Dhabriya Polywood Ltd Management Discussions.

Corporate Overview

Late Prof. S.S. Dhabriya who was an environmentalist and a remote sensing expert had contributed a lot towards saving nature. His motto of life was to save trees. He has been the inspiration for all of us to work towards the betterment of the human race by saving natural resources. His values have been the motto of our lives and we have reached so far following his footprints. Dhabriya Polywood Limited was incorporated under the erstwhile Companies Act, 1956 in the year 1992.

Your Company started its operations in the year 1995 with production of U/R-PVC (Unplastisized/Rigid Poly Vinyl Chloride) Profiles under the brand name "Polywood". Over the years, we have gradually expanded our product base to include the PVC (Poly Vinyl Chloride) Section with various designs to suit the complete fabrication requirement of Doors, Windows, Partitions, False Ceilings, Wall Paneling, Pelmet, Kitchen Cabinets & other interior applications. In the last 25 years, "Polywood" has been an undeniable part of the "Save Trees" campaign by bringing in the minds of people the use of PVC Profiles which, was only confined to European Countries earlier. The Company has also taken the credit of launching for the first time in India some exquisite products like PVC Folding Doors, PVC Designer Doors, PVC Fencing, Wood Plastic Composite Panels.

Economy Overview


The global economy grew 2.9% in 2019 compared to 3.6% in 2018. This sharp decline was precipitated by an increase in global trade disputes that affected the cross-border movement of products and services, a slowdown in the global manufacturing sector, weak growth coming out of some of the largest global economies and the impact of Brexit. The result was that global trade grew a mere 0.9% in 2019, pulling down the overall economic growth average. The ‘Great Lockdown, as a result of the pandemic Covid-19, is projected to shrink global growth significantly starting from the calendar year 2020.

(Source: World Economic Outlook, April 2020, CNN, Economic Times, trading economics, Statista, CNBC)


India emerged as the fifth-largest world economy in 2019 with a gross domestic product (GDP) of US$2.94 trillion. India jumped 14 places to 63 in the 2020 World Banks Ease of Doing Business

ranking. There was a decline in consumer spending that affected Indias GDP growth during the year under review. Indias growth for FY2019-20 was estimated at 4.2% compared with 6.1% in the previous year. Manufacturing growth was seen at 2%, a 15-year low as against 6.9% growth in FY19. A sharp slowdown in economic growth and a surge in inflation weighed on the countrys currency rate; the Indian rupee emerged as one of the worst performers among Asian peers, marked by a depreciation of nearly 2% since January 2019. Retail inflation climbed to a six-year high of 7.35% in December 2019. During the last week of the financial year under review, the national lockdown affected freight traffic, consumer offtake and a range of economic activities. The recent outbreak of Covid-19, which led to a country wide lockdown to curtail the spread of the virus, has posed a severe challenge and has altered the outlook for the country.

(Source: Economic Times, Economic Survey, IMF)

Key government initiatives, 2019-20

National infrastructure pipeline: To achieve a GDP of USD 5 trillion by 2025, the government announced a National Infrastructure Policy entailing an investment of ?102 trillion in five years. Corporate tax relief: The government moderated the corporate tax rate to 22% from 30%; it announced a new tax rate of 15% for new domestic manufacturing companies, strengthening the Make-in-India initiative. The new effective CIT would be 25.17%, inclusive of a new lower surcharge of 10% and cess of 4%. Indias CIT is now closer to the global average statutory CIT of 23.03%.


Various forecasts have estimated a sharp de-growth in the Indian economy for the current financial year, the first such instance of de-growth in decades.

Indian construction and building materials industry

After agriculture, the building materials industry is the second largest employer in India. The sector employs a large number of people and accounts for 8% of Indias GDP. The major segments in the construction industry comprise real estate (residential and commercial construction), infrastructure development (roads, railways and power etc.) and industrial uplift (oil and gas refineries, pipelines, textiles etc.)

The year 2019-20 delivered muted growth in the real estate sector. The government thrust on infrastructure development acted as a stimulus for the industry. The increased spend on infrastructure development saw the sector reporting reasonable growth. Initiatives like Housing for All, dedicated freight corridors, metro rail projects, AMRUT, Smart Cities and up-gradation of roadways enhanced demand for building materials. Going ahead, the real estate sector in India is expected to reach US$ 1 trillion by 2030 and will contribute 13 per cent of the countrys GDP by 2025. (Source: Zricks.com)


The governments thrust on improving the real estate sector by setting up a Rs 25,000-crore alternative investment fund (AIF) and reducing GST on under construction properties could catalyse the growth of the building materials industry. India could emerge as the third largest construction market by 2022, which could have a favorable effect on its building materials industry. The construction market in India could grow twice as fast as China to 2030, providing a new global growth engine. Indias urban population is expected to grow by 165 million by 2030. (Source: Zricks.com, Global Data)

Indian Plastic/PVC Industry

The Indian plastics industry made a promising beginning in 1957 with the production of polystyrene. Thereafter, significant progress has been made, and the industry has grown and diversified rapidly. The industry spans the country and hosts more than 2,000 exporters. It employs about 4 million people and comprises more than 30,000 processing units, 85-90 per cent of which are small and medium-sized enterprises.

A wide variety of plastics raw materials are produced to meet the material needs of different sectors of the economy. These polymeric materials are broadly categorized as commodity, engineering and specialty plastics. Commodity plastics are the major products that account for bulk of the plastics and in turn for petrochemical industry. Commodity plastics comprise of Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC) and Polystyrene. While engineering and specialty plastics are plastics that exhibit superior mechanical and thermal properties in a wide range of conditions over and above more commonly used commodity plastics and are used for specific purpose. These include styrene derivatives (PS/EPS & SAN/ABS), polycarbonate, poly methyl methacrylate, polycarbonates, poly oxy methylene (POM) plastics etc.

The Indian plastics industry produces and exports a wide range of raw materials, plastic-moulded extruded goods, polyester films, moulded / soft luggage items, writing instruments, plastic woven sacks and bags, polyvinyl chloride (PVC), leather cloth and sheeting, packaging, consumer goods, sanitary fittings, electrical accessories, laboratory / medical surgical ware, tarpaulins, laminates, fishnets, travel ware, and others.

The Indian plastics industry offers excellent potential in terms of capacity, infrastructure and skilled manpower. It is supported by a large number of polymer producers, and plastic process machinery and mould manufacturers in the country.

Among the industrys major strengths is the availability of raw materials in the country. Thus, plastic processors do not have to depend on imports. These raw materials, including polypropylene, high-density polyethylene, low- density polyethylene and PVC, are manufactured domestically.

UPVC Windows and Doors

In FY 2018, UPVC accounted for around 12% of the overall doors and windows market size in India and it is expected that UPVC will grab more 50% than market share by 2038. The market is dominated by small and medium sized uPVC windows and door profile players which are following European especially German technology and Chinese technology.

Growing awareness about the benefits of UPVC products, rapid urbanization, high migration of working-class population to urban cities, increased personal disposable income and rise in residential units contributed to the steady growth of India UPVC doors and windows market.

The market is expected to expand synergistically in the mid-long term due to several other driving factors including shortage of household units in the country, central governments initiatives to develop affordable housing for all by 2022 and build several smart cities across the country. India still has a shortage of 18 million homes that requires USD 330 billion of construction funding. Therefore, a massive level of residential unit construction is required to meet this demand of housing sector. The residential sector thereby presents a huge potential for the expansion and adoption of UPVC doors and windows.

In FY2015, the government of India has started a project of making 100 cities as smart cities by FY 2020. Safety of the public, energy conservation and eco-friendliness are one of the prime agendas of the smart cities. Owing to high compliance of UPVC doors and windows in high rise buildings and aesthetics properties, they are more likely to emerge as the preferred fenestration choice over conventional aluminum and timber counterparts. This has been projected to provide significant thrust to the UPVC doors and windows market of the country in the approaching years. Moreover, a number of infrastructural development projects will be undertaken in these cities which will provide further impetus to the industry over the period FY 2019-FY 2023.

The current Indian window and door (all material) market is around INR 14,000-15,000 crore and the market share of uPVC window and door profiles is about 8-10 per cent. Over the next 10-15 years uPVC window and door market is expected to grow by 30 percent with new and replacement sales, major drivers of this growth would be large high-rise apartments in expanding metro cities.

"India uPVC Doors and Windows Market Outlook to 2023 - By Fabrication and Extrusion Segment, By Major Cities (Delhi, Bangalore, Mumbai, Chennai, Kolkata), By Raw Material Procurement, and By Application (Residential, Retail, Hotel, Hospital and Institutional)" believe that increased marketing activities, introduction of quality standards and reducing reliance on Chinese imports for raw materials will create a positive impact on the market.

Flooring Industry

The global flooring market is valued at US$ 369.26 billion in 2019 and is anticipated to grow at a CAGR of 5.9% from 2020 to 2027.2 The industry has been driven by rising demand for aesthetic interior materials in building structures. Further, the strong growth in construction market especially in the Emerging Markets and Developing Economies have been supporting the growth of the segment. As the flooring material is available is several types along with the provision for customization of designs, dimensions, and colors, it has provided end users with a wide range of options. Amidst several challenges faced by Germany, the German Government has taken progressive stand to continue the business in pockets in unaffected areas which has helped the organisations to continue delivery of their products through e- commerce, DIY models etc. The rest of the world is expected to continue facing the severity of Covid, the business will take slightly longer time to revive.


DHABRIYA POLYWOOD LTD. is one of the most reputed name in the manufacturing of uPVC and PVC products for a wide range of building interior & exterior applications. The company was incorporated in the year 1992 with the brand name POLYWOOD with PVC profile products. With continuous growth and innovation, the company extended its product range within the brands: uPVC Windows, uPVC Doors, System Aluminum Windows & Doors, PVC Doors, PVC Wall Panel, PVC Fencing, PVC Furniture, SPC Flooring, PVC foam board.

uPVC Windows & Doors

Polywood has a very wide range of windows and doors like sliding windows & doors, casement windows & doors, combination window, bay window, fixed window, villa window, arched window etc. Polywood has its own research and development team and we have manufacture and supply as per customer requirements using latest technology. We are using world class profile like Shide & Kommerling to manufacture it. uPVC is proven to offer excellent performance and durability; it is long lasting and requires very little maintenance making it the perfect material for your windows. It is also recognised for its thermal efficiency, sound insulation and great value for money. With Safe style we can rest assured that even in the harshest weather conditions Polywood windows will not warp, rot or rust due to the quality and nature of the uPVC we manufacture. Polywood windows is a 100% waterproof & termite proof & Borer free. It is light in weight and not required any paint or polish and gives an elegant look.

PVC Door

The most popular material for bathroom doors these days, PVC doors are the material of choice for doors in bathroom. They are not only far more durable and enduring than other door materials but are also more flexible in terms of design options. Despite the fact that wooden doors tend to look elegant, they are usually better saved for other parts of the home. Wood is a naturally absorbent material and has the capacity to soak up humidity and moisture which may result in the warping of the doors over time.

Steel doors, on the other hand, are extremely durable and rugged but not pleasing to the eye. While steel is also naturally resistant to water damage, steel tends to be a bit on the expensive side. Furthermore, another factor that should be considered is that prolonged exposure to humidity and moisture will eventually cause many steel doors to rust. Polywood has a wide range of PVC doors like single panel door, multi panel door, premium egress door, glass designer door, folding door, digital printed door etc.

PVC Wall Panel & False Ceiling

Polywood PVC Wall Panels are extensively used to add look and charm to the residential as well as commercial places. Available in a variety of designs and textures, these are easy to maintain and clean. Being water-proof, it is widely popular at locations where wall seepage is a common problem. Available in a wide range of color and designs. If required these panels ca be easily uninstalled to relocate from one place to another. Our range of wall paneling can be customized as per the clients specifications and configuration. These wall panels are non-porous and non-absorbent, thus help in the safe fitting of lighting, access hatches and air-vents.

PVC Furnitures

Polywood modular furnitures help you to make the most of the available space, by effectively giving you plenty of storages and space. Our full spread of features is available for all layouts and designs, allowing you to create a furniture that is built for how you use it. These are available in broad range of eye-catching colors and designs to match the unique requirements of any interior furniture design.

Polywood workstations & Tables help you to utilize and organize your workspace very well. Having a stylish appearance and strong construction, our range of PVC workstations is offered in various textures and designs in order to fulfill the varied requirements of our clients, at market leading rates.

PVC Fencing

Polywood fencing can be used for both interior as well as exterior applications. It can be easily grouted over soil, making it ideal for application around household gardens. One of the biggest advantages is that it has rounded edges with plastic fasteners, no metal parts. Therefore, it is safe even when used around childrens. It does not corrode, requires no painting or polishing. Invulnerable to insects or termites and almost no maintenance is required. There are 2 types of U-PVC fencings - Outdoor UV resistant type - It can be used for both interior as well as exterior applications. It is grouted with sand. Heavy duty concrete filled type - It is used for exterior applications only and is grouted with cement, concrete and iron rod inside the main fence pillars.


D-Stona is a revolutionary product engineered to transform your buildings interiors to a new level of

luxury. It is a high-quality engineered marble with limestones as the major component. It is brainchild of Dhabriya Group, a company known throughout India for the benchmark quality they provide. D- Stona decorative and interior products offering are Marble sheet, Moldings, SPC Wall Panels and PVC Laminates in various Marble, Wooden, Royal touch, Metallic, Matt, Sparkle, Elite shades. With its diverse range D-Stona is sure to add a whole new dimension to interior decoration.

SPC Flooring

Polywood SPC Flooring is a new type of environment friendly floor that can be recycled. It has the characteristics of 100% waterproof, mold & fungus proof, fire retardant, termite proof, anti-skid, noise free, zero formaldehyde and simple & quick installation.

With our vision to save natural resources like Tree, we always make sure to develop and bring the product which is environment friendly and safe to use. Polywood SPC Flooring production process required no glue, no formaldehyde, no benzene and other toxic substances. It also has no radiation and green product which do not harm the human body. At the same time, Polywood SPC Flooring is a very cost effective and durable. We have a collection of textures like wood grain, marble and fabric. It has much more advantages which can be experienced by the user at home, office and other indoor applications.

Our continues research and innovation for SPC Flooring is based on continues upgradation demand and consumption by Architects, Interior Designers, Users. We take care of their different choices, moods, type of application and aesthetically pleasing. Acceleration of urbanisation and the popularity of premium villas, bungalows and townships, the decorative SPC Flooring has immense demand. Its durability and excellent performance in extreme condition will definitely be the first preference against wood and stone flooring.

PVC Foam Board

Polywood PVC Foam Boards provide a constantly smooth and bright surface. They are lightweight and durable and offer excellent chemical resistance. They have good thermal properties too, making PVC Foam Board a versatile choice suitable for use indoors and outdoors.

Polywood PVC foam board is a kind of building made of polyvinyl chloride, with features as waterproof, flame retardant, acid & alkali resistant, light & heat preservation, noise insulation and

shock absorption. The PVC foam sheet can be the ideal substitute of wood, aluminum and composite board. Furthermore, the surface is very smooth and high hardness, which is not easy to be scratched. For this feature, PVC foam board can be the prime choice in making furniture. The surface is polished, grain less, non-porous and clean which can be printed, painted, coated and laminated directly.

Outbreak of COVID-19

Corona virus originated in Wuhan, China, and quickly spread across the world. It was declared as a global pandemic on 11th March 2020 by World Health Organization (WHO). In a bid to contain the outbreak of the virus, the Indian government announced a nation-wide lockdown from 22nd March 2020, affecting life and livelihoods. A responsive organization like we took proactive initiatives to counter the challenges posed by this unprecedented emergency.


The Company conducted instructional training programmes through video conferences to ensure that all the employees could be apprised of precautionary measures; it promoted personal hygiene and social distancing through comprehensive documentation, training and installations; it distributed hand wash, sanitizers and preventive gear to secure its workforce. The Company adhered to precautions and SOPs recommended by State/Central government and regarding the resumption of operations. Your Company is confident of overcoming the challenges on account of Covid-19 to a greater extent and ensure business continuity. As an evolving and dynamic enterprise, the Company is taking this crisis period due to pandemic, as an opportunity to reimagine the business model and its processes to derive the efficiencies and deliver value to its stakeholders.

Your Companys objective of becoming one stop solution provider by adding new products under its brand, augurs well over last couple of years. With the above focused approach, your Company is well poised to capture the emerging opportunities in the market and deliver sustained growth.

Financial Overview

Analysis of the profit and loss statement

? Revenues: Revenue from operations reported 18.42% decline from 7374.28 lakhs in 201819 to 6016.15 lakhs in 2019-20. Other income of the Company reported a 5.97% decline and accounted for 0.54% share of the Companys

revenues reflecting the Companys dependence on its core business operations.

? Expenses: Total expenses of the Company decreased by 17.23% from 6993.46 lakhs in 2018-19 to 5788.16 lakhs due to lower volume of production.

? Profit & Loss: Profit before taxes reported 47.49% decline from 415.30 lakhs to 218.09 lakhs in 2019-20. Total comprehensive income for the period reported 55.44% decline from 296.92 lakhs to 132.32 lakhs compared from previous year.

Analysis of the Balance Sheet

? The capital employed by the Company increased by 1.11% from 5309.81 lakhs as on 31st March 2019 to 5368.73 lakhs as on 31st March 2020.

? The net worth of the Company increased by 3.49% from 3783.32 lakhs as on 31st March 2019 to 3915.64 lakhs as on 31st March 2020 owing to increase in reserves and surpluses. The Companys equity share capital comprising 1082.42 lakhs equity shares of 10 each, remained unchanged during the year under review.

? Finance costs of the Company decreased by 7.27% from 371.03 lakhs in 2018-19 to 344.07 lakhs in 2019-20 following the repayment of liabilities and negotiation of better terms with bankers.

Working capital management

? Inventories including raw materials, work inprogress and finished goods among others increased by 2.38% from 2115.90 lakhs as on 31st March 2019 to 2166.19 lakhs as on 31st March 2020.

? Trade receivables decreased by 7.06% from 1764.01 lakhs as on 31st March 2019 to 1639.48 lakhs as on 31st March 2020.

? Cash and bank balances of the Company decreased by 3.78% from 194.51 lakhs as on 31st March 2019 to 187.15 lakhs as on 31st March 2020.

Market Presence

Your Companys market presence covers all the

major cities of India. Your Company is having three

manufacturing facilities (i.e. two at Jaipur,

Rajasthan and one at Coimbatore, Tamilnadu),

through which whole India is being catered. Company is having strong market hold throughout the India except couple of states for which also Company has made detailed marketing plans to strengthen its presence there also in the next one to two years.

Human Resources/Industrial Relations

Your Company believes that human resource is its most valuable resource and it is the quality and dynamism of human resources that enables it to make a significant contribution to enhance stakeholders value.

Opportunities & Threats

Development of company activities in management, marketing, quality, research and branding Government bans
Low availability of quality wood & there costly manufacturing labour and high maintenance cost increases the demand of our products. Volatile raw material pricing
Changing consumer behavior Increased Competition from Local & Big Players
Increasing awareness to protect the environment & green building revolution Shortfall of skilled labor

Internal Control System and their Adequacy

The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. The Audit Committee reviews adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations. The Audit Committee gives valuable suggestions from time to time for improvement of the companys business processes, systems and internal controls. All efforts are being made to make the internal control systems more effective.

We places Employee engagement, development and retention of talent as its highest priority, to enable achievement of organizational goals. The Company provides technical and Behaviour training skills to employees so that they are competent enough to advance in their careers. The Company always strives to maintain good work culture, ethics, values and rewarding remuneration packages to keep its staff highly motivated.

Your Companys HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Your Company continues to maintain positive work environment and constructive relationship with its employees with a continuing focus on productivity and efficiency. Your Company is focused on building a high-performance culture with a growth mindset. Developing and strengthening capabilities for all employees has remained an ongoing priority.

Your Company has over 300 employees spread across 3 manufacturing units and multiple branch locations. Our vision is to deliver world class service at optimal cost by making every employee a fully engaged and aligned team member. Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintain good relations with the employees.