Tega Industries Ltd IPO

1. Tega Industries is the second largest producer of critical to operate products and the fact that they are very hard to substitute, increases the importance of the company’s products.
2. The products of the company are backed by very strong R&D and are technology intensive products. The products are built to suit and not not off the shelf.
3. A huge sales network with 18 overseas and 14 domestic sales offices, with 158 dedicated members in the sales and servicing team.
4. A very skillful and diverse workforce supported by a strong and qualified senior management team.
5. The company is planning many expansion schemes, which will help them achieve economies of scale.

1. Due to a large part of the operations taking place outside the country, the company is also susceptible to the risks of the other foreign countries, which can have an adverse affect on the business.
2. If there is any form of incompetence or a lack in management of the sales team in both India and abroad, it could prove to be disastrous for the company’s financials.
3. The company is wholly dependent on third parties for raw materials, distribution of the end product. If there any disruptions or problems in the quality of these services, it can prove to be very harmful to the company.
4. The pricing and supply of the products will be affected negatively, if there is any shortage or increase in price of the raw materials.
5. The depreciation of Rupee would lead to high fluctuations in the exchange rate in currencies in which the company has borrowings or business, which is a potential risk.