Unimech Aerospace And Manufacturing IPO

Advanced manufacturing capabilities : Company manufactures global high precision engineering products with “build to print” and “build to specifications” offering. These capabilities enables them to offer products to customers in accordance with their designs and specifications, in a cost-effective manner without compromising on quality.

Digital-first manufacturing company: Company deploys a range of digital manufacturing systems which integrates the complete process from order origination to order delivery and ensures high-quality output, efficient operations, and timely delivery of projects

High barriers to entry : Given the complex production process, and lengthy approval process from clients, it is difficult for a new entrant to set up the facilities for manufacturing of products supplied by the Company.

Export driven player: Unimech Aerospace is a leading exporter of aerospace components with a global delivery service model, and over 90% of its sales comes from export to global OEMs and their licensees.

Raw material prices: Company uses a variety of standard tools and parts in all the manufacturing processes some of which are imported. Business is vulnerable to volatility in the cost or availability of such standard parts.

Aerospace sector concentration: Almost 98% of business is attributable to the aerospace sector wherein they manufacture products in aero engine tooling and airframe tooling. Any adverse changes in the aerospace sector could adversely impact business.

Long gestation: Company's business works on a longer gestation period. There is considerable time gap of 7 to 28 weeks between the receipt of order and the payment, thereby, affecting the working capital requirements.

Export oriented business: Almost 90% of company's revenue is gained from exports to US, Germany, UK. Its export business is dependent on the performance of customers in industries such as aerospace, defence, semi-conductors and energy.