AIL’s profitability is dependent on nature of product manufactured, level of complexity and customisation of the project executed
in the year. Moreover, AIL’s clientele consists of very large and organized players in food processing value chain, hence it has a
limited bargaining power in terms of ability to revise prices in case of steep variation in raw material prices. Procurement of raw
materials is also project-specific and hence, AIL does not have long-term supply contracts with suppliers. Consequently, AIL’s
profitability remains susceptible to raw material price volatility, especially in contracts with a long execution time.
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