Forward looking statement
Statements in this Management Discussion and Analysis of Financial
Condition and Results of Operations of the Company describing the Companys objectives,
expectations or predictions may be forward looking within the meaning of applicable
securities laws and regulations. Forward looking statements are based on certain
assumptions and expectations of future events.
The Company cannot guarantee that these assumptions and expectations
are accurate or will be realized. The Company assumes no responsibility to publicly amend,
modify or revise forward looking statements, on the basis of any subsequent developments,
information or events. Actual results may differ materially from those expressed in the
statement. Important factors that could influence the Companys operations include changes
in government regulations, tax laws, economic developments within the country and such
other factors globally.
The financial statements are prepared under historical cost convention,
on accrual basis of accounting, and in accordance with the provisions of the Companies
Act, 2013 (the Act) and comply with the Indian Accounting Standards as pronounced by the
Institute of Chartered Accountants of India (ICAI) from time to time. The Management of
Creative Peripherals and Distribution Limited has used estimates and judgments relating to
the financial statements on a prudent and reasonable basis, in order that the financial
statements, reflect in a true and fair manner, the state of affairs and profit for the
year.
The following discussions on our financial condition and result of
operations should be read together with our audited financial statements and the notes to
these statements included in the annual report. Unless otherwise specified or the context
otherwise requires, all references herein to "we", "us",
"our", "the Company", "Creative" are to "Creative
Peripherals and Distribution Limited".
Global Plastic Industry Overview-
The global plastic market size was valued at USD 439.28 billion in 2021
and is projected to grow from USD 457.73 billion in 2022 to USD 643.37 billion by 2029,
exhibiting a CAGR of 5.0% during the forecast period. The global COVID- 19 pandemic has
been unprecedented and staggering, with plastic experiencing lower- than-anticipated
demand across all regions compared to pre-pandemic levels. Based on our analysis, the
global market exhibited a decline of 2.5% in 2020 as compared to 2019.
Plastics, also known as polymers, are used to manufacture a wide
variety of products ranging from paper clips to spacecraft due to their versatility, easy
manufacturing, moldability, lightweight, waterproof nature, and low cost. They are
traditionally derived from natural gas and petroleum. The depleting sources of polymers
have encouraged manufacturers to use renewable sources. The plastics manufactured using
renewable biomass sources, such as corn starch, sawdust, vegetable fats and oil, and food
waste, are called bioplastics. Moreover, rising awareness about the environmental harm
caused by polymers influences manufacturers to develop recyclable products. Surging demand
for high-performance plastic packaging solutions for the protection of products is a key
factor driving the market.
Although there are thousands of different plastics, there are
approximately seven broader types of plastic that are produced and consumed in large
quantities: polyethylene terephthalate (PET), high-density polyethylene (HDPE), polyvinyl
chloride (PVC), low-density polyethylene (LDPE), polypropylene (PP), polystyrene/styrofoam
(PS), and miscellaneous plastics. Polyethylene (PE) is the most widely produced plastic
worldwide and is used to produce many products, such as packaging. The second-most
produced plastic is polypropylene (PP), of which more than 70 million metric tons worth
was produced in 2020.
https://www.fortunebusinessinsights.com/plastics-market-102176
Trend in plastic export
Overall, the total plastics exports between April-September 2022 stood
at US$ 6.38 billion. During this time period, the exports of plastic raw materials,
medical items, and pipes and fittings increased by 32.3%, 24.8% and 17.9% over the same
time last year, respectively.
The cumulative exports of plastics and related materials during 2021-22
were valued at US$ 13.34 billion. This was a 33.4% increase from the 2020-21 exports
valued at US$ 10 billion. Plastic raw materials were the largest exported category and
constituted 30.7% of the total exports in 2021-22; it recorded a growth of 26.5% over the
previous year. Plastic films and sheets were the second largest category, comprised 15.2%
of the total exports, and grew 32.7% over the previous year.
In May 2022, the exports of plastics and linoleum from India were
valued at US$ 1,073 million. During the same period, medical items of plastics; plastic
films & sheets; plastic pipes & fittings; FRP & composites; packaging items;
cordage fishnets & monofilaments; and miscellaneous products recorded strong growth.
The cumulative exports for April and May 2022 grew 2.6% YoY to US$ 2,173 million.
Source:https://www.ibef.org/exports/plastic-industry-india#:~:text=Export%20Trend,stood%20at%20US%24%206.38%20billion.
Plastic demand continues to grow
Despite the recent backlash against plastics due to pollution concerns,
plastic remains a hugely important commodity that is used in virtually all aspects of
modern daily life. Thus, plastic demand is set to continue growing for the foreseeable
future, with production set to reach 589 million metric tons in 2050. The global demand
for polyethylene terephthalate (PET) - a thermoplastic polymer most associated with
plastic bottles- reached 27 million metric tons in 2020 and is projected to reach 42
million metric tons by 2030. The demand for eco-friendly solutions such as sustainable
plastic packaging is also expected to experience growth. However, COVID-19 has had an
impact on sustainability goals within the industry. Hygiene concerns have resulted in a
substantial rise in the demand for single-use plastic products such as gloves and face
masks, with some cities having to temporarily reverse bans on these items.
Source:
https://www.statista.com/topics/5266/plastics-industry/#topicOverview
India Plastic Industry Overview
Due to the enormous potential of the Indian market, local businesses
have been encouraged to develop their technical skills, meet high-quality requirements,
and expand their capabilities across a wide range of sectors of the growing plastics
industry.
Currently, the Indian plastic processing industry comprises
approximately 30,000 units that use injection molding, blow molding, extrusion, and
calendaring to create a wide range of products. Plastic material is becoming increasingly
important across various industries, and per capita consumption is rising quickly.
Traditional materials are being quickly replaced by plastic technology, processing
equipment, expertise, and cost-effective manufacturing. The Indian plastics industry has
advanced significantly over the past few decades, becoming one of the nations most
significant sectors with a considerable base.
Consumption of Plastics in India
The consumption of plastics in India has significant regional
variation, with Western India accounting for 47%, Northern India for 23%, and Southern
India for 21%. The end-use sectors of automotive, packaging (including bulk packaging),
plastics applications, electronic appliances, etc., account for the majority of
consumption in Northern India and are located mostly in Uttar Pradesh and Delhi-NCR.
However, other regions, including Rajasthan, Punjab, Haryana, Uttarakhand, J&K, and
Himachal Pradesh, are anticipated to see growth in plastic processing due to increasing
feedstock supply and a greater focus on the manufacturing sector.
The plastics industry is currently home to about 50,000 industries,
most of which are micro, small, and medium-sized enterprises (MSMEs). These enterprises
contribute Rs. 3.5 lakh crore (US$ 42.89 billion) to Indias economy and employ more than
50,000 people. The country recycles plastic at a rate of 60%, which is higher than that of
developed nations. The "Make in India," "Skill India," "Swachh
Bharat," and "Digital India" initiatives of the government are increasing
plastic production, and by 2027, it is expected that the plastics industry will generate
Rs. 10 lakh billion (US$ 122.54 billion) annual revenue, with two lakh tonnes of exports.
Source:
https://www.ibef.org/research/case-study/india-s-plastic-industry
Indias Scenario on Polymer Demand (2021-22) All Fig in KT
Government Initiatives
The Union Ministry of Commerce and Industry of India targets to
increase the plastic exports of the country to US$ 25 billion by 2025. There are multiple
plastic parks are being set up in the country in a phased manner that will help improve
the plastic manufacturing outputs of the country. Under the plastic park schemes, funds of
up to 50% of the project costs or a ceiling cost of Rs. 40 crore (US$ 5 million) per
project.
Government initiatives like "Digital India", "Make in
India", and "Skill India" will also boost Indias Plastic industry. For
instance, under the "Digital India" program, the government aims to reduce the
import dependence of products from other countries, which will lift the local plastic part
manufacturers.
The government also launched a program for building Centres of
Excellence (CoEs) to develop the existing petrochemical technology and promote the
research environment pertaining to the sector in the country. This will aid in promoting
and developing new applications of polymers and plastics in the country. Additionally,
about 23 Central Institute of Plastics Engineering & Technology (CIPET) have been
approved to accelerate financial and technological collaboration for promoting skills in
chemicals and petrochemicals sector.
Source: Plastic Production Plant, Plastic Manufacturers and
Exporters In India - IBEF
Global Plastic Extrusion Machine Industry Overview
The global plastic extrusion machines market reached a value of US$
6.05 Billion in 2021. Looking forward, IMARC Group expects the market to reach a value of
US$ 8.12 Billion by 2027, exhibiting a growth rate (CAGR) of 4.70% during 2022-2027.
Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating
the direct as well as the indirect influence of the pandemic on different end use
industries. These insights are included in the report as a major market contributor.
Plastic extrusion machines, also known as plastic extruders, refer to
mechanical systems employed in a high- volume manufacturing process to melt and transform
raw plastic into a continuous profile. They comprise hopper, barrel, temperature
controller, screw drive, and screw drive motor. They work by heating, melting, and
transporting the plastic through a screw to press it in a mold or work with it freehand.
In recent years, plastic extrusion machines have gained traction across various industries
due to their high speed, bulk production advantage, greater flexibility, easy to operate
process, and excellent production quality.
Plastic Extrusion Machines Market Trends
The escalating demand for extruded plastic products from numerous end
use sectors, such as consumer goods, packaging, automotive, and construction, represents
the primary factor driving the market growth. Additionally, there has been a significant
shift toward automated plastic processing and manufacturing to enhance productivity and
efficiency, thereby increasing the demand for plastic extrusion machines. Along with this,
the growing awareness regarding the benefits of the plastic extrusion process for
manufacturing fixed cross-sectional products with high accuracy is augmenting the product
demand.
Besides this, the rising integration of plastic extrusion machines with
advanced technologies, such as artificial intelligence (AI), is catalyzing the market
growth. Furthermore, several leading manufacturers are focusing on the development of
innovative product variants with improved quality and energy efficiency. For instance,
Japan Steel Works, Ltd. Other factors, including the rising investments in the industrial
sector, technological advancements, extensive research and development (R&D)
activities, and increasing sales of consumer goods, are also creating a positive market
outlook.
Source:https://www. imarcgroup.com/plastic-extrusion-machines-
market#:~:text=The%20global%20plastic%20extrusion%20machines%20market%20was%20valued%2
0at%20US,4.70%25%20during%202022%2D2027
Plastic Extrusion Machine Market Dynamics Growing Awareness about
Plastic Extrusion Machine
The growth of the plastic extrusion machine market is fueled by an
increase in global awareness about energy conservation. As a result, producers of plastic
extrusion machines are increasingly focusing on providing efficient and dependable
twin-screw plastic extrusion machines to fuel market growth. In addition, the global
plastic extrusion machine market is expected to grow due to higher manufacturing rates and
rapid production through plastic extrusion.
Advancement in Plastic Extrusion Machine
A rise in consumer interest in producing energy-efficient, innovative
blown film extrusion for the market is driving market growth across the globe. Plastic
extrusion machines for building and construction applications are being offered by major
firms such as China National Chemical Corporation Ltd., UNION Officine Meccaniche SpA, and
others. In addition, plastic extrusion is used to make a variety of plastic goods utilized
in the industrial sector. This factor has contributed significantly to the growth of the
global plastic extrusion machine market. In the global plastic extrusion machine market,
wire insulations have merged as a prominent product.
Growing Adoption of Product among Several Industries
In recent years, plastics have become an indispensable component of
production and packaging. The packaging industrys increased demand for plastics propels
the market forward. Plastics processing gains a boost in demand across packaging sectors
as a result of toxin resistant and pollutant-free elements, pushing the worldwide plastics
processing machinery market. In addition, manufacturers in the automotive industry have a
great chance to launch revolutionary plastic goods that are being developed to suit
consumer demand for fuel-efficient and high-performance lightweight automobiles. During
the forecast period, the oil and gas and construction industries are expected to drive up
demand for plastic extrusion machines.
Source:
https://www.maximizemarketresearch.com/market-report/global-plastic-extrusion-machine-
market/30066/
Indian Plastics Processing Industry Overview (2021-22)
• Plastics Processing Industry is robust and has potential to
become significant part of
• Indias manufacturing economy as in industrialized countries
like Germany, Italy, France,
• USA, Canada, Japan, China, Taiwan, South Korea.
• More than 2 lakh core machines are presently in operation
producing various products
• adopting processes like Injection Moulding, Extrusion and Blow
Moulding etc.,
• The machinery market is growing @ 8.5% over the last 4 years.
• Processing Machinery Exported to over 50 countries
• Machinery Building activity remains quite labour intensive,
while being highly technical.
• Industry employs different skill levels from the various strata
of the society.
• There are 20+ major manufacturers of machinery and nearly 300+
small & medium
• manufacturers
• All Electric Injection Molding Machine is growing in the recent
years. The application
• Segment includes Medical, Packaging, Electrical &
Electronics.
Source: Industry Estimate /PMMAI
Core Processing Machinery Additions Last 4 Years
| Description |
No. of Machines |
|
|
|
|
|
|
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
4 Years CAGR |
| Injection Moulding |
7,560 |
9,650 |
8,350 |
8,600 |
10,050 |
7.4% |
| Extrusion |
2,400 |
2,950 |
3,100 |
3,200 |
3,700 |
11.4% |
| Blow Moulding |
650 |
775 |
700 |
900 |
950 |
10.0% |
| Total |
10,610 |
13,375 |
12,150 |
12,700 |
14,700 |
8.5% |
| Description |
Investment in INR Crores |
|
|
|
|
|
|
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
4 Years CAGR |
| Injection Moulding |
2,450 |
3,450 |
2,950 |
2,500 |
3,625 |
10.3% |
| Extrusion |
2,300 |
2,850 |
3,625 |
3745 |
5,690 |
25.4% |
| Blow Moulding |
425 |
500 |
490 |
630 |
640 |
10.7% |
| Total |
5,175 |
6,800 |
7,065 |
6875 |
9,955 |
17.8% |
Source: https://www.plastindia.org/plastic-industry-status-report Source:
Industry Estimate/PMMAI
Plastics Machinery Projections
| Description |
No. of Machines |
|
|
|
|
|
2022-23(E) |
2023-24 (E) |
2024-25 (E) |
2025-26 (E) |
4 Years CAGR |
| Injection Moulding |
10,800 |
11,750 |
12,650 |
13,700 |
8.1% |
| Extrusion |
3,950 |
4,200 |
4,450 |
4,700 |
6.2% |
| Blow Moulding |
1,000 |
T>1,080 |
1,150 |
1,200 |
6.0% |
| Total |
15,750 |
17,030 |
18,250 |
19,600 |
7.5% |
| Description |
Investment (in INR Crores) |
|
|
|
|
|
2022-23(E) |
2023-24 (E) |
2024-25 (E) |
2025-26 (E) |
4 Years CAGR |
| Injection Moulding |
4,000 |
4,400 |
4,850 |
5,350 |
10.20% |
| Extrusion |
6,150 |
6,650 |
7,200 |
7,800 |
8.2% |
| Blow Moulding |
690 |
750 |
800 |
870 |
8.0% |
| Total |
10,840 |
11,800 |
12,850 |
14,020 |
8.9% |
Source : https://www.plastindia.org/plastic-industry-status-report Source
: Industry Estimate/PMMAI
About Rajoo Engineers Limited
We are one of the leading plastic extrusion machinery manufacturers in
India, with nearly 35 years of excellence in extrusion in the industry. Based in Rajkot
Rajoo Engineers Limited had made a modest beginning in 1986 and has emerged as an
undisputed global player in blown film, sheet extrusion lines, Thermoformers and Extrusion
Coating and Laminating Lines.
Owing to its focused efforts in blown film and sheet extrusion lines,
the Company enjoys premium market position in this segment. Being a technology driven
Company, product innovations, world-class quality, state-of-the-art workmanship, increased
energy efficiency and high levels of sophistication and automation have become the
hallmark of Rajoo products during all these years, positioning the Companys products on
a global platform, competing with the established world leaders. With
representations in many countries of the world and customers in over 70 countries, the
Companys exports have multiplied after its debut in the international market in 1990. The
Company unveiled Extrusion Coating and Lamination machine as post extrusion process to
substitute conventional adhesive lamination process for producing laminate for various
packaging applications. our expert has multiplied since debuting in the international
market in 1990.
Strong & Diverse Product Portfolio
• LAMINA -E - Indias first mono & multi-layer EVA/POE sheet
• PentaFoil? - New generation 5 - layer blownfilm
line
• FOILEX - Monolayer Blown Film Lines
• AQUAFLEX - Downward Extrusion Blown Film Lines
• LABEX - Lab Extrusion Equipment
• MULTIFOIL- Multilayer Blown Film Lines
• LAMINA - Mono & multilayer sheet lines
• HEPTAFOIL - Seven-layer Co-Extruded Blown Film Lines
• LAMEX - Extrusion Coating & Lamination Lines
• DISPOCON - Thermoforming, Foam Vacuum Forming
Achievement during the Year
• Mrs. Khushboo Chandrakant Doshi, Managing Director of the
Company has been awarded the "Women Entrepreneur of the Year Award - Manufacturing
sector at the India SME Excellence Awards.
S Award function was held on 25th March 2023, at 10 am, at Hotel
Sofitel, BKC, Mumbai.
S Shri Narayan Rane - Honble Union Minister of MSME presented the
award
S Other notable dignitaries at the event were Shri Ramesh Bais -
Honble Governor of Maharashtra, Shri S. N. Subrahmanyan - CEO & Managing Director,
Larsen & Toubro Limited and Shri ShashiKiran Shetty Chairman & MD, Allcargo &
Gati Ltd
• Entered into new era of solar cell manufacturers - launched
LAMINA -E, Indias first mono & multilayer EVA/POE sheet line for producing
encapsulant sheets for solar cells.
S Marking its foray into renewable energy sector and move that would
save country precious foreign exchange and empower solar panel manufacturers S Sheet
extrusion lines comes with an output range of 300 to 900 kg/hr with width of 1,300 - 3,000
mm and thickness range of 0.30 - 0.90 mm
S Line is equipped with fully automatic and continuous gravimetric
feeding system and has energy efficient extruders with universal barrier screws.
• On 9th September 2022 Rajoo Engineers organized an in-person
open house to launch their new product - PentaFoil? - POD - the new generation 5-layer
blownfilm line
S This event was hugely successful; attended by more than 500
participants from India and abroad
* It incorporates relEX 4.0 Extruders, leading to 27% increased output
* It is Industry 4.0 compliant with remote diagnostics and support
through Smart Glasses
* Applications of the new product: Lamination grade film for flexible
Packaging, Shrink Films, liquid packaging films etc
• On 27th September 2022, a virtual open-house was also carried
out and attended by more than 200 participants and nearly 50 from overseas
Strategic Partnerships
• Kohli Industries - Alliance between Rajoo Engineers and
Kohli Industries has changed the market dynamics for Extrusion Coating and Lamination
Machines. The alliance created between Rajoo Engineer and Kohli Industries (leaders in
rotogravure printing and laminating machines) for the flexible packaging industry, has
comprehended the industry need and both companies joined hands to create a formidable
alliance and are now supplying one of the most advanced and versatile Extrusion Coating
and Lamination machines.
• Bausano & Figli, Italy - Joint Venture with Bausano
& Figli, Italy for plastic pipe manufacturing machines, granulation machines and WPC
extrusion machines in India since 2011
• Wonderpack, India - Merger of Wonderpack with Rajoo. A
unified approach for benefit of thermoforming industry since 2010
FINANCIAL OVERVIEW
The financial performance of the Company for the year ended March 31st,
2023, is as follows:
Total revenue from operations at Rs. Rs. 159.79 crore in FY23, as
against Rs. 172.04 crore in FY22, a YoY decrease of 7.13%, due to decrease in export
dispatches. There has been tremendous shortage of USD currency in financial systems in
some African countries. Our customers in these countries are not able to open LCs or remit
the balance pre-dispatch payments due to which, at the end of the year some machines were
ready but waiting for dispatch against their orders
EBITDA (excluding Other Income) was at Rs. 13.99 crore in FY23 as
against Rs. 20.91 crore in FY22, decrease of 33.11% YoY due to due to some significant
expenditure on sales promotions, exhibitions and some amount of R&D spend.
Profit after Tax was Rs. 10.02 crore in FY23 compared to Rs. 14.80
crore in FY22, YoY decrease of 32.31%.
Basic EPS stood at Rs. 1.63 in FY23 as compared to Rs. 2.40 in FY22
RESOURCES AND LIQUIDITY
As on March 31,2023, the Consolidated Networth stood at Rs. 102.44
crore and the total debt was at Rs. 1.52 crore.
The cash and cash equivalents at the end of March 31,2023, were Rs.
0.14 crore.
The net debt to equity ratio of the Company stood at 0.01 as on March
31,2023.
SEGMENT WISE BUSINESS PERFORMANCE
The Company is operating in one segment only i.e. Plastic extrusion
machines specifically film, thermoforming and sheet extrusion. As compared to other
players in this segment, Company continues to be among the top performers in terms of
growth in sales and profits and market share.
RISKS AND CONCERNS
Like every business, the Company faces risks, both internal and
external, in the undertaking of its day-to-day operations and in pursuit of its
longer-term objectives. A detailed policy drawn up and dedicated risk workshops are
conducted for each business vertical and key support functions wherein risks are
identified, assessed, analyzed and accepted / mitigated to an acceptable level within the
risk appetite of the organization. The risk registers are also reviewed from time to time.
The Company faces the following Risks and Concerns
Credit Risk
To manage its credit exposure, Rajoo has determined a credit policy
with credit limit requests and approval procedures. Company does its own research of
clients financial health and project prospects before bidding for a project. Timely and
rigorous process is followed up with clients for payments as per schedule. The Company has
suitably streamlined the process to develop a focused and aggressive receivables
management system to ensure timely collections.
Interest Rate Risk
The Company has judiciously managed the debt-equity ratio. It has been
using a mix of loans and internal cash accruals. The Company has well managed the working
capital to reduce the overall interest cost.
Competition Risk
This risk arises from more players wanting a share in the same pie.
Like in most other industries, opportunity brings with itself competition. We face
different levels of competition in each segment, from domestic as well as multinational
companies. The Company has created strong differentiators in project execution, quality
and delivery which make it resilient to competition. Furthermore, the Company continues to
invest in technology and its people to remain ahead of the curve. A strong, stable client
base consisting of large and mid-sized corporations further helps to insulate the Company
from this risk. We counter this risk with the quality of our infrastructure, our
customer-centric approach and our ability to innovate customer specific solutions,
focusing on pricing and aggressive marketing strategy, disciplined project executions,
coupled with prudent financial and human resources management and better control over
costs. Thus, we do not expect to be significantly affected by this risk.
Input Cost Risk
Our profitability and cost effectiveness may be affected due to change
in the prices of raw materials, power and other input costs. Some of the risks that are
potentially significant in nature and need careful monitoring are Raw Materials prices,
availability of Power etc.
Liability Risk
This risk refers to our liability arising from any damage to cargo,
equipment, life and third parties which may adversely affect our business. The Company
attempts to mitigate this risk through contractual obligations and insurance policies.
OPPORTUNITIES
Technology Trends
• Innovation in raw materials such as Nano-composite reinforcing
agents and bio-de-gradable polymers
• Plastics are replacing wood, metals, natural rubber and other
expensive engineered plastics
Regulatory Trends
• Increasing emphasis on safe, odour-free, sustainable and green
materials
• Stringent CO2 emissions regulations and guidelines especially in
automotive industry
Raw Material Trends
• The fluctuation in the price of crude oil or natural gas has an
impact on plastic industry
• Plastic additives market to register highest growth in packaging
and automotive applications
Application Trends
• Increasing demand for lightweight materials replacing glass,
rubber and wood in numerous applications is driving plastics market
• Replacement of heavy metals in dyes and pigments applications by
plastics
Supplier Power
• Factors such as presence of few supplier and large number of
buyers are leading to greater supplier power
• Multiple plastics applications have spurred higher product
variety demand
THREATS
• Competition from local and multinational players
• Execution risk
• Regulatory changes
• Credit squeeze on lending by NBFCs
• Input Cost risk
• Attraction and retention of human capital
• Technological Advancements
The most critical, challenges that Indian plastic industry is facing
today is the "image of plastics" and unmindful ban on some plastic products in
some states in India. Some of the myths perpetuated about plastics are
• Feared as being toxic
• Maybe harmful to the soil
• Could cause acid rain
• Is not environment friendly
• Has high carbon foot print
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The Company implemented proper and adequate systems of internal control
to ensure that all assets are safeguarded and protected against loss from any unauthorized
use or disposition and all transactions are authorized, recorded and reported correctly.
The Company also implemented effective systems for achieving highest level of efficiency
in operations, to achieve optimum and effective utilization of resources, monitoring
thereof and the compliance with provisions all laws including the Companies Act, 2013,
Listing Agreement, directions issued by the Securities and Exchange Board of India, labour
laws, tax laws etc. It also aimed at improvement in financial management, and investment
policy. The System ensures appropriate information flow to facilitate effective
monitoring. The internal audit system also ensures formation and implementation of
corporate policies for financial reporting, accounting, information security, project
appraisal, and corporate governance. A qualified and independent Audit Committee of the
Board of Directors also reviews the internal control system and its impacts on improvement
of overall performance of the Company.
HUMAN RESOURCES
The Companys HR philosophy is to establish and build a high performing
organization, where everyone is motivated to perform to the fullest capacity: to
contribute to developing and achieving individual excellence and departmental objectives
and continuously improve performance to realize the full potential of our personnel. As on
March 31,2023, Company is giving direct employment to 288 employees. Industrial relations
are cordial and satisfactory.
OUTLOOK
The future of the plastic extrusion sector looks promising. Extruding
plastic includes melting raw materials and moulding them into the desired shape, and is a
commonly used manufacturing method. The method is flexible and can be applied to produce a
variety of goods, including as pipes, tubes, profiles, films, and sheets. Plastic
extrusion industry is expanding as a result of the rising demand for plastic products
across a variety of sectors, including construction, automotive, healthcare, and
packaging. According to a report by Grand View Research, the size of the worldwide plastic
extrusion market is anticipated to reach USD 11.08 billion by 2028, expanding at a CAGR of
5.6% over the forecast period (2021-2028).
The market for products made of plastic extrusion is anticipated to
increase as lightweight, fuel-efficient vehicles and energy-efficient buildings become
more popular. The demand for items made of plastic extrusion is also anticipated to rise
as a result of the expanding usage of plastic products in the healthcare sector, notably
for medical equipment and devices.
The plastic extrusion sector does, however, also have issues with
environmental sustainability. As a major source of plastic waste and pollution, the
business is under increasing pressure to adopt sustainable practises and lessen its
environmental impact. In order to meet this problem, the industry is creating new goods
and procedures that make use of recycled materials and reduce waste.
The growing demand for plastic products and the industrys response to
the issues of environmental sustainability are driving the overall expansion of the
plastic extrusion sector in the next years. Businesses who can implement these trends and
sustainable practises will probably succeed in the market.
At Rajoo, we are pleased to inform you that, we have received high
value order of Rs. 31 Crores from one of the leading manufacturers of farm machinery &
equipment based out of Europe. This is one of the highest value order ever in the history
of the Company. This prestigious order is for our cutting edge blown film line machine
which is used to manufacture silo bags as per need and requirement of the Customer.
We also entered into new era of solar cell manufacturers where we
launched LAMINA -E, Indias first mono & multi-layer EVA/POE sheet line for producing
encapsulant sheets for solar cells. A move that would save the country precious foreign
exchange and empower solar panel manufacturers and also make a difference to Indias
energy programme and Indias journey towards energy Independence by 2047. We also launched
the PentaFoil?-POD-the new generation 5-layer blown film line as it incorporates relEX
4.0 Extruders, leading to 27% increased output.
We are aware about the headwinds and the challenges that we faced. We
are being nimble footed and agile with our business strategy and focusing on making
ourselves better to create a strong & sustainable business. One step that we have
taken towards to focus on enhancing the features of existing products and have emerged to
become first player in India to offer advanced products with higher output and more energy
efficient. We believe that this is just one-step towards the right direction and will
continue to work hard & strive to build a robust business and aiming to reach newer
heights.
DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED
TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED
EXPLANATIONS THEREFOR
| Sr kl Particulars No. |
FY 2022-23 |
FY 2021-22 |
Variance |
Detailed Explanations There of |
| 1 Debtors Turnover (times) |
15.08 |
21.44 |
-29.66% |
There is fall in this ratio due to fall in turnover during
the year |
| 2 Inventory Turnover |
2.93 |
3.21 |
-8.72% |
- |
| 3 Interest Coverage Ratio |
51.42 |
74.16 |
-30.66% |
There is a fall in this ratio due to a fall in profit for the
current year. |
| 4 Current Ratio (times) |
1.97 |
2.09 |
-5.45% |
- |
| 5 Debt Equity Ratio (times) |
0.02 |
0.003 |
539.23% |
There is rise in this ratio on account of rise in overall
debt during current year |
| 6 Operating Profit Margin (%) |
19.28% |
28.70% |
-32.82% |
There is a fall in this ratio due to a fall in profit for the
current year. |
| 7 Net Profit Margin (%) |
6.36% |
8.82% |
-27.88% |
There is fall in this ratio due to lower profit for the
current year |
| 8 Return on Net Worth |
9.78% |
15.77% |
-37.98% |
There is fall in this ratio due to lower profit for the
current year |
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