BUSINESS OVERVIEW
Incorporated in the year 1993, your Company is operating in single segment i.e.
Designing, Producing, Marketing and Supply of Plastic Moulded Articles in domestic and
global markets. The Company currently has five manufacturing in India spread across 3
States & 1 Union Territory and 3 plants internationally.
Your Company commenced its commercial production at Pithampur, Madhya Pradesh from
April 2022. This facility is a state-of-the art automated manufacturing unit with the
highest standards of sustainability having an installed capacity of 1800 tons per annum in
addition to existing capacity of 1200 tons per annum for our Rotational moulding division.
Your Company has increased its installed production capacity at its Subsidiary and
Joint Venture by additional 30 and 15 percent respectively during the year under review.
With the commitment to make our products reach every corner of India, your Company
strives to expand its warehouses every year. This year we have opened new warehouses in
Vijayawada, the second largest city in Andhra Pradesh and Bangalore, the largest city of
the southern Indian state of Karnataka. These are strategically important locations in
terms of connectivity and regional reach expansion.
As on March 31, 2023, the Company has a total 10 warehouses situated at Coimbatore,
Hubli, Jammu, Jaipur, Kanpur, Indore, Cuttack, Hyderabad, Vijayawada and Bangalore.
Your Company also added more distributors during the year as compared to the past years
to achieve Pan India geographic spread.
With a vision to have the presence in every Household and Industrial Sector, the
Company participates in various national and international exhibitions to display its
products, build commercial relationships and spread its wings to every market.
PRODUCTS
Primas product portfolio consists of innovative products catering to growing industry
segments like industrial solutions, lifestyle products and material-handling solutions.
We adhere to the latest international standards and believe in adapting the best
practices in the industry, be it people, processes, quality of our products or internal
systems. We have been certified for ISO 14001:2015 (Environment Management Systems) and
ISO 9001:2015.
Furniture: The Company has been in the manufacturing of Injection Moulded Furniture
since its inception and has created its brand identity in the minds of customers. Our
reputation for high quality products at affordable prices has established Prima as a
reliable and dependable brand. The Company is gaining more visibility due to intensive
marketing efforts both online and offline, consistent business policies and increase in
coverage of untouched markets.
A host of products was launched in tune with the customer expectations and market
demands. The plastic storage category is a fast moving category in India with consumers
looking to add more storage space in their homes and offices. Our latest cabinets Mega-1
and Mega-2 meet this demands. These cabinets feature premium wooden finished panels for
luxurious feel with height adjusting shelf and ample storage.
Your Company also added Alfa 1 extension to its portfolio, which provides consumers
with a quick and easy way to increase storage space by 15 additional inches in height.
This extension feature is multipurpose and can be fitted easily to any of our Delta –
Shoe Cabinet and Alfa Range.
The Company is growing on its various e-commerce platforms such as Amazon, Pepperfry
and recently added JioMart. Considering the positive influence which the Media and Social
platforms leave in the minds of consumers, your Company is making strides in digital and
social media partnerships through influencers and social media marketing platforms such as
Facebook, Instagram, YouTube and its own website. The Company continuously updates its
customers about the new launches through the above platforms along with the videos of the
assembly of the products for the easy convenience of its consumers.
Road Safety Products: The in-house design department of your Company is
continuously engaged in developing new rotational moulding products, and has added new and
innovative Road Safety Products this year.
Crates / Pallets: Our range of crates, pallets are there to help with
transportation, cold storage, warehouse and exports of perishables. Your Companys crates
and pallets are popular among the Fast Moving Consumer Goods and Pharmaceutical sector. Waste
Management: During the year under review, your Company has added more product sizes to
its waste management division to cater to the demand of higher capacity to its existing
range considering the various requirements by the end users.
The Company has a wide range of waste collection and disposal bins to maintain the
sanitation and hygiene of the Country under the “Swachh Bharat Abhiyan” mission
by Prime Minister Shri Narendra Modi.
Prima Dustbins are becoming a growing division of injection moulded products within the
company. They are moulded from Food and Drug Administration approved special UV
stabilized, Virgin Grades of High Density Polyethylene material. Moreover, they are
characterized as anti-corrosive, anti-acidic, non-toxic from joints, welds or rims. The
performance of the Company in the waste management products has seen a good trend over the
past few years with demands from the Governments of various states like Andhra Pradesh and
Kolkata under the tenders and expects the same potential in the future.
OPPORTUNITIES
With the mission to capture all the opportunities, the Company along with other
expansion plans registered itself with the Government e-Marketplace (GeM), which is the
public Procurement Portal for procurement of goods and services for all
Central Government and State Government Ministries, Departments, Public Sector Units
(PSUs) and affiliated and saw good response and expects the same in coming days.
Along with its existing e-commerce platforms, the Company added one more marketplace
JioMart to its digital ecosystem in the month of March 2023. The Company has started to
witness the positive response from the consumers and expects the same in coming period.
Company is taking numerous initiatives on digital activities for promoting its brand
and creating product awareness. Company has distinct social media presence on various
major platforms like Facebook, YouTube, Instagram. Company has good follower base on all
these platforms which is helping in increasing visibility, customer interaction and
enquiries. YouTube platform of the Company provides a quick assistance for the assembly of
the products.
THREAT
The plastic sector has become one of the concern due to its environment impact and the
rising awareness about the environmental consequences of plastic usage which is leading
shift in public perception.
The Government are increasingly implementing the regulations and restrictions on
“Ban the use of single-use plastic” and putting the onus of collecting and
disposing plastic waste generated by the Manufacturing Companies.
The Company is not in the manufacturing of Single Use Plastic products as such which
are banned by the Governments and as per the plastic waste management guidelines, the
Company has registered itself with the Central Pollution Control Board
(CPCB) as the Brand Owner. The Company is fulfilling its responsibility for collecting
the required waste generated back.
EXPORTS
Your Company exported goods worth 3,985.20 lakhs during the year under review against
3,141.00 lakhs in previous year. Company has strived to always maintain and build its
relationship with the existing and prospective importers worldwide. During the year under
review, the Company started relationships with the new customers with the new products and
new markets.
RISKS AND CONCERNS
The major risks that poses concern to your Company are summarized below:
Foreign Exchange Risk:
Your Company operates internationally and portion of the business is transacted in
several currencies and consequently the company is exposed to foreign exchange risk
through purchases from overseas supplies and sales & services overseas in foreign
currencies. The foreign exchange transactions exposure could hinder the sourcing of raw
materials and it could adversely affect companys financial performance.
To mitigate the risk, the Company regularly evaluates exchange rate exposure arising
from foreign currency transactions. The Company follows the risk management policies and
standard operating procedures to hedge exposure to forex currency risk.
Operating Business Risk:
Apart from the risks on account of foreign exchange and commodity prices, the business
of the Company is exposed to certain business operating risk which may be internal or
external risk, requiring quick identification, analysis and mitigation of risk by
appropriate control measures and collective actions.
Risks related to legislation and regulation:
Changes in the policies of the Government of India or worldwide political instability
may adversely affect economic conditions in India generally, which could impact our
business and prospects.
Our international expansion plans subject us to risks inherent to doing business
internationally. The Company has an effective risk management framework in place to
primarily control business and operational risks. The Companys comprehensive Business
Risk Management (‘BRM) framework helps it identify risks and opportunities and
monitor them. The major risk areas are periodically and systematically reviewed by the
Senior Management of the Company. Comprehensive policies and procedures helps to identify,
mitigate and monitor risks at various levels. By taking such proactive measures, the
Company ensures that strategic business objectives are achieved seamlessly. The Company
has a well-documented risk management policy, which is reviewed by the management
periodically.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has adequate internal financial control procedures commensurating with its
size and nature of business. These control provide reasonable assurance regarding
effectiveness and efficiency of operations, safeguarding of assets, prevention and
detection of frauds and error, accuracy and timely preparation of reliable financial
information. The Company has appointed Internal Auditors comprising professional Chartered
Accountants who periodically audit at all units / locations and report to the Management.
Based on the audit observation and recommendations, follow ups and remedial measures are
being taken including review and increase in scope, on time to time. The Audit Committee
reviews reports submitted by the Internal Auditors and Statutory Auditors. The Audit
Committee also ascertain the views of the statutory auditors on the adequacy of internal
control systems and takes appropriate action. Based on its evaluation, our internal
financial controls are adequate and operating effectively.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Revenue
from Operation:
On a consolidated basis, the turnover of the Company is 19,172.75 lakhs as compared
to previous year of 14,760.24 lakhs.
Operating Profit:
The Company witnessed operating profit of 4,545.61 lakhs in comparison to 2,069.77
lakhs in previous year.
Interest:
The interest cost has substantially increased during the current year to 457.02 lakhs
as compared to previous year of 237.59 lakhs due to expansion project at Madhya
Pradesh and increase in working capital utilization.
Profit:
Your Company has registered a higher Profit before Tax of 1,973.58 lakhs as compared
to previous year 1,050.29 lakhs and Net Profit after Tax of 1,680.12 lakhs as compared
to 900.65 lakhs in previous year.
HUMAN RESOURCE
Prima prides itself for being known as a caring organisation not only among its
employees, but also among communities with which it engages through its operations.
Primas empowering culture, philosophy of investing in people, career growth opportunities
and progressive HR policies have resulted in consistently high retention levels and
developed a strong employer brand. Efforts are on-going to make Prima an aspirational and
preferred employer of choice for our current and future employees.
The Company is keen to retain its key employees and encourage employees to provide new
and innovating ideas for betterment and development of the Company. Our employees are our
most important assets. We are committed to hiring and retaining the best talent and being
among the industrys leading employers. For this, we focus on promoting a collaborative,
transparent and participative organization culture, and rewarding merit and sustained high
performance. Our human resources management focuses on allowing our employees to develop
their skills, grow in their career and navigate their next.
As on March 31, 2023, the employees strength of your Company is 342
CHANGES IN KEY FINANCIAL RATIOS
Pursuant to provisions of Regulation 34(3) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 read with Schedule V Part B(i) details of the change in
key financial ratios is given hereunder:
| Particulars |
Category |
Year Ended |
Deviation |
|
|
March 31, 2023 |
March 31, 2022 |
(in %) |
| Debtors Turnover |
in Days |
65.00 |
104.00 |
(37.70) |
| Inventory Turnover |
in Days |
70.55 |
74.57 |
(5.39) |
| Interest Coverage Ratio |
Times |
5.32 |
5.42 |
(1.89) |
| Current Ratio |
Times |
1.97 |
1.75 |
12.44 |
| Debt Equity Ratio |
Times |
0.34 |
0.44 |
(22.73) |
| Operating Profit Margin |
% |
23.71 |
14.02 |
69.08 |
| Net Profit Margin |
% |
8.76 |
6.10 |
43.62 |
There has been improvement in the Debtors Turnover Ratio since the Company has been
able to recover its old debts.
Also, due to higher turnover and lower raw material prices, your company has witnessed
a higher operating profit margin and net profit margin.
CHANGE IN RETURN ON NET WORTH
The return on Net worth for the financial year 2022 - 23 has increased by 14.08 % as
compared to preceding financial year due to higher profit achieved during the year.
DISCLOSURE OF ACCOUNTING TREATMENT
In the preparation of financial statements, there is no difference in treatment from
that of prescribed in an Accounting Standards.
FORWARD LOOKING STATEMENTS
The report contains forward-looking statements, identified by words like ‘plans,
‘expects, ‘will, ‘anticipates, ‘believes, ‘intends,
‘projects, ‘estimates and so on. All statements that address expectations or
projections about the future, but not limited to the Companys strategy for growth,
product development, market position, expenditures and financial results, are
forward-looking statements. Since these are based on certain assumptions and expectations
of future events, the Company cannot guarantee that these are accurate or will be
realised. The Companys actual results, performance or achievements could thus differ from
those projected in any forward-looking statements. The Company assumes no responsibility
to publicly amend, modify or revise any such statements on the basis of subsequent
developments, information or events.
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