Intl. Conveyors Management Discussions

This Management Discussion and Analysis report presents the key performance highlights of the Financial Year 2022-23 pertaining to your Companys business. This review should be read in conjunction with the report presented in the earlier sections i.e. financial statements, the schedules and notes thereto and other information included elsewhere in this Annual Report. Your Companys financial statements have been prepared in accordance with Indian Accounting Standards (IndAS), complying with the requirements of the Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.


A Conveyor Belting is a continuous moving material handling equipment that is used for carrying different products or materials efficiently and smoothly from one point to another and it is mostly used for conveying a large volume of materials continuously in a short span of time. The efficiency of Conveyor Belting assists in improving productivity, saves labor cost and decreases lead time. The high versatility, light weight nature and cost-effectiveness have made conveyor belting highly popular across various industries.

Conveyor Belting is essential in modern industrial operations, providing efficient and automated transportation of goods and materials. It offers numerous benefits, including increased productivity, reduced manual labor and enhanced safety by minimizing the risk of accidents and injuries. The advantages of Conveyor Belting are manifold, such as it enables continuous and consistent material flow, allow for precise control of speed and direction and can handle heavy loads with ease. In comparison to alternative transportation methods, such as manual handling or forklifts, conveyor belting is more efficient and require lower operational costs. As a result, they find extensive use across various industries, such as manufacturing, mining, agriculture, and logistics, facilitating the movement of various items.

Growing demand from the power, mining and manufacturing industries represent one of the key factors driving the Conveyor Belting market. Mining operations relies heavily on Conveyor Belting. Conveyor Belting is critical for bulk transportation of materials like coal, potash, cement etc.

On the basis of end-use, the Conveyor Belting market is segmented into mining, manufacturing, cement, supply chain and others, out of which the mining segment is anticipated to garner the highest share in the market in near future.


The Indian Conveyor Belting market is witnessing significant growth, driven by the rapidly expanding manufacturing sector in the country. The surging demand for efficient material handling solutions has considerably increased the adoption of Conveyor Belting across various industries, such as mining, power, automotive, logistics etc. which, in turn, is influencing the market growth. Moreover, the initiatives by the Government of India (GoI), such as the Make in India campaign that encourages domestic production, is creating a favorable environment for Conveyor Belting manufacturers. Additionally, the growing awareness regarding worker safety and the availability of a wide range of Conveyor Belting options are acting as other growth-inducing factors.

Material handling system is going to be more in use in application for continuous production in the field of bulk capacity handling like coal, ores, potash etc. The Conveyor Belting market in India is estimated at 20,000 Million out of which PVC Conveyor Belting market is estimated at 1,000 Million. Being one of the worlds fastest-growing economies, India is an attractive market for Conveyor Belting manufacturers.


Your Company is engaged in the manufacturing and marketing of solid woven fabric reinforced PVC impregnated and PVC covered fire retardant, anti-static Conveyor Belting in India since 1978 having a rich and valuable experience of around 45 years guided by core human values. It has complete integrated in-house manufacturing from yarn preparation, fabric weaving, compound mixing to finishing and it ensures quality control at each step of manufacturing activity. Your Company is an ISO 9001:2015 certified Company meeting international quality benchmarks. It also enjoys several certifications and endorsements from stringent global regulatory bodies.

The primary product of your Company is PVC Fire Resistant Antistatic Solid Woven Coal Conveyor Belting. Your Company has achieved an annual production of 4,50,363 meters in 2022-23. Your Company is one of the largest manufacturers of solid woven belting in the world and has a complete product range with the ability to make Conveyor Belting up to 3150 kN/m (type 18) in strength and belting widths ranging from 600 mm to 1800 mm. This is the widest product range of Solid Woven Belting available from any one Company with a manufacturing capacity of 1 million meters per annum of PVC Solid Woven Conveyor Belting. Your Company has plants at Aurangabad, Maharashtra and Falta SEZ, West Bengal. Aurangabad Plant has total annual installed capacity of 7,00,000 meters and Falta SEZ Plant has total annual installed capacity of 4,25,000 meters.

Your Companys design team can undertake full in-house design starting from preliminary design of systems from power and tensile strength/tension calculations all the way through to detailed design. It has years of experience in solid woven conveyor belting both for underground and above ground applications. Your Company is the first Company to have BIS Certification. It provides products of International quality, superior technology and testing capability.

Your Company is also associated with Mato Industries Ltd., UK as their distributor in India for Mato Belt Lacing Machine, Fasteners, Spindle Pins and Belt Cutter etc., for last 3 decades. Your Company has achieved substantial growth rate in sale of Mato Products in India. It expects substantial growth of the ongoing business in coming years.

Your Company has been involved in numerous supply arrangements for Indian Coal Mines and also involved in export contract arrangements with Canadian customers in their potash mining applications. Your Company supports its customers for selecting belting based on Conveyor structure (sidewinder software) and it is pioneer to use PVC belting in cement industries.


? Experienced Promoters and Management Team

The Promoters of your Company have rich and vast experience in Conveyor Belting industry and are wel l assisted by an experienced and competent team. Your Company is managed by a team of competent professionals with deep knowledge of the core aspects of the business.

? High entry barriers

There are barriers for entering in the Conveyor Belting market as dual stage approval is required to be an approved supplier. Product approval by regulatory authorities of importing countries is also required and these approvals are specific to importing entities. As there are very few manufacturers of the product globally, your Company is able to grab a large market share of a niche industry.

? Long Term Relationship with the Clients

Your Company believes in maintaining long term relationships with the clients. Your Companys long term contracts ranging between 5-7 years with customers. Your Companys dedicated focus on client coverage and its ability to manufacture as per Countrys and Customers specification has helped to establish long term relationships. It has reputed clients in International and Domestic Market.

? Advantageous Policies and Regulations

There are several policies and regulations which gives advantage to the Conveyor Belting industry. For example, National Mineral Policy, 2019 provides for encouragement of merger and acquisition of mining entities, encouraging technology for mineral administration and curb illegal mining, introduction of appropriate incentive for exploration, creation of dedicated mineral corridors to boost private sector mining. Further, Government has relaxed the FDI norms such as FDI of 100% is permitted under the Automatic Route and Government allowed 100% FDI in commercial coal mining to introduce private sector participation.

? Talented and Competent Employees

Your Company has skilled and professionally competent employees and technical team who contribute for the success and growth of your Company.

? Financial Performance

During the year under review, your Company has achieved a turnover of 20,835.58 Lacs as compared to 20,507.74 Lacs in the previous year, registering a growth of 1.60%. Your Companys profit before taxation for Financial Year 2022-23 is 3,748.37 Lacs against 2,599.09 Lacs in the previous year and has grown by 44.22% over the year.


Conveyor Belting

Your Company is ready to deliver the most efficient, reliable & safe Conveyor Belting to significantly enhance the efficiency and productivity of Modern Mining operations. The product your Company manufactures is an ingenious way to increase productivity in industries and to reduce labor cost. Looking at the future scenario of Conveyor Belting Industry and increasing demand for the same in different industries, there are ample opportunities available and your Company will surely maximize its wealth in the coming years. In India the focus is on indigenous supply of product with the slogan "be vocal for Local". Many Government sectors have debarred Global tenders and the target is giving preference to domestic manufacturers to promote make in India.

Additionally, the Government is initiating process of auctioning coal seams to private players for them to carry out production independently where there is a significant business opportunities for our product.


Over the years, India has emerged as one of the fastest growing economies in the world, and it offers a growing and thriving environment for investments, both domestic and foreign. It has a sizable number of listed and unlisted companies, which provide a great scope for investment.

The Government has adopted an investor-friendly Foreign Direct Investment (FDI) Policy, in which most sectors are open for 100% FDI under the automatic route. Indias FDI policy is also reviewed on an ongoing basis to ensure that India remains an attractive and investor-friendly destination.

Gradual opening up of the economy by relaxing FDI norms, increase in consumer demand and income, improving financial infrastructure of the country and continued policy support towards industries by the Government in the form of Atmanirbhar Bharat Abhiyan and various schemes have led to an upturn in the performance of the investment sector in India, which is set to scale new heights in the coming years.

Your Companys investments have resulted in receipt of dividends and appreciation of capital. Thus, better performance of the investee companies may be beneficial for the Company.


Conveyor Belting

? Foreign Currency Exchange Rate Fluctuations

Your Company imports critical raw material and payment of these purchases is made in foreign currency. International Market is a much bigger market in comparison to Domestic Market resulting in export of your Companys products outside India. Changes in value of currencies with respect to Indian Rupee may cause fluctuations in your Companys operating results expressed in rupees. The exchange rate between the rupee and other currencies is variable and may continue to fluctuate in future. Any unforeseen or adverse fluctuations with respect to the unhedged exchange rate of any Foreign Currency for Indian Rupees may affect your Companys Results of operations.

? Regulatory Risk

Changes in the Regulatory Environment, while usually beneficial to the progress of the sector in the long term, could sometimes cause short term disruptions. Stringent corporate governance regulations and public disclosure requirements have enhanced the need for compliances. Compliance risk is caused by failure in compliance with various domestic and overseas rules and regulations. Non-compliance may lead to penalties and loss of reputation.

However, your Company has various due diligence systems in place to mitigate the impact of the risks mentioned above and to ensure transparency and accountability in the day to day business activities.


In a volatile stock market, your Company is exposed to the risk of fluctuation in share prices. This however is not likely to affect the working of your Company, given the Companys risk management strategies and also, temporary fluctuations in the prices of shares in the stock market do not have much financial implication to your Company. However, your company gives continuous effort to frequently examine the ups and downs of the market.

Your Company, in pursuit of its business objectives, is exposed to certain risks such as credit risk, market risk, liquidity risk and operational risk. The market witnessed substantial turbulence in the previous year, stemming from multiple sources impacting the industry. However, as your Company has been fundamentally built on the principle of sound risk management practices, it has successfully weathered the market turbulence and continues to remain resilient.

The Audit Committee of your Company reviews the probable risk that may affect the financial position of your Company from time to time.


Your Company is also engaged in wind power generation with a capacity of 4.65 MW, with locations spread across Gujarat, Maharashtra, Karnataka and Andhra Pradesh, and it also undertakes treasury management. The segment-wise and product-wise performance of your Company is given below:

a. Conveyor Belting

Your Company is mainly engaged in the manufacturing of Conveyor Belting. The revenue generated from this segment during the Financial Year 2022-23 comprises of 95.14 % of the total revenue of your Company. Revenue generated from Conveyor Belting segment during the Financial Year 2022-23 is 19,822 Lacs as compared to 19,132 Lacs in the previous year, which signifies a growth of 3.61% over the year. The Profit before Interest and Tax from Conveyor Belting segment is 3,408 Lacs for the year ended March 31, 2023 as compared to 2,473 Lacs for the year ended March 31, 2022 and has grown by 37.81%.

b. Wind Energy

Your Company presently has in total 5 Wind Mills. All these Wind Mills are generating green energy in the states of Karnataka, Maharashtra, Gujarat and Andhra Pradesh and the same is supplied to respective state consumers through state grids. The revenue generated from Wind Energy during the Financial Year 2022-23 is 159 Lacs as compared to 219 Lacs and reduced by 27.40% over the year. The Profit before Interest and Tax from Wind Energy segment is 44 Lacs for the Financial Year ended March 31, 2023 as compared to 92 Lacs for the Financial Year ended March 31, 2022 and has reduced by 52.17%. Total revenue and profit has been decreased during in the Financial Year 2022-23 due to following reasons:

(i) Wind Mill situated at Chitradurga Dist., Karnataka is closed since May, 2022 due to directive issued by the Principal Chief Conservator of Forest (PCCF) dated 07.05.2022 to the Chief Conservator of Forests (CCF), Bellary to suspend the operation of all 127 wind turbines situated at Chitraduarga site, Karnataka until further notice and directive issued by the Deputy Conservator of Forest (DCF) to all Range Forest Officers (RFOs) to stop operations of the 127 wind turbines at the aforesaid site with effect from 07.05.2022.

(ii) Your Company has started captive consumption of units generated by Wind Mill situated Panchpatta Dist., Maharashtra w.e.f. the month of July, 2022.

c. Trading of Goods

Your Company is engaged in trading of fasteners. During the Financial Year 2022-23, the revenue generated from trading of goods is 803 Lacs as compared to 705 Lacs and increased by 13.90% over the year. The Profit before Interest and Tax for the year ended March 31, 2023 is 197 Lacs as compared to 174 Lacs and has grown by 11.68% over the year.

d. Treasury

During the year under review, your Company has identified "Treasury as a separate business segment. It is based on the internal reorganization of its business segments, increased focus and business review carried out by the Management. The Treasury segment comprises of investment in equity instruments, mutual funds and inter-corporate deposits given by your Company and the total assets under this segment as on March 31, 2023 stands at 22,554.17 Lacs. The Profit before Tax from the treasury segment is 927 Lacs for the Financial Year ended March 31, 2023 as compared to 682 Lacs in the previous Financial Year and has grown by 35.98% as compared to Financial Year 2021-22. Further, the treasury segment now contributes to about 24.73% of the Profit before Tax of your Company.


A separate paragraph on internal financial control systems and their adequacy has been provided in the Directors Report.


In compliance with the requirement of the Listing Regulations, the key financial ratios of your Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year) has been provided hereunder:

Sl. No. Particulars 2022-23 2021-22
01 Debtors Turnover 9.54 10.30
02 Inventory Turnover 8.04 7.83
03 Interest Coverage Ratio 9.63 6.66
04 Current Ratio 1.94 1.83
05 Debt Equity Ratio 0.30 0.10
06 Operating Profit Margin (%) 18.84 14.03
07 Net Profit Margin (%) 13.22 7.16
08 Return on Net-worth (%) 12.77 6.84

Interest Coverage Ratio has been increased by 44.70% over the year due to increase in Operating Profit because of decrease in logistics cost and raw material cost during the Financial Year under review as compared to last Financial Year.

Debt Equity Ratio has been increased by 200% over the year due to increase in borrowings for the purpose of purchase of Current Investment and decrease in Other Equity on account of Buyback of shares during the Financial Year under review.

The significant changes over previous year across all ratios is due to higher sales & profitability, faster realisations and improvement in consumer sentiments and return to normalcy post lifting of lockdowns restrictions. Return on Net worth is also higher due to increase in profit of your Company because of decrease in logistics cost and raw material cost during the year under review as compared to last Financial year. For detailed explanation, please refer to Note no. 38 (14) of the Notes to Standalone Financial Statements for the year ended March 31, 2023.


Your Company has been continuously working to advancement of human resources skills, competencies and capabilities within the organization, which are critical to achieve desired results in line with the strategic business ambitions. Your Company strongly believes that to achieve continual success, a dedicated and devoted workforce is very much required to get high performance and improved productivity. Your Company has left no stones unturned for enhancing the capabilities of employees across all levels of the Organization through continuous learning and development programs.

The total employee strength as on March 31, 2023 stood at 95. Your Company is taking initiatives to maintain safety and welfare of employees such as:

a. Celebration of Yoga Day;

b. Annual Medical Checkup;

c. Celebration of Safety week

d. Conducting Safety Mock Emergency Drill

e. Conducting Monthly Safety Committee Meeting

f. Conducting Safety Induction Training

g. Celebration of Ganpati festival

h. Celebration of Republic Day and Independence Day


Statements in this management discussion and analysis report describing your Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect your Companys operations include a downtrend in the industry- global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.

For and on behalf of the Board of Directors
Udit Sethia R. K. Dabriwala
Director Managing Director
DIN : 08722143 DIN :00086658
Date : August 14, 2023 (Mumbai) (Kolkata)