Castex Technologies Business Transformation and Operational Turnaround

Business Transformation and Organizational Turnaround
“CASTEX TECHNOLOGIES LIMITED”
Submitted To
Mr. Arjun Madan, PhD
Submitted by:
Bharat Bhushan, C-39

CASTEX TECHNOLOGIES LTD. 2
CASTEX TECHNOLOGIES LTD.
Executive Summary
astex Technologies Limited (NSE: CASTEXTECH, BSE: 532282) is a leading provider of iron cast
automotive components in India. The Company's product portfolio consists of a range of components
for 2/3 wheelers, cars, tractors, light commercial vehicles (LCV), heavy commercial vehicles (HCV) and
stationary engines. The categories of components manufactured are connecting rod assemblies, cylinder
blocks, flywheel assemblies and turbo charger housing.
Objective
The objective of Castex Technologies Investor Relations is to ensure continuous and open communication
with all financial market participants.
Vision and Mission
“To become a world class engineering company in the Automotive and Non-Automotive sector. This is
to be achieved by capitalizing on our superior technology base for the benefit of our customers, suppliers
and stakeholders.”
Company Overview
Castex Technologies Limited manufactures and sells motor vehicles parts and accessories in India and
internationally. The company offers products for two/three wheelers, passenger cars, light and heavy
commercial vehicles, railways, and tractors, as well as for earthmoving and construction, aerospace, and oil
and gas markets. Its products comprise flywheel ring gears, such as starter ring gears, flex plate assemblies,
flywheel assemblies, and conrod piston subassemblies; and machining products, which include steering
knuckles, ladder frames, engine bearing ladders, exhaust manifolds, aluminium case housings, bridge fork
assemblies, hubs, spindles, connecting rods, crankshafts, housings, gear shifter forks, front axle beam
assemblies, conrod piston sub-assemblies, crankshaft assemblies, flywheel assemblies, pivot arms, flywheel
housings and assemblies, wheel hubs, PTO casings, front axle beams, and front and rear axles.
The company also offers forging products comprising connecting rods and caps, crankshafts and camshafts,
steering levers, gear shifter forks, sector gears and shafts, front impact beams drive shafts, spindlers, hubs
and flanges, transmission components, steering parts, pistons, propeller fork shafts, stub–axles, front axle
beams, and front and rear axle shafts; and casting aluminium products consisting of clutch cases,
transmission cases, timing chain covers, mounting brackets, camshaft covers/carriers, bearing
ladders/sumps, structural covers, and differential flanges. In addition, it provides casting iron products, such
as cylinder blocks and heads, transmission housings, brake carriers and calipers, trumpet casings,
crankshafts, intake and exhaust manifolds, flywheels and flywheel housings, turbo chargers, bell housings,
and link shafts. The company was formerly known as Amtek India Limited and changed its name to Castex
Technologies Limited in June 2015. Castex Technologies Limited was incorporated in 1983 and is based in
New Delhi, India.
C

Core Values
• Commitment to Excellence
• Openness, Fairness and Trust
• Customer Focus
• Team Spirit
History & Timeline Highlights
• 2005
• Company has splits its Face value of Shares from Rs 10 to Rs 2
• 2006
• is engaged in the manufacturing of automotive components with a special focus of manufacturing
a variety of iron castings. The company has two manufacturing units located at Gurgaon in
Haryana and Bhiwadi in Rajasthan.
• Amtek India Limited has informed that Ms. Sangeeta Mehta has joined the Company as Company
Secretary in place of Mr. Rajendra Singh Bedi. Henceforth Ms. Sangeeta Mehta will act as
Compliance Officer of the Company.
• 2008
• Amtek India Ltd has informed that the Board of Directors of the Company at its meeting held on
January 31, 2008, has appointed Mr. Gautam Malhotra as Joint Managing Director of the
Company with immediate effect. -Amtek India Limited has informed the Exchange that Mrs.
Monica Sachdeva has joined the Company as Company Secretary. Henceforth Mrs. Monica
Sachdeva will act as compliance officer of the Company.
• 2011
• Ms. Shallu Suryavanshi has joined the Company as Company Secretary & also compliance officer
of the Company.
• Amtek India has given the Bonus in the Ratio of 1:1
• 2012
• Ms. Shuchita Bhartiya has joined the Company as Company Secretary & also compliance officer
of the Company.
• 2013
• Amtek India Ltd has informed about acquisition of Kuepper Group of Germany. -Amtek India
recommended of dividend to its Equity Shareholders @ 5% for the year.
• 2014
• Amtek India entered into 50:50 joint venture with Tokyo headquartered Riken Corporation.
• Amtek India recommended of dividend of Rs. 0.10 per equity share of Rs. 2/- each.
• 2015
• Amtek Auto completes the acquisition of the Iron & Aluminium Casting, Forging and Machining
business of Asahi Tec Corporation.
• Amtek Auto Announces the Acquisition of Scholz Edelstahl GmbH.
• The Company has changed its name from Amtek India Ltd to Castex Technologies Ltd.

Industry Overview
• Industry Name: Auto Ancl – Others
• House Name: Amtek Group
• Incorporation Date: 02/12/1983
• Face Value: 2.0
• ISIN: INE068D01021
• Market Lot: 1

Global Economic Overview
After a lack lustrous outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018,
especially in emerging market and developing economies. With these caveats, the aggregate growth
estimates and projections for 2017-18 remain unchanged relative to 2016-17. The outlook for advanced
economies has improved for 2017-18, reflecting somewhat stronger activity in the second half of 2017 as
well as a projected fiscal stimulus in the United States. Growth prospects have marginally worsened for
emerging market and developing economies, where financial conditions have generally tightened. The near-
term growth prospects were revised up for China, due to expected policy stimulus, but were revised down
for a number of other large economies - most notably India, Brazil, and Mexico.
Global growth is projected to accelerate to 2.7 percent in the current Fiscal and further strengthen to 2.9
percent in 2018-19, in line with previous projections. However, the world economy continues to face a
number of downside risks. This includes increased protectionism, heightened policy uncertainty, the
possibility of financial market turbulence, and, over the longer run, weaker potential growth. These risks
highlight the urgency for policymakers in emerging market and developing economies to rebuild
macroeconomic policy space and implement policies that support investment and trade.
Indian Economic Overview
On the domestic front, India remained the fastest growing major economy in the world, after surpassing
China last year. Gross Domestic Product growth rate was 7.1% for FY 2016-17, supported by strong
consumption growth and government spending. Inflation eased sharply led by a decline in food inflation
amidst governments astute food management, facilitating a 50 basis points rate cut by the RBI in FY 2016-
17 before it adopted a neutral stance. Diminishing vulnerabilities on the external and fiscal front with FY
2016-17(April -December) current account deficit at 0.7% of GDP and Governments commitment to fiscal
consolidation reinstated investor confidence in the economy, resulting in record Net Foreign Direct
Investment of US$35.9 billion in FY 2016-17.
Against the backdrop of robust macro-economic stability, the year was also marked by two significant
economic measures by the government. Governments demonetisation move to counter the shadow
economy and promote cashless economy has boosted digital payments in the country. Demonetisation has
had short-term costs but holds the potential for long term benefits. Follow-up actions to minimize the costs
and maximise the benefits include: fast, demand-driven, remonetisation; further tax reforms, including
bringing land and real estate into the GST, reducing tax rates and stamp duties; and acting to allay anxieties
about over-zealous tax administration. These actions would allow growth to return to trend in 2017-18,
following a temporary decline in 2016-17.
The Goods and Services Tax (GST) - constitution amendment bill, passed by the government, to be
implemented from July 1st, 2017 will have a significant impact on the taxation structure in the country. The
GST will create a common Indian market, improve tax compliance and governance, and boost investment
and growth; it is also a bold new experiment in the governance of India cooperative federalism. The reform
process would further help boost India position in the global arena.
Global oil demand growth remained robust at 1.6 million barrels per day in 2016 led by a 3.3% y-o-y growth
in demand from the non-OECD countries. Gasoline demand trends remained robust contributing around
40% of global oil demand growth. US, China and India accounted for 60% of the global gasoline demand
growth. Global oil price strengthened in FY 2016-17, supported by the OPEC non-OPEC co-operation to cut
oil production in the last quarter of CY 2016.
India became the second largest contributor to the global oil demand growth in terms of incremental oil
demand. India also overtook Japan as the world third largest oil consumer, after USA and China.

The foreign exchange reserves are likely to cross US$400 billion by September. The pace of forex accretion
has been the strongest since 2015 and this has also been one of the strongest in Asia ex-Japan in the past 12
months
Global Automobile Industry
Based on strong growth in production and sales of automobiles in the first quarter of 2017 in most of the
key regions around world, there is optimism that this year will see continued gains for the global automotive
industry.
The Western European car market ended the first quarter up more than 7% compared to the same period
in 2016, recording 3.9 million new registrations. All of the five largest individual markets expanded, with Italy
enjoying the strongest growth at 18%. Double digit growth was also recorded in Spain at 13% and Germany
at 11%, with the United Kingdom up at 8% and France at 7%. Total light vehicle production in the EU was up
at 3% to 5,016 million units in the first quarter of 2017. USA and Canada saw declines in vehicle production
with the US slipping by 1.9% to 3,017 million and Canada down 4.5% to 601,443.
In the Asia-Pacific region, sales for the first quarter were 6.9%, ahead of the same period in 2016, with 11.37
million units or 47.5% of the global market. China performed strongly again in the first quarter with
production and sales of passenger cars rising to 7.133 million and 7,002 million respectively, representing
increases of 8% and 7% year-on-year. Japan reported a healthy increase of 7.9% in passenger car production
in the first quarter to reach 2,200 million units; with total vehicle production, including trucks and buses, up
6.5% to 2,545 million. Vehicle sales in Japan increased, by almost 8% in the quarter to March, reaching over
1.3 million.
In India, sales of passenger cars were up 11%, when compared with the same period last year, at 803,200
vehicles. In the reporting period April 2016-March 2017 production of passenger cars and commercial
vehicles in India increased by 5.8% to 4,502 million of which 3,791 million were cars.
Indian Automobile Industry
The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the
country’s Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent market share is the
leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover,
the growing interest of the companies in exploring the rural markets further aided the growth of the sector.
The overall Passenger Vehicle segment has 13 per cent market share.
Domestic Sales
• Sales of Passenger Vehicles grew by 9.23% in April-March 2017 over the same period last year. Within the
Passenger Vehicles segment, Passenger Cars, Utility Vehicles and Vans grew by 3.85%, 29.91% and 2.37%
respectively during April-March 2017 over the same period last year.
• The overall Commercial Vehicles segment registered growth of 4.16% in April-March 2017 as compared to
the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) grew by 0.04% and Light
Commercial Vehicles grew by 7.41%. Three Wheelers sales declined by 4.93% in April-March 2017 over the
same period last year. Passenger Carrier sales declined by 8.83% and Goods Carrier sales grew by 12.75% in
April-March 2017 over April-March 2016.
• Two Wheelers sales grew by 6.89% during April-March 2017 over April-March 2016. Within the Two
Wheelers segment, Scooters, Motorcycles and Mopeds grew by 11.39%, 3.68% and 23.02% respectively in
April-March 2017 over the corresponding period of last year.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In
April-March 2017, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles, and Two
Wheelers registered a growth of 9.17 per cent, 3.03 per cent, and 8.29 per cent respectively during first
quarter of 2017. In addition, several initiatives by the Government of India and the major automobile players
in the Indian market are expected to make India a leader in the Two Wheeler and Four Wheeler market in
the world by 2020.
The government aims to develop India as a global manufacturing as well as a research and development
(R&D) hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRIP) centres as
well as a National Automotive Board to act as facilitator between the government and the industry.
Alternative fuel has the potential to provide for the country’s energy demand in the auto sector as the CNG
distribution network in India is expected to rise to 250 cities in 2018 from 125 cities in 2014. Also, the luxury
car market could register high growth and is expected to reach 150,000 units by 2020.
Automobile Components Industry
The Indian auto-components industry has experienced healthy growth over the last few years. Some of the
factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return
of adequate liquidity in the financial system.
The auto-components industry accounts for almost 7 per cent of India’s Gross Domestic Product (GDP) and
employs as many as 19 million people, both directly and indirectly. A stable government framework,
increased purchasing power, large domestic market, and an ever increasing development in infrastructure
have made India a favourable destination for investment.
Market Size
Over the last decade, the automotive components industry has scaled three times to US$ 39 billion in 2015-
16 while exports have grown even faster to US$ 10.8 billion. This has been driven by strong growth in the
domestic market and increasing globalisation (including exports) of several Indian suppliers.
The Indian Auto Component industry is expected to grow by 8-10 per cent in FY 2017-18, based on higher
localisation by Original Equipment Manufacturers (OEM), higher component content per vehicle, and rising
exports from India, as per ICRA Limited.
According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-
components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports
ranging between US$ 80-US$ 100 billion by 2026, from the current US$ 11.2 billion.
The Government of India’s Automotive Mission Plan (AMP) 2006-2016 has come a long way in ensuring
growth for the sector. It is expected that this sectors contribution to the GDP will reach US$ 145 billion in
2016 due to the governments special focus on exports of small cars, multi-utility vehicles (MUVs), two and
three-wheelers and auto components. Separately, the deregulation of FDI in this sector has also helped
foreign companies to make large investments in India. The Government of India’s Automotive Mission Plan
(AMP) 2016-2026 envisages creation of an additional 50 million jobs along with an ambitious target of
increasing the value of the output of the sector to up to US$ 282.65 billion.
The Indian auto-components industry is set to become the third largest in the world by 2025. Indian auto-
component makers are well positioned to benefit from the globalisation of the sector as exports potential
could be increased by up to four times to US$ 40 billion by 2020 accounting for as much as 26 per cent of
the market.

Strategy and Outlook
Over the last decade, the automotive components industry has scaled three times to $42 billion in 2016
while exports have grown even faster to $12 billion approximately. This has been driven by strong growth in
the domestic market and increasing globalisation of several Indian suppliers including exports. However,
there is room for growth as Indian exports still form only 1% of global automotive components exports.
Indeed, the industry has the potential to grow five-fold from $42 billion in 2016 to $180-200 billion in size
by 2026 and could reach 10% of India’s manufacturing GDP. To achieve this potential, the automotive
components industry will need to attract $80-100 billion worth of investments and ensure skill development
of the existing talent pool. By 2026, the Indian auto components industry could mature into being the frugal
innovator for the world and propel the Make in India movement into Quality in India and witness many
global MNC component suppliers’ manufacturing in India for the world. The Indian automotive industry is
showing positive signs with moderate growth in the passenger vehicle and two-wheeler segments. During
the year, OEMs launched newmodels with additional functionalities and features to attract customers.
• Government Initiatives
Favourable government policies such as Auto Policy 2002, Automotive Mission Plan 2006-2016, National
Automotive Testing and R&D Infrastructure Projects (NATRiPs), have helped the Indian auto components
industry achieve considerable growth. India is emerging as global hub for auto component sourcing. A cost-
effective manufacturing base keeps costs lower by 10-25 per cent relative to operations in Europe and Latin
America. Relative to competitors, India is geographically closer to key automotive markets like the Middle
East and Europe. Global auto component players are increasingly adopting a dual-shore manufacturing
model, using overseas facilities to manufacture few types of components and Indian facilities to manufacture
the others.
• Road Ahead
The rapidly globalising world is opening newer avenues for the transportation industry, especially while it
makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable
modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-
component manufacturers, who would need to adapt to the change via systematic research and
development.
• CTL - Way Forward
Your Company is currently engaged in formulating a scheme for debt restructuring, discussed herein at point
no. 11, which will be submitted in due course, for approval to the lenders forum. Successful implementation
of the proposed debt restructuring scheme would go a long way in opening the doors to vast opportunities
for growth in business. Sustainable debt obligations would ease the stress on liquidity thereby releasing
precious resources for working capital requirements causing current low capacity utilisation to be scaled-up
to optimum levels. The current order book and the demand from OEMs achieving the installed capacity
utilisation is not perceived to be difficult.
CTL plans to invest in low cost automation for better efficiency, consistency and output in manual processes
and coupled with value addition to casting products by performing painting, pre-machining, full machining
and assembly, as per customer requirements shall improve revenues and profitability. The Company shall
endeavour to add and move towards high end, critical and high value and special alloy products i.e., turbine
and bearing housings, case differentials, cylinder blocks and heads.

• Goal
The Indian auto-components industry is set to become the third largest in the world by 2025. The long-term
outlook remains positive for the automotive industry with all major global players having a base in India for
manufacturing, global sourcing as well as engineering. Correction in fuel prices and lower finance cost should
further add domestic growth in the short to medium term. Regular product launches planned by OEMs will
keep customer excitement levels up and create demand which is favourable for the overall industry growth.
Your Company, despite the challenges, is well positioned to benefit from the globalisation of the sector as
exports potential is harnessed to achieve the above.
The Amtek Business Excellence Program, which your Company started in 2014, has facilitated a highly
successful implementation of lean manufacturing processes. It remains the driving force behind CTLs cost
controls and productivity initiatives and is a key attribute of the Company’s business strategy. CTL has also
taken up certain other strategic initiatives such as realigning the product mix and expanding the product
range to increase the share of our value added product offering. Other initiatives centre round the overall
fiscal control, quality improvement, upgradation in technology and research & development. Your Company
also continues to focus on cost reduction and is confident that these initiatives, the new set of products that
are being developed, will help CTL to remain competitive in the market place.
Castex Capabilities and Achievements
India largest Iron Casting player, CTL has witnessed the steady change in technology especially in the ferrous
casting process and kept pace with ever increasing demand for better quality iron castings by OEMs with
latest equipment and technology. CTLs key technological capabilities are:
✓ Highly automated casting operations with automatic pouring system and semi-automatic core
shooter.
✓ Capability to produce 5 grades of iron castings.
✓ State of art, in-house tool design and 3D modelling/ simulation software with key machines such as
CNC, VMC etc.
✓ High pressure automatic moulding lines in both horizontal and vertical technologies. It is one of the
few Indian companies to have these latest machines
✓ Semi-automated core shop and fettling shop.
✓ Medium frequency Induction furnaces from leading equipment manufacturers such as Incoterm and
ABB
✓ One of the best metallurgical laboratories in India with key machines such as spectrometer,
microscope with image analyser, sterol in apparatus/ ferro excel lab & precision sand testing
equipment
✓ One of the best designs and die shop along with automated moulding and casing lines.
✓ Thin walled capability for cylinder blocks and heads.
✓ One of the largest and best flywheel casting facilities in India.
✓ Turbo Charger Housing. Capability to mould on high speed vertical casting lines yielding better yield
and weight reduction benefits.
✓ Transmission and differential housings are ductile iron parts which need special casting facilities
present with us.

Internal Control Systems and Their Adequacy
The Company has an adequate system of internal controls in place. It has documented policies and
procedures covering all financial and operating functions. These controls have been designed to provide a
reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of
financial reporting, monitoring of operations, protecting assets from unauthorized use or losses,
compliances with regulations. The Company has continued its efforts to align all its processes and controls
with global best practices.
Some significant features of the internal control of systems are:
• The Audit Committee of the Board of Directors regularly reviews the audit plans, significant audit
findings, adequacy of internal controls, compliance with accounting standards as well as reasons for
changes in accounting policies and practices, if any;
• Documentation of major business processes and testing thereof including financial closing, computer
controls and entity level controls, as part of compliance programme;
• State-of-the-art Enterprise Resource Planning, supplier relations management and customer
relations management connect the Company’s different locations, dealers and vendors for efficient
and seamless information exchange.
• The Company also maintains a comprehensive information security policy and undertakes
continuous upgrades to its IT systems;
• Detailed business plans for each segment, investment strategies, year-on-year reviews, annual
financial and operating plans and monthly monitoring are part of the established practices for all
operating and service functions;
• A well-established, independent, multi-disciplinary Internal Audit team operates in line with
governance best practices. It reviews and reports to management and the Audit Committee about
compliance with internal controls and the efficiency and effectiveness of operations as well as the
key process risks. The scope and authority of the Internal Audit division is derived from the Audit
Charter, duly approved by the Audit Committee; and Anti-fraud programmes including whistle
blower mechanisms are operative across the Company.
The Board takes responsibility for the overall process of risk management throughout the organisation.
Through an Enterprise Risk Management programme, the Company’s business units and corporate functions
address opportunities and the attendant risks through an institutionalised approach aligned to the
Company’s objectives. This is also facilitated by internal audit. The Business risk is managed through cross
functional involvement and communication across businesses. The results of the risk assessment and
residual risks are presented to the senior management. The Audit Committee reviews business risk areas
covering operational, financial, strategic and regulatory risks.
During Fiscal 2017, the Company assessed the effectiveness of the Internal Control over Financial Reporting
and has determined that the Company’s Internal Control over Financial Reporting as at March 31, 2017 is
effective.

Awards and Recognition
Global Presence
Thriving on challenges, company registered its presence across Americas, Europe & Asia to cater to a number
of clients. And is poised to explore new global frontiers to invent new products and to scale new heights.

Key Customers
Businesses
Automotive
Forging
Division
Iron Casting
Division
Aluminium
Casting
Division
Automotive
Machining
Division
Non
Automotive
Transportation
Specialty
Vehicles
Joint
Ventures
Auto Division
Non-Auto
Division

Management
Financial Condition
CTL monitors its financial position regularly and optimises its cash resources through a robust cash
management system. However, despite this the Company is experiencing a stress on the cash flows with the
result that during the financial year 2016-17, your Company has been unable to meet all its debt obligations.
The Company has had various rounds of discussions with the lenders and is currently engaged in formulating
a scheme for debt restructuring which will be submitted to the lenders forum. In this regard the Company is
co-ordinating with the lead lenders for successful implementation of the proposed debt restructuring
scheme.
It is envisaged, that your Company, post successful implementation of the proposed debt restructuring
scheme, will emerge as a much stronger Company with an improved capital structure and poised for growth.
The Company would like to thank its lenders for their continuous support.
Debt Position
As of March 31, the Company had consolidated debt of Rs. 62849 million comprising Rs. 113 million of long
term debt and Rs. 62736 of short term borrowings. Cash and equivalents stood at Rs. 109 million, translating
into net debt of Rs. 62740 million.
Name Designation
Ajay Kumar Chief Financial Officer
Anuradha Kapur Director
Arvind Dham Director
Brajindar Mohan Singh Director
Gautam Malhotra Director
John Ernest Flintham CEO
John Ernest Flintham Managing Director
Ruchika Co. Secretary & Compl. Officer
Ruchika Secretary
Sanjay Arora Whole Time Director
Sanjay Chhabra Chairman & Director
Sanjiv Bhasin Director
Yogesh Kapur Director

✓ Financial Charts

✓ Financial Results
✓ Financial Returns

✓ Financial Comparison

✓ CASTEX Share Holding
SWOT Analysis
➢ Strengths
✓ Geographical spread of operations in India allows proximity to a large and diversified customer
base.
✓ Largest Iron casting player in the country with capability to produce five grades of iron castings
✓ One of the best metallurgical laboratories in India with key machines such as spectrometer,
microscope with image analyser, storohlinappartus/ ferro excel lab & precision sand testing
equipment.
✓ Proximity to all major OEMs coupled with consistent track record of deliveries manifested by their
increased levels of localisation in India.
✓ State of art, in-house tool design and 3D modelling/ simulation software with key machines such as
CNC, VMC etc.
✓ One of the few Indian companies in India having high pressure automatic moulding lines in both
horizontal and vertical technologies.
✓ Trusted partner and strategic Tier I supplier to leading OEMs. It has well established strategic
relationships most OEMs across the country and abroad.
✓ Well positioned to cater to growing demand of automobile industry in India coupled with a large
Scale of operations allowing economies of scale.

✓ Dedicated R&D team focused on development & acquisition of new technologies relevant for
future product portfolio.
✓ Skilled, experienced and diversified workforce with proven credentials.
➢ Weaknesses
✓ Automotive operations are directly dependent on general economic conditions across key global
markets.
✓ Signs of melting demand for Automotive in America, South Africa, Eastern Europe etc.
✓ Prices and availability of raw materials like steel, non- ferrous alloys, precious metals, petroleum
products are dependent on various environmental factors and any unforeseen or sudden spike in the
cost of these items could impact profitability.
✓ The liquidity continues to remain under stress coupled with availability of fresh working capital funds
being a major challenge has led to low capacity utilisations thereby impacting profitability.
✓ High cost of production.
➢ Threats
✓ Political instability, wars, terrorism, multinational conflicts, natural disasters, fuel shortages and their
prices all present business risk.
✓ Due to global integration of automobile supply chains the industry has become highly competitive
with OEMs continuously scanning the market for lower prices and better terms.
✓ Iron Scrap being one of the main Raw Material is sourced from scrap dealers which operate in an
unorganised sector giving rise to uncertainties.
✓ Changing technologies have led to shortening of life cycles of new vehicles.
✓ Imposition of additional taxes and levies designed to limit use of automobiles could adversly affect
demand.
✓ Presence of large number of players in the automobile industry has resulted in extensive competition
thus enhancing scope for eating into share of business of other players.
✓ General law and order problems.
➢ Opportunities
✓ Strong economic growth in India and other growth markets like China, Southeast Asia and North
Africa - resultant demand for Automobiles.
✓ Indian Governments focus on improving ease of doing business with its "Make in India" initiative to
transform India into a global manufacturing hub.
✓ GOIs emphasis on substitution of imported goods sectors such as railways and defence are
expected to turn towards Indian Companies for procurement.
✓ Diversification towards forward integration.
✓ The 7th Pay Commission may act as a multiplier of demand for the Automotive sector.
✓ Strategic alliances and partnering could be a smart strategy resulting in specialised capabilities
differential offerings.

References
• https://www.moneycontrol.com/india/stockpricequote/auto-ancillaries/castextechnologies/AI49
• https://economictimes.indiatimes.com/castex-technologies-ltd/stocks/companyid-3638.cms
• http://www.amtek.com
• https://economictimes.indiatimes.com/castex-technologies-ltd/infocompanybackground/companyid-
3638.cms
• https://www.business-standard.com/company/castex-tech-15631/information/company-history
• https://in.reuters.com/finance/stocks/company-profile/CASE.NS
• https://www.ndtv.com/business/stock/castex-technologies-ltd_amtekindia/reports
• https://www.bseindia.com/stock-share-price/castex-technologies-ltd/castextech/532282/
• https://money.rediff.com/companies/Castex-Technologies-Ltd/10670051
• https://www.valueresearchonline.com/stocks/snapshot.asp?code=7281

Castex Technologies Business Transformation and Operational Turnaround

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