Cautionary Statement:
Members and Investors are cautioned that the discussion in this section of the Annual Report may contain statements that involve risks and uncertainties. Forward-looking statements mentioned may involve risks and uncertainties that could cause results to differ materially from those projected. Consequently, actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no obligations, assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward- looking statements depending on a variety of factors.
THE COMPANY
The Company is the flagship listed Company of 3M Company, USA in India. 3M Company, USA is a diversified technology and science company with a global presence in the following businesses: Safety and Industrial; Transportation & Electronics; and Consumer and is among the leading manufacturers of products for many of the markets it serves. Most of its products involve expertise in technology, product development, manufacturing and marketing and are subject to competition from products manufactured and sold by other technologically oriented companies.
The Company has manufacturing facilities in India at Ahmedabad, Bengaluru, Pune. Its Corporate Customer Innovation Center (R&D Center) are located at Bengaluru. As on March 31, 2025, the Company had an employee strength of 1,213 personnel. As on December 31, 2024, the Company was ranked 222 (PY as on March 31, 2024: 200) based on Market Capitalisation @ Rs. 39,34,290 lakhs (PY as on March 31, 2024:Rs. 35,13,953 lakhs) and is among the top 500 Companies based on Market Capitalisation (Source: NSE). The Company manages its operations in four (4) operating business segments: Safety and Industrial; Transportation & Electronics; Consumer and Health Care. The Companys four business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources.
3M products are sold through numerous distribution channels, including directly to users and through numerous e-commerce and traditional wholesalers, retailers, jobbers, distributors and dealers in a wide variety of trades. Management believes that the confidence of wholesalers, retailers, jobbers, distributors and dealers of 3M and its products a confidence developed through long association with skilled marketing and sales representatives has contributed significantly to 3Ms position in the marketplace and to its growth.
The Company is committed to creating long-term value to shareholders. Accordingly, the Company is dedicated to achieving high levels of operating performance, cost competitiveness, enhancing the productive asset and resource base and striving for excellence in all areas of operation. The Company firmly believes that its success in the marketplace and good reputation are important determinants of shareholder value. Its close relationship with customers and a deep understanding of their needs drive the development of new products and services. Anticipating customer requirements early and being able to address them effectively requires a strong commercial backbone. The Company continues to develop this strength by institutionalising sound commercial processes and building world-class commercial capabilities across its marketing and sales teams. The Company uses different innovative approaches in the development of its products and services, as well as execution of growth opportunities.
The Company is also committed to creating value for all its stakeholders by ensuring that its corporate actions positively impact all the dimensions of sustainable development viz., economic, social and environment.
GLOBAL ECONOMIC OVERVIEW
Tho global economy expenonood moderate growth of 3.3% in 202?, refleoting a period of relative stability, though ongoing growth con straints percicted. In 2025, countries ere adjusting their polioies in response to escalating geopolitioal tensions and economio pressures. The introduction of new tariff measures elevated global trade tensions, placing pressure on global GDP. As the situation continues to unfold, the oroader eoonomio impact remains unoertain and is likely to weigh on the global growth outlook.
Global growth is expected to be around 2.8% in 2025 and 3.0% in 2026, falling short of the historical average of 3.8%. According to IMF projections, inflation is expected to decline to 4.3% in 2025, and further to 3.6% in 2026.
Growth rates for advanced economies are projected to decline from 1.8% in 2024 to 1.4% in 2025, with a slight recovery to 1.5% in 2026. In contrast, emerging markets and developing economies are expected to maintain stable growth, with projections of 4.3% in 2024 and 3.7% in 2025. Despite the ongoing challenges facing the global economy, this moment presents a unique opportunity to build resilience and pave the way toward a more sustainable future. Through aligned strategies, strong leadership, and a shared commitment to progress, the global economy can regain momentum, rebuild buffers, and unlock new opportunities for inclusive and sustained growth.
INDIA ECONOMIC OVERVIEW
India has emerged as a beacon of resilience and stability, demonstrating consistent GDP growth, easing inflation, and robust domestic demand, even in the face of persistent challenges from global markets. The countrys GDP grew by 6.5% in FY 24 25, supported by strong performance across key sectors such as construction, trade, and financial services. This growth is fueled by sustained consumption trends, which remain a vital driver of the economy, and strategic government spending aimed at bolstering infrastructure and fostering investment. Additionally, the governments focus on reforms and initiatives like the Production-Linked Incentive (PLI) schemes, infrastructure development, and digital transformation continue to create a conducive environment for long-term growth. As a result, India remains a high-growth economy with a diverse and expanding industrial base, which is enhancing its resilience against external shocks and providing a solid foundation for future economic prosperity.
Indias economy is expected to remain stable in FY 25 26, driven by resilient domestic consumption, increased public investment, and reform-focused governance. Strong contributions from services, manufacturing, and construction further solidify its economic foundation. While global uncertainties, trade volatility, and geopolitical tensions pose risks, Indias ongoing structural transformation fueled by rapid digital adoption, a thriving startup ecosystem, and policy initiatives ensures long-term resilience.
FINANCIAL RESULTS OF THE OPERATIONS OF THE COMPANY
The Companys revenue from operations increased by 6.12% at Rs. 444,555.63 lakhs for the financial year ended March 31, 2025 compared to Rs. 418,936.24 lakhs in the previous financial year. The Profit Before Interest and Depreciation is Rs. 83,986.87 lakhs compared to Rs. 83,736.63 lakhs for the previous financial year. Profit Before Taxis Rs. 77,340.66 lakhs compared to Rs. 78,121.42 lakhs for the previous financial year. The operating margin for the current year is 18.60% compared to 19.62 % for the previous financial year. Total Comprehensive Income is Rs. 47,125.08 lakhs compared to Rs. 58,208.36 lakhs for the previous financial year. ExportSalesis financial yearRs. 2,377.99lakhsforthe ended March 31, 2025 compared to Rs. 1,643.76 lakhs in the previous financial year, a increase of 44.67 %, due to less demand in the global market.
Other Income:
The other income is Rs. 7,026.52 lakhs for FY 24-25 compared to Rs. 7,829.09 lakhs for the previous FY 23-24.
Cost of Goods sold:
The % of cost of raw material consumed as against sales for FY 24-25 is lower by 0.08% at 58.67% as against 58.75% for the previous FY 23-24, due to product mix and decrease in foreign currency exchange rate.
Employee Benefits Expense:
Employee cost as a % of sales for FY 24-25 stood at 9.69% (previous financial year was 9.18%) at Rs. 43,779.48 lakhs (previous financial year: Rs. 39,184.88 lakhs). Sales per employee has increased by 5.82% to Rs. 372.29 lakhs (no. of employees 1,213) in the current FY 24- 25 from Rs. 351.83 lakhs (no. of employees 1,033) for the previous FY 23-24.
Finance Cost:
The interest cost for FY 24-25 is Rs. 1,117.51 lakhs compared to Rs. 321.65 lakhs in the previous FY 23-24. The interest cost is on account of lease rentals of vehicles, office equipment and real estate.
Interest earned:
The Company earned Rs. 6,186.60 lakhs on the surplus during FY 24-25 when compared toRs. 6,669.97 lakhs during FY 23-24 by keeping the funds in deposits with the Banks.
Earnings per Share (EPS):
The EPS (Basic and Diluted) of the Company for FY 24-25 was Rs. 422.60 per Share as compared to Rs. 517.90 per Share in the previous FY 23-24, a decrease of 18.40%.
Share Capital:
The Authorised Capital as on March 31, 2025 is Rs. 117,650,700 (divided into 1,17,65,070 Equity Shares of Rs. 10 each). The Issued/Subscribed and Paid-up Capital as on March 31, 2025 is Rs. 112,650,700 (divided into 1,12,65,070 Equity Shares of Rs. 10 each). During the year under review, the Company has not issued Shares with differential voting rights nor granted Stock Options nor Sweat Equity.
Reserves & Surplus:
Rs. 47,125.08 lakhs is retained in profit and loss account for the year ended March 31, 2025. The Reserves & Surplus is Rs. 183,523.18 lakhs including the current financial year retained profit.
Shareholders Fund:
The total shareholder funds decreased to Rs. 184,649.69 lakhs as at March 31, 2025 from Rs. 214,690.34 lakhs as of the previous FY 23- 24, representing a decrease of 13.99% mainly because of payment of dividend offset by profits the year.
Depreciation:
The depreciation charge for the current financial year is lower at Rs. 5,528.70 lakhs when compared to Rs. 5,293.56 lakhs of previous FY 23-24.
Fixed Assets-Capital Expenditure:
The gross Fixed Assets as at March 31, 2025 was Rs. 65,996.54 lakhs as compared to Rs. 61,892.68 lakhs of previous FY 23-24. Capital Investments during FY 24-25 were at Rs. 5,542.02 lakhs (Net of capital work-in-progress and capital advances) (FY 23-24: Rs. 3,141.42 lakhs) an increase of 76.42% year on year.
Inventories:
Inventory as at March 31, 2025 amounted to Rs. 64,823.85 lakhs as compared to Rs. 53,179.35 lakhs of previous FY 23-24. The inventory ratio has decreased to 81 days as at March 31, 2025 from 83 days of previous FY 23-24.
Trade Receivables:
Trade Receivables as at March 31, 2025 amounted to Rs. 79,026.74 lakhs as against Rs. 70,308.98 lakhs of previous FY 23-24. The debtors turnover ratio is 62 days (previous financial year: 59 days).
Cash and Bank balances:
The total balance of cash and bank balances as at March 31, 2025 was Rs. 93,277.92 lakhs as compared to Rs. 104,428.88 lakhs as at March 31, 2024.
Key Financial Ratios:
During the year, the significant changes in the financial ratios of the Company, which are more than 25% as compared to the previous year are summarised below:
Particulars |
March 31, 2025 | March 31, 2024 | % Change | Reasons for Variance |
1 Debtors Turnover (Days) | 62 | 59 | 5.08% | |
2 Inventory Turnover (Days) | 81 | 83 | -3.57% | |
3 Interest Coverage Ratio | 70.21 | 243.88 | -71.21% | Increase in interest expenses due to capitalisation of new lease |
4 Current Ratio | 2.34 | 2.52 | -7.14% | |
5 Debt Equity Ratio | 0.05 | 0.01 | 400% | Increase in debt for capitalisation of new lease |
6 Operating Profit Margin (%) | 18.60 | 19.62 | -5.20% | |
7 Net Profit Margin (%) | 10.54 | 13.67 | -22.90% | |
8 Return on Net Worth (%) | 25.78 | 27.17 | 5.12% |
Overall analysis of the Profit and Loss:
Year Ended March 31, 20251 |
Year Ended March 31, 20241 |
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Particulars |
Rs. in lakhs | % | Rs. in lakhs | % |
Revenue from operations | 444,555.63 | 98.44% | 418,936.24 | 98.17% |
Other income, net | 7,026.52 | 1.56% | 7,829.09 | 1.83% |
Total Revenue |
451,582.15 | 100.00% | 426,765.33 | 100.00% |
Cost of Materials consumed | 170,807.10 | 37.82% | 159,946.30 | 37.48% |
Purchases of stock-in-trade | 101,273.02 | 22.43% | 85,928.13 | 20.13% |
Changes in inventories of finished goods, progress and stock-in trade | (7,139.44) | -1.58% | work-in- 4,848.31 | 1.14% |
Employee benefits expense | 43,779.48 | 9.69% | 39,184.88 | 9.18% |
Other Expenses | 58,875.12 | 13.04% | 53,121.08 | 12.45% |
Profit before Finance costs and Depreciation |
83,986.87 | 18.60% | 83,736.63 | 19.62% |
Finance Costs | 1,117.51 | 0.25% | 321.65 | 0.08% |
Depreciation and amortisation expense | 5,528.70 | 1.22% | 5,293.56 | 1.24% |
Total Expenditure |
374,241.49 | 82.87% | 348,643.91 | 81.69% |
Profit Before Tax |
77,340.66 | 17.13% | 78,121.42 | 18.31% |
Tax | 29,733.92 | 6.58% | 19,779.74 | 4.63% |
Profit for the year |
47,606.74 | 10.54% | 58,341.68 | 13.67% |
Items that will not be reclassified subsequently to profit or loss | (481.66) | -0.11% | (133.32) | -0.03% |
Total comprehensive income for the year |
47,125.08 | 10.44% | 58,208.36 | 13.64% |
1. The financial year ending March 31, 2025, reflects merged financials following the amalgamation of 3M Electro & Communication India Private Limited (a wholly owned subsidiary) with 3M India Limited. To facilitate comparison, the values for the financial year ended March 31, 2024, have been adjusted to include the effects of the merger.
SEGMENT-WISE PERFORMANCE:
The Safety and Industrial business increased by 6.04%; Transportation & Electronics business increased by 1.65%; Consumer business increased by 8.62% and Health Care business increased by 13.71%.
1. Safety and Industrial Business:
This business segment serves the core industrial, electrical, vehicle maintenance and safety markets and offers a range of solutions including personal safety products, industrial adhesives and tapes, abrasives, electrical products and products for the automotive aftermarket.
( Rs. in lakhs)
March 31, 2025 | March 31, 2024 | ||
Financial Highlights |
Segment Revenue |
141,386.63 | 133,328.70 |
Profit Before Interest & Tax |
14,672.35 | 17,784.34 | |
Capital Employed |
32,357.82 | 23,609.30 | |
Highlights of Safety and Industrial Business |
Abrasive: The Company concentrated on expanding its portfolio offerings to the MSME segment through new product launches and enhanced reach. The Company is committed to addressing industry challenges by providing high productivity and safer solutions |
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Electrical Products: The Company achieved gains with its Cable Accessories solutions in conventional energy public utilities, as well as the solar and wind energy segments. |
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Automotive Aftermarket: The Company closely collaborated with major AOEMs in India to elevate customer experience through innovative solutions and services. The Company also upheld its strong leadership position in the Collision Repair segment by upgrading customers to 3Ms high-productivity solutions. |
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Industrial Adhesives & Tapes Division: The Company is leveraging its innovative application development capabilities to establish a robust presence in the growing Electric Vehicle (EV) segment in India. |
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Personal Safety Division: The Company expanded its Pressurised Supplied Air Respirators and Fall Protection solutions. |
2. Transportation and Electronics Business:
This business segment serves global transportation and electronic original equipment manufacturers (OEM) with products for automotive and aerospace, commercial solutions, advanced materials and solutions for transportation safety.
( Rs. in lakhs)
March 31, 2025 | March 31, 2024 | ||
Financial Highlights | Segment Revenue | 167,655.60 | 164,940.62 |
Profit Before Interest & Tax | 30,092.23 | 36,686.22 | |
Capital Employed | 44,812.41 | 34,368.58 | |
Highlights of Transportation Business | Government of India continues its focus on infrastructure investment with specific capex allocations for new rail cars and to develop urban infrastructure that are expected to offer growth opportunities for 3Ms transportation safety and commercial branding portfolios. |
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Passenger vehicle production grew mid-single digit during the year. |
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Demand for graphics and branding solutions continued to grow with increase in GCCs, hospitality and retail investment in Tier 2 cities. |
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While electronics manufacturing output has grown sharply, greater traction is now seen in localisation initiatives in the value chain. |
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Investments in semiconductor manufacturing facilities, provide good opportunities in the future. |
3. Consumer Business:
This business segments serves consumers with home care, office supply and stationery, home improvement and consumer healthcare products.
( Rs. in lakhs)
March 31, 2025 | March 31, 2024 | ||
Financial | Segment Revenue | 46,485.81 | 42,795.93 |
Highlights | Profit Before Interest & Tax | 8,232.40 | 8,103.87 |
Capital Employed | 6,786.52 | 3,496.37 | |
Highlights of Consumer Business | Sales of all products grew Home Care, Stationery and Home Improvement. Further, witnessed growth in all 3 channels General trade, Modern trade and E-comm. |
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Increased penetration of scouring products with increase in distribution reach. |
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Realised growth in categories of broom, and home improvement product through focused demand generation programs. |
4. Healthcare Business:
This segment provides products and services such as medical and surgical supplies, oral care solutions (dental and orthodontic products). Effective April 1, 2024, the company is an exclusive Licensed Manufacturer and Reseller as well as an Independent Distributor, for most of Solventum Corporations healthcare products in India.
( Rs. in lakhs)
March 31, 2025 | March 31, 2024 | ||
Financial Highlights |
Segment Revenue |
86,521.71 | 76,092.59 |
Profit Before Interest & Tax |
17,466.82 | 7,276.72 | |
Capital Employed |
16,212.34 | 10,673.25 | |
Highlights of Healthcare Business |
Growth of the hospital facing and dental businesses continues due to increase in the number of elective surgeries/ dental procedures and better coverage of key cities across India. |
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The Company continues to be a technical partner with professional bodies such as CAHO (Consortium of Accredited Healthcare Organizations), INS (Infusion Nurses Society), IDA (India Dental Association) and AORN (Association of Peri Operative Registered Nurses) to upgrade medical practices in hospital settings & dental clinics. The adoption and compliance of guidelines and protocols laid down by the PMSOs has resulted in better penetration of the companys solutions. |
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Better understanding of guidelines and protocols by the clinical and sales team has helped the healthcare facilities and dental clinics in adoption of the best practices resulting in adoption of appropriate healthcare solutions. |
OPPORTUNITIES AND THREATS
3M Companys wide range of technologies, product portfolio, and strong brand continues to help 3M India build its market position.
Operating in a highly competitive market, the Company may face pressure on both the top and bottom lines. The Companys products require expertise in product development, manufacturing, and marketing, and face competition from technologically oriented companies both domestically and internationally. Additionally, challenges such as rupee depreciation, geo-political uncertainties and fluctuating oil and commodity prices require focused attention.
RISKS AND CONCERNS
Provided below are cautionary statements outlining what the Company believes to be the most important risk factors applicable to the Company:
The Companys results are affected by competitive conditions and customer preferences.
Foreign currency exchange rates and fluctuations in those rates may affect the Companys ability to realise projected growth rates in its sales and earnings.
The Companys growth objectives largely depend on the timing and market acceptance of its new product offerings, including its ability to continually renew its pipeline of new products and bring those products to market.
The Companys future results are subject to fluctuations in the costs and availability of purchased components, compounds, raw materials, and energy, including oil, natural gas, and their derivatives, due to shortages, increased demand, supply interruptions, currency exchange risks, natural disasters, and other factors like the global pandemic.
Security breaches and other disruptions to the
Companys information technology infrastructure could interfere with the Companys operations, compromise information belonging to the Company or its customers, suppliers, and employees, exposing the Company to liability that could adversely impact the Companys business and reputation.
The Companys strategy for growth, future revenues, earnings, cash flow, uses of cash, and other measures of financial performance and market position.
The Companys future results may be affected by its operational execution, including scenarios where the Company generates fewer productivity improvements than estimated.
Asset impairments.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
All key functions and divisions of the Company are independently responsible for monitoring risks associated with their respective areas of operations such as production, supply chain, marketing, finance, accounting, treasury, legal and other areas like health, safety and environment. The Company has identified various risks through an internal self-assessment compliance checklist and has laid out necessary procedures to mitigate the same.
The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorisation and ensuring compliance with corporate policies. The Company, through its own Corporate Internal Audit Department, carries out periodic audits to cover all the offices, factories and key areas business segments based on the plan approved by the Audit Committee and bring out any deviation to internal control procedures. The Internal Auditor functionally reports to the Audit Committee and administratively to the Managing Director. The observations arising out of the audit are periodically reviewed and compliance is ensured. The summary of the Internal Audit observations and status of the implementation is submitted to the Audit Committee of the Board of Directors. The status of implementation of the recommendations is reviewed by the Committee on a regular basis and concerns, if any, are reported to the Board.
DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS
Learning and Development:
The Company continued to deepen the usage of 3M Learn, a global learning platform that was launched in the previous year which has provided options to employees to pursue self-paced learning. This modern, personalised, and flexible platform creates an environment for every employee to own their development and find the learning resources that will best help them grow at 3M.
3M Learn houses 10,000+ learning resources in more than 15 languages. From eModules and videos to tip sheets and live sessions, employees can use 3M Learn to create a learning plan, explore areas meaningful to them, and take ownership of their growth and development.
There was a focus this year on leadership development through multiple leadership learning tracks that all supervisors and leaders were expected to complete. The leadership learning tracks were customised and curated, building on the foundations of our Leadership expectations and the Culture pillars. A unique aspect of these learning tracks was the ability of 3M leaders across the globe to collaborate and learn with each other on their journeys.
Human Resource Business Partnering/Total Rewards/ Employee Engagement
The year saw Family Day events and Sports Day activities from 3M club which is an employee interest group that fosters a sense of belonging for employees and their families. In FY 24-25, we ensured that our supervisors were equipped with key leadership skills through a curated, customised leadership development programme which covered supervisors and Plant leadership at both our Ranjangaon and Bengaluru plants. Furthermore, production operators also saw attention being given to soft skills development at our Bengaluru Plant. Furthermore, production operators also saw attention being given to soft skills development at our Bengaluru Plant. Our Bengaluru production employees participated in programs on Effective communication, Teamwork and Collaboration, working with supervisors, Time management techniques and professional behaviour at workplace. The programme was well received and we intend to replicate the programme across other Plants in FY 25-26. of 3M takes steps to ensure that employees are engaged right from the time of joining the organisation to ensure that they become productive very quickly as well as to start demonstrating 3M values, behaviours and co-creating 3Ms culture. As part of this effort, 3M offers a virtual Feel@ Home programme every month for all our new employees to enable an orientation to 3M, which is followed by an immersive 1.5-day experience at our Innovation Centre and our Bengaluru Plant.
In todays dynamic work environment, HR Operations Partners have helped business and function leaders embrace and evolve our flexible work policy "Work Your Way". To drive innovation and growth across the organisation, Work your Way has evolved to include more Collaboration days across all businesses and functions, which has seen all employees coming together in our offices to solve problems, brainstorm and align to business needs.
FY 24-25 also saw continued participation in our Connections Forums, which are company-wide quarterly town halls, led by the Managing Director. These townhalls help employees stay informed of the Companys performance and related topics.
Employee Relations:
The Company continues to strengthen employee relations and maintain a harmonious working environment at the manufacturing sites. The Companys drive towards Self-Managed teams continues across multiple sites and workstreams and the outcomes of these teams are being suitably recognised, through competitions that help to solve problems on the manufacturing floors.
3M India engaged plant-based employees with several initiatives. These initiatives included kaizen events as well as employee led committees on Safety and Quality education that also included family members of employees.
Other initiatives include:
Enhanced ownership and participation of plant employees in CSR initiatives.
Outreach programmes from the Manufacturing
-Womens Leadership Forum (WLF) to build awareness about careers in manufacturing, through active partnerships and collaborations with the STEM projects and education projects that the Company supports through CSR.
Our 3M Clubs across our Plants are employee led and organised a number of activities through the year with an intent to bring both 3Mers and their families together. These activities spanned across sports days, family days and team building events and over the years have contributed to creating, building and sustaining the culture of 3M.
On behalf of the Board of Directors
Ramesh Ramadurai |
Jayanand V. Kaginalkar |
Managing Director | Whole-time Director |
DIN: 07109252 | DIN: 07904558 |
Place: Bengaluru | |
Date: May 28, 2025 |
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