Parameter Rationale

Plastic products are mostly used in industrial, agricultural and
Macroeconomic growth consumer applications. Hence, growth in demand for plastic
products directly depends on the overall macroeconomic growth.

In addition to the underlying economic growth, demand for plastics

Demand from end-user __will also be driven by higher penetration of plastic used in end-user

segments segments such as automobiles, agriculture, infrastructure and
packaging

Source: CRISIL Research

Meanwhile, the size of the plastic processing segment, which was ~Rs 1,500 billion in fiscal 2020, is expected to
drop ~10% on-year in volume terms (nearly 20% in value terms) in fiscal 2021 amid the sharp contraction in the
economy as well as falling demand from the underlying industries. However, recovery is expected from fiscal
2022. Demand for plastic products is expected to increase at 5-7% CAGR between fiscals 2020 and 2024, owing
to improving economic growth and revival in end-user segments.

Consumer durables

The household appliances industry, comprising room air conditioners (RACs), refrigerators, colour televisions
(CTVs), and washing machines, is expected to plunge 20-25% on-year in volume terms in fiscal 2021 vis-a-vis a
6% on-year rise in fiscal 2020. This is on account of demand slowdown owing to the fallout from the pandemic;
significant decline in first quarter sales will weigh on full year sales.

Key Players

Key players in the tool room and mould base industry are Godrej & Boyce Manufacturing Co. Ltd., Shapers India
Pvt. Ltd., Sridevi Tool Engineers Pvt. Ltd., CTM India Ltd., Karthigeya Moulds & Dies Pvt. Ltd., Devu Tools
Pvt. Ltd., Mastercraft Engineers, VEM Tooling India Pvt. Ltd., Abhijeet Dies & Tools Pvt. Ltd., and Classic
Moulds and Dies Ltd.

 

 

   

 

PEER COMPARISON
Revenue
(in million)
Reig FY19 FY20
‘Bharat Forge Limited 81,092
| d 14,925
69,266

 

 

 

 

 

Ramkrishna Forgings Limited

 

|Sandhar Technologies Limited
“Sundaram-Clayton Limited
|Sundram Fasteners Limited

Source: Audited annual reports and company filings with MCA, CRISIL Research

 

   

 

   

 

37.232

 

EBITDA-operating Profit before Depreciation Interest and Taxes

(in million)
FY20
0:

Re Ling 2 4et} [PSUs

|
Bharat Forge Limited [14457 | 12,742, |
|

Craftsman Automation Limited |
Endurance Technologies Limited
Jamna Auto Industries Limited
|Mahindra CIE Automotive Limited
Industries Limited

_MM Forgings Limited
Ramkrishna Forgings Limited
‘Sandhar Technologies Limited
Sundaram-Clayton Limi

 

 

 

 

    

 

 

 

  

 

 

 

 

    

 

 

 

 

 

 

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