Asad Daud, Managing Director at Aeroflex Industries stated that the company exports 80% of its sales, which equates to approximately $3 billion in the global market and serves 1% of the entire market.

In an interview with CNBC TV-18, Daud spoke about the company, its market size, competitors, working capital cycle and much more.

Manufacturer of metallic flexible flow solutions Aeroflex Industries IPO was fully booked within 50 minutes. As of 12:43 pm, the issue was subscribed 2.68 times, cumulative data available on BSE showed.

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“We supply to all critical industries like oil & gas, petrochemicals and new age industries like fire sprinklers, solar, EVs, etc,” Daud said.

Speaking of competition, Daud said there is no listed company in India as of now that’s in a similar line of business.  He said, “We’ll be creating a new category on the stock exchanges,”

Explaining the reason for the high inventory, Daud spoke about the working capital cycle. “Since more than 80% of our sale is from exports and around 40% of our raw materials are imported, we need to keep sufficient inventory to ensure smooth flow of our production,” he said. Explaining the production process, he said it takes 4-6 weeks for production at a manufacturing plant.

Speaking on raw materials, Daud said that there are two kinds of raw materials that the company buys. One is wire and another is coil. The wire is bought 100 per cent from India, but in terms of the coil, 70 percent is imported currently, most of which comes from China. “(We are) looking at suppliers from India for coil,” he added.

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