goblin india ltd share price Management discussions


*Indias luggage industry is gearing up for a 15 percent year-on-year revenue surge in the current fiscal, improving from the 40 percent growth achieved in the previous fiscal period. Moreover, this growth is attributed to a surge in consumer preference for hard luggage made by the organized sector, and continuing growth in tourism and corporate travel.

The consumer preference for hard luggage has driven up operating efficiencies and improved capacity utilization of the organized sector. The preference for hard luggage is gaining momentum among consumers because of better looks and durability. They are also getting lighter in weight, which is a key consideration in travel. Consequently, organized luggage makers have been proactively turning their revenue mix towards hard luggage both in retail and online platforms.

(* Source: CNBC TV18 report dated August 8, 2023)

The post-pandemic market growth has been strong and sustained especially for the organized sector. The travel industry is continuing to experience an unprecedented growth with more consumers travelling and also travelling more frequently. This growth in travel has sustained beyond the post lock-down revenge travel phenomenon, indicating perhaps a more permanent trend.

The growing convenience of online shopping has led to a major shift in consumer preferences in the purchase of travel bags and other luggage bags through e-commerce platforms, such as Amazon and eBay. The business bags segment is gaining significant traction in the market studied due to the increasing business travel worldwide and economic improvements in developing markets.

The overall long-term outlook for the organized sector remains very robust with a strong growth in travel, increasing preference for branded luggage, growth in school and office going population, and sustained marriage demand.


Your company is well established in delivering technology based travel accessories and it offers a competitive and innovative range of products, catering to consumer needs in all significant product categories.

Moreover, your company has built its trust and goodwill in the luggage industry by providing its customers with the best and the latest traveling gear solutions. The company aims to automate and innovate its range of products by making traveling user-friendly for all its customers and accordingly the company has introduced new product lines and has also enhanced its existing production and manufacturing capacity. Thus, in line with companys aim and for achieving sustainable long-term growth and for further strengthening companys on-going business, the company has acquired i.e. M/s. GT HASTEN INDUSTRIES LLP by incorporating a wholly owned subsidiary named GOBLIN INDUSTRIES (INDIA) PRIVATE LIMITED for enhancing its existing manufacturing capacity and to further diversify its product line.

Furthermore, for companys luggage accessories production it has procured computerized stitching machine for increased output and proper fitting. Also company has installed PUFF machine for accurate point stitching thus enhancing the quality on higher side. For the hard luggage company has installed Computerized Vacuum Foaming Machine for better accuracy and minimal wastage. Also, the company has adopted the method of shell foamed products as it is has a very good class and stands amongst the best of the brands. Additionally, the company has procured Durkopp Adler stitching machine for more speed and accuracy. The company is also planning for PP production in hard luggage.

In addition to above; your company is pleased to inform its stakeholders that it has developed and started production in a new segment i.e. accessories for women; such as handbags, purses and other accessories to cover a wide segment of the market. Furthermore, the company has lined up introduction of feather light back pack for catering needs of public at large and with the on-going digital era; new innovations are on the frontline which will be covered in phasewise manner by the company.

Thus, the company is gradually expanding its business presence in India as well as global markets and is looking forward at growth and diversity in the coming years.


The long period of supply disruption during the pandemic-era as well as adverse ocean freights and currency movement have put imported soft-luggage products at a significant pricing disadvantage versus the domestically produced hard-luggage. This has accelerated the consumer shift from soft-luggage to hard-luggage, which was already happening, driven by increasing preference for more premium looking and durable hard-luggage products. The backpack category had a sharp bounce back in demand this year led by the first full year of physical schooling post the pandemic and rising physical attendance in offices. With huge numeric potential still untapped by the organized sector, the Company is looking to invest aggressively behind this category as a strong growth driver.


The Company has continued to grow ahead of the market and will continue to build on this momentum. It has a focused strategy on identified channels, categories and consumer segments that are expected to drive market growth. The Company has also made significant investments in modernising and improving its manufacturing and production capacity. These improvements will help the Company in reducing costs and making its supply chain leaner and more responsive to the changing market.

Further, the company intends to keep improving price realisation through product mix improvement.

While there continue to be some uncertainties, the overall growth drivers are well in place for the company to continue on a high growth trajectory with improving profitability.


During the pandemic the disruption in global supply chain had resulted in significant upward pressure on raw material cost and sourcing costs. While with the easing out of supply chains some of the raw-material cost pressure has eased out, a structural shift towards domestic manufacturing has also helped manage the margins better. The Company has been actively investing both in expanding owned production capacity for hard luggage, and in helping vendors expand their facilities for soft luggage and backpack production. With e-commerce continuing to be a lead growth channel and consumers moving to digital platforms for content consumption, it is critical for the long-term to invest aggressively in this area for continued growth. The Company has built a strong position in e-commerce market-place platforms and is now investing behind scaling up its own brand websites. It is also investing behind building a strong digital content strategy to engage consumers on its brands.

While the overall growth for the domestic economy and travel sub-sector continues to be very strong, the risk of a global slowdown continues to be a demand side threat. To continue to outperform the market and sustain profitable growth is the most important medium-term challenge. The Companys linear structure facilitates faster and better decision making which allows the Company to grab opportunities in time.


The Company is exposed to various risks and uncertainties which may adversely impact its performance. The Companys future growth prospects and cash flow generation could be materially impacted by any of these risks or opportunities. The major risks as identified by the Company are demand-risks due to recessionary trends in the global economy, currency risk associated with imports, unfair competition, etc. The Company follows the Enterprise Risk Management (ERM) framework to manage and mitigate such risks which is primarily based on the integrated framework for enterprise risk management and internal controls developed by the Company.


M/s. A.D. Brahmbhatt & Co. were appointed as the Internal Auditors of the Company to review internal controls periodically with specific reference to evaluation of the current business processes, identify gaps, inefficiencies, process exceptions and suggest action plans, verify adherence to risk mitigation plans, to review sourcing and supply chain management, plant operations and effectiveness, sales planning and distribution channels, branches of the Company, warehouse and retail operations, to provide assurance regarding various compliances by assessing the reliability of financial controls and IT controls and compliance with applicable laws and regulations. The Company has a regular check on expenses including capital expenditure. The Company has documented policies and SOPs with regards to all major activities. The Internal Auditors submit their reports to the Audit Committee half yearly. The management considers and takes appropriate action on the recommendations made by the Statutory Auditors, Internal Auditors and the Audit

Committee of the Company. Significant policies with changes during the year, if any, are disclosed in the notes to the financial statements.


Standalone Basis:

During the year under review, the company has achieved revenue from operations of Rs.12,75,58,400/- and incurred loss amounting to Rs.1,59,88,300/-as compared to the previous Financial Year 2021-2022 where the Revenue from Operations was Rs. 33,68,78,100/-and Profit after tax was Rs. 1,90,14,100/-. The Basic and Diluted Earnings per share of the company as on 31st March, 2023 stands at (1.53)/-.

Consolidated Basis:

During the year under review, the company has achieved revenue from operations of Rs.18,77,34,000 /- and incurred loss amounting to Rs.1,59,62,900/- as compared to the previous Financial Year 2021-2022 where the Revenue from Operations was Rs. 39,41,22,500/- and Profit after tax was Rs. 1,93,05,800/-. The Basic and Diluted Earnings per share of the company as on 31st March, 2023 stands at (1.53)/-.


Volatility in global economies have become the new common in recent times and since company has less exposure to foreign revenue, risk is low in our case. However, the company has a defined policy for managing its foreign exchange exposure minimizing the currency risk which results in stable earnings.


Your company is focused in balance work life approach which promotes employee innovation, excellence and mutual trust between all the personnel and the company. The company also focuses on systematic training programmes and developing the technical and behavioral skills of the personnel at each level of organization to upgrade and innovate the work culture. Your Directors acknowledge and thank employees for their constant support.


Sr. Particulars F.Y. 2022-23 F.Y. 2021-22
1. Debtors Turnover Ratio 0.58 0.40
2. Inventory Turnover Ratio 0.94 0.50
3. Interest Coverage Ratio 0.01 0.03
4. Current Ratio 4.32 2.64
5. Debt Equity Ratio 1.91 2.38
6. Operating Profit Margin (%) 0.18 0.06
7. Net Profit Margin (0.013) (0.06)

Return on Net Worth

Financial Year FY 2022-23 FY 2021-22
Return on net worth 0.00 0.01


Statements made in this Management Discussions and Analysis describing companys objectives and predictions may be "forward-looking Statements" involving future plans of the company within the meaning of applicable laws and regulations. Actual results may differ from those expressed herein. The company is dependent on factors that can impact the operations i.e. Government regulations, tax regimes, and economic developments within India and other countries. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. The following discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the Standalone Financial Results of the company.

For and on behalf of the Board

Place: Ahmedabad Manojkumar Choukhany
Date: 5th September, 2023 Chairman & Managing Director
DIN: 02313049