fiberweb india ltd share price Management discussions

The Management Discussion and Analysis Report sets out developments in the business environment and the CompanyRss performance. The analysis supplements the BoardRss Report, which forms part of this Annual Report.


At the outset of 2023, encouraging developments in the global economy encompass the easing of inflation and energy costs from their apex levels, along with ChinaRss decision to terminate its zero-COVID strategy, which is projected to provide a stimulus to economic growth. While the complete impact of these changes is yet to be fully realized, emerging markets and developing economies are already experiencing a substantial upswing in growth rates, reaching 3.6% this year compared to 2.8% in 2022. Inflation expectations are presently stable, with a predicted decrease from 7.0% this year to 4.9% in 2024, due to major central banks communicating the necessity for a more stringent monetary policy stance. Moderating demand and escalating interest rates globally will further erode inflationary pressures throughout 2023. The tightening of monetary policy by the majority of central banks is anticipated to drive inflation back toward its targets leading it toward the recovery path. Arm conflict between Russia and Ukraine effected Europe, UK, USA and other countries badly.


Indian economy has increased in size from being 10th to 5th largest in the world in the past nine years. According to Economic Survey 2022-23, Indian economy has staged a broad based recovery across sectors and positioning to ascend to pre-pandemic growth path in FY23 driven by several measures taken by the Government and RBI - the Central Bank of India. According to Second Advanced Estimates of National Income 2022-23, the growth in real GDP is estimated at 7.0% during the financial year 2022-23. Multiple agencies worldwide projects India to be the fastest growing economy in the world with a growth forecast expected in the range of 6.5 to 7.0% in FY23.

IndiaRss GDP growth is expected to remain healthy in FY24 backed by infrastructure led growth model by the Government with an emphasis on transportation, housing, logistics and last mile connectivity. This is further supported by crowd-in private investments, improvement in consumption level and enhance affordability.


Indian plastic industry market is one of the leading sectors in the countryRss economy. The production and consumption of plastics in India have increased manifold in the last three decades. In 2021-22 the consumption of plastics was approximately 22 MMT, compared to 0.9 MMT in 1990. The industry gives jobs to over 4 million people and comprises over 35,000 processing units, 80% of which are small and medium-sized enterprises. This sector is predicted to achieve 9.1 lakh crore by 2025. During April 2022-February 2023, IndiaRss plastic exports stood at US$ 10.9 billion. Also, IndiaRss plastic exports is expected to reach US $25.00 Billion by 2025.

The Government of India intends to take the plastic industry from a current level of Rs 3 lakh crore (US$ 37.8 billion) of economic activity to Rs 10 lakh crore (US$ 126 billion) in four-five years. 10 Plastic Parks have been approved in the country by The Department of Chemicals and Petrochemicals. Among these, six plastic parks have received final approval from the following states - Madhya Pradesh (two parks), Assam (one park), Tamil Nadu (one park), Odisha (one park), and Jharkhand (one park). These parks are intended to boost employment and attain environmentally sustainable growth.


Increase in infrastructure investment provides a critical push to the potential growth of the economy. The Government, in recent years, provided an increased impetus for infrastructure development and investment through the enhancement of capital expenditure. In the Union Budget of 2023-24, the Government has further increased the capital expenditure outlay by approximately 33% to Rs 10 lakh crore which is nearly 3 times the outlay in 2019-20. The increase in outlay is expected to ramp up the virtuous cycle of investment and job creation. The continuation of 50 year interest free loans to states for one more year is expected to spur investments in infrastructure and enhance growth in the economy.


Fiberweb (India) limited (“The Company”) is a 100% Export Oriented Unit (EOU) having ISO 9001:2015 and ISO 45001:2018 certified by quality registrar INTERTEK and UKAS.

The Company is engaged in manufacturing of technical textile field, innovative, quality spun-bond polypropylene nonwoven roll goods and products used globally in various industries, such as hygiene, agriculture crop cover and medical & industrial clothing. The Company with its excellence in manufacturing, producing and supplying high quality roll goods to various users all over the world including few of the fortune 500 clients.

It also produces and exports MELT BLOWN Fabrics which is widely used for Face masks, Filtration, Absorbents, Rail Tracks and variety of products using Spun Bond and Melt Blown fabrics.

The global nonwoven fabrics market size is projected to grow from USD 40.5 billion in 2020 to USD 53.5 billion by 2025, at a CAGR of 5.7% from 2020 to 2025. IndiaRss nonwoven market is growing at a rate of 8- 10% & the market is expected to grow at a rate of 12-15% in future. The Indian packaging industry is likely to witness CAGR growth of 18% with the increase in share of non-woven. However the consistent growth showing up usage in automotive, filtration, geotextiles and the medical and hygiene sector, the growth will escalate in value terms too.

The year 2022-2023 has been challenging due to logistic issues and disproportionate increase of freight rates and it is hoped to scale greater heights. The Company expects to grow at a healthy rate during the current financial year. The Company is predominantly into manufacture of products for Automotive and Consumer Durable industries and is already a major supplier of plastic products to the above mentioned industries. . The Company is well positioned to capitalize on the opportunities over the next few years.


While increasing demand is an opportunity for the Industry, increased competition in the processing sector, change in Government regulations and fragmented nature of the plastic processing units are a threat to the Company. However, with multiple barriers to entry, the company, being an organized player, is well placed to outpace competition.


Your CompanyRss main business is "Polymer Processing" and all other activities of the company revolve around this main business. As such there are no separate reportable segments within the Company and hence, the segment wise reporting as defined in Ind AS 108 - Operating Segments (Accounting Standards 17) is not applicable to the Company.

Mitigation Strategy:

Bulk of the CompanyRss foreign exchange risk (arising out of import of Raw materials) is very short-term (less than 3 months) in nature at any given point of time. The company has adopted prudent and consistent hedging policy guided by the Board, by entering into simple forward contracts, at optimized hedging costs for mitigating the said risk. Company is able to partially balance the exposure risk by way of export of goods. Further company is not exposed to any long term/ short term foreign currency loans, thereby minimizing exchange fluctuation risk.


Since the very inception of the company, the industrial relation aspect of the company has been very cordial at all locations of the company. The Company believes that manpower is the most valuable primary resource for the growth of the organization. Therefore the company has recruited competent managerial personnel and taken steps for strengthening their efficiency and competency, through their involvement in the companyRss development and by installation of effective system for improving productivity. It is totally a company run by Professionals.

The Number of permanent employees on the rolls of the Company as on 31st March, 2023 was 120 Nos. as against 133 Nos. on 31st March, 2022.


The company maintains adequate internal control systems, which provide among other things, reasonable assurance of recording the transaction of its operations in all material respects and of providing protection against significant misuse or loss of CompanyRss assets. Apart from self-monitoring of internal controls, Internal Auditors have expressed their satisfaction about the adequacy of the control systems and the manner in which the Company is updating / upgrading its systems and procedures.

The Audit Committee takes due cognizance of the observations made by the auditors and gives their suggestions for improvement. The suggestions of the Audit Committee further ensure the quality and adequacy of the control systems.


2022-23 2021-22
Standalone Standalone

Sales and other Receipts

6738.15 9642.65

Gross Profit / (Loss) before depreciation

276.11 1599.34

Less: Depreciation

236.21 219.03

Profit from regular Activities

39.90 1380.31

Extra ordinary items (Net)

92.77 -

Profit/ (Loss) before taxation

(52.87) 1380.31

Profit/ (Loss) after taxation

(29.93) 1133.50

Earning Per Share

(0.10) 3.94

During this year the earning per share (Standalone) of the face value of shares Rs 10.00 each has gone down from Rs 3.94 to Rs (0.10) (Basic as well as diluted).


Statement in this report on Management Discussion and Analysis describing the companyRss objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the CompanyRss operations include global and domestic demand and supply conditions, finished goods prices, raw material costs and availability, Logistic problems, change in Government regulations and tax structure, economic developments within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations.

The Company assumes no responsibility in respect of forward looking statements which may be amended or modified in future on the basis of subsequent developments, information or events.

On behalf of the Board For Fiberweb (India) Limited

Place: Mumbai Date: 11th August, 2023

Pravin V. Sheth Director DIN:00138797

Registered Office:

Air Port Road, Kadaiya, Nani Daman, Daman (U.T.) 396 210.

CIN: L25209DD1985PLC004694 E-mail: