Competitors
Signode is not only into steel strapping, but other products too.
It provides a lot of automation services, which helps customers get better efficiencies.
Signode has brought in new battery powered strapping tools, which are more handy and efiicient.
Another reason for Signode to have the leading market share in my opinion is that it provides warehousing, transit and the complete end to end services to its customers. Customers choose Signode in order to simplify their operations.
The ratings strengths of Signode however is partially offset by revenue concentration risk in the metal segment and absence of firm supply arrangements for raw materials thereby exposing the company to price escalation risk.
Operating cycle of Signode is a lot better than Krishca, close to 30 days.
Crown’s/Signode’s transit packaging products are sold around the world under a broad array of well-known brand names such as Signode, Strapex, Orgapack, Shippers Airbags, Angleboard.
The clientele comprises some of the renowned names in the industry viz., JSW Steel Ltd, Steel Authority of India Ltd, Tata Steel Ltd, Voltas India Ltd etc. Majority of the clients have been associated with the company for decades.
As of FY20 there were no long-term contracts for procurement of raw material and were procured as and when required.
The company generally negates the increase in cost-price difference scenario by passing on the input cost increase to customers where it has strong bargaining power.
Grip strapping is only into steel strapping, their website is not good.
Its manufacturing facility is in Hyderabad, Telangana.
GSTPL inherent business strengths are gained through the long track record and technical expertise of the promoters – Mr. A. Narasimhan, Mr. Hemant Lajpal and Mr. M. Mani, who has over 2 decades of experience in the packing machinery industry.
Its clientele includes reputed entities like Tata Steel Limited, Steel Authority of India Limited, Saint Gobain India Pvt Ltd, Jindal United Steel Limited, Mahalaxmi Industries Services, MPIL Steel Structure Limited, Bhushan Power & Steel Limited, amongst others.
Working capital intensive
The operating margins have been declining Y-o-Y from 7.59 per cent in FY2018 to 5.50 per cent in FY2020.
Walzen also has a very good website (the best), also specializes only in steel strapping and services.
Walzen does something very interesting, it also provides training and expert guidance to the manpower of the customer regarding steel strapping, and a few other services which none of the other players provide.
Does not have an automated production line.
Has a team of 600.
WSPL is a part of Kolkata based “Lyka” Group.
Key clients include Tata Steels, Steel Authority of India Limited (SAIL), Bhushan Power & Steel in the steel industry and National Aluminium Company Limited. (NALCO) in the Aluminium industry and suppliers with Tata Steels Limited.
exports to countries like Bangladesh, Brazil etc.
operating profit margin of 4.27 % in FY18.
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