On July 30, 2019, Studds bought 100% of SMK EUROPE,UNIPESSOAL, LDA. At a rate of Rs 79.98 for 1 Euro, the total value of the investment is Rs 2,39,94,000 for 3,00,000 shares of 1 Euro. It was done in order to expand the company's export efforts. The core activities of SMK Europe are the import, distribution, and export of motorcycle and bicycle equipment and accessories.

• They have strategically expanded their product portfolio under our two brands, Studds and SMK, each positioned to target specific segments of the helmet and two-wheeler lifestyle accessory market, so as to compliment with one another. 
• The safety, reliability and quality associated with a helmet brand are the key attributes which increase customer confidence and influence a purchase decision.
• They understand changing fashion trends and anticipate customer requirements, while ensuring compliance with the highest quality standards. They have hired Spanish design firm for designing and developing SMK full face and flip- up helmets with inbuilt Bluetooth technology in order to enhance the riding comfort and safety of two-wheeler riders.
• Strong pan India dealer network across urban, semi urban and rural parts of India which consists of dealers and institutional customers, such as the Central Police Canteens and Canteen Stores Department as well as a global distribution network.
• They have developed their manufacturing processes over two decades of production experience and gradually created extensive backward integration, which has allowed them to have better control over the quality of their products. This ensures quality and safety control at each stage of the manufacturing process, supporting their ability to continuously develop new products and designs, reduced operational costs and economies of scale. 
• Most of the orders placed by the dealers are backed by advance payments and all the orders placed by the importers are usually backed by advance payments or letter of credit, which allows them to have negative working capital.
  

• They company do not enter into agreements with suppliers of their raw materials that they purchase and typically transact business on an order-by-order basis and also procure their raw materials on the spot. If there will be a significant disruption in the supply of raw materials or finished products from current sources or, in the event of a disruption, they would not be able to allocate alternative suppliers of materials of comparable quality at an acceptable price.
• As far as bicycle helmets are concerned, India is still an emerging market. While the bicycle accessories market in India is expected to grow at a CAGR of 3.26% but they were unable to successfully sell all the bicycle helmets that they manufacture which is primarily because of their focus on two-wheeler vehicle helmet and inability to compete with the prices by Chinese manufacturers of bicycle helmets.
• Company's asset turnover ratio has declined by 3.1% because of their inability to mobilize their fixed capital on the account of setting up new manufacturing plant in Faridabad which shows diseconomies of scale as they already have three manufacturing unit within Faridabad.
• Except their two-wheeler helmets their other business line which includes gears and jackets are not able to meet the standards as their competitors.

• Helmet industry in India is expected to grow at a CAGR of 12% during 2022-2027. Evident from the data, the helmet market is expected to witness robust growth in the coming years as individuals are becoming more aware of the importance of road safety.
  
• Easier finance options, newer and more fuel-efficient models, rising incomes and emerging business models, such as e-commerce, also help OEMs to sell more in the market. In metros and major cities, choked infrastructure and traffic jams, paucity of parking space have fuelled the sale of two wheelers over four wheelers. People buy two-wheelers for shorter commutes despite owning a four wheeler. Preference for two wheelers is increasing in congested cities and they are commonly becoming second vehicles in households.
  

• The growth witnessed by the Indian two wheelers industry has attracted a number of new entrants to the market and it is expected that the Indian two wheeler industry will become more competitive in the future. The plethora of products introduced in the past has also raised customer expectations with respect to reliability, styling, performance and economy.
  
• Leading manufacturers need to ensure that on one hand they build adequate infrastructure in terms of dealerships and servicing stations in the urban areas and on the other ensure that their distribution infrastructure also reaches rural areas.