Bansal Wire Industries Limited is the largest stainless steel wire manufacturing company and the second largest steel wire manufacturing company by volume in India with 20% and 4% market share, respectively. Company was incorporated in the year 1985 and been consistently delivered quality products, creating a niche identity in the steel wire industry. It caters to a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture and auto replacement. They export their products to more than 50 countries.
Strengths And Risks
+ Established and Largest Player in its Segment: Company is one of the largest steel wire manufacturers with established market position, strong brand equity and pan-India presence.
+ Well Diversified Customer Base: They have a customer base exceeding 5,000 customers, spreading across various industrial sectors. Some of the major sectors that they serve include automotive, cables, fencing, infrastructure and agriculture out of which automotive and consumer durables sectors give them the highest EBITDA margins.
+ Economies of Scale: Over the last 38 years, the company has established a well-integrated ecosystem for manufacturing the products, storage and transportation of raw materials and finished goods.
+ Extensive Product Portfolio: They offer one of India’s most extensive steel wire product portfolios, encompassing over 3000 stock keeping units (SKUs), categorized majorly into three segments, i.e., high carbon steel wire, mild steel wire and stainless steel wire.
- Raw Material Supply & Cost: Any shortages, delay or disruption in the supply of the raw materials used in manufacturing
process may have a material adverse effect on our business. The costs of the raw materials is also subject to volatility.
- Competition: Due to the fragmented nature of the wires industry and price advantage that the unbranded players
generally enjoy, there can be no assurance that company will maintain competitiveness in wires industry.
- Heavy Power & Fuel Requirements: They have significant power and fuel requirements for three manufacturing facilities, and energy costs
represent a significant portion of the production costs. Any disruption to power sources could increase
production costs and adversely affect the business.
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