Garware Synthetics Ltd Management Discussions.

Pursuant to schedule V of the SEBI (LODR) Regulation, 2015. Management Discussion and Analysis Report form a part of the Annual Report of the Company. It indicates the Companys movement in the external environment Vis-a -Vis its own strengths and resources.


The global economy witnessed a healthy growth during the first half of 2018 but the same momentum is unlikely to remain during 2019. Growth for 2018 was pegged at 3.6% while the same is projected at 2.6% by World Bank. The major headwinds to growth are ominous signals of slowing down in the U.S economy coupled with a trade war between U.S and China.


The domestic economy suffered a slowdown with growth pegged at 6.8% in FY19, down from 7.2% in FY18. This was primarily owing to the lackluster performance of the economy in the second half of the fiscal (Oct18-Mar19) - GDP growth under 7%. This was mainly due to the poor performance of farm, mining, and manufacturing sectors. Indias industrial production (IIP) growth slowed to a three-year low of 3.6% in the 2018-19 as against 4.4% in the previous fiscal.


Garware Synthetics Limited manufactures wide range of bristles made from Nylon 6, 66,610, PBT, Polypropylene, which finds extensive application in various Brush Industries. Recently Company has developed nylon sutures, which was currently imported into our country. These sutures are used mainly for medical purpose. The management is trying its best to improve the working of the Company.


Your company has got good demand for its products due to high quality standards. The company can produce almost 570 MT per year if work at its full capacity. However, the Company is not producing the sufficient quantity of products due to scarcity of the Working Capital. At the same time, many potential markets are untapped due to shortage of raw material. In spite of all odds, the Company is still enjoying the reputation on grounds of quality.

Our raw materials are petro- based products. In the current year oil prices were also high. This has resulted in increasing the raw material prices considerably. As the market could not absorb all the raw material prices, resulted into loss of sale and reduces company profit margin.

Your management is of the opinion that the following determining factors of Opportunities and Threats would play a vital role in case of your company.


1. Additional production capacity to meet the market demand and achieve economies of scale.

2. Use of latest technology to facilitate further reduction in wastages and improvement in quality.

3. The company has brand equity and a reputation in the industry for producing quality products, its continuous service and customer care.

4. The Company is a pioneer in plastic industry.


1. Your company faces competition from the unorganized sector in the industry.

2. Your company faces adversity due to volatile raw material Prices.

3. Your company suffers from huge amount of power shortage. Due to the power- cutting in company factory established, the Company suffered amount of production loss during the current year and the same trend will continue in the next year also as the area of production is not having adequate power generating capacity.


The inter- personal relations of the employees have been very cordial throughout the year. The Company has constituted an Internal Complaints Committee (ICC) pursuant to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Sexual Harassment Act).


The Company has a compact organization Structure which helps it run business operation smoothly. The Company has adequate internal control system, commensurate with the size and nature of its operations. Audit Committee, the details of which has been provided in the Corporate Governance Report has been entrusted with detailed terms of reference to review and look into proper recording of transactions and preparation of financial statement. One of the important functions of the Audit Committee is to review the adequacy of internal control systems and compliance thereof.


Your Company is facing a financial crunch and because of same your company can not fulfill huge demand from domestic as well as international market. At the same time due to shortage of working capital funds the continuity of the production breaks frequently resulting into heavy wastage. All this may result into diversion of our customers to our competitors.

For and on behalf of the Board
For Garware Synthetics Limited,
Sd/- Sd/-
Date: 22nd August, 2019 Sunder. K. Moolya Santosh Borkar
Place: Mumbai Whole T ime Director Director
DIN: 02926064 DIN: 03134348