Ahimsa Industries Ltd Management Discussions.



The plastics industry in India has developed and diversified significantly since its inception in 1996. The Indian plastics industry market has now grown to become one of the leading sectors in the countrys economy, employing more than 4 million people. India is also one of the worlds top exporters of plastics products. The industry manufactures and exports goods.

India has increasingly adopted free market principles and liberalized its economy to international trade after a fiscal pricing in 1991. The reforms largely favored industrial growth in country. Hence, the countrys economic growth progressed at a rapid pace with relatively large increases in per capita incomes.


At present the plastic industry is around Rs 2.25 lakh crore, according to the All-India Plastics Manufacturers Association which expects with the right kind of government support it can double to Rs 5 lakh crore over the next five years. The application of plastics can be found in almost every sector.

The Industry is driven by key factors like rising population, increase in income levels and changing lifestyles. Demand from rural sector for packaged products is being fuelled by increasing media penetration through the means of internet and television.

India is a growing market for plastics and consumes about 12.8 million tons of plastics annually against the global consumption of 285 million tons per year.

However, the Indias economic growth has slowed to 7% in 2019-20, which has resulted in lower volume by the Company.


The sentiment of Indian Industry was positive due to change in Government. The economy was showing the sign of returning to growth path and fiscal & current account deficit were lower. Effects of demonetization and Goods & Service Tax (GST) have highly shown in the whole Indian Economy. The manufacturing sector was benefited from lower interest rates, stable commodity prices & falling oil prices. However, there was a need of Government focus on infrastructure and require greater attention for overall growth of manufacturing & economy of India.

It is expected that the Indian economy is poised for higher growth beating growth rate of China in coming year. There are positive signs for such expectation like inflation are in control, oil prices are stable at lower level, interest rates expecting to fall further, stable commodity prices and positive expectation from present Government on reform & policy matters.


Indian plastic and beverages market is highly competitive. Your company had focused on quality product to sustain its business and performed satisfactory on Indian market & done reasonably well on export front.

The Company has tried its best to lower the impact of high price inventory of first half and take advantage of lower prices by timing the purchase of raw materials.

The Company is also judging the consumer taste in timely manner and introduced few new designs of Pet Preform articles. The company has developed market for its products in domestic as well as international geographies.


The use of PET packaging products is increasing day by day. Changing life style, urbanization are pushing FMCG sector to use PET Packaging products in new innovative and trending ways to increase the sales by attracting the end users of the final products. Keeping in view the increased demand in PET packaging products, the Company continuously work on developing the products in trending ways to attract the more and more customers.

However, despite having a good growth potential, the plastic packaging industry faces many threats in terms of health hazards, government bans, fluctuating raw material prices and competition. Some of the players present in the industry follow unethical practices to increase the revenue by selling poor quality products which may look similar but are hazardous to the environment.

To overcome these challenges, significant efforts will have to be made by all the stakeholders to realize the real potential of this industry.

In a recent report of Council of Scientific and Industrial Research (CSIR), it has declared PET material to be safe for storage of water and packaging of food products.


Total revenue of our company is derived from Plastic & beverages segment, Textile and Export. Indian plastic & beverage and textile market is highly competitive. But our company has always put great emphasis to sustain satisfactory performance by focusing on quality product to its customers and by performing reasonably well on export front.


In recent years Indian economy under the new government has gathered strong momentum. The company is optimistic about the recovery of Indian economy and the capital market. The country has to grow economically to with stand any international pressures from foreign countries. The way to economic growth begins with capital market development. The capital market industry in other words is backbone to economic growth in country.


Our industry is mainly dependent on economic growth of country. The industrial growth is very sensitive which is dependent on many factors which may be social, financial, economic or political and also natural climatic conditions in the country. However, with the positive attitude of country which can mitigate the avoidable risks.


Sr. No Particulars Standalone Explanation
2019-20 2018-19
1 EBIDTA/Turnover 0.05 0.07 Due to Covid-19 the demand in summer season was less due to that company incur losses in FY 20.
2 Debtors Turnover Ratio 5.10 2.36 There is increase in Debtors Turnover as total debtors decrease in FY 20.
3 Inventory Turnover Ratio 3.61 4.12 Due to Covid-19 in the end of FY20 the stock in hand is higher as compare to FY 19 .
4 Interest Coverage Ratio 0.21 1.46 EBIT of F.Y 19 is less as compare to F.Y 18. Due lower EBIT, Interest Coverage Ratio is low.
5 Current Ratio 1.62 1.26 Due to partial closure of Textile segment the current ratio got improved.
6 Debt Equity Ratio 0.81 1.56 Total debt in FY 20 decreased as compare to FY19.
7 Operating Profit Margin (%) - 2.94% 0.41% FY 20 company incur operating loss. So operating Profit Margin is negative.
8 Net Profit Margin (%) - 1.39% 0.57% FY 20 company incur loss. So operating Profit Margin is negative.
9 Return on net worth (%) - 3.31% 1.57% Due to negative profit in FY 20 return on net worth is negative in FY 20.
10 Book Value per share (Rs) 10 10
11 Earnings Per Share (Rs) – Basic - 0.08 0.39 Due to negative profit in FY 20 return EPS is negative in FY 20.
12 Earnings Per Share (Rs) – Diluted - 0.08 0.39 Due to negative profit in FY 20 return EPS is negative in FY 20.


The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements. The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information.

The company gets internal audit and verification done at regular intervals. The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.


Your Company has undertaken employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The company has continued to give special attention to human resources and overall development.


Certain statements in the reports of the Board of Directors and Managements discussions and analysis may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since Companys operations are influence by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis of any subsequent developments, information or events.

By Order of the Board of Directors
Ashutosh Damubhai Gandhi
Place: Ahmedabad Managing Director
Date: 03/09/2020 DIN: 00654563
Sneha Ashutosh Gandhi
Place: Ahmedabad Whole time Director
Date: 03/09/2020 DIN: 00654675