Midfield Industries-IPO Note - ANS Pvt. Ltd.

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POSITIVES AND CONCERNS ABOUT THE COMPANYPositivesStrong Customer Retention:Midfield Industries Ltd. (MIL) currently caters to the 500 customers both indomestic and international markets from various sectors.One stop Solution:The company provides end to end solutions to their clientele & positionthemselves as ‘One Stop Shop’ for their packaging needs providing completepackaging solutions to them at their production site.Niche segment:The company offers a complete bouquet of industrial packagingconsumables and catering to the growing demand of packaging materialrequired by various medium & large scale manufacturing companies in India &abroad.
ConcernsCapacity ConstraintThe company has not managed to grow in line with the growth in the industrialpackaging industry in India. The company has not been able to expand facilitiesthe meet the demand growth.Competition with peers in the operations contract spaceMIL is competing with ITW Signode India Ltd. in operational contract space. Theyhave a relatively stronger balance sheet and better band-width than MIL, whichgives them a competitive edge over the company.Raw material price fluctuationDue to fluctuation in the price of the raw material the company might not beable to maintain their operating profit margins.Financial ConstraintsThe company business is capital intensive and due to lack of capital thecompany is not able to match the industry growth and expand aggressively dueto financial constraints.Client base is not diverseThe company’s client base is not diverse as 10 customers account for around48% of their sales.
Page 2 and 3: Issue DetailsSectorIndustry-Packagi
Page 4 and 5: INDUSTRY OUTLOOKIndian Packaging In
Page 8 and 9: FINANCIAL HIGHLIGHTS1. Weighted ave

Midfield Industries-IPO Note - ANS Pvt. Ltd.

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