@Value_Investing, regarding “asset-light approach”:
” Skipper is the only company in India to have complete value chain control
from angles to tower production to fasteners to EPC resulting in control of over 80% of the
cost on any tower line. The company has done backward integration through angle rolling
which is the main raw material for towers and is also horizontally integrated with
manufacturing of fasteners and accessories for towers. The location of Skipper in Eastern
India allows it access to raw material at a competitive price leading to cost competitiveness
and it enjoys ~400-500 bps of cost saving by way of economies of scale, lower freight costs
and sources its raw material, mainly billets, from SAIL”
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