Dear Esteemed Stakeholders,
It is with immense pride and gratitude that I address you for the first
time since our successful Initial Public Offering (IPO) and subsequent listing on the NSE
and BSE. The past year has been transformative for our company, and as we look forward to
the future, I want to take this opportunity to reflect on our achievements, share insights
into the industry, and outline our strategic vision for the years ahead. The global
economy has faced significant challenges in recent times, with a slowdown in geopolitical
uncertainties leading to rise in interest rates by major central banks to curb inflation
pressurizing margins across various industries. However, these challenges have paved the
way for new opportunities, particularly for emerging markets like India. With China, the
world's largest steel producer, facing production cuts due to sluggish demand growth
on the back of slowdown in property market and infrastructure spending, world markets have
turned to India, which is at the forefront of global steel demand growth.
The government's emphasis on infrastructure development, manufacturing,
and exports is creating a robust demand for steel, positioning India as a key player in
the global steel market. This shift presents a unique opportunity for companies like ours
to expand our footprint, both domestically and internationally.
The steel wire industry is poised for significant growth, driven by
increasing demand from various sectors such as automotive, construction, infrastructure,
and general engineering. The global trend of shifting away from China-based manufacturing
to a 'China plus one' strategy has opened up new avenues for Indian manufacturers, and
Bansal Wire Industries Limited is well-positioned to capitalize on this trend. Our
industry is not without its challenges, including raw material price volatility, supply
chain disruptions, and stringent environmental regulations. However, we have successfully
navigated these challenges by leveraging our "Cost Plus model," which allows us
to remain largely immune to commodity price fluctuations, and by diversifying our product
portfolio to include high-margin products like fine wire, hose wire, and steel cord.
At Bansal Wire Industries Limited, we have always prided ourselves on
our legacy of excellence and innovation. Over the years, we have evolved into India's
largest steel wire manufacturer, with a current production capacity of 262,000 MTPA, which
we plan to expand to 600,000 MTPA by the end of 2025. Our commitment to quality and
customer satisfaction has allowed us to build a diverse customer base of over 5,000+
clients across various industries. We are proud to report that no single customer
contributes more than 5% to our total revenue, underscoring the strength of our business
model and our ability to mitigate risk. The client retention rate of 89.56% reflects the
trust and loyalty we have earned over the years. In line with our expansion strategy, we
are setting up one of the largest single-location steel wire manufacturing facilities in
Asia, at Dadri, Uttar Pradesh. This state-of-the-art facility will significantly boost our
production capacity and further solidify our leadership position in the industry.
One of the most significant milestones in our journey this year was the
successful launch of our IPO, which was oversubscribed almost 60 times, reflecting the
strong confidence the market has in our business. The overwhelming response to our IPO is
a testament to our solid foundation, robust business model, and the growth potential that
lies ahead. On July 10, 2024, Bansal Wire Industries Limited made its debut on the NSE and
BSE, marking a new chapter in our storied history. This listing not only supplies the
capital we need to drive our ambitious expansion plans but also brings us more in line
with the expectations and aspirations of our shareholders.
Following our IPO, we acquired the remaining 23.85% stake in Bansal
Steel & Power Limited from the existing shareholders, therefore making it the wholly
owned subsidiary of the Company.
As we move forward, our vision remains clear to continue with our
trajectory of growth, innovation, and market leadership. We are committed to exploring new
opportunities, both in domestic and international markets, and expanding our portfolio to
meet the evolving demands of our customers. The steel wire industry, despite its
challenges, is brimming with opportunities, and Bansal Wire Industries Limited is
strategically positioned to seize these opportunities. Our investment in technology, our
focus on high-margin products, and our dedication to sustainable practices will ensure
that we remain competitive in the global market.
In conclusion, I want to express my heartfelt gratitude to our
shareholders, employees, customers, and partners for their unwavering support and trust.
The journey ahead is filled with promise, and I am confident that, together, we will
continue to achieve new heights of success. Thank you for your continued belief in Bansal
Wire Industries Limited. We look forward to your support as we embark on this exciting new
chapter in our journey.
With warm regards,
Arun Gupta
Chairman and Whole Time Director