EXPANSION PLAN

The Company is planning to undertake an expansion plan by way of increasing its production capacity and existing
products range/line. In this connection, the Company has started executing its expansion programme at Dadra
unit.

MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY SCENARIO:

A) Industry structure
The economic scenario of India is undergoing a sea change. The Governments priority is on development of
infrastructure. Telecom, Power Generation, T & D, Engineering & Automotive sectors are on the growth path. The
Indian wire & cable industry has been largely driven by the growth of these industry sectors. The rapid growth in
these sectors augurs well for and will give a boost to the Indian wire & cable industry. Your Company
manufactures, mainly, winding wires & strips which are used for a wide variety of applications in Electrical, Electro-
Mechanical, Electronic & telecommunication equipments which are either rotating type like, Motors & Generators
or Static like Transformer, UPS, relay coil etc. Enamelled Copper wire constitutes more than 80% of winding Wire
production in India. The Company has diversified it’s products which include, Submersible winding wire, Paper
insulated wires & strips, Fiber Glass covered strips and enameled Fiber glass covered wires & strips, Aluminium
winding Wire, which are at low level of production, compared to Enamelled Copper wire & strips.

B) Development, Modernization & Expansion

Dadra factory which is the parent unit of Ram Ratna Wires Ltd, commissioned in 1995 has been planned for
modernization of its old Plants & technology, in tune with Company’s policy of keeping in pace with the
technological development prevailing at international level and also to cover the complete range of sizes in round
enameled wire. The planned capacity is for 347 Metric Ton per month. There is growing demand for these
additional Sizes in fine & superfine wire which are used for manufacture of servomotors, miniature relays chokes,
transformers and other equipments used in electronic & Telecommunication sector. At the moment some quantity
of enameled copper wire in finer sizes are also imported. The Expansion is planned for tapping these local
demands and also eventually for export.

C) Outlook
Growth of Indian Winding wire Industry is assured as it is directly linked with our growth in power generation. GDP
and purchasing power of growing middle class in India. The Eleventh Plan (2007- 2012) will add 62, 374 MW of
Capacity for power Generation (Source IEEMA January 2010 edition, Interview with Minister of State for Power).
Capacity addition planned during 12th Plan is another 100,000 MW. (Source, Summary of industry report 2008-09,
IEEMA, February 2010 edition). Still, Per capita consumption of Electricity in India has been amongst the lowest in
the world. Therefore, to bridge this gap, very large addition to the capacity in power generation is expected, in
future. Indian Economy, which is world’s second fastest growing one, has been showing impressive growth in GDP.
Steady growth in wage increase of both Private & Public Sector employees in India, Tax incentives given to them
and also availability of low interest loan, will enhance the purchasing power of large section of our 1.2 Billion
people, which will push up the demand for house hold electrical equipments which needs winding wire, both in
rural & urban India, and therefore, outlook for winding wire industry is very bright.

D) Opportunities and threats

Indian Electrical Industry has been showing impressive growth for the last couple of years and it is likely to
continue to grow due to the domestic demand as well as growth in exports. While this is an opportunity for
growth, fluctuating Copper prices in the international market and stringent delivery schedule at very short notice
from domestic Customers , poses threats to the profitability of the Company. Company also has to face tough
competition from other leading manufacturers in winding wire Industry, in India & abroad.

TECHNOLOGY ABSORPTION
Company continues to import latest version of Enamelling Plants, which improves quality of products and reduces
running cost. Company has not imported any technology and process. Depending upon the market needs,
company continues to develop processing techniques & testing methods, in house, in line with international
developments.

Employees
The Company continues to maintain cordial relation with its workforce at all locations. Continuous upgradation of
core skill through training programmes either internally or through external agencies are an integral parts of
human resources development policy.