RBI cease and desist order on Ashirvad is very bad news for manappuram. Ashirvad is 25% of their loan book. Being short term loan, ashirvad loan book will run down at crazy speed. May lead to liquidity issue also

Hi, On point no. 1, this is an error. There is some typo or something, I have got it confirmed from the company. While this is an error, the company has confirmed that the final figure of Net Cash Inflow is correct due to the offsetting impact of Increase / (decrease) in Provisions and Direct Taxes.

• As per various reports availble on the market size of the mechanical seals: the total market as of 2023 is ~3.3Billion USD and is expected to grow 4.3% GACR to reach ~5B USD in next 10 yrs.

• The largest market is APAC while the fastest growing is US. By next 10 yrs, US will be be 23% of total market size.

• FLowserve, JohnCrane and SKF are global market leaders:

• Flowserve’s division that produces the pumps/pump systems, mechanical seals, auxiliary systems, replacement parts and upgrades and related aftermarket services, the sales for this division for 2023 and 2022 has been 3.0Bill and 2.5Bill USD respectively. I am not sure what is the share of the mechnical seals in this but seems the market size is huge.

• John Crane, which is in production of mechanical seals, seal support systems, power transmission couplings and specialised filtration systems; the 2023 revenur has been 1.0Bill Euros.

• SKF has indian subsidiary that produces the seals alongwith other products such as bearings, lubrication and lubrication systems, maintenance products, mechatronics products, power transmission products, etc.

• Below are some points from Flowserve latest AR.
  *“The pump and mechanical seal industry is highly fragmented, with thousands of competitors globally. We compete, however, primarily with a limited number of large companies operating on a global scale. There are also a number of smaller, newer entrants in some of our emerging markets. Competition among our closest competitors is generally driven by delivery times, application knowledge, experience, expertise, price, breadth of product offerings, contractual terms, previous installation history and reputation for quality. Some of our largest industry competitors include: Sulzer Pumps; Ebara Corp.; Eagle Burgmann, which is a joint venture of two traditional global seal manufacturers, John Crane Inc., a unit of Smiths Group Plc; Weir Group Plc.; ITT Industries; and KSB SE & Co. KGaA.”

*“The pump and mechanical seal industry continues to undergo consolidation, which is primarily driven by (i) the need to lower costs through reduction of excess capacity and (ii) customers’ preference to align with global full service suppliers to simplify their supplier base. Despite the consolidation activity, the market remains highly competitive.”

• Need to see how Sealmatic can maintain the high margins they have now given that customers tenc to prefer the OEMs that gives the integrated solution rather than OEM that sells only seals. Hopefully they can protect the margins.

(post deleted by author)