Moser Baer's annual report 2017


#1

The company’s outlook seems grimmer than ever. The loss carried from previous years is many times bigger than its annual revenue (which is rapidly declining every year) and the company is barely able to sustain its daily operations.

Since our last report, despite a strong customer base led by
our long term relationships with key OEMs in the Optical
Media space as also healthy growth prospects within the
Solid State Media and Solid State Lighting segments,
your company had to face severe headwinds caused
principally on account of severe liquidity constraints
resulting in lack of working capital to fund operations in
order to meet the on-going business opportunities. The
company made every effort within its means to augment
its liquidity, whether in terms of securing additional
customer advances, enhanced vendor financing, sale of
noncore assets as also a continuing dialogue with lender
banks towards restructuring and resolution of the existing
debt. However, despite our perseverance, the efforts did
not yield the desired results and the resultant shortfall in
liquidity has led to a progressive decline in our operations.
During this period, every effort was made to rationalize
costs, and while healthy progress was made towards
optimizing the cost structure, this was not adequate to
compensate the shortfall in overall margins, resulting in
higher levels of stress and financial strain.
We continue to work on garnering support from all our
stakeholders including banks and financial institutions,
customers, vendors and other business associates to
help us through these difficult times and I remain fully
committed to help us traverse this path. We have done it
in the past and I see no reason why this cannot be done
in the future. However, it must be said that there is still
some way to go to achieve the requisite consensus as also
to impart the much needed liquidity to be able to tread
the potential revival path.

MOSERBAER_AR_2017-FULL.pdf (916.4 KB)


#2

Strange, here in germany you get overflowed with MBI-media.


#3

Heh, I’ve been reading about Moser Baer going bankrupt going back 5 years or so to that Forbes article. It seems like they are one of those companies that will not stop operating under loss until they’re forced to by enraged creditors/shareholders. I think we will continue seeing MBI media all over the place at least for the near future.


#4

Actual MBI-media have a very low quality, but I guess MBI is at least Number 3 of the optical media maker. Like I wrote, here in germany MBI-media is everywhere. Many brands, incuding discounter brands, which use some years ago Ritek and CMC use now MBI

So why they don´t make money?


#5

Do you mean this one?:
http://www.forbesindia.com/article/boardroom/moser-baer-has-all-but-shut-down/33432/1

I guess they are still in the “too big to fail” category. The question is for how long though.


#6

@pepst, Yeah that Forbes India article looks like the one I was referring to.

Of course I don’t know about the inner dealings of the company and what their executives believe but from my perspective it seems like they just didn’t invest enough R&D dollars into their core business (optical media) and instead chose to focus on trying to enter various other markets like solar power with the assumption that they will be able to sustain the expensive and risky market entry with dwindling revenue and their existing optical product line.

You only need to look at the News section here to see the players developing new BD technology, eg. Panasonic and Sony collaboration on that 1TB archival disc. Where is Moser Baer? They’re stuck with producing low quality CD’s and DVD’s for the lowest price on the market. And they can’t subsidize that production from their BD-R sales either like the rest of the industry.


#7

The BD-R are not for presenting good scans, but it degrades not so bad like RITEKBR2/3.

The DVD-media is much more worse than ever, MBI don´t have to put much money in R&D, they only had to produce the same they did 10 years ago.

The prices for DVD-media are low, they produce cheaper than in the past and like I said, you get here MBI everywhere (Discount-brands, maxell, Mediarange, Sony, …)

Conclusion: They produce cheap, they sell cheap but much, so they have to make money. Or is it like with Prodisc and Gigastorage, want Philips to much moeny from them?

OK, the 1TB-discs are invented by Sony and Panasonic, but will they produce the media; if, for how long? Sony always do something at the begin, if the prices fall Sony get out.

MBI don´t have the competence to do such things like Sony, they don´t make hardware.


#8

MBIL can or could make high quality media, but since at least 2009-2010 they are aggressively trying to reduce the material and machinery/labour/time costs to an absolute minimum - taking measures others wouldn’t even dare to consider (using thinner DVD halves that the DVD standards dictate, etc.).


#9

I know, my old Philips -R 16x was much better than the actual MBI-media; and better than the actual MBI-made MCC-Media

Is this not the reason you would say they have to make money because they produce so cheap?


#10

Do not forget that the recordable media sales (and optical media sales generally) are a fraction of what they were 10 years ago.


#11

Yep, but ten years ago there were many manufacturers, also big ones.