, 10 days of finished goods, 3 months of debtors and 45 days of creditors & 30 days of provisioning. Bank finance for working capital would be available to the extent of Rs 3924.08 Lacs. The balance (Rs 3200.97 Lakh) has been provided in the project cost as margin money for working capital during the first year of operations.

The incremental margin money requirement for the subsequent years would be met out of internal accruals. The company is yet to approach bank(s) for tying-up its incremental working capital requirement. The detailed calculation of margin money requirement is furnished at Annexure.

7.3 Means of FinanceThe total capital outlay of Rs. 30863.49 Lacs is funded in the ratio of D:E

1.84:1. i. Equity:

The total equity contribution is Rs. 10863.49 Lacs out of which the company plans to bring Initial Public Offering of Rs. 10500 Lacs and balance from internal accrual. BIL has appointed SEBI registered merchant banker M/s. Ashika Capital Pvt Ltd vide Appointment letter no.ACL:MUM:2009-2010:0091 dated 27.10.09 as lead managers for the management of the issue. The issue is to be underwritten. The company intends to hit the market by March end. The entire process is finalized and DRHP is proposed to be filled within one week of the appraisal of the project.

ii. Debt:The Company intends to borrow Rs. 20000.00 Lacs from the banks under Consortium / Multiple banking facilities. ECA Financing would form a part of Term Loan facility for imported Plant and Machinery (12%)

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Table 24: Term Funding DetailsDetails of the Term LoanRupee Term Loan (RTL) Rs. 20000 LacsTenor 7 years 9 monthsMoratorium 1 year 9 monthsCoupon 12% p.a.

Security offered

1st charge in favour of banks, of all the immovable and movable properties and stock pertaining to the project, both present and future till the date of last repayment of the term loan on pari passu basis.

Personal guarantee of the Promoter Directors.

The details of the offering are as under:Table 25: Details of IPO

Details of the Initial Public OfferingIssue Size Rs. 10500.00 LacsPost-Issue Dilution 45%Face Value Rs. 10.00Lead Manager to the IPO Ashika Capital Pvt LtdRegistrar Mondkar Computers Pvt LtdLegal Advisors CLCI - Partner - Advocate A

Y Srinivasan .Underwriter Will be appointed on receipt

of SEBI card

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8. Implementation Schedule & Implementation Strategy

The erection and commissioning of the proposed plant and machinery are expected to be completed by February 2011. The company has already appointed Project Consultant Mr. H. V. Joshi, an authority in the industry, for the proposed expansion.

8.1 Project ScheduleTable 26: Project Schedule

Schedule of Activity Start timeCompletion

TimeTime frame

Land -- Land Acquisition Immediate 31.01.10 2 months-- Registration and Stamp duty Immediate 31.01.10 2 months

Construction Details:-- Site Development 01.04.10 01.05.10 2 months-- Civil Construction 01.04.10 01.11.10 8 months Plant and MachineryOrder Placement-- Imported 15.02.10 31.10.10 8 months-- Indigenous 15.02.10 31.10.10 8 months

Delivery and Installation-- Imported 01.11.10 31.11.10 1 month-- Indigenous 01.11.10 31.11.10 1 month Misc Fixed AssetsFurniture and Fixtures and Electrical Installation

01.12.10 01.03.11 3 months

Sanction of Utilities 01.12.10 31.12.10 1 monthTrial Production 01.02.11 31.03.11 2 monthsFinal Production 01.04.11

The total implementation period is of 21 months beginning from December 2009 to April 2011. The additional LRPC & spring wire plant will be ready for production by end of March 2013.

8.2 Project Implementation Strategy:

Appointment of Consultants:

BIL has already appointed Mr. H V Joshi as Project Consultant for the implementation of proposed project vide Appointment Letter Megaproject/2, dated 05.08.2009. The scope of services of Project Consultant is mentioned in the appointment letters.

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Background of Project Consultant: Mr. H.V. Joshi

Mr. Joshi has 34 years of very sound experience of manufacturing various steel wire and wire products such as LRPC, Spring steel, wire ropes , Cable Armour, ACSR, Gabian Wire, Fish Net, Fishing Ropes, Chq Wire (Cold Heading Quality Wires) Textile Wire etc. SS wire, Welded, Barbed Wire, Wire Ropes Etc Wire Products.

Mr. Joshi has completed three turn key projects in steel wire and wire products in Kenya, Saudi Arabia and Dubai. He was associated with Bekaert Belgium for 8 years in transfer of technology to Kenyan project. In past, retainer consultant to Usha Martin and JCT Div. Thapar Group.

Appointment of Contractors:BIL will appoint Contractors in consultation with Consultants through tenders to carry out specific activity. All the contractors will be appointed taking into consideration factors such as their expertise, past experience and reliability.

Status of Government consents/ Approvals/Utilities

Table 27: Status of Govt Approvals/ Consents/ ApplicationsS. No.

Approval Agency Current Status

a) Maharashtra Pollution Control Board clearance for water and air.

State Pollution Control Board

Application will be made in due course.

b) Environment and Forest clearance

Government of Maharashtra and Ministry of Environment and Forest, GOI

NA

c) Civil aviation clearance for chimney height

Airports Authority of India NA

d) Industrial Entrepreneur memorandum (IEM)

Secretariat (SIA), Ministry of Commerce and Industry, New Delhi

Application will be made to MCI in due course.

e) Water availability State Government and MIDC

Application will be made to MIDC in due course.

f) Power Connection MSEDCL Application will be made to MSEDCL in due course.

Economic ConsiderationThe new project, on completion, would help the company to reduce its overall cost of production and improve its bottomline.

The new project would further improve the market share of the company and it would be able to meet the growing demand for power and infrastructure sector.

Social Consideration

The expansion project would offer direct employment to a total number of around 150 employees/ workers, besides generating indirect employment.

For its new project, BIL would pay excise duty of about Rs. 5232.08 Lakh per annum from FY 2012 onwards. It would also pay higher income tax due to higher profits from the new project.

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Environment Consideration

The company has the approval from Maharashtra Pollution Control Board for its existing unit. Pollution control approval for the expansion project is yet to be obtained.

No effluents will be generated during the manufacturing process; however the unit will apply for NOC from Maharashtra State Pollution Control Board. The manufacturing operations of steel wire do not generate any soil and liquid effluent as such; however, the company requires no objection certificate for gaseous discharge emanating from evaporation of solvents during the process.

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9. Raw Material and Utilities

9.1 Raw material

Existing Unit:

The sourcing of raw materials at economic cost with assured and timely supply and without incurring heavy cost on transportation is the key to the success of business. BIL has a reputation of not just employing modern technology but also sourcing quality raw materials at the cheapest cost. BIL carries out detailed global survey with the following objectives:

Full availability of material of all grades, size and quality.

Saving of minimum Rs.1000 per ton due to bulk purchase contract.

Timely supply of finish product to customer due to availability of raw-material during shortage of material resulting in customer satisfaction and retention.

With these objectives new suppliers were developed in Ukraine, China, Malaysia, Canada and Indonesia. The result of the exercise is that today 80% of the material is being imported from these countries. Simultaneously relationship with the domestic suppliers is maintained.

The key raw materials used in the manufacturing of steel wire and allied products are:

Steel Rods: Steel Rods are the primary raw material in the manufacturing of steel wire and allied products. Steel Rods also forms around 80% of the total raw material cost; hence efficient sourcing of the raw material is very import. The company is sourcing its requirement of steel from RINL (Rashtriya Ispat Nigam Limited) Vizag, Tata Steel Jamshedpur, SAIL (Steel Authority of India Limited) Bhilai and also imports from China, Malaysia and Ukraine. The company has MoUs in place for long term supply of materials with the suppliers.

Zinc: Zinc is another important raw material in the manufacturing process. The company sources its requirement from Hindustan Zinc Limited, Rajasthan. The company already has long term contract in place with Hindustan Zinc Limited

Lead: Lead is process consumable. The company is sourcing its requirement from Hindustan Zinc Limited with whom, the company has long term contract in place.

Table 28: Details of source of key raw materialKey Raw material Source of supply

Existing Unit

SteelTISCO, SAIL, RINL and Mukund Steel andalso imports from countries like China, Malaysia and Ukraine

Zinc Hindustan Zinc Limited and ImportedLead Hindustan Zinc Limited and ImportedFurnace Oil BPCL and HPCL Proposed unitSteel, Zinc, lead and furnace oil

As above

Aluminum Bharat Aluminum Company Ltd National Aluminum Company Ltd and Indian Aluminum Company Ltd. and imports

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Proposed unit:

Raw Material and Consumables for proposed plantThe key raw materials used in the manufacturing of steel wire, LRPC wire and Spring are Steel Rods, Zinc and Lead. The company is sourcing these products from reputed suppliers for its existing requirement from RINL Vizag, Tata Steel Jamshedpur, SAIL Bhilai, HZL and also imports from China, Ukraine and Malaysia. The company plans to tap existing sources for the proposed raw material requirement.

The key raw materials used in the manufacturing of aluminum conductor wire are aluminum rods. The company would source these products from reputed suppliers for its requirement from Hindalco Industries Ltd., Bharat Aluminum Company Ltd National Aluminum Company Ltd and Indian Aluminum Company Ltd. and also by way of imports.

9.2 Utilities

Fuel Oil: For the requirement of fuel oil, the company has contracts in place with BPCL (Bharat Petroleum Corporation Ltd) and HPCL (Hindustan Petroleum Corporation Limited). Alternative sources of fuel such as Biomass are being planned out for use. The company has already conducted trial use of Bio-mass and know-how has reached perfection.

Existing Unit:

Power: The Company sources its entire power requirement from Maharashtra State Electric Board. 2 MW Power generation form Hydro resource is planned. Windmill installed at Karnataka is generating is 225KW. Two more Wind Mill are planned to be installed. Existing Power load is 2 MW.

Electricity for the proposed plant

The company will apply for a power connection from MSEB/MIDC for the total anticipated load of the proposed plant. To cater the anticipated load of 3 MW, the company plans to establish 10 MVA sub-station.

The company also plans to have 100% power back facility by way of captive DG Set of 3 MW for the proposed plant. It will procure a D. G set (Powerica make).

Existing Unit:

Water: The plant has access to local water supplies which is adequate to meet its existing and future requirements. Existing water requirement is 80,000 Liters per day

Water Requirement for the proposed plant

To meet the water requirements for production process and for sanitation purposes, the company intends to make application to MIDC. Water storage facility will be built underground and water storage capacity will be 3.00 Lac Litres as per regulation.

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9.3 Manpower and Staff Strength

Existing plants:

There is adequate manpower available in Sinnar and around Nashik area. The Company has a total of 241 employees on its roll as on 30th Sept 2009. The composition of manpower is as follows:

Table 29: Manpower Composition of BIL

Particulars Factory Admin. Office/ Sales Staff TotalManagers - 20 20Staff - 23 23Workmen 123 - 123Contractual Labour 75 - 75

BIL has a strong team of professionals having background and rich experience in the industry.

Proposed plant:

There is adequate manpower available in Sinnar and around Nasik area. The requirement of manpower is as follows:

Table 5: Details of Manpower requirement

Particulars Factory Admin. Office/ Sales Staff TotalManagement 1 1 2Managers 2 3 5Staff 20 9 29Workmen 31 10 40Contractual Labour 70 5 75Total 122 28 150

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10. Marketing and Distribution

10.1 Marketing and distribution

Existing:

Bedmutha group has a pan India presence with operations in the western regions of India. The distribution strategy of the company has been based around the products its manufactures for different sectors. For e.g. the galvanized wire there are a number of industries where these wires are used. There are a number of cable manufacturing companies in western and southern India and the company supplies products to these cable manufacturers directly as well as through an outsourced marketing agent.

Power Transmission: The orders for galvanized wires like earth wire, stay wire and ACSR wire etc are fulfilled through public tenders. The company is in direct contact with the turnkey contractors who undertake these projects on BOT basis. Since Bedmutha wire is approved as per IS standards and also the company is registered with Power Grid Corporation of India and most of SEBs, the company is first choice of the contractors.

Agriculture Industry : Steel wire and wire products such as galvanized wire, barbed wire, chain link fencing, etc are specifically supplied to the grape growing areas of Nashik, Aurangabad, Ahmednagar, Sangli, Satara etc. A supporting net is prepared by the farmers using galvanized wire to support delicate climbers like grapes, strawberry, tomatoes etc. This product is distributed through dealers network.

Industrial Segment : High carbon wires as well as galvanized wires are used for general industrial purpose such as knitting needles, knitting rings, spring for mattresses, etc which are supplied according to the customer’s specifications across various industries. For spring steel wires the Company targets auto ancillary companies in the west and south and also in Gurgaon in the north. Examples of auto ancillary companies which are being served are Volkswagen, Mahindra and Mahindra, Tata Telco, Ford, Bajaj Auto. These customers are serviced directly.

The marketing initiatives undertaken by the Company include: Brand Image build-up through group seminars with the agricultural belt to

explain to farmers, the use of products and economics of using Bedmutha wires.

Participation in various wire and cable exhibitions. Going forward the Company plans to participate in international exhibitions.

The company has its warehouses located at many locations such as Satna, Bangalore, Silvassa and Daman. The warehouses are mainly to serve local customers effectively and are used more as stock points for technical and commercial purpose.

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Proposed plant The company has strong existing infrastructure to support the proposed expansion. The company has its own warehousing facilities and strong dealer network along with direct sales relationship with corporate.

10.2 Clients

Some of the key customers of company are:

Polycab MK Spring Ltd RPG Cables Ltd Suprajit Industries Finolex Cables Ltd Tata Johnson Ravin Cable Ltd Mand M Vendors Universal Cable Bajaj Auto Vendors Tata Fecaso Bharat Wire Rope Bajaj Electricals Sterlite Industries Ltd SEBs of Gujarat, Maharashtra and Kerala. Bharat Glass Tubes Ltd.

The client-mix in the terms of revenue is as follows:

Exhibit 15: Client-mix in Revenue terms of BIL

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11. Project Financial Indicators

11.1 Financial Ratios for the new project (on completion) and the company as a whole as at March 31, 2012, would be as under:

New Project Company as a whole FY 2012

Debt equity ratio (DER) 1.84:1 1.34:1Fixed asset coverage ratio (FACR) 1.21 1.28

11.2 AssumptionsAssumptions underlying profitability projections for the expansion project are:

Capacity Utilization: (Stand alone basis) INR in lacsTable 6: Assumptions

Installed Capacity (MT) FY12 FY13 FY14 FY15 FY16 FY17 FY18

Galvanized Wire 49,04

4 49,04

4 49,04

4 49,04

4 49,04

4 49,04

4 49,04

4

LRPC Wire 36,00

0 36,00

0 72,00

0 72,00

0 72,00

0 72,00

0 72,00

0

Aluminium Rod 42,00

0 42,00

0 42,00

0 42,00

0 42,00

0 42,00

0 42,00

0

Spring 18,00

0 18,00

0 36,00

0 36,000 36,000 36,00

0 36,00

0

Total Capacity (MTPA) 145,04

4 145,04

4 199,04

4 199,04

4 199,04

4 199,04

4 199,04

4

Capacity Utilization 69% 78% 87% 90% 90% 90% 90%Working of Production

Ghoti-Sinnar Plant(New Plant)

Galvanized Wire 36,783 41,687 44,139 46,591 46,591 46,591 46,59

1

LRPC Wire 23,400 25,200 61,200 61,200 61,200 61,200 61,20

0 Aluminium rod and

conductor 31,500 35,700 37,800 39,900.0

0 39,900 39,900 39,90

0

Spring 9,000 9,900 30,600 30,600 30,600 30,600 30,60

0Total Production

(MTPA) 100,683 112,487 173,739 178,291 178,291 178,291178,29

1

11.3 Key Ratios for Project on stand alone basis

Table 7: Key ratios for project on stand alone basis INR in lacs

FY12 FY13 FY14 FY15 FY16 FY17 FY18EBIDTA Margin (%) 9.76% 13.28% 12.53% 13.06% 12.78% 12.31% 11.81%

EBIT Margin (%) 7.12% 10.83% 10.69% 11.30% 11.02% 10.94% 10.45%

PAT Margin (%) 0.72% 4.72% 5.37% 6.07% 6.13% 6.34% 6.31%

Raw Material (%) 85.67% 81.92% 82.08% 81.23% 81.09% 81.09% 81.09%

Expenses (%) 94.93% 91.08% 91.91% 91.33% 91.62% 92.08% 92.58%

Interest Service 1.97 x 3.42 x 4.87 x 6.61 x 8.83 x 13.35 x 43.63 x

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Cov. Ratio Current Ratio 1.28 x 1.48 x 1.55 x 1.57 x 1.60 x 1.64 x 1.69 x

TOL: TNW 2.89 x 2.06 x 1.52 x 1.09 x 0.79 x 0.58 x 0.40 x

D:E Ratio 1.83 x 1.24 x 0.76 x 0.45 x 0.26 x 0.12 x 0.00 x

11.4 DSCR for Project on stand alone basis

Table 33: DSCR for Project on stand alone basis INR in lacs

FY12 FY13 FY14 FY15 FY16 FY17 FY18

PAT 457.81

3,525.77

5,327.44

6,305.99

6,388.14

6,603.30

6,570.35

Interest on Term Loans 2,200.00

2,212.50

1,850.00

1,450.00

1,050.00

650.00

187.50

Dep and Misc. Exp W/o 1,677.05

1,832.40

1,832.40

1,832.40

1,832.40

1,422.40

1,422.40

Sub-total 4,334.86

7,570.67

9,009.83

9,588.38

9,270.54

8,675.70

8,180.24

Interest on Term Loans 2,200.00

2,212.50

1,850.00

1,450.00

1,050.00

650.00

187.50

Term Loans Repayments - 2,500.00

3,333.33

3,333.33

3,333.33

3,333.33

4,166.67

Sub-total 2,200.00

4,712.50

5,183.33

4,783.33

4,383.33

3,983.33

4,354.17

DSCR 01.97x 01.61x 01.74x 02.00x 02.11x 02.18x 01.88x

Average DSCR 01.91x

It can be observed that the debt servicing ability of the Company from the cash flow from operation remains comfortable under all circumstances through out the tenor of loan.

11.5 Security Margin/ Assets Coverage Ratio

Table 34: Security Margin/ Assets Coverage Ratio INR in lacs

Particulars FY12 FY13 FY14 FY15 FY16 FY17 FY18

WDV of Fixed Assets

24,345.46

25,865.17

24,442.77

23,020.38

21,597.98

20,175.58

18,753.1

8

Aggregate TL/ DPG 20,000.0

0 17,500.0

0 14,166.6

6 10,833.3

3 7,500.0

0 4,166.6

7 -

Security Margin available

% of Margin 121.73% 147.80% 172.54% 212.50% 287.97% 484.21% -

It can be observed that the security margin available is adequate through out the tenor of loan.

11. 6 Key Ratios for Project on consolidated basis (Company)Table 35: Key Ratios for Project on consolidated basis

INR in lacs FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18EBIDTA Margin (%)

10.10%

12.44%

13.01%

12.12%

10.34%

12.83%

12.25%

12.61%

12.28%

11.84%

11.34%

PAT Margin (%) 3.13% 4.77% 4.89% 4.88% 1.89% 4.75% 5.24% 5.79% 5.96% 6.08% 5.99%

TOL:TNW 4.09 3.14 3.78 1.74 2.67 1.96 1.50 1.12 0.86 0.66 0.50Debt/Equity 3.23 2.41 2.92 1.54 1.99 1.40 0.95 0.67 0.48 0.33 0.21

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(TLF:TNW)Interest Coverage 2.53 3.85 4.06 4.04 2.62 3.80 4.90 5.96 6.84 7.99 10.12

Current Ratio 4.46 4.10 4.14 5.32 2.56 2.70 2.53 2.64 2.72 2.80 2.89

RoE (%)26.00

%35.65

%33.77

% 8.15% 10.71%

24.01%

25.91%

24.01%

20.86%

18.45%

16.17%

No.of Shares in Lacs 89.96 89.96

120.00

120.00

120.00

120.00

120.00

120.00

120.00

120.00

120.00

EPS (INR) 3.98 7.79 7.67 9.63 13.87 39.22 54.01 61.92 63.87 65.18 64.22

DSCR 2.58

2.57

3.19

2.74

2.18

1.77

1.93

2.23

2.41

2.50

2.15

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11.7. DSCR for Project on consolidated basis (Company)Table 36: DSCR for Project on consolidated basis

INR in lacs FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

PAT 920.93

1,155.78

1,664.67

4,706.91

6,480.65

7,430.83

7,664.74

7,821.66

7,706.98

Interest on Term Loans 171.33

196.03

2,339.33

2,296.90

1,890.90

1,462.64

1,050.80

650.00

187.50

Depreciation and W/o 379.57

412.60

2,089.65

2,245.00

2,241.81

2,216.31

1,877.64

1,467.64

1,467.64

Sub-total 1,471.83

1,764.41

6,093.65

9,248.81

10,613.36

11,109.78

10,593.19

9,939.31

9,362.12

Interest on Term Loans 171.33

196.03

2,339.33

2,296.90

1,890.90

1,462.64

1,050.80

650.00

187.50

Term Loans Repayments

289.55

447.80

457.97

2,920.25

3,609.06

3,509.83

3,346.17

3,333.33

4,166.67

Sub-total 460.87

643.83

2,797.30

5,217.15

5,499.96

4,972.47

4,396.97

3,983.33

4,354.17

DSCR 3.19

2.74

2.18

1.77

1.93

2.23

2.41

2.50

2.15

Average DSCR 2.39

11.8 Repayment Schedule:

The term loan is proposed to be repaid as follows:

Moratorium period : 1 year 9 months (qtr June 10 to qtr March 2012)Repayment period : Quarterly instalments are as following:

Year Period Repayment

Amount per qtr (in lacs)

Total Repayment amt.

2012-13 1st quarter to 4th quarter

625.00 2500.00


833.33 3333.33


833.33 3333.33


833.33 3333.33


833.33 3333.33


1041.67 4166.67

Total 20000.00

Table 37: Repayment ScheduleTERM LOAN REPAYMENT AND INTEREST INR in Lacs

Year ended March 31, FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Rate of Interest 12.00%

Opening Balance -

14,150.09

20,000.00

17,500.00

14,166.66

10,833.33

7,500.00

4,166.67

Addition during the year

14,150.09

5,849.90

-

-

-

-

-

-

Repayment - 2,500.0 3,333. 3,333.3 3,333. 3,333.3 4,166.6

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- 0 33 3 33 3 7

Closing Balance14,150.

09 20,000.0

0 17,500.0

0 14,166.66

10,833.33

7,500.00

4,166.6

7 -

Interest on Term Loan 86

9.85 2,2

00.00 2,

212.50 1,

850.00 1,

450.00 1,050.00

650.00

187.50

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11.9 Sensitivity Analysis:Table 38: Sensitivity Analysis

On standalone basis

On Company as a whole

Situation Average DSCR Average DSCR

Base Case 1.91 2.14Decrease in Sales Price

5% 1.20 1.18Increase in Raw Material Cost

5% 1.33 1.51Decrease in Sale Price by 5% & increase in raw material cost by 5% 0.53 0.61

The company executes long term contract with their supplier, wherein the rates are fixed on month to month basis. In view of this arrangement, they pass on the rate difference to their customers and hence the situation wherein the sale prices would decline by 5% and cost of raw material would increase by 5% would not ideally arise.

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12. SWOT Analysis of Proposed Project

Table 39: SWOT Analysis of Proposed ProjectStrength Weakness

1. Experienced promoter with more than three decade of experience in this business.

2. Low Gestation period of one year.

3. The company has appointed experienced consultant for the implementation of the project.

4. The key strength of the project is its low cost operation; BIL is importing latest state-of-the-art machines.

1. Presence of strong players in the segment viz. Tata SSL, Usha Martin and Ramsarup Industries in the segment.

Mitigant-

The Company is already operating in this competitive environment along with above listed companies and has carved out its own space in the market. Further, the demand is huge to absorb the capacities of all these players and demand is growing with huge investments in power and other infrastructure. Hence, the competition from these players will not have any adverse impact.

2. Since the basic raw material is steel, the project is exposed to commodity risk.

Mitigant-

The Company has entered in long term contracts with price variation clause, which is applicable on month to month basis. The Foreign Exchange risk has also been hedged. Further the Company has vast experience of 3 decades in weathering the cyclical variations.

Opportunities Threats1. The key end-user of LRPC wire is infrastructure sector viz. Power, Construction and Engineering Sector.

2. Located on close proximity to Mumbai, the financial capital of the country and important cities such as Surat, Pune and Nasik which are some of the fastest growing cities in the country.

1. Economic slowdown especially slowdown in infrastructure market (deceleration in infrastructure spending) would affect the market for the products of the Company.

Mitigant:

The economic slowdown would affect all industries and they are used to meet such challenges.

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Annexure:

A Synopsis of Group Concerns:

Group Details:Some of the affiliated & group companies of KR Bedmutha Group are:

1. M/s. Kamalasha Infrastructure & Engineering Pvt Ltd. 2. M/s. Ashoka Pre-con Pvt Ltd3. M/s. Elme Plast Co.4. M/s. Usha Chemicals5. M/s. Kreepa Steel Industries6. M/s. Bedmutha Sons Realty Ventures Private Limited7. M/s. K. R. Bedmutha Techno Associates Private Limited

1. M/s Kamalasha Infrastructure & Engineering Pvt Ltd.

Kamalasha Infrastructure & Engineering Private Limited (KIEPL) is a special purpose company promoted by Bedmutha Industries Ltd for implementation of turkey contract of electrification in Dharangaon Division, Jalgaon Circle, Nasik Zone.

KIEPL has been awarded a sub-contract by JV of Ashoka Buildcon Ltd and Tesla Transformers Ltd. The JV of Ashoka Buildcon Limited, Nasik & Tesla Transformers Limited, Bhopal has won the bid on competitive basis for six divisions of MSEDCL under Mahavitaran Infrastructure Plan. The Bedmutha Group is having understanding with this front end JV for executing the contract for Dharangaon Division (Tender No-59) on Back-to-Back Basis. The estimated cost of the works for Dharangaon Division is Rs. 12,295.00 Lacs. (Letter of Award dated 6th May 2009).

Table 40: Corporate snapshot of KIEPLCorporate informationName Kamalasha Infrastructure & Engineering Private LimitedDate of Incorporation 03rd Feb 2007CIN Number U45200MH2007PTC167532Constitution Private Limited CompanyRegistered Office D 11, MIDC, Satpur, Nashik 07

Board of DirectorsAs per the Memorandum & Articles of Association of KIEPL, the number of directors on the board of the Company shall not be less than two and not more than twelve. As on date, the Board of Directors of KIEPL comprises of three directors. The details of the composition of the Board as on 30th September 2009 are given below:

Table 41: Board of Directors of KIEPL as on 30th Sept 2009

Name DirectorMr. K R Bedmutha DirectorMr. Ajay K Vedmutha DirectorMr. Hemant Makhawana Director

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Capital StructureDetails of the authorized and paid-up capital of the Company as on 30th Sept 2009 are as under:

Table 42: Capital Structure of KIEPL as on 30th Sept 2009Particulars Rs. In LacsAuthorized Share Capital 100.00Issued, Subscribed and Paid up Share Capital 99.00Share Application Money 1.06

ShareholdingAs per shareholders’ agreement, the shareholding pattern of the Company as on 30th Sept 2009 is as below.

Table 43: Shareholding pattern of KIEPL as on 30th Sept 2009

Shareholders % holdingBedmutha Industries Ltd 55%Margo Engineers Pvt. Ltd. 25%Bedmutha Sons Realty Ventures Pvt. Ltd. 15%K R Bedmutha 5%Total Shareholding 100%

Present Banking Arrangement KIEPL enjoys fund-based (Rs. 1298.00 Lacs) & non-fund based (Rs.1500.00 Lacs) facilities from Axis Bank, Zaver Road, Mulund (w) Branch vide sanction letter no. Axis/ MC-II/VSS/0226/2009-10 dated 27th July 2009.

Financials:The project is under implementation phase.

2. Ashoka Pre-Con Pvt Ltd. Ashoka Pre-con Pvt Ltd (APPL) was formed as joint-venture in the year 2008 between Ashoka Group and Bedmutha Group to manufacture cement poles. Ashoka Group is specialized in the field of construction of Roads, Bridges, Industrial, Residential and commercial complexes with more than 25 years of standing proven experience. Their Group is having an annual turnover of over Rs.1785 crores. The JV has its registered office at Ashoka House, Ashoka Marg, Vadala, Nasik. The plant is located at Gat No.153 (156/1), Sinnar, Nashik. The main activity of the company will be manufacturing of concrete poles used for the Electricity Distribution lines, constructions of Bridges and other electrical infrastructure projects.

Table 44: Corporate Snapshot of Ashoka Pre-Con Pvt. LtdCorporate informationName Ashoka Pre-Con Private LimitedDate of Incorporation 24th Oct 2008CIN Number U26940MH2008PTC187764Constitution Private Limited CompanyRegistered Office Ashoka House, Ashoka Marg, Vadala, NasikPlant Gat No.153 (156/1), Sinnar, Nashik.

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Board of DirectorsAs on date, the Board of Directors of APPL comprises of six directors. The details of the composition of the Board are given below:

Table 45: Board of Directors of Ashoka Pre-Con Pvt LtdName Director

Mr. Sanjay Prabhakar Londhe DirectorMr. Ajay K Bedmutha DirectorMr. K R Bedmutha DirectorMr. Satish D. Parakh DirectorMr. Ashish Ashok Katariya DirectorMr. Ramesh Pokerna Technical Director

Capital StructureDetails of the authorized and paid-up capital of the Company are as under:

Table 46: Capital Structure of Ashoka Pre-Con Pvt. Ltd as on 30th Sept 2009

Particulars Rs. In LacsAuthorized Share Capital 100.00Issued, Subscribed and Paid up Share Capital 1.00Share Application Money 278.00

The authorized and issued share capital of APPL will be increased in due course of time as and when required for adequate infusion of equity into the Project. The Share application money has been brought in by the partners of the firm. After the signing of shareholders’ agreement, the shareholding pattern of the Company is as under.

Table 47: Shareholding of Ashoka Pre-Con Pvt Ltd as on 30th Sept 2009

Shareholders % holdingAshoka Buildcon Ltd 51%Bedmutha Industries Ltd 49%Total shareholding 100%

Present Banking Arrangement Ashoka Pre-Con, currently, does not have any sanctioned credit limits from any bank or financial institution.

Financials:The project is under implementation phase.

3. M/s Elme last Co.

The firm is a profit making partnership firm engaged in manufacture of plastic and polythene bags. The firm is having its manufacturing facilities at Satpur, Nasik.

Table 8: Details of Elme Plast Company Firms’s informationName M/s Elme Plast Co. Date of establishment 30.01.1990

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Constitution Partnership FirmRegistered Office D 11, MIDC, Satpur, Nashik.

PartnersThe firm has 2 partners. The detail of the partners is as given below:

Table 49: Details of Partners as on 30th Sept 2009Name Partner Profit Sharing

Mr. Usha V Bedmutha Partner 50%Mr. K R Bedmutha Partner 50%

Present Banking Arrangement The company is banking with Bank of India, Mulund, Mumbai. It is having Current Account.

Financials:Table 50: Financials of Elme Plast Co

(INR in Lacs)

ParticularsAudite

dAudite

dAudite

d2006-

07 2007-

08 2008-

09 Share Capital 75.63 75.69 75.68

Add: Reserves & Surplus 5.33 5.33 5.33

TNW 80.96 81.02 81.01

Sales 124.07 44.72 4.56

PBT 0.20 0.06 0.23

The Company has not been taking further orders in the Company as they are concentrating on wire business.

4. M/s Usha Chemicals

The firm is an existing profit making proprietary firm formed in 1997 has been promoted by Mrs Usha Vijay Bedmutha. The firm is in specialty chemical segment and manufactures chemicals such as Ferrous Sulphate, Zinc Sulphate and Copper Sulphate. Its manufacturing facilities are located at Sinnar, Nasik.

Table 51: Corporate Details of Usha ChemicalsFirms’s informationName M/s Usha Chemicals Date of establishment 5th August 1997Constitution Proprietorship concernRegistered Office Plot A 62, 63 STICE, Musalgaon, Sinnar

Present Banking Arrangement The company is banking with State Bank of India, Sinnar, Nashik and has sanctioned cash credit limit of Rs.15 lacs.

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Financials:

Table 52: Financials of Usha Chemicals(INR in Lacs)

ParticularsAudite

dAudite

dAudite

d2006-

07 2007-

08 2008-

09 Partners Capital 7.32 6.51 2.01

Add: Reserves & Surplus 17.62 16.11 6.87

TNW 24.94 22.62 8.88

Sales 256.59 87.46 41.45

PBT 0.35 0.63 3.29

The Company has not been taking further orders in the Company as they are concentrating on wire business.

5. M/s Kreepa Steel Industries

Kreepa Steel Industries, a part of Bedmutha Group, is an ISO 9001 firm engaged in manufacturing, supply & servicing of energy saving blast, energy meter, inverter, distribution/ control panel, contract work for PCB assembly and electrical/ electronic products. Kreepa Steel Industries is constituted as a registered partnership firm between Mr. K.R. Bedmutha, Mr. A.K. Bedmutha, Mr. V.K. Bedmutha and Mr. V.V Kenge in the equal ratio. The partnership firm was formed in June 2002 and has its registered office at Plot No. D-8, Road No.-10, MIDC, Satpur, Nasik.

Kreepa Steel has recently bagged Rs. 16.50 Crore orders from Ashoka Buildcon Ltd for supply of 10,000 Distribution boxes spread over a period of next two years.

Table 53: Corporate details of Kreepa Steel Industries

Name of Partnership Firm Kreepa Steel IndustriesConstitution Partnership firm (Registered)Date of Formation June 1st 2002Partners Partners % Share

Mr. K.R. Bedmutha Mr. A.K. BedmuthaMr. V.K. Bedmutha Mr. V.V. Kenge

25%25%25%25%

Office & Factory Plot No. D-8, Road No.-10, MIDC, Satpur, Nasik.

Present Banking Arrangement The company is banking with Union Bank of India, Satpur, Nasik and has been sanctioned Cash credit limits of Rs.50 Lacs.

Financial Performance for last three years of Kreepa Steel Industries

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Table 54: Financials of Kreepa Industries(INR in Lacs)

Particulars Mar-07 Mar-08 Mar-09

Sales 321.04 331.75 58.91

Other Income 11.92 8.74 6.29

Inc/Dec in Stock 7.01 8.09 -13.96

Total Income 339.97 348.58 51.24

Raw Material & Other Mfg Exp 310.45 315.62 30.18

Admin & Other Exp 17.40 19.39 7.22

Total Expenditure 327.85 335.01 37.40

EBITDA 12.12 13.57 13.84

Interest & Financial Charges 1.87 7.51 8.01

Depreciation 8.78 5.88 4.53

PBT 1.46 0.18 1.30

6. M/s Bedmutha Sons Realty Ventures Private Limited

Bedmutha Sons Realty Ventures Private Limited, has been incorporated in 2007 for the purpose of dealing in real estate business of the Group.

Table 55: Corporate Snapshot of BSRVPL

Company Bedmutha Sons Realty Ventures Private Limited Activity Real EstateDate of Incorporation 3rd Feb 2007Constitution Private LimitedRegistered Office D 11, MIDC, Satpur, Nasik 07

7. M/s K.R. Bedmutha Techno Associates Private Limited

K.R. Bedmutha Techno Associates P Ltd is into technical consulting and engineering services. The Company has been formed in 2008. It has subsidiary KRBTA Unison Private Limited.

Table 56: Corporate Snapshot of KRBTA Pvt Ltd

Company K. R. Bedmutha Techno Associates Private LimitedActivity Technical Consulting and Engineering ServicesDate of Incorporation 14th April 2008Constitution Private LimitedRegistered Office D 11, MIDC, Satpur, Nasik

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Table 97: Financials of KRBTA Pvt Ltd(INR in Lacs)

Particulars Audited

2008-09

Authorized Capital 5.00

Paid up Capital 1.00

Add: Reserves & Surplus 31.00

TNW 32.00

Sales 296.47

PBT 34.37

8. M/s Vinita Computers

A proprietary concern promoted by Mrs. Vinita A. Vedmutha for Computer Training in a franchise model. The status as on today - it has been foreclosed to concentrate in other areas.

Activity: provide computer training.

Table 58: Corporate Snapshot of Vinita Computers

Firms’s informationName M/s Vinita Computers Date of establishment July 2007Constitution Proprietorship concern of Mrs Vinita A

VedmuthaRegistered Office D 11, MIDC, Satpur, Nashik 422 007

9. M/s Ganesh Manufacturing Company

It was a Trading firm to trade into Iron & Steel products. The firm has been foreclosed as on date.

Activity: trading of Iron & Steel products.

Table 59: Corporate Snapshot of Ganesh Manufacturing Company

Firms’s informationName M/s Ganesh Manufacturing CompanyDate of establishment In the year 1989Constitution Proprietorship concern of Mr Ajay K. VedmuthaOffice D 11, MIDC, Satpur, Nashik 422 007

9. M/s Kamal Transport

It was a Transport division started with an aim to provide logistic support to existing industry. The firm has been foreclosed as on date.

Activity: provide logistic support to existing industry.

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Table 60: Corporate Snapshot of Kamal Transport

Firms’s informationName M/s Kamal TransportDate of establishment In the year 1997Constitution Proprietorship concern of Mr Ajay K. VedmuthaOffice D 11, MIDC, Satpur, Nashik 422 007

10 M/s Jagruti Architects

It is a consultancy activity in the field of architectural services & preparation of plans.

Activity: consultancy in field of architectural services & plan preparation. Table 61: Corporate Snapshot of Jagruti Architects

Firms’s informationName M/s Jagruti ArchitectsDate of establishment 1998 - 1999Constitution Proprietorship concern of Mrs Vinita A.

VedmuthaRegistered Office and Plant 10, Poornima hsg soc, Mulund East, Mumbai

11. M/s Precrete Technologies

It is Joint Venture between Bedmutha Group & Ashoka Built-con with 49% stake in Bedmutha Industries Ltd. to float a manufacturing unit.

Table 62: Corporate Snapshot of Precrete Technologies

Firms’s informationName Precrete TechnologiesDate of Incorporation 24th Oct 2008CIN Number U73200MH2008PTC187503Constitution Private Limited CompanyDirectors Mr. Ajay Vedmutha

Mr. Sanjay LondheRegistered Office Ashoka House, Ashoka Marg, Vadala, Nasik

Philanthropy

The Group and the Bedmutha family have been actively involved in social and charitable causes for improvement of the quality of life of the people in the region, especially Sinnar and Nashik. The company is in process of developing “BEDMUTHA GREEN FOUNDATION” on 2 acres of land in STICE which will plant more than 2500 plants of “SUBABUL” for enhancement of oxygen level in the zone and provide coal environment.

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project report mega project bil final 17.12.09

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