acrysil ltd share price Management discussions



The global economy witnessed both ebbs and lows during the year 2022. The escalated Russia-Ukraine conflict accompanied by pent-up demand, lingering supply disruptions, compounded by Chinas adoption of Zero- COVID contributed significantly to the surging inflation. However, the implementation of tightening monetary policies by the Central Banks of both developed and emerging economies aided in controlling inflationary forces, curbing the demand and pushing inflation towards the targeted range by the end of the year.

China is rebounding strongly and reopening its economy easing the supply-chain disruptions. The developing and emerging economies are expected to contribute maximum to the global growth. The Asia-Pacific countries are expected tc contribute ~70% of the global growth in 2023.


(Source: IMF, World Economic Outlook, April 2023.)

Despite these challenges, the International Monetary Fund (IMF) predicts a 2.8% global economic growth rate in 2023, with advanced and emerging economies expected to grow at 1.3% and 3.9%, respectively.

world economic Outlook (%)

Actual Project on
2022 2023 2024
world Output 3.4 2.8 3
Advance economies 2.7 1.3 1.4
united States 2.1 1.6 1.1
euro Area 3.5 0.8 1.4
germany 1.8 -0.1 1.1
France 2.6 0.7 1.3
italy 3.7 0.7 0.8
Spain 5.5 1.5 2
Japan 1.1 1.3 1
united Kingdom 4 (0.3) 1
Canada 3.4 1.5 1.5
Other Advanced economies 2.6 1.8 2.2
emerging Markets and Developing economies 4 3.9 4.2
China 3 5.2 4.5
india 6.8 5.9 6.3

(Source: World Economic Outlook, April 2023: A Rocky Recovery (


Indias economy has shown remarkable resilience in the face of global uncertainties, cementing its position as a significant driver of global economic progress.

The country has registered GDP of 7.2% in 2022-23, remaining one of the worlds fastest-growing economies, surpassing the UK to become the fifth- largest economy in the world. This success is partly due to the Governments efforts to enhance transportation infrastructure, logistics, and the overall business ecosystem, which have created a more favourable environment for businesses to operate in and have been instrumental in sustaining Indias economic growth.

To ensure economic stability, the Resewe Bank of India (RBI) has adopted a stable monetary policy stance, considering the declining inflation trajectory, positive macroeconomic factors, and increasing consumer aspirations. As a result, the RBI has decided to keep the repo rate unchanged for the second consecutive time, taking a cautious approach.

The Indian Governments strategic initiatives, including the PM Gati Shakti (National Master Plan), the National Monetisation Plan (NMP), and the Production Linked Incentive (PLI) Scheme, have played a crucial role in fostering economic growth. Furthermore, there are optimistic prospects for the manufacturing, sewices, agriculture, and related industries, which, combined with improved business and consumer confidence, are expected to support domestic consumption. Additionally, the accelerated credit expansion is anticipated to further contribute to the overall economic growth in the near-term.

Indias economic success has been built on the foundation of a robust private sector and a Government committed to creating a favourable business environment while ensuring long-term stability.



The growing demand for home improvement and kitchen renovations can be attributed to several factors, including the increasing spending on home improvements, the trend towards working from home, and the renewed focus on health and wellness. As a result, the importance of having a well-equipped kitchen with modern amenities, such as a modern kitchen sink are need of hours.

The rising significance of having a well-equipped kitchen has led to an increase in demand and a shift in customer preferences towards kitchen sinks. Modern sinks, especially those having high aesthetic value with hygiene factors, are particularly beneficial in modular and smart kitchens. Sinks are available in various sizes, shapes, and materials to meet the varying wishes and desires of people worldwide. The addition of advanced amenities like sprays, trash-collecting systems, and soap dispensers have piqued customer interest, resulting in increased demand for Quartz Sinks in the USA and European markets. This trend is expected to continue in the coming years.

The global kitchen sink market is projected to grow from USD 3.20 Billion in 2022 to USD 4.50 Billion by 2030, with a CAGR of 3.87% from 2023 to 2030. This growth can be attributed to the increasing focus on modernisation, rising per capita income, and thriving residential construction activities.

Quartz is quickly becoming the material of choice for kitchen sinks. The demand for quartz kitchen sinks has witnessed a notable upsurge in recent years. Quartz sinks offer a plethora of advantages that contribute to their burgeoning popularity among homeowners and designers alike.

Foremost, quartz is renowned for its exceptional durability, displaying remarkable resistance to scratches, stains, and heat. This robustness ensures that Quartz Sinks maintain their pristine condition even with regular and rigorous use in the kitchen.

Furthermore, Quartz Sinks possess a non-porous surface, rendering them impervious to bacterial growth and remarkably easy to clean and maintain. This hygiene factor holds significant appeal, particularly in kitchen environments where cleanliness is of paramount importance.

In addition to their functional attributes, Quartz Sinks boast a vast array of colours, finishes, and designs, providing homeowners with a wide range of choices to seamlessly integrate these sinks into their kitchen aesthetics and align them with their personal style.

Moreover, the growing trend of kitchen renovations and home improvement projects has fuelled the demand for quartz kitchen sinks. As homeowners invest in upgrading their culinary spaces, they seek superior-quality fixtures that exude not only visual appeal but also offer lasting performance — and Quartz Sinks aptly meet these expectations.

In essence, the surge in demand for quartz kitchen sinks can be attributed to their unrivalled durability, effortless maintenance, hygienic properties, and versatile aesthetics.

As an increasing number of homeowners recognise the manifold benefits of Quartz Sinks, the market for these products continues to experience robust growth.

Quick Facts

• High demand for home improvement projects and the construction sector has resulted in the growth of Quartz Sink

• North America is a major market for Quartz Sinks, with the US and Canada driving majority of growth

• Increasing consumer preference towards new technologies, innovative designs, easy to clean features will drive the overall market

• North America remains the largest market, the APAC region is upcoming as the fastest growing market with growing demand for luxurious modern homes and increasing construction activities


The kitchen appliance industry has experienced a significant boost in both technological advancements and consumer demand in recent years. The latest innovations, such as smart refrigerators and voice-controlled ovens, have made cooking and entertaining in the kitchen more effortless and productive. High-tech appliances, including induction cooktops, steam ovens, and sous-vide machines, are increasingly popular among home cooks striving to achieve restaurant-quality results. Additionally, the demand for appliances that can expedite meal preparation and simplify cooking has risen due to more people spending time at home. As technology continues to progress, we can expect even more innovative appliances to be introduced in the kitchen, enhancing the cooking experience. The growing global home remodelling market also presents an opportunity for the kitchen appliance industry to expand.


Rapid Technological Advancements

The kitchen appliance industry is undergoing significant transformation due to rapid technological advancements. These advancements are driving innovation, enabling the development of advanced features and functions that seemed a distant reality. For instance, smart appliances with Wi-Fi connectivity can now offer remote control, voice-activated features, recipe recommendations, and automatic grocery ordering.

Moreover, technological innovations such as induction cooking, steam ovens, and precision temperature control are improving the performance and efficiency of appliances, resulting in faster and more precise cooking and better-quality results.

The industry is also making significant strides in making appliances more user-friendly and convenient, with touch screens, automatic settings, and self-cleaning functions that make operating and maintaining appliances easier.

Additionally, technological advancements are making appliances more energy-efficient and environmentally friendly, reducing their carbon footprint and making them more appealing to eco-conscious consumers. Rapid technological advancements are driving transformation and creating a new generation of efficient, convenient, and high-performing kitchen appliances.

growing Trend of home Cooking and SBi Entertaining

The kitchen appliance industry is experiencing significant changes in demand and innovation as a result of the growing trend of home cooking and entertaining. This trend is driving a surge in demand for appliances that can make meal preparation more efficient and enjoyable, such as food processors, blenders, and stand mixers.

It also drives manufacturers to create more user- friendly appliances with intuitive controls and easy- to-clean surfaces. The trend also leads to an increase in the number of accessories and attachments available for kitchen appliances, enabling consumers to customise their appliances for specific cooking tasks. Overall, this trend is stimulating innovation and creating a more diverse range of appliances and accessories that cater to the evolving needs and preferences of modern consumers rise in Disposable income and Changing Lifestyle habits.

The rise in disposable income and changing in lifestyle of consumers are significantly influencing the kitchen appliance industry. With increasing disposable income, consumers are willing to spend more on high-end kitchen appliances that offer advanced features and innovative designs.

As people adopt busier lifestyles, they seek appliances that can save time and effort, such as dishwashers, microwave ovens, and coffee makers. Manufacturers are responding to these changing consumer demands by developing energy-efficient, eco-friendly appliances with user- friendly features like touchscreens, voice-activated controls, and remote monitoring capabilities. Overall, the rise in disposable income and change in lifestyle of consumers are driving the kitchen appliance industry to produce innovative and technologically advanced products that meet the evolving needs of modern consumers.

Shift towards Eco-Friendly and Sustainable Living

The growing concern for environmental sustainability and eco-friendly living drives a significant shift in the kitchen appliance industry. Consumers are now more aware of the environmental impact of their choices, including the appliances they use in their homes, and are seeking out eco-friendly and sustainable alternatives. There is also an increasing demand for appliances made from eco-friendly and sustainable materials, like recycled plastic, bamboo, and Stainless Steel, that are easy to disassemble and recycle, reducing waste at the end of their life cycle.

This shift towards eco-friendly and sustainable living is driving innovation in the industry, and is expected to continue as more consumers become environmentally conscious and seek out appliances that are both efficient and environmentally responsible. growing Adoption of online Sales Channels

The kitchen appliance industry has been significantly impacted by the growing adoption of online sales channels, acting as a major enabler for growth. The rise of e-commerce and online retail has provided consumers with greater convenience, more choices, and more competitive prices. With the ability to browse a wider range of products from the comfort of their own homes, consumers are now more likely to purchase kitchen appliances online. Moreover, online sales channels have enabled manufacturers and retailers to expand their reach beyond their traditional geographic boundaries, reaching a global audience and increasing sales volumes and revenue growth. Furthermore, the accessibility of detailed product information, transparency, and personalisation of promotions and deals are driving factors for informed purchasing decisions and reaching specific target markets and demographics. This trend is expected to continue as more consumers embrace online shopping, fuelling further growth and innovation in the industry.


These key enablers will not only allow our Company to maintain a competitive edge but also position us favourably to seize the opportunities. We are expanding our product spectrum to continue serving the ever-evolving needs of the customers globally.



Our products have experienced consistent year-on-year demand growth both internationally and domestically, driven by factors such as increased product spending, rising per capita income, higher demand for housing, and a surge in home renovations. There was a period of destocking during the year impacting the volumes for a temporary period. However we are gaining momentum with healthy order flows. Both the domestic and international markets are witnessing strong demand fuelled by evolving lifestyles, a focus on aesthetics, growing aspirations, and a thriving real estate market. The preference for a work-from-home (WFH) culture, technological advancements, and increased disposable income among consumers have also contributed significantly to the overall growth.


Due to the continuous growth in demand for our products, we have been steadily expanding our production capacities. In the past year, we achieved a successful capacity expansion of 1,60,000 units of Quartz Kitchen Sinks, effectively increasing our total capacity from 8,40,000 units per annum to 10,00,000 units per annum. This additional capacity has been fully operational since June 2022.


Currently, our manufacturing operations produce Steel Sinks in three forms: press sinks, Quadro sinks, and PVD sinks. Among these, we have been successfully exporting PVD sinks to the UK, France, and Germany. The demand for PVD sinks from our export customers has been remarkably high, indicating a positive outlook for future growth. The PVD technology we employ enhances the aesthetic appeal of the Steel Sinks by coating them in various metallic colours such as gold, rose gold, and black, among others. This innovative addition was previously unavailable, as Steel Sinks were only offered in their natural steel colour.


We have made significant progress in expanding our manufacturing capabilities for Steel Sinks, doubling our capacity to 1,80,000 units. This increased capacity will become operational starting from H2 FY 2023-24. With the ability to operate at full capacity, we anticipate generating revenues ranging between ^ 80 Crore to ^ 90 Crore.


Carysil Limited has obtained a 70% equity share of The Tap Factory Limited, a company based in Yorkshire, UK. There is an option to acquire the remaining 30% stake at an enterprise value, which will be determined by a six times multiple of EBITDA over the next two years. The primary focus of The Tap Factory Limited is designing and sourcing bathroom and kitchen products, particularly Instant Boiling Water Taps, which are then packaged and marketed to the bathroom and kitchen industry. The acquisitions rationale lies in the unique range of fully certified instant hot water taps and kitchen mixer taps, which present opportunities to explore new markets and attract potential buyers. Additionally, the Company possesses e-commerce capabilities, enabling it to handle B2C sales. Its customer base comprises major online retailers, kitchen distributors, kitchen & bathroom studios, and property developers.


Despite facing unprecedented challenges in the world, our resilience and adaptability have been key factors in navigating through uncertain times and continuing to thrive in the market.


At the end of 2022-23, our standalone turnover declined by 13.48% to touch Rs.335.70 Crore, which was Rs.388.03 Crore in 2021-22. The Profit After Tax also declined to Rs.25.58 Crore in 2022-23 from Rs.51.52 Crore in 2021-22. Export sales stood at Rs.239.46 Crore in 2022-23 against Rs.314.88 Crore in 2021-22, registering a declined of 23.95%.


The consolidated revenue of the Company increased by 22.73% to Rs.593.89 Crore in 2022-23, which was Rs.483.9 Crore in 2021-22. The consolidated PAT declined by 19% to Rs.52.83 Crore in 2022-23 from Rs.65.26 Crore in 202122. The earnings per share declined to 19.59 at the end of 2022-23, compared to 24.26 in the previous fiscal on a consolidated basis. The Company has always had a consistent dividend policy and the Board of Directors has recommended a dividend of 100%.

In response to the surging demand for built-in kitchen appliances, the Board has made a strategic decision to leverage our resources and venture into the manufacturing and assembling of 2,00,000 built-in kitchen appliances.

This step aligns with our vision to become self-reliant (Atmanirbhar) in the built-in kitchen appliances segment. The expansion plan will be executed in two phases, with the production of 1,00,000 units scheduled for Q3FY24, followed by the remaining 1,00,000 units in FY 2024-2025. The first phase is set to be commercialised in December 2023, while the second phase will be completed by March 2024. This bold move will empower us to meet the growing market demand and solidify our position in the industry.


The details of significant changes in the key financial ratios during 2022-23 are summarised below:

Sr. No Key Financial Ratios 2022-23 2021-22 Change in % Reason for change
1. Inventory Turnover Ratio (No. of days) 81.88 54.09 51.37 Increase in Inventory
2. Trade Payables Turnover Ratio (No. of days) 102.05 76.65 33.14 Decrease in purchase
3. Debt Service Coverage Ratio (in times) 2.33 3.50 (33.43) Decrease in debt
4. Return on Equity Ratio (%) 12.04 29.29 (58.90) Decrease in profit
5. Net Profit Ratio (%) 7.62 13.28 (42.61) Decrease in profit
6. Return on Capital Employed (%) 12.13 22.72 (46.60) Increase in debt.
7. Return on Investments (%) 28.54 (100.00) No dividend income
8. Current Ratio (in times) 1.20 1.20 0.30
9. Trade Receivables Turnover Ratio (No. of days) 74.85 67.40 11.06
10. Debt-Equity Ratio (in times) 0.53 0.61 (12.79)
11. Net Capital Turnover Ratio (in times) 9.04 9.28 (2.62)


Our comprehensive approach enables us to efficiently manage risks associated with finance, non-finance, and sustainability in our business operations.


The Company maintains a high level of vigilance and closely monitors both the economic and political landscape within the country and globally.

By continuously assessing the potential impact of changes in business and economic environments such as inflation rates, interest rates, and others, the Company is able to develop strategies to mitigate any negative effects on its operations. The Companys primary goal is to maintain adaptability and flexibility to successfully navigate any economic challenges that may arise. This approach ensures that the Company can stay resilient and effectively respond to any changes in the market, allowing it to continue delivering high-quality products and services to its customers.


As a company operating in the kitchen products industry and exporting its products to foreign markets, we understand the potential impact of currency fluctuations on our cost of production, pricing, and profit margins. A strong domestic currency against foreign currencies can decrease our profits, while a weak currency can increase them. Therefore, the Company takes necessary steps to mitigate these risks.


The Companys products are exported to major economies, including the US, the UK, Europe and more than 55 countries. However, this exposes the Company to a significant risk from domestic manufacturers in the importing countries, making it challenging to compete with local players. Nonetheless, the Company has built a strong reputation for quality and service, which mitigates this risk and helps to maintain its competitiveness in the global market.


The Company operating in the kitchen appliance industry is subject to numerous regulations and compliance requirements, including product safety standards and environmental regulations. Failure to comply with these regulations can have severe legal and financial consequences for the Company. Therefore, the Company has taken measures to ensure that it complies with all applicable regulations and requirements.


Effective marketing is essential to the success of the Companys business, and poor marketing techniques can have a negative impact on our overall performance. However, the Company has taken steps to mitigate this risk by building a reliable and robust network of global retailers. The Company prioritise strengthening its network and forming strategic alliances to ensure maximum output and reach a wider customer base.


The Company recognises that quality issues can pose a significant risk to its success. Substandard products can trigger customer complaints, negative reviews, and harm the Companys reputation. Such outcomes can lead to reduced sales, loss of customers, and decreased profitability. Furthermore, quality issues can result in costly product recalls and legal action, further affecting the Companys financial health. For this reason, the Company is steadfast in its commitment to achieving the highest quality standards and benchmarks, as evidenced by its global certifications. The Company considers quality to be an integral part of its DNA rather than just a protocol.


IT risk management and cyber security are crucial practices that determine the efficiency and security framework of modern organisations. IT risk management involves the management of information technology risks through policies, procedures, and technology. Cyber security focusses on protecting networks, computers, devices, and software from cyber attacks, encompassing various fields that enhance data security and prevent threats such as malware, phishing, and ransomware. The Company supplies and maintains technological products, services, and facilities for its employees official use, including personal computers, severs, telephones, and internet and application software. The organisations IT policy establishes rules and guidelines for the ethical and acceptable use, maintenance, and security of these assets, ensuring the well-being of data, products, facilities, and individuals. It also provides guidelines for purchasing, compliance, IT support, and addressing employee grievances related to technological assets and services used for office work. The Company has implemented effective IT risk management and cyber security practices to address all key aspects, including regular and defined data backups, secure network and system access, licensed antivirus and firewall systems, and the management and mitigation of third-party risks posed by vendors and business partners.


The Company has established appropriate and sufficient internal control systems that are in line with its size and operational scope. These systems offer a reasonable level of confidence in safeguarding all assets and ensuring that transactions are duly authorised, accurately recorded, and appropriately reported. The Company is also vigilant about certain operational risks and employs regular monitoring and corrective measures to mitigate them. The design of these internal control systems aims to ensure the reliability of financial and other records, reflecting an accurate and honest representation of the Companys business state.


Statements made in the Management Discussion & Analysis describing the Companys objectives, projections, estimates, and expectations may be Forward-looking statements within the meaning of applicable securities Laws & Regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.