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Shree Steel Wire Ropes


Shree Steel Wire Ropes manufactures stainless steel wire ropes and regulating equipment for Indian Railways (IR), its main customer.

The company has developed new products for IR in the past, for which it has received approvals for production and supply.  The company is currently IR’s regular supplier in this product segment.

The company reported stable performance over the last five years – reporting about 1cr of operating profits on revenues of 5cr in the last financial year.  It employed no net debt to finance its operations.

However, the company can expect severe competition from new entrants as and when IR’s requirements increase.  Needless to say, the company is exposed to substantial customer concentration risk since IR is its main customer – any cancellation of business will practically wipe out existing revenues.

Comments

  1. Aldray DefcelMarch 27, 2012 at 11:08 AM

    This post helps me a lot of information about steel wire ropes. It really caught my attention. Thanks, just keep posting!

    ReplyDelete

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