The company states that it supports customers throughout the lifespan of its equipment by providing spare parts and enabling after-sales service through its dealer network.
The company also states that the equipment assembly and boom arm manufacturing are carried out using horizontal boring machines at the company’s manufacturing facilities, which follow a lean production model. Key practices include the Andon system, just-in-time production, Kaizen, Poka-Yoke, and online traceability.
The company is involved in research and development of pre-mixes optimized for 3D printing, ensuring precise material properties for effective concrete extrusion and setting. Additionally, through TASC, it claims to provide specialized training programs for operating, maintaining, and repairing concrete construction equipment. These programs are certified by the Infrastructure Equipment Skill Council and the National Council of Vocational Education and Training.
Over the past decade, more than 29,800 concrete equipment units have been sold to over 18,900 customers across India. SLCMs are used in a variety of construction projects.
As of September 30, 2024, the company offers over 141 concrete equipment variants, serving different requirements within the concrete application value chain.
The company has seen an increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 763.29 crore in FY22 to Rs 1,151.13 crore in FY23 to Rs 1,741.40 crore in FY24. PAT increased from Rs 66.21 crore in FY22 to Rs 135.90 crore in FY23 to Rs 225.15 crore in FY24.
A major portion of the company’s revenue comes from the sale of self-loading concrete mixers (SLCMs). These contributed Rs 627.41 crore (81.48%) for the six months ending September 30, 2024, and Rs 1,482.50 crore (85.13%), Rs 956.17 crore (83.06%), and Rs 591.12 crore (77.44%) in FY24, FY23, and FY22, respectively to the revenue from operations. A decline in SLCM sales or reduced demand for concrete equipment could negatively impact the company’s business and financial condition.
All assembling and manufacturing facilities are located in Karnataka. As of September 30, 2024, the company has four operational facilities, with an additional facility under construction in Karnataka. This exposes the company to regional risks. Therefore, any adverse developments in this region could affect operations and overall business performance.
The Obadenahalli facility is responsible for assembling nearly all SLCMs, accounting for 99.06%, 98.83%, 98.41%, and 96.98% of total production for the six months ending September 30, 2024, and in FY24, FY23, and FY22, respectively. Any interruptions or shutdowns at this facility could have an adverse impact on business operations and financial performance.
The company relies on its dealer network for product sales, distribution, and after-sales service. The top 10 dealers contributed 51.77%, 50.13%, 50.51%, 48.89%, and 44.10% of revenue from operations for the six months ending September 30, 2024, and September 30, 2023, as well as in FY24, FY23, and FY22, respectively. Any disruption in the dealer network could negatively affect the company’s finances and operations.
The company, its directors and promoters are currently involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.