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Control Print Ltd Management Discussions

629.1
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Apr 2, 2025|02:09:57 PM

Control Print Ltd Share Price Management Discussions

Global Economic Overview

The baseline projection indicates that the world economy will maintain a growth rate of 3.1% and 3.2% throughout 2024 and 2025, respectively. Advanced economies are expected to experience a slight uptick in growth, rising from 1.5% in 2024 to 1.8% in 2025, while emerging markets and developing economies stabilised at 4.1% in 2023 and 2024, with a slight uptick to 4.2% in 2025. The global economy has demonstrated remarkable resilience, maintaining steady growth as inflation returns to target levels. Projections indicate a decline to 5.8% in 2024 and further to 4.4% in 2025, with the latter forecast being revised downward. The global journey has been marked by significant problems, beginning with supply chain disruptions in the wake of the Covid-19 pandemic, followed by the Russia-Ukraine conflict, which sparked a global energy and food crisis, leading to a substantial surge in inflation. As a response, there has been a coordinated effort among central banks worldwide to tighten monetary policy in synchronisation.

Despite challenges, economic activity thrived, driven by various factors, including higher-than-anticipated government spending, resilient household consumption, and significant growth in the supply sector. Employment remained stable, reflecting favourable demand conditions and an unexpected rise in labour force participation. A crucial factor behind this economic resilience was the ability of households in major advanced economies to tap into substantial savings accumulated during the Covid-19 pandemic, thereby sustaining consumption levels. Moreover, positive trends in employment and income, coupled with the diminishing effects of previous energy price shocks and robust immigration flows in advanced economies, further strengthened the global economic outlook.

(Source: https://www.imf.org/en/Publications/WEO/ Issues/2024/04/16/world-economic-outlook-april-2024)

Outlook

In 2025, global GDP growth is projected to be moderate, akin to its 2019 performance but slightly surpassing the anticipated 3% increase in 2023. This growth is expected to be varied, with advanced economies experiencing modest growth, while emerging markets maintain moderate momentum. Several factors are likely to hinder growth in 2024, including sluggish employment expansion, consistently high prices and wages, elevated interest rates, tighter credit conditions, and fiscal tightening across most major economies except China. Consequently, due to easing supply chain constraints, moderating final demand, rebalancing labour markets, and decreasing rents, global disinflation is anticipated to persist in 2024.

Indian Economic Overview

Indias prominence in the global economic landscape is evident, propelled by its rapid rise and indomitable commitment to reaching new summits. With its rich cultural heritage and a population exceeding 1.4 Billion, the nation has emerged as an economic powerhouse, consistently demonstrating its prowess on the global stage. The year 2023 marked a pivotal moment as Indias GDP surged, solidifying its leading position in the global economic arena. Additionally, real GDP was projected to have grown by a remarkable 8.2% in FY 2023-24, fuelled by robust demand in the residential sector, which propelled double-digit growth in the construction industry. Furthermore, government statistics underscore that Indias GDP growth rate surpasses that of major economies, such as Russia, USA, China, and Japan. The nation has solidified its position as the worlds third-largest fintech economy, rising to the fourth place in global stock markets. This growth is fuelled by continuous IPO activity and strengthened investor confidence. Initiatives like the Skill India Mission, Start-Up India, and Stand-Up India are encouraging greater female participation in human capital development. The governments economic policy agenda is laser-focussed on revitalising Indias growth potential. This encompasses efforts to rejuvenate the financial sector, streamline business conditions, and enhance both physical and digital infrastructure to strengthen connectivity and manufacturing competitiveness. Furthermore, ongoing economic reforms aim to foster a more business-friendly environment, improve quality of life, and fortify governance systems to align with this overarching vision.

Outlook

Indias ambition to reach a US$ 7 Trillion economy by 2030 demonstrates its steady progress towards the goal of reaching a US$ 5 Trillion economy within the next three years. This reinforces the nations status as the worlds third-largest economy. Furthermore, the government has set an ambitious target of transforming India into a developed nation by 2047. With stable and robust domestic demand, increasing private consumption and investments, and ongoing structural reforms, the nation is poised to maintain its upward growth trajectory in the foreseeable future.

(Source: https://www.livemint.com/economy/india-to-be-a-usd-7-trillion-economy-by-2030-finance-ministry-nirmala-sitharaman-11706525095022.html)

Global Coding and Marking Solution Industry Overview

In 2023, the global market for coding and marking systems and solutions hit US$ 3,754.4 Million. It is projected to reach US$ 5,024.6 Million by 2030, registering a compound annual growth rate (CAGR) of 4.2% from 2024 to 2030. The Asia-Pacific region dominates this market, claiming about 39% of the total share, followed by Europe at approximately 26%. The surge in demand for coding and marking equipment, particularly from the pharmaceutical, food & beverage, automotive, and FMCG sectors, is a major driver of this markets growth.

Global Growth Drivers

Growing FMCG Sector: In 2023, the global FMCG market was valued at US$ 11,329,646 Million and is anticipated to register a CAGR of 5.03% until 2031, reaching a value of US$ 15,207,825.5 Million. With the expansion of the FMCG market, there is a growing need for efficient and accurate coding and marking solutions to ensure product traceability, authenticity, and compliance with regulatory standards.

(Source:https://www.globenewswire.com/en/news-release/2023/09/20/2746171/0/en/Fast-Moving-Consumer-Goods-FMCG-Market-Size-15207825-5-Billion-by-2031-at-CAGR-of-5-03-CAGR-which-is-Booming-Strong-Growth-in-the-Globe-till-2031 .html#:~:text=The%20global%20Fast%20Moving%20Consumer%20 Goods%20(FMCG)%20market%20size%20was,US$%2 15207825.5%20Million%20by%202031.)

Growth in Automotive Industry: In 2023, the global automotive industry market was valued at US$ 3,564.67 Billion and is projected to clock in a CAGR of 6.77% from 2023 to 2033, reaching a total market size of US$ 6,861.45 Billion by 2033. As the automotive sector expands, the demand for efficient and reliable coding and marking solutions is growing to meet the evolving needs of manufacturers and regulatory requirements.

(Source:https://www.sphericalinsights.com/reports/automotive-industry-market#:~:text=The%20Global%20Automotive%2 Industry%20Market,US$%206%2C861.45%20Billion%20by%2 2033.)

Expanding Pharmaceutical Sector: In 2023, the global pharmaceutical market reached an estimated value of approximately US$ 222.4 Billion which is further anticipated to reach US$ 352.98 Billion by 2031, advancing at a CAGR of 5.9%. As the pharmaceutical sector expands, the necessity for accurate, efficient, and compliant coding and marking solutions increases to meet regulatory requirements, guarantee product safety, and improve supply chain efficiency.

(Source:https://www.skyquestt.com/report/pharmaceuticals-market#:~:text=Pharmaceuticals%20Market%20size%20was%20 valued,is%20used%20for%20medical%20purposes.)

Rising Food & Beverage Industry: The global food & beverage industry is expected to increase from US$ 6,576.96 Billion in 2023 to US$ 7,000.88 Billion in 2024, registering a CAGR of 6.4%. Moreover, it is anticipated to rise to US$ 8,817.63 Billion in 2028, clocking in a CAGR of 5.9%. Moreover, as the food & beverage sector expands, there is an increasing need for precise, reliable, and efficient coding and marking solutions to ensure product safety, traceability, and regulatory compliance.

(Source: https://www.thebusinessresearchcompany.com/report/ food-and-beverages-global-market-report#:~:text=The%20food%20and%20beverages%20market%20size%20has%20 grown%20strongly%20in,(CAGR)%20of%206.4%25.)

Indian Coding and Marking Solution Industry Overview

The Indian market for coding and marking systems is expected to achieve a CAGR of 8.9% from 2025 to 2030, with an estimated market value of US$ 0.64 Billion by 2030. This growth stems from substantial expansion in the manufacturing, packaging, and pharmaceutical sectors, driven by rising demands for product authentication and brand safeguarding measures. The momentum is largely fuelled by the Make in India initiative, positioning the country as an attractive hub for foreign direct investment in manufacturing. Indias rank among the 17 economies in the Asian region has ascended to the 10th position, up from 14th in the previous 2018-2022 period. Indias working-age population is anticipated to swell by nearly 100 Million by 2030. However, despite the abundant labour supply, significant labour regulations and the need for skill development remain constraints. Furthermore, Indias investor-friendly climate is boosting demand for coding and marking solutions, especially with increasing operations across industries. The increased investments in manufacturing across sectors like food & beverage, healthcare, electronics, chemicals, construction, and automobiles are driving the demand for coding and marking equipment. Consequently, as these sectors grow, the need for such equipment also rises.

Growth Drivers

Expanding Food & Beverage Industry: The food & beverage market recorded a revenue of US$ 905.20 Billion (equivalent to 75.3 Trillion) in 2023, and is projected to register a CAGR of 8.40% from 2023 to 2028. This expansion is fuelled by rising disposable incomes, evolving consumer lifestyles, and population growth.

(Source:https://www.linkedin.com/pulse/overview-indian-food-beverage-industry-praneeta deshpande-kgmyf#:~:text=Market%20 Size%3A%20The%20Indian%20F%26B,(CAGR%202023%2D2028 )

Expanding Healthcare Industry: By 2027, the healthcare sector in India is anticipated to achieve a market value of 110 Trillion, exhibiting a CAGR of 30.70%. The digital healthcare segment is expected to hold a significant market share of 17.44%. As the healthcare industry evolves, there is an increasing need for precise and reliable coding and marking solutions to meet the growing demand for pharmaceuticals, medical devices, and healthcare products, as well as to ensure regulatory compliance and product traceability.

(Source: https://www.tatatelebusiness.com/articles/5-emerging-healthcare-trends-in-india-for-2023/)

Expanding Electronics Market: In 2024, the revenue generated in Indias consumer electronics market amounts to US$ 73 Billion. Anticipated growth indicates an annual increase of 6.06% over the period from 2024 to 2028. As the consumer electronics sector expands, there is an increasing need for precise and reliable coding and marking solutions to ensure product traceability, authenticity, and regulatory compliance.

Expanding Chemical Industry: By 2025, the Indian chemical industry is projected to attain a value of US$ 304 Billion, with a CAGR of 9.3%. Currently valued at US$ 220 Billion, the industry is poised for remarkable growth, with experts foreseeing its potential to soar to an impressive US$ 1 Trillion by 2040. As the chemical sector expands the demand for coding and marking solutions due to the stringent regulatory requirements governing product labelling and identification.

(Source: https://www.india-briefing.com/news/indias-chemical-industry-expected-to-reach-us304-Billion-by-2025-29206.html/)

Expanding Construction Industry: In 2023, Indias construction industry was valued at approximately US$ 778 Billion. It is anticipated to register a CAGR of 6% from 2024 to 2033, reaching a total of US$ 1.393 Trillion by 2033. The coding and marking solutions enable manufacturers to imprint essential information like product specifications, manufacturing dates, batch numbers, and safety warnings directly onto materials or packaging. This ensures easy identification and traceability throughout the construction process.

(Source: https://ians.in/pr-wire-detail/india-construction-industry-report-2024-robust-growth-with-cagr-of-6-forecast-during-2024-2033-with-market-set-to-reach-us139-trillion-by-2033-08-03-2024#:~:text=The%20market%20size%20of%20 Indias,US%24%201.393%20trillion%20in%202033.)

Growing Automobile Industry: The automotive market size in India is set to increase from US$ 116.86 Billion in 2023 to US$ 217.90 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% between 2024 and 2031. Coding and marking solutions offer the flexibility to customise labels and markings according to specific branding requirements. This helps manufacturers enhance their brand visibility and distinguish their products in the market.

(Source: https://www.skyquestt.com/report/india-automotive-market#:~:text=Indian%20Automotive%20Market%20size%20was,period%20 (2024%2D2031).

Government initiatives

Pradhan Mantri Awas Yojana – Urban (PMAY-U): This initiative aims to provide permanent housing to all eligible urban households, focussing on addressing the urban housing shortage among Economically Weaker Sections/Lower Income Groups (EWS/LIG) and Middle-Income Groups (MIG), including residents of slums. Recently, the Union Cabinet has decided to extend the PMAY-U until 31st December 2024. Each house provided under the programme includes essential amenities, such as a kitchen, toilet, water supply, and electricity. Moreover, the PMAY-U promotes womens empowerment by facilitating homeownership under the joint or sole name of a female member.

(Source: https://www.bankbazaar.com/home-loan/pradhan-mantri-awas-yojana.html#:~:text=The%20Union%20Cabinet%20has%20 decided,member%2C%20thereby%20promoting%20women%20 empowerment.)

Urban Infrastructure Development Fund (UIDF): The Urban Infrastructure Development Fund (UIDF) is initiated to address the shortfall in priority sector lending, with a specific focus on fostering urban infrastructure development in Tier-2 and Tier-3 cities. Starting with an initial corpus of

10,000 Crores, it is designated for use by public agencies. Currently, the fund allocates 459 Crores for Tier-2 cities and 580 Crores for Tier-3 cities.

(Source: https://www.thehindubusinessline.com/economy/nhb-operationalises-10000-Crores-urban-infrastructure-development-fund/article67061221.ece)

National Pharmaceutical Policy (2023): By 2047, the government intends to position India as a global leader in manufacturing affordable, innovative, and high-quality pharmaceuticals and medical devices. This vision includes ensuring accessibility and affordability of patient-centred products to enhance healthcare outcomes for universal coverage, achieved through collaborative partnerships across industry, science, and governments. The goal is to strengthen the health system by integrating equity, efficacy, and efficiency, with a specific focus on developing a comprehensive product portfolio addressing Non-

Communicable Diseases (NCDs), Antimicrobial Resistance (AMR), and rare or neglected diseases. Governments mandate the use of coding and marking solutions to track the manufacturing, distribution, and expiration dates of pharmaceutical products to prevent counterfeiting and ensure patient safety.

(Source: https://pib.gov.in/PressReleseDetailm.aspx?PRID=1820148)

Indias GDP Per Capita: Indias GDP per capita is forecasted to hit US$ 2,242 by 2024, with long-term projections indicating a trend towards US$ 2,399 in 2025 and US$ 2,555 in 2026, reflecting sustained economic growth. As personal incomes rise, there is expected to be an increased demand for consumer goods, including those necessitating coding and marking. This upward trajectory in GDP per capita is poised to fuel the expansion of Indias coding and marking industry.

(Source: https://tradingeconomics.com/india/gdp-per-capita)

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): The Indian government has earmarked

4,600 Crores to sustain the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This commitment to sector growth and development was further reinforced with the recent allocation of an additional 920 Crores to PMKSY. Currently, the Indian food processing industry holds a 32% share of the countrys total food market. With the sectors rapid expansion, it is projected to generate 9 Million jobs by 2024, indicating significant growth potential. Coding and marking solutions play a critical role in ensuring accurate labelling of expiration dates, batch numbers, and product information for food items to meet regulations and guarantee consumer safety.

(Source: https://economictimes.indiatimes.com/industry/cons-products/food/government-schemes-help-boost-food-processing-sector-to-meet-global-quality-safety-standards-prahlad-singh-patel/articleshow/103477998.cms?from=mdr)

Automotive Mission Plan (AMP) 2047: The

Automotive Mission Plan 2047 (AMP 2047) sets ambitious goals for the automotive industry. It aims to achieve a 30% target for exporting auto and auto components by 2030, with a long-term vision of reaching 50% by 2047. This government initiative is designed to elevate product standards, improve recall procedures, and effectively address counterfeit parts. As a result, it encourages the widespread adoption of coding and marking technologies within the industry.

(Source: https://www.linkedin.com/pulse/automotive-mission-plan-2047-hemen-parekh-u7urf)

Budgetary Allocations for Railways: In the Interim Union Budget for FY 2024-25, the Indian Railways has been allocated 2.55 Lakhs Crores, reflecting a 5.8% increase from the previous year. This investment is poised to stimulate higher demand for steel and metals. Consequently, the coding and marking industry is anticipated to experience a surge in activity, as these materials are integral to the manufacturing and labelling of railway equipment, components, and associated products.

(Source: https://economictimes.indiatimes.com/industry/ transportation/railways/interim-budget-2024-25-allocates-rs-2-55-Lakhs-Crore-to-indian-railways/articleshow/107320918. cms?from=mdr)

Bharatmala Pariyojana: Phase-I of the Bharatmala Pariyojana aimed to develop 34,800 km of National Highway length. Contracts for the construction of 26,418 km, equivalent to 76% of the planned length, have already been awarded, with approximately 15,549 km already completed. The funding for these projects primarily originates from the central government, with the Ministry overseeing resource mobilisation efforts. Additionally, the enhancement of transport infrastructure promises improved business connectivity, thereby attracting more enterprises to India. Furthermore, this anticipated increase in economic activity is expected to drive demand within the coding and marking industry, as businesses seek efficient and reliable solutions for product identification and labelling.

(Source: https://pib.gov.in/PressReleaseIframePage. aspx?PRID=2004013#:~:text=34%2C800%20km%20of%20 National%20Highway,completion%20of%20about%20 15%2C549%20km.)

Income Tax Rates: The Interim Union Budget for FY 2024-25 retained existing income tax rules without significant changes. Taxpayers have the option between the old regime, which offers numerous exemptions, and the new regime, featuring fixed but lower tax rates. Under the new regime, individuals earning up to 3 Lakhs annually are exempt from taxes. Additionally, those earning up to 7 Lakhs per year can claim a rebate of up to 25,000 under Section 87A of the Income-Tax Act. This move is anticipated to boost disposable income, stimulate purchasing power, and drive up demand for products, including coding and marking solutions.

(Source: https://www.forbes.com/advisor/in/tax/income-tax-slab-fy-2023-24/)

Boost to the Manufacturing Industry: New cooperatives that ventured into manufacturing by 31st March 2024 will benefit from a 15% tax rate, akin to new manufacturing firms. This incentive is designed to attract investments and promote the expansion of the manufacturing sector, including coding and marking. Furthermore, the rise in manufacturing will drive demand for coding and marking solutions, fuelling industry growth.

Prospects of Indian Coding and Marking Solution Industry

Has the potential to become a leading global manufacturing centre, offering extensive growth opportunities for industry players.

The importance of packaging has significantly increased as brands seek to efficiently convey crucial information about sanitation, safety, and product quality.

The Indian market for coding and marking integration software is expected to experience rapid growth due to the rising demand for product traceability and authentication, particularly in the pharmaceutical sector facing counterfeiting challenges.

Stringent governmental regulations mandating clear product information on packaging necessitate the adoption of effective coding and marking technologies.

Rising living standards are fuelling the demand for coding and marking systems, driven by increased consumption of packaged food and beverages. Additionally, government requirements for accurate labelling of food and beverage products, including ingredient lists, manufacturing and expiration dates, and nutrient information, are contributing to the increased demand for coding and marking solutions.

Company Overview

Since its inception in 1991, Control Print has been a frontrunner in Indias coding and marking solutions sector. The Companys extensive product portfolio includes continuous inkjet printers, drop-on-demand printers, hot roll coders, thermal inkjet printers, thermal transfer over printers, lasers, and consumables, making Control Print a significant Indian integrated manufacturer. The Company boasts a workforce exceeding 470 sales and service personnel spread across nine branch offices in India and Sri Lanka. Leveraging a highly integrated ERP system, Control Print achieves exceptional operational efficiency. With over three decades of industry experience, the Company has adeptly evolved to cater to the dynamic needs of the country and its manufacturers.

Operational Review

Control Print offers an extensive array of coding and marking solutions and is enhancing its in-house software development team to tailor holistic solutions to meet customer-specific requirements alongside its printers. By expanding its sales staff for telecommunications and lead generation, the Company has improved conversion rates, resulting in robust cash flows. Moreover, new government regulations in agrochemicals, healthcare, and plastic bags are anticipated to positively impact Control Prints growth.

The organisation has established an independent in-house software development team dedicated to tracking and tracing solutions. Additionally, this team caters to manufacturers increasing demands to combat product counterfeiting and support promotional schemes. Through constant monitoring of activities at all levels, including its field force, the Company strategically enhances customer satisfaction and market share, thereby generating strong cash flows.

Both the Small Character Printer (SCP) and the Large Character Printer (LCP) Divisions have experienced significant growth in their respective business verticals. The SCP Division has expanded its installation base across major industry verticals, such as dairy, pipes, cable and wire, steel, FMCG, food, and healthcare. Likewise, the LCP Division has witnessed substantial growth in non-cement sectors like plywood, steel, and building materials. Moreover, with promising business pipelines for both divisions, Control Print anticipates continued growth in the coming years.

Here are the highlights of Control Prints key products: CIJ Division: The CIJ Division continues to drive the Companys profitability, positioning Control Print as a frontrunner in the marking and coding industry. This is largely attributed to the CIJ product line, which is propelled by a strategic and selective approach.

TIJ, TTO, Laser and HiRes Division: Control Print offers a myriad of printing technologies customised to meet diverse customer needs across different applications. The non-CIJ business has witnessed exponential growth, driven by the increasing adoption of TIJ and HiRes printers. This surge has generated promising leads for replacing other printers in the market. Key sectors like dairy, beverages, bakery, frozen food, ready-to-eat meals, pharmaceuticals, packaging, plywood, and lubricants are given top priority. Furthermore, the Companys laser business, especially its fibre laser technology, is rapidly expanding. It is gaining favour among current laser printer users and making a significant impact in the marking and coding market.

Service Business: Recognising the crucial role of a robust service network in ensuring seamless operations for industrial products, Control Print maintains a sizeable team of over 370 service members strategically positioned nationwide. Additionally, the Companys service revenue has exhibited steady growth, thus strengthening its overall profitability.

SWOT Analysis

Strengths

Prioritising reliability, the organisation ensures that its coding and marking solutions consistently meet customer expectations.

Leveraging cutting-edge German technology, Control Print develops and implements innovative continuous inkjet printing machines tailored to suit Indias specific working conditions.

Facilitating strategic partnerships and in-house development initiatives, the Company maintains ownership of critical technologies.

Conducting thorough training programmes enables Control Print to equip its employees with the necessary skills for proficient operation.

Setting prices strategically, the organisation ensures a balance between maintaining high-quality standards and offering affordability for its batch coding machines.

With a strong support network in place, Control Print ensures high uptime and delivers reliable after-sales service.

Weaknesses

Encountering vulnerabilities due to reliance on particular technologies or suppliers, Control Print might face risks to its operations and supply chain management.

Ensuring that the Companys products and services meet evolving customer needs and technological advancements, it is essential for the organisation to maintain a competitive edge in the market. Thus, it must continuously innovate its offerings.

Expanding and experiencing growth, the Company may face challenges in sustaining the same level of high-quality service delivery, potentially leading to customer dissatisfaction and retention issues.

Opportunities

Exploring opportunities to expand into new geographic markets or target additional industries, diversifying its customer base and revenue streams.

Investing in research & development, the Company can develop innovative coding and marking solutions that address emerging market needs and technological trends.

Collaborating with strategic partners, such as technology firms or research institutions, presents opportunities for Control Print to leverage expertise and resources for the development of advanced coding and marking technologies.

Threats

Facing the threat of intensified competition from other players in the sector, Control Print might encounter market share erosion and pricing pressures.

Experiencing rapid advancements in technology, the Company can face a threat to existing products and services, requiring continuous innovation to keep pace with evolving customer demands and preferences.

Encountering changes in regulatory requirements, such as labelling standards or environmental regulations, could impact the organisations operations.

Experiencing economic fluctuations and uncertainties, Control Print might face reduced customer spending on coding and marking solutions, affecting its sales and revenue growth.

Financial Overview

FY 2023-24 FY 2022-23 YoY Change (in %)
Revenue from Operations 34,366.41 29,140.61 17.93
( in Lakhs)
EBITDA ( in Lakhs) 9,070.66 7,842.65 15.66
PAT ( in Lakhs) 5,561.10 5,193.38 7.08
EPS 34.44 31.80 8.30

Key Ratios

FY 2023-24 FY 2022-23 Change (%) Reason for Variance Above 25%
Debtors Turnover (No. of Times) 4.52 4.27 5.9 -
Inventory Turnover (No. of Times) 1.93 1.84 4.8 -
Interest Coverage Ratio (No. of Times) 10.03 13.80 27.3 Due to increase in working capital needs as compared to increase in earning available.
Current Ratio (No. of Times) 3.31 4.29 22.8 -
Debt-Equity Ratio (No. of Times) NA NA NA -
Operating Profit Margin (in %) 56.28 56.92 1.1 -
Net Profit Margin (in %) 16.18 17.82 9.2 -

Risk Management

Effective risk management is indispensable for any business to identify and mitigate potential hazards that could jeopardise operations and reputation. To ensure proper implementation and monitoring of the risk management plan, the Board of Directors has established a dedicated Risk Management Committee. This underscores Control Prints commitment to managing risks and operating safely and sustainably.

Risk Impact Mitigation
High Competitiveness Control Print faces significant risk due to the industrys oligopolistic structure and high competition, which could impact its market position and profitability. However, the Company mitigates this risk by leveraging its robust research and development capabilities. This allows the Company to gain a deep understanding of market demand and strategically align its initiatives to maintain competitiveness and sustain growth.
Foreign Exchange Risks Control Print faces foreign exchange risks due to its operations in multiple countries, which are susceptible to fluctuations in currency values. To address these risks, the Company is strategically expanding its global presence. This includes pursuing partnerships and acquisitions to gain convenient access to markets and streamline financial transactions, thus reducing exposure to foreign exchange volatility.

Human Resources

Control Print, with 849 employees, regularly monitors their performance and conducts training programmes to keep them updated on the latest technologies. Prioritising employee well-being, the Company implements strict policies, initiatives, and competitive remuneration. Additionally, recognising the pivotal role of its workforce, the organisation offers competitive pay, attractive benefits, and a positive work environment. It values employee contributions and incorporates work practices focussed on effective leadership, maximising human capital potential, and fostering retention and development. This strategic approach aligns business goals, culture, and values with Control Prints vision and mission to foster employee growth and enhance performance.

Internal Control

Regular internal audits are conducted across Control Prints factories, branches and head office covering, and functional areas, utilising a customised internal control system. The Audit Committee, along with the Statements Management, assesses findings and implements corrective measures as necessary. The implementation of the SAP system minimises errors and enhances controls. Additionally, robust internal controls safeguard assets and guarantee accurate authorisation, recording, and reporting of transactions. Moreover, an efficient internal audit system covers all operations and locations, with ongoing reviews by the Audit Committee to enhance the internal control system as necessary.

Disclaimer

Certain statements in the MD&A section concerning future prospects may be forward-looking statements that involve a number of underlying identified/non-identified risks and uncertainties that could cause actual results to differ materially. In addition to the foregoing changes in the macro-environment, may pose an unforeseen, unprecedented, unascertainable, and constantly evolving risk(s), inter alia, to the Company and the environment in which it operates. The results of these assumptions based on available internal and external information, are the basis for determining certain facts and figures stated in the Report. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based are also subject to change accordingly. These forward-looking statements represent only the Companys current intentions, beliefs, or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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