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Amid the escalating Israel-Hamas conflict in West Asia, some Indian companies, which have dependencies on Israel either for imports or exports, have reason to be wary.

But one such company, Technocraft Industries, which exports precision equipment like drum closures and scaffolding, while also importing vital defense equipment from the region, is not worried at the moment.

In a chat with CNBC-TV18, Technocraft's Chairman and Managing Director, Sharad Saraf, highlighted the situation, saying, "We do not have a very large exposure to Israel directly in terms of export. But we do have imports from Israel... for producing some defence equipment."

Saraf expressed concern about these imports given their strategic importance, though the company has a stockpile to last a month and a half.

In terms of exports, the company generates roughly Rs 15-20 crore annually.

"So far, it doesn't appear that it is going to be affected. But I am expecting the war to escalate, at least to some extent, and that may create a problem," he said.

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While imports may not be large value-wise, strategically, it is important because the company cannot finish a major job until the component is available, he said.

"The parties with whom we are dealing are also quite far away from the war zone. So, I don't think Technocraft company would be affected anyway," he said.

Technocraft Industries also has contingency plans in place with alternate sources in case the situation worsens in the region.

Technocraft is also facing challenges in its European drum closure business. Saraf stated, "Drum closure business is down by almost 25% in Europe. We are trying hard to make it up from other geographical sectors. But I was recently in Europe just a week ago, and I could see for myself that there is a serious problem in Europe, and it is continuing even now."

The company's overall exposure to Europe spanning across various segments is at approximately Rs 150 crore.

Shares of Technocraft Industries closed nearly 5% higher at around Rs 2,111. The stock has shown resilience over the past month, recording an over 4% increase.

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(Edited by : Shweta Mungre)

First Published:Oct 11, 2023 8:25 PM IST