The Management Discussion and Analysis Report sets out developments in the business
environment and the CompanyRss performance. The analysis supplements the BoardRss Report,
which forms part of this Annual Report.
GLOBAL ECONOMY:
At the outset of 2023, encouraging developments in the global economy encompass the
easing of inflation and energy costs from their apex levels, along with ChinaRss decision
to terminate its zero-COVID strategy, which is projected to provide a stimulus to economic
growth. While the complete impact of these changes is yet to be fully realized, emerging
markets and developing economies are already experiencing a substantial upswing in growth
rates, reaching 3.6% this year compared to 2.8% in 2022. Inflation expectations are
presently stable, with a predicted decrease from 7.0% this year to 4.9% in 2024, due to
major central banks communicating the necessity for a more stringent monetary policy
stance. Moderating demand and escalating interest rates globally will further erode
inflationary pressures throughout 2023. The tightening of monetary policy by the majority
of central banks is anticipated to drive inflation back toward its targets leading it
toward the recovery path. Arm conflict between Russia and Ukraine effected Europe, UK, USA
and other countries badly.
INDIAN ECONOMY:
Indian economy has increased in size from being 10th to 5th largest in the world in the
past nine years. According to Economic Survey 2022-23, Indian economy has staged a broad
based recovery across sectors and positioning to ascend to pre-pandemic growth path in
FY23 driven by several measures taken by the Government and RBI - the Central Bank of
India. According to Second Advanced Estimates of National Income 2022-23, the growth in
real GDP is estimated at 7.0% during the financial year 2022-23. Multiple agencies
worldwide projects India to be the fastest growing economy in the world with a growth
forecast expected in the range of 6.5 to 7.0% in FY23.
IndiaRss GDP growth is expected to remain healthy in FY24 backed by infrastructure led
growth model by the Government with an emphasis on transportation, housing, logistics and
last mile connectivity. This is further supported by crowd-in private investments,
improvement in consumption level and enhance affordability.
PLASTICS INDUSTRY SCENARIO AND DEVELOPMENT:
Indian plastic industry market is one of the leading sectors in the countryRss economy.
The production and consumption of plastics in India have increased manifold in the last
three decades. In 2021-22 the consumption of plastics was approximately 22 MMT, compared
to 0.9 MMT in 1990. The industry gives jobs to over 4 million people and comprises over
35,000 processing units, 80% of which are small and medium-sized enterprises. This sector
is predicted to achieve 9.1 lakh crore by 2025. During April 2022-February 2023, IndiaRss
plastic exports stood at US$ 10.9 billion. Also, IndiaRss plastic exports is expected to
reach US $25.00 Billion by 2025.
The Government of India intends to take the plastic industry from a current level of Rs
3 lakh crore (US$ 37.8 billion) of economic activity to Rs 10 lakh crore (US$ 126 billion)
in four-five years. 10 Plastic Parks have been approved in the country by The Department
of Chemicals and Petrochemicals. Among these, six plastic parks have received final
approval from the following states - Madhya Pradesh (two parks), Assam (one park), Tamil
Nadu (one park), Odisha (one park), and Jharkhand (one park). These parks are intended to
boost employment and attain environmentally sustainable growth.
INFRASTRUCTURE AND CONSTRUCTION:
Increase in infrastructure investment provides a critical push to the potential growth
of the economy. The Government, in recent years, provided an increased impetus for
infrastructure development and investment through the enhancement of capital expenditure.
In the Union Budget of 2023-24, the Government has further increased the capital
expenditure outlay by approximately 33% to Rs 10 lakh crore which is nearly 3 times the
outlay in 2019-20. The increase in outlay is expected to ramp up the virtuous cycle of
investment and job creation. The continuation of 50 year interest free loans to states for
one more year is expected to spur investments in infrastructure and enhance growth in the
economy.
COMPANY OVERVIEW & STATE OF AFFAIRS:
Fiberweb (India) limited (“The Company”) is a 100% Export Oriented
Unit (EOU) having ISO 9001:2015 and ISO 45001:2018 certified by quality registrar INTERTEK
and UKAS.
The Company is engaged in manufacturing of technical textile field, innovative, quality
spun-bond polypropylene nonwoven roll goods and products used globally in various
industries, such as hygiene, agriculture crop cover and medical & industrial clothing.
The Company with its excellence in manufacturing, producing and supplying high quality
roll goods to various users all over the world including few of the fortune 500 clients.
It also produces and exports MELT BLOWN Fabrics which is widely used for Face masks,
Filtration, Absorbents, Rail Tracks and variety of products using Spun Bond and Melt Blown
fabrics.
The global nonwoven fabrics market size is projected to grow from USD 40.5 billion in
2020 to USD 53.5 billion by 2025, at a CAGR of 5.7% from 2020 to 2025. IndiaRss nonwoven
market is growing at a rate of 8- 10% & the market is expected to grow at a rate of
12-15% in future. The Indian packaging industry is likely to witness CAGR growth of 18%
with the increase in share of non-woven. However the consistent growth showing up usage in
automotive, filtration, geotextiles and the medical and hygiene sector, the growth will
escalate in value terms too.
The year 2022-2023 has been challenging due to logistic issues and disproportionate
increase of freight rates and it is hoped to scale greater heights. The Company expects to
grow at a healthy rate during the current financial year. The Company is predominantly
into manufacture of products for Automotive and Consumer Durable industries and is already
a major supplier of plastic products to the above mentioned industries. . The Company is
well positioned to capitalize on the opportunities over the next few years.
OPPORTUNITIES AND RISKS:
While increasing demand is an opportunity for the Industry, increased competition in
the processing sector, change in Government regulations and fragmented nature of the
plastic processing units are a threat to the Company. However, with multiple barriers to
entry, the company, being an organized player, is well placed to outpace competition.
SEGMENT REPORTING:
Your CompanyRss main business is "Polymer Processing" and all other
activities of the company revolve around this main business. As such there are no separate
reportable segments within the Company and hence, the segment wise reporting as defined in
Ind AS 108 - Operating Segments (Accounting Standards 17) is not applicable to the
Company.
Mitigation Strategy:
Bulk of the CompanyRss foreign exchange risk (arising out of import of Raw materials)
is very short-term (less than 3 months) in nature at any given point of time. The company
has adopted prudent and consistent hedging policy guided by the Board, by entering into
simple forward contracts, at optimized hedging costs for mitigating the said risk. Company
is able to partially balance the exposure risk by way of export of goods. Further company
is not exposed to any long term/ short term foreign currency loans, thereby minimizing
exchange fluctuation risk.
HUMAN/INDUSTRIAL RELATIONS:
Since the very inception of the company, the industrial relation aspect of the company
has been very cordial at all locations of the company. The Company believes that manpower
is the most valuable primary resource for the growth of the organization. Therefore the
company has recruited competent managerial personnel and taken steps for strengthening
their efficiency and competency, through their involvement in the companyRss development
and by installation of effective system for improving productivity. It is totally a
company run by Professionals.
The Number of permanent employees on the rolls of the Company as on 31st March, 2023
was 120 Nos. as against 133 Nos. on 31st March, 2022.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The company maintains adequate internal control systems, which provide among other
things, reasonable assurance of recording the transaction of its operations in all
material respects and of providing protection against significant misuse or loss of
CompanyRss assets. Apart from self-monitoring of internal controls, Internal Auditors have
expressed their satisfaction about the adequacy of the control systems and the manner in
which the Company is updating / upgrading its systems and procedures.
The Audit Committee takes due cognizance of the observations made by the auditors and
gives their suggestions for improvement. The suggestions of the Audit Committee further
ensure the quality and adequacy of the control systems.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Highlights: (Rs In Lakhs)
|
2022-23 |
2021-22 |
|
Standalone |
Standalone |
Sales and other Receipts |
6738.15 |
9642.65 |
Gross Profit / (Loss) before depreciation |
276.11 |
1599.34 |
Less: Depreciation |
236.21 |
219.03 |
Profit from regular Activities |
39.90 |
1380.31 |
Extra ordinary items (Net) |
92.77 |
- |
Profit/ (Loss) before taxation |
(52.87) |
1380.31 |
Profit/ (Loss) after taxation |
(29.93) |
1133.50 |
Earning Per Share |
(0.10) |
3.94 |
During this year the earning per share (Standalone) of the face value of shares Rs
10.00 each has gone down from Rs 3.94 to Rs (0.10) (Basic as well as diluted).
CAUTIONARY STATEMENT:
Statement in this report on Management Discussion and Analysis describing the
companyRss objectives, projections, estimates, expectations or predictions may be forward
looking statements within the meaning of applicable security laws or regulations. These
statements are based on certain assumptions and expectation of future events. Actual
results could however differ materially from those expressed or implied. Important factors
that could make a difference to the CompanyRss operations include global and domestic
demand and supply conditions, finished goods prices, raw material costs and availability,
Logistic problems, change in Government regulations and tax structure, economic
developments within India and the countries with which the company has business contacts
and other factors such as litigation and industrial relations.
The Company assumes no responsibility in respect of forward looking statements which
may be amended or modified in future on the basis of subsequent developments, information
or events.
|
On behalf of the Board For Fiberweb (India) Limited |
Place: Mumbai Date: 11th August, 2023 |
Pravin V. Sheth Director DIN:00138797 |
Registered Office:
Air Port Road, Kadaiya, Nani Daman, Daman (U.T.) 396 210.
CIN: L25209DD1985PLC004694 E-mail: fiberweb@fiberwbindia.com |
|
+91-9892691696
