A

1. Jaipuria Institute of Management,
Vineet Khand, Gomti Nagar
Lucknow – 226010
AcademicYear 2022-23
Batch 2021-2023
Trimester 2nd
Programme
(PGDM/ PGDM-FS / PGDM-RM)
PGDM-FS
Name of Course Integrated Industry Analysis
Section E
Name of Faculty Dr Vir Ved Ratna
Nature of Submission
(Assignment/ProjectReport)
Phase-2 summary report
Topicof Assignment/Project Company Analysis
Deadline forSubmission 12-2-2022
Group/ LearningTeamNumber LT06
MaximumMarks Allotted
Contribution of Group/LT members in the Assignment/Project
Sl.
No.
Name & EnrollmentNumberof Student Contribution Signature
1 Simar Kaur Bakshi (JL21FS026) Emkay Taps and Cutting Tools limited
2 Shivangi Gupta (JL21FS025)
3 MrinalikaJain (JL21FS015)
4 Mohammad Ayaad Siddiqui (JL21FS014)
5 Ishan Jain (JL21FS010)
Date of receivingatPMC: Signature of PMC Staff:
Penalty[Marksto be deducted(if any)]:

2. INTRODUCTION
EMKAY TAPS AND CUTTING TOOLS LIMITED is located in Nagpur,
Maharashtra, India and is part of the Metalworking Machinery Manufacturing
Industry. EMKAY TAPS AND CUTTING TOOLS LIMITED has 71 total
employees across all of its locations and generates $6.94 million in sales (USD).
There are 3 companies in the EMKAY TAPS AND CUTTING TOOLS
LIMITED corporate family. Emkay tools can be trusted to provide you with a
pretty long and productive service life. These have ben designed and
manufactured using the latest engineering tactics and in sync with the latest
industry guidelines to make sure that the recipient obtains maximum value for
money. As Emkay taps dealer we will deliver impeccable thread taps that can be
utilized for a number of purposes. The major purpose of such taps is to cut the
female portion of a mating pair of fasteners that are made of metal. You can also
employ these taps to cut nuts and to make hole in the threads so as to make sure
that they will receive the bolt a lot more effectively. All the Emkay tools have
been manufactured with an understanding that a consistent supply of superior
quality the optimal performance thread cutting tools are extremely important for
the industrial market. They aim to revolutionize the industrial arena by providing
products that are efficient and proficient, the company always keep itself updated
with changing technology.
Analysis of the Financial performance of Emkay Taps and
Cutting Tools Limited
Their primary sourceof finance is debt. Their financial and operating leverage is
high. Companyhas reduced debt;Company is almost debtfree. The companyhas
delivered a poorsales growth of 2.73% over the past five years. Company has a
low return on equity of 12.19% for last 3 years. Earnings include another income
of Rs. 9.36 Cr. Dividend payout has been low at 4.38% of profits over the last 3
years.
Profitability with duo point analysis:

3. Leverage: Emkay taps and tools limited has a high financial and operating
leverage.
Risk: As the company has taken debt in its capital structure thus the risk is
accordingly high. Which shows moderation in the business risk profile, ETCTL
manufactures threading taps, which requires high precision. However, product
concentration restricts the ability to diversify revenue streams. Given the nature
of the product and need to fulfil just-in-time requirements, inventory is
moderately high.
Liquidity: ETCTL has adequate liquidity driven by expected cash accruals of
more than Rs.16 crore per annum in Fiscal 2020and 2021. Company also had
cash and cash equivalents of Rs.1.41 crore as on March 31, 2019. ETCLT also
had investments in equity and mutual fund of Rs 65.04 crore as on March 31,
2019. ETCTLalso has access to fund-based limits of Rs.6.5 crore, utilized to the
tune of9% on an average over the 12 months ended July 2019. The company has
no long-term repayment obligations and no major debt funded capex plans.
CRISIL expects internal accruals, cash & cash equivalents and unutilized bank
lines to be sufficient to meet its incremental working capital requirements. Also,
value ofliquid investments held to remain monitorable. CRISIL believes ETCTL
will continue to benefit from the extensive experience of its promoters and
healthy operating profits.
Analysis of Marketing practices of Emkay Taps and Cutting
Tools Limited
STP segmentation is done on the basis of product that is they are miling tools,
drilling tools,tapping tools and others, on the basis of type, the cutting tool of
market is segmented into linear cutting tools consisting oftoolbits ( single – point
cutting tools), broaches and rotary cutting tools including drill bits, countersinks,
milling cutters, and reamers. Their target market is automotive sector and small
repair retail shops . Positioning, they are providing trusted products .
Their four main tools of promotion are advertising , public relations and directing
marketing.Pricing strategy is competitive pricing, depending upon the of the
product.
Product Mix of Emkay Taps & Cutting Tools Ltd. Company
Product
Name
Year Month Sales value (
crore)
Product
Mix(%)
Taps & Tools 2021 12 54.95 97.65

4. Analysis of HR Practices of Emkay Taps and Cutting Tools
Limited
Human Resource Management in any enterprise, whether small or medium
constitute an important area of study. HRM studies fulfil the need of a
businessman to understand the economy, market, organization or any other
related area. In a small set up like Emkay there is greater proximity among
employees. Management and employees share a closer relationship and it has
several advantages. At Emkay, they are not spending much on HR practices
reason is that they faceproblem related to shortages offunds and expertise related
to human resourcemanagement. Moreover, in case ofMSME the success largely
depend on the enthusiasm, competency, resources and commitment of a single
person around whom the enterprise revolves. Since the owner often involve
themselves in doing manual work and taking responsibility for employment
matters including determination of pay, people issues are often taken for granted
and managed informally.
At Emkay they follow employee engagement practices so that employee retention
improves.
Analysis of Operations Practices of Emkay Taps and Cutting
Tools Limited
Location: Emkay taps and cutting toollimited is located in Nagpur, Maharashtra
and currently also established in two more places in India.
Quality related initiatives: Emkay tools can be trusted to provide you with a
pretty long and productive service life. These have been designed and
manufactured using the latest engineering tactics and in sync with the latest
industry guidelines to make sure that the recipient obtains maximum value for
money
Power
generation
2021 12 1.15 2.04
Scrap 2021 12 0.13 0.22
Others 2021 12 0.04 0.07

5. Technology adoption: Automotive sector has been one of the key contributors
to the growth of the machine tool industry. However, the global developments in
respect of emission regulations and rising concerns to climate change and
sustainability have propelled the alternative mobility concept, electric vehicle.
Although this transition is a long-term process, it has started showing impact on
the machine tool industry. Thus, the cutting tool manufacturer realised that they
need to adapt to the changing market needs and prepare for the challenge.