ambica agarbat share price Management discussions

ANNEXURE - I

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Ambica Agarbathies Aroma & Industries Limited, manufactures and sells incense sticks in India. Operate hotels in Chennai and Vishakapatnam, It was also involves in the film production and distribution activities; the company was founded in 1995 and is based in Eluru west Godavari district of Andhra Pradesh, India.

2. OPPORTUNITIES AND THREATS:

AS PER SEGMENT WISE

Agarbathies Division

India is one of the largest Agarbathi (incense sticks) producing country, which could capture both domestic and foreign market. Agarbathies are used by all communities in India, Sri Lanka, Burma and by Indians residing abroad. he percentile domestic sale of incense/ Agarbathies in South-India estimated as 35 percent, West-India accounted for 30 percent, North-India for 18 percent & East-India for 17 percent respectively. Significantly, about two-thirds of domestic consumption of agarbatti takes place in rural areas(61.23%). The demand for Agarbathies is increasing day by day for both in domestic and export markets due to the availability of improved quality and varieties of incense sticks. As on today about 90 foreign countries are using our Agarbathies. Agarbathies industry is one of the labour intensive cottage types of traditional industries in India.

Hotel Divisions

Hotels are one of the most important services which directly affect the arrival of tourists to a particular country. Obviously, it would not be possible for tourists to stay in a place if there are not enough hotel rooms available. Therefore, the hotel industry plays a significant role when it comes to tourism as it is a support service which will affect the number of tourists visiting a particular place. Hotel and hospitality industries are the biggest employment generators in the country. Towards helping its growth, the government should confer infrastructure status to the hotel industries, several taxation issues also need to be rationalized the demand for travel and tourism in The tourism sector is expected to be the second largest employer in the world where India is expected to be place third position in the world.

3. SEGMENT WISE /PRODUCT WISE:

We have three segments which are continuingly operating through this industry which are as follows

1. AGARBATHIES DIVISION

2. HOTEL DIVISION

Detailed info regarding those segments which are stated above, are given below

1. AGARBATHIES DIVISION

The Company is manufacturing varieties of incense sticks, which counts more than 80% of the revenue in overall turnover of the Company, some of the majors products are

Durbar Bathi

We offer Durbar Bathi in various fragrances to suit the different demands of the clients. We are well reckoned as one of the prominent Incense Sticks Manufacturers and Suppliers based in India. Our Durbar Bathi is comprised of natural base materials keeping in mind the national and international quality standards.

Amrutham (Herbal Bathies)

We offer Amrutham (Herbal Bathies) in various fragrances to suit the different demands of the clients. We are well reckoned as one of the prominent Incense Sticks Manufacturers and Suppliers based in India. Our Amrutham (Herbal Bathies) are comprised of natural base materials keeping in mind the national and international quality standards.

Athjisaya Dhoop

We offer Athjisaya Dhoop in various fragrances to suit the different demands of the clients. We are well reckoned as one of the prominent Incense Sticks Manufacturers and Suppliers based in India. Our Athjisaya Dhoop is comprised of natural base materials keeping in mind the national and international quality standards.

2. HOTEL DIVISION

The performance of the Hotel division of the Company is not satisfactory in this fiscal as compared to the last fiscals, as the economy of the country is witnessing downtrend and more tourist and visitors are expected in this fiscal wherein we are expecting good business in coming years, the major impact o the business is due to the ongoing pandemic situation of COVID -19 in the country .

3. INDUSTRY OUT LOOK AGARBATHIES DIVISION

The burning of incense in religious and social functions has been practiced in India since early times. Dhup an aromatic powder or paste is burnt in Indian homes as a fragrant fumigant and is reputed to possess insecticidal and antiseptic properties. Agarbathies also known, as Udubattis similar to joss sticks are a development of Dhup. Agarbathies are obtainable in different colors and with different perfumes. The burning time; of an agarbatti varies from 15 minutes to 3 hours according to quality and size. Agarbatti is also obtainable in other forms such as dashang (stickly paste or powder) deep (cones and Dhup, tablets etc.).

HOTEL DIVISION

New Normal was the oft-quoted, overused coinage of 2022, Revenge Travel threatens to be its counterpart for this year. Unlike the violent connotations of its etymology, what it implies is people cashing in on missed opportunities for travel with extra trips, followed by a splurge on leisure tourism. Of course, this has spurred hope and optimism in the beleaguered hospitality industry that had been paralysed during the lockdown and has been limping back to normalcy since the last quarter of 2022. But the real question: is demand really buoyant to justify renewed hope? Since optimism doesnt wait on facts but prefers to weigh in on prospects instead, the likely guess is a yes! If the number of new hotels scheduled to open in 2022 is anything to go by, the hospitality industry has indeed much to toast in the New Year. Goa has led the charge of the hospitality brigade and witnessed considerable growth in recent months, with a market-wide occupancy level of almost 55 per cent in November last year. Kapil Chopra, CEO, The Postcard Hotel, confirms that when their hotel in Goa reopened in July 2022, "we were 85 per cent lower than last year but by September, we were already 118 per cent over last years rates despite being closed for three months". "I believe 2022 will bring more stability and security, both emotionally and financially, for people to be able to venture out and experience all that they have missed last year. We have already witnessed that intimate, longer holidays at smaller hotels in destinations that are away from crowds is what people moved towards in 2021. With the vaccine coming in, many are aching to travel as things start to look up," he says.

4. RISKS AND CONCERNS:

Indians have well understood the importance of staying one step ahead of developments in the world economic environment. The industry is now preparing itself to take share of opportunities expected to arise out of the market freed from quota restrictions and other trade barriers. Industry operators are increasingly moving towards modernization and expansion as encouraged by the so-designated film production and distribution activities wind power generation; hotels, construction activities by Government.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These systems are designed to ensure that all the assets of the Company are safeguarded and protected against any loss and that all transactions are properly authorized recorded and reported.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

When it comes to Segment wise performance of the Company the Turnover of the Agarbathies Division was Rs. 11,146 Lakhs as Compare to Rs. 14418.04 Lakhs, the Turnover of hotel division was Rs. 555.34 Lakhs as compared to Rs. 358.91 Lakhs.

7. HUMAN RESOURCES/ INDUSTRIAL RELATIONS:

The Company recognise that people play a critical role in achieving its goals. As on 31st March, 2023, Company had a team of talented and experienced employees, providing a wide range of Financial Services. The focus for the year was to build platforms and to put in place scalable processes that would meet the needs of our Companys growth agenda. As a growing Company there are many opportunities available to employees to contribute and grow, ensuring that motivation is high. Our Company prides itself on its ability to attract and retain talents at all levels.

	For and on behalf of the Board
	AMBICA AGARBATHIES AROMA & INDUSTRIES LIMITED
	Sd/-
	AMBICA KRISHNA
	Chairman and Managing Director
	DIN: 00391898
Place: Eluru
Date : 12.08.2023