Aztec Fluids & Machinery provides coding and marking solutions to a diverse range of industries such as personal care, food & beverages, pharmaceuticals, construction materials, cables, wires & pipes, metals, automotive & electronics, agrochemicals, chemicals & petrochemicals etc.

Product portfolio includes

1. Printers such as continuous inkjet printers (CIJ), Thermal Transfer Over printers (TTO), Drop on demand printers (DOD), NIJ printers (i.e. piezoelectric printers) and laser printers
2. Printer inks
3. Printer consumable items i.e. makeup and cleaning solvents.

These products allow customers to print vital variable information like batch number, date, price, logo, brand, size, barcodes, promotional codes, meter marks, special marks etc. on the products such as steel tubes, aluminum panels, G.I. sheets, laminates, glass, PVC, plywood, woven sac, corrugated boxes, plastics and packing materials.

Since 2015, Company is an exclusive distributor of Lead Tech (Zhuhai) Electronic Co. Ltd., China for CIJ Printers, TTO Printers and a range of associated equipment and accessories for various countries such as India, Sri Lanka, Nepal, Bhutan, Bangladesh, Kenya and Nigeria. The other type of printers such as DOD and NIJ are imported by company from other foreign suppliers.

The company procures inks from Fluidtech Corp, a partnership firm of Promoters, Mr. Pulin Vaidhya and Mrs. Amisha Vaidhya with which they have a manufacturing and supply agreement. Fluidtech specializes in manufacturing a diverse colours of inks, and UV, which are used in the printers. Company also have a manufacturing setup at Vatva, Ahmedabad where they manufacture printer consumable items i.e. makeup and cleaning solvents as well as inks as per requirement basis.

The company generates major domestic sales through Gujarat, Rajasthan and Tamil Nadu. In FY23, the largest share accounting for 37.04% originated from Gujarat, followed by Rajasthan - 9.86%.

Some of the customers include Astral Limited, ADF Foods Limited, Eris Lifesciences Limited, Rossari Biotech Limited, Surya Roshni Ltd, Vectus Industries Ltd., ERIS Therapeutics Limited, Resinova Chemie Limited, Prince Pipe & Fittings Limited, Oswal Cables Pvt Ltd, Digicode, Codjet India and Makson Pharmaceuticals.

India’s Capital Goods manufacturing industry serves a strong base for sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others accounting for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations.

Market valuation of the capital goods industry was US$ 43.2 billion in FY22. The electrical equipment market share in India is expected to increase by US$ 33.74 billion from 2021 to 2025, and the market's growth momentum will accelerate at a CAGR of 9%.

Investment in engineering R&D sector is expected to reach US$ 63 billion by 2025. The Index of Industrial Production (IIP), in absolute terms, increased to 146.5 in January 2023 from 145.3 in December 2022.

India’s chemical industry is extremely diversified covering more than 80,000 commercial products. It can be classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers.

India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India's chemical sector, which is currently estimated to be worth US$ 220 billion in 2022 and is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040.  

Risk Associated to the business:

• Termination of the distributorship agreement with Lead Tech: Exclusive distributorship agreement with Lead Tech is valid till December 06, 2026 and can be renewed, at the discretion of both the parties. Further, the agreement can be discontinued by either of the party by giving a minimum notice period of 2 years.
• The company do not own the existing manufacturing facility, repair & testing centre and regional offices from where they carry out their business activities.
• Top 10 customers accounts approximately 65% of the revenue from operations.
• The company may fail to realize targeted synergies or other anticipated benefits from the acquisition of Jet Inks.
• The company generates a significant portion of revenue from key product i.e. printers which contributed to 31.21% of total revenue in Fiscal 2023.
• The company operate in a highly competitive industry and increased competition may lead to a reduction in revenues, reduced profit margins or a loss of market share.
• Business is currently dependent on the performance of pipes & fittings industry. Any downturn in the pipes and fitting industry can adversely impact.
• The company is exposed to foreign currency fluctuation risks, particularly in relation to import of printers & other items and export of products, which may adversely affect.
• Concentrated markets like Gujarat, Rajasthan.