Supplies to Bajaj seem to be very small right now. Once volumes pick up there will be other suppliers also. EKC will most likely lose out on this opportunity also.
In investing the most important criteria is management quality. Bad management will let go of all opportunities as in the case of EKC. And good management can create opportunities where there are few.
For the past few years, the management has been consistently saying the composite cylinders will not be competition - and while EKC had capability to make composite they chose not to. And companies like Time Techno and Supreme are making huge margins in composite cylinders and demand is exceeding capacity. EKC capacity utilisation is 60% !!
Wonder what happened to the new plant in Gujarat… there is no talk of it now.
Even the success of Egypt plant is doubtful. Capacity utilisation of Dubai plants is low - what will do with new plant in Egypt?
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