JOHN COCKERILL INDIA LIMI Share price

Flat Products Equipments (I) Limited is a well establishedprofit making company. The Company is a leadingmanufacturer of Cold Rolling Mills Galvanising Lines andassociated equipments in India. The Company is also infield of consultancy especially for steel industry sincepast two decades.FPL is amongst the leaders in industry segment in Indiawith sales for 1994-95 exceeding Rs.6000 lacs. The Companyhas its manufacturing unit at MIDC Taloja and BhandupBombay. The Company enjoys various working capital limitsasset credit facility and term loan facilities under worldbank refinance scheme from it''s bankers Canara Bank andfrom ICICI. The Company was promoted by Mr. T.R. MehtaMetallurgical Engineer presently Chairman & ManagingDirector of the company. At present the company hascollaborations with T. Sendzimir Inc. U.S.A formanufacture of Cold Rolling Mills for ferrous andnon-ferrous metals Achenbach Buschutten GMBH Germany formanufacture of Aluminium strip and foil Mills Bliss-SalemInc. U.S.A for manufacture of 4 Hi Cold Rolling Mills formild steel Redex France for manufacture of StretchLevelling equipment and Durmech Engineering Limited UK forPaint Coating Lines. These collaborators are world leadersin their respective fields.FPL is the only Indian Company with capabilities fordesigning fabrication and installation of CR Mills. FPLcompetes mainly with international companies like Hitachiof Japan SMS of Germany United of USA and Davy ofEngland. However FPL enjoys significant price advantageover international competitors on account of India''s labourcost advantage which results in the price quoted by foreigncompanies being two or three times the FPL price forcomparable technology and performance. With provencapabilities having supplied mills in India and outsideFPL thus has a strong competitive edge.Due to the fact that Company has access to latesttechnology in its fields and a lower cost as compared toits competitors in West the Company has export potentialfor its product and has export orders on hand.The Company manufactures and exports metal processingequipment which is an import substitute.FPL has installed over 110 rolling mills and associatedlines in India and 10 abroad. The Company is negotiatingfor exports to many developed countries like U.S.A.Germany U.K. and other Asian countries. Company and itsaffiliates have already exported equipment to GermanySouth Korea U.S.A. Switzerland Austria Kenya andSingapore. The Company lays tremendous emphasis on aftersales service and a lot of orders are REPETITIVE. TheCompany expects repeat orders from its overseas clients inthe future. Absorption of technology by research and development anddesign departments of the Company is demonstrated by thefact that in the year 1990 Company had exported a mill toU.S.A. to its collaborator worth Rs.13.5 million. Thecollaborator has expressed interest in purchasing two moremills from the Company in near future. The Company is alsoexporting Cold Rolling Mill and Galvanising Line toIndonesia for over Rs.25 Crores which has to be deliveredby March 1996. The details of the exports orders are asfollows:NAME OF THE CUSTOMER ITEMS M/S. PT INDUSTRI BAJA BERLIAN I) CONTINUOUS HOT DIP J1 KE BELAWANT KM 10.5 GALVANISING LINEKAWASAN INDUSTRI MEDANSUMATERA UTARA II) 4-HI REVERSING COLD INDONESIA ROLLING MILLNAME OF THE CUSTOMER PRICE DELIVERY (RS. CRORES)M/S. PT INDUSTRI BAJA BERLIAN 1085 MARCH''96J1 KE BELAWANT KM 10.5 KAWASAN INDUSTRI MEDANSUMATERA UTARA 1880 MARCH''96INDONESIA Equipments made by the Company are of international qualityand the Company is receiving continuous inquiries frominternational markets. The Company is quite hopeful aboutfuture exports due to its sophisticated technologycompetitive price timely delivery and efficient aftersales services.The Company''s major customers in India for MetalProcessing Equipment are Companies like Special SteelsLimited Pennar Aluminium Co. Limited Jindal Strips Ltd.Uttam Steels Ltd. Atma Steels Ltd Comet Steels Ltd.Lloyd Metals Ltd. Bhushan Industries SWIL Ltd. AveryCycles Lloyd Steels Ltd and Raymonds Steel and many otherindustrial houses. Its experience reputation and goodwillin the domestic and international market has helped it inexpanding the local Market. With its experiencetechnology manufacturing facilities design research anddevelopment team and excellent sales force the Company isconfident about its future expansion.The company is known throughout the world as a builder andexporter of high quality Cold Rolling Mills & equipment forthe ferrous and non ferrous industry. Experience of morethan two decades in engineering and building customdesigned rolling mills and auxiliary equipment to meetindividual customers'' specific requirements has made thecompany one of the largest rolling mill builders in thecountry today.