COVID-19, Anti-China Sentiment Driving India’s Helmet Industry: Studds Accessories MD

Demand for personal mobility and the anti-China sentiment will be key factors in the growth of India's helmet industry, says Siddharth Bhushan Khurana, MD of Studds Accessories, a leading wholesale manufacturer and exporter of helmets and motorcycle accessories.

"People do not want to use public transport and they are moving towards two-wheelers. We are also seeing a big uptick in demand for used two-wheelers. Both markets are driving growth for the helmet industry," he said.

The helmet industry in India has been growing at a rate of approximately 25 percent annually and now Khurana expects a 30-35 percent annual growth rate over the next few years.

With companies wanting to establish alternate supply chains, Studds India has started receiving inquiries from markets where it has no presence yet. The company has been exporting helmets to Europe, Argentina, Mexico, Philipines and Brazil.

"We are seeing a strong anti-China sentiment at the moment and witnessing demand from countries like New Zealand and Cuba where we were not present. The export growth rate would be higher than the domestic growth rate this year. We expect a 60-70 percent growth rate in exports for the next two-three years," he said.

The company has recently set up a production line for bicycle helmets, mainly for export markets and will soon get into manufacturing helmets for skiing, rugby, football and cricket.

In the last two years, Studds India has invested Rs 200 crore in setting up two new plants which have increased its manufacturing capacity from 7 million units to 14 million units annually. The company sold 6.9 million units in FY20 and despite COVID-19, it is expecting a 10 percent growth in FY21.

"While there were hardly any sales for at least three months due to the lockdown, the company turned its focus to making face shields. We sold 1.5 million face shields in the past few months. Studds is now also manufacturing face masks," said Khurana.

The company claims to have stopped all imports from China in the last four months. Studds used to import 2 percent of its manufacturing material in the form of helmet graphics from China but is now sourcing the same from Vietnam.

Khurana feels that India's helmet industry has huge potential going forward as only 60 percent of India's two-wheeler riders wear helmets. "Greater enforcement would drive demand for helmets and the government can also consider making it mandatory for pillion riders to wear helmets as this would reduce fatalities," he said.

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Abhishek Securities

Search This Blog