Shaily Engineering Overview

They are Indias largest exporters of engineering plastic components. They are also a trusted global supplier and they operate in 3 different sectors which are healthcare, consumer and industrials. They provide products for more than 40 countries. They have more than 200 machines which all operate with precise skills and automation. They also have one manufacturing plant for stampede metal products. They excel in the production of high precision plastic products. Other than this they also do other things like pad printing, hot stamping, painting, screen painting, ultrasonic welding, laser marking and vacuum metalliising. They specialise in development of manual, semi automated and fully automated assembly processes help companies cut costs while keep their quality. Their products are needed in a lot of sectors which include home furnishings, medical devices, toys, FMCG, Pharma packaging, automotive, appliances, engineering and consumer electronics. The company generated 75.02 percent from their international sales. Shaily plan going forward includes investing in their capabilities, deepaning their presence and emerging as a key part to more global countries. They think that their medical side should provide about 25 percent of their future revenue. Because of the technological advancements ready to take place and plastics important connection to the assembly of these technologies there is expected to be more need of complex plastic mouldings. Plastic has became one of the essential materials in a lot of things like lifesaving, insulation and transportation and will continue to advance products in many sector because of their ability to replace natural materials without compromising the strength to weight ratio. Shaily is considered as one of the specialist in the industry. The company has focused on investing into long term growth opportunities with the medical sector going to play a role in that. They have delivered growth even when there have been multiple disturbances like the Red Sea and Russia Ukraine. In the medical sector they are investing to get into the weight loss combination drugs. Despite revenue staying around the same, their margins picked up which shows good signs for the future. This year their healthcare grew by around 7 whole their consumption went down by 8 and their industrial remained flat by growing by 1. They have been working on increasing their healthcare and have done so from 3 percent of their revenue in 2019 to 16 plus in 2023. Few reasons that engineered plastics are becoming very popular is it is cost effective, electricity insulator and very durable, these are just a few of the ways plastic is helpful. Healthcare is their second biggest sector and their fastest growing sector and for healthcare they do contract manufacturing. Some growth drivers for healthcare includes Increasing spending, advancement in drug delivery, expansion of healthcare and escalating costs. A few challenges include identifying new customers and overlaps between key accounts and new accounts. For their consumer segment their divisions consist of home furnishing, FMCG packaging, LED lights, Toys and carbon steel furniture. 3 of their key clients include Hindustan Unilever, IKEA and P&G. Some growth drivers for this sector is rising demand for carbon steel furniture, advance development in infrastructure and outsourcing of production. Lastly for their industrial segment which is their smallest, their division comprises of automotive components, appliances and high preform engineering components. Growth drivers for this industry include growing demand for conversion of metal to plastic, increasing household demand and higher living standards. The global economy remains stable while the Indian economy continues to grow more and more. India is on its way to became a major manufacturing hub and exporter. The global plastics market is ready to witness a lot of growth and plastic output is expected to double over the next few years. Since plastic is a lightweight and durable material it means it has use in a lot of sectors as a way to replace materials. Because of rising disposable income in households there is going to be more spending on home decor and furniture. The toys industry is also growing because of parents having more disposable income and with eh need of eco friendly toys. Summary. Shaliy engineering plastics is a company that is into manufacturing high precision plastics components for various sectors but their three main sectors ar healthcare, consumption and Industrials. Out of this health care is the fastest growing but their second largest. Consumption is their largest sector. They are also Indias largest exporter and 75.02 percent of their revenue comes from international sales. Personal thoughts. I like how they have an international business also incase the Indian market faces downturn. I believe that plastic is going to play a key part because of its ability to replicate natural materials but something considering is that a lot of people are trying to ban plastics. Despite this I believe that plastics is going to play a big part in developments of products. I wonder if they can get into the technological industry with stuff like semiconductors or somethings like that as that would be a very big market for them. They might be winning a deal to manufacture for apple.