If one heard the concall, mgt does explain the footwear slowdown vis a vis relaxo et al. Mayur sells material for premium footwear while relaxo sells cheap chappals. So the slowdown depends on the product mix the company has. I believe Mayur supplies 80% of Bata’s raw material demand and their sales havent gone anywhere for a while so that explains it. Mgt has earlier stated they have not lost a single customer …like ever !
SKP sounded very confident of getting the PU approval by June/July stating it was inevitable and now the bone of contention was more like they wanted to sign a 50 year agreement for water.
SKP also stated that they would decide on the seventh line by July ie if they even start a regular shift on the sixth line, they would order the 7th one in anticipation. Would certainly like to get updates on above two topics from AGM please.
Vivek, Not sure where SKP’s health concerns came up from but maybe you know ! Mayur now has more indian oems on it’s rolls besides M&M - volkswagen , fiat, GM etc have stopped importing from China. The margins are good here but sales are few since these are for premium cars. Maruti is what gives the volumes but squeezes badly on margins so SKP doesn’t really want to give to them.
In fact SKP gave the realization per meter figures for each of the segment in last concall.
Ayush, if you could bring this up, SKP should have someone pay attention to basic things like making the annual reports available. Cant find on bse or mayur’s website. The results it faxed to the exchanges were barely legible. Often the ARs have basic grammatical mistakes etc
PU, once approved will take 1.5 years - they will start off with two lines adding up to 6 lakh meters. This will be a greenfield expansion for which land is already acquired. The present facility has space for only the 7th line and then they shall be maxed out.