Caprihans India Ltd Management Discussions.


Caprihans is one of the largest manufacturers of PVC Films, consisting of both Flexible and Rigid. The company is one of the leading players in pharma/non pharma packaging industry in India, producing high quality products. The Company operates from its two plants located at Thane and Nasik, Maharashtra. Both the plants have In-House Research and Development Centres recognised by the Department of Scientific and Industrial Research (DSIR, Government of India). The company also has sales offices across India.

The Company is engaged in the processing of plastic polymers and manufactures PVC films by calendering process. It also produces PVDC coated Rigid PVC film and certain other plastic products through extrusion processes. Rigid PVC film is largely used for packaging in the Pharmaceutical, Food and FMCG industries. Flexible PVC film and plastic extruded products are used for a variety of industrial and consumer applications. Overall growth rate of the domestic market segment is estimated to be around 7-10% annually under normal business environment.

The Company has significant share of the Rigid PVC film market and is also the quality leader in the Flexible PVC film market.


COVID - 19 pandemic has created an uncertain and unprecendented business environment globally. It has destructively impacted almost all sectors creating disbalance in demand and supply situations. Packaging Industries is not an exception to it. Companys business for pharma and other essentials items packaging is largely unaffected. However the industry experienced shortage of key raw materials globally due to shut down of major EDC (Ethyln Dichloride) and VCM (Vinyl Chrolide Monomer) plants affecting the major global Resin manufacturers leading to enforcement of force majure clause and long maintainence unplanned shut downs. As a result of overall uncertainities in global Resin sources, there was unprecedented raw material price hike.

Though the Company is a major player for over decades, it faces competition in domestic market, as similar products being made available by many local players belonging mostly in unorganised sector. However, Company always remained as a preferred vendor in the respective segments being a quality and better yield supplier.

Consistent quality, superior customer service, timely delivery and appropriate pricing we believe, will help us to mitigate some portion of the potential risks.


Companys business is covered under single business segment.


PVC resin, used as key raw material has many industrial competing applications. Resin is a by-product of Petroleum. Given the volatility in Global crude oil price and demand for polymers for competing applications, the pressure on the input costs can be expected to fluctuate. Demand for PVC resin in the country has been increasing every year. Domestic supply is not adequate to meet the rising demand. Hence imports are made to fulfil resin requirements which is subjected to fluctuating prices, forex risks, logistics issues, import-duty and anti dumping regulations.

Owing to ongoing COVID - 19 pandemic, the Company forsees risk of recoverability of dues from some of its customers. However the Company will take appropriate steps (including legal recourse) for recovering of its dues from Customer in case of default.


Company has proper and adequate internal control systems to ensure that its assets are safeguarded and that transactions are properly authorised, reported and recorded. The Company has also a system of internal audit and management reviews to ensure compliance with the prescribed procedures and authority levels.


The Companys operating revenue for the year amounted to Rs 297 crores, as compared to Rs. 289 crores in the previous year. The Company earned a profit before tax of Rs. 26.0 crores as compared to Rs. 12.0 crores in the previous year.

The raw material prices volatility significantly during the financial year. This resulted in margin fluctuations from time to time.

Companys Financial position for ten (10) years is appended separately in the Annual Report.


The Company appreciates continued efforts of its dedicated team of employees for maintaining high ethical standards. Industrial relations by and large remained cordial during the year. The number of employees on the roll as on 31st March, 2021 was 361 across all locations. The Company accords very high priority to safety in all aspects of its operations. The employees are trained in various aspects of safety.


Due to increase in profits, the Return on Net Worth in the current financial year is 12.9% as compared to 6.9% in the previous financial year.


Statements in the Management Discussion and Analysis describing Companys objectives, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect Companys operations include significant change in political and economic environment in India or key markets abroad, tax laws, environmental laws, litigations, labour relations, exchange rate fluctuation, interest and other costs.