Industry Overview:
Our company is actively involved in the trading and manufacturing of comprehensive array of Plastic products, addressing the diverse needs of our discerning customers. Our product line is specifically designed to encompass a wide range of ropes and twines, including monofilament ropes, danline ropes, tape ropes, baler twines, packaging twine (sutli). We are also engaged in trading and reprocessing of basic raw materials like polypropylene granules and polyethylene granules for our various customers.
Our company sells the products under the brand name of "Super Pack", establishment of its brand, "SuperPack", served as a testament to the companys commitment to delivering superior quality and building enduring relationships with customers. This brand identity not only resonated with consumers but also distinguished L.K. Mehta Polymers Ltd. from its competitors, solidifying its reputation in the industry. Our Company based on its experience and its standards, conforms to major specifications and customer requirements. Our products quality has enabled us to achieve the ISO 9001:2015 certification. Our Company has well Equipped Plant
India Rope Market registered a growth of 0.24% in value shipments in 2022 as compared to 2021 and an increase of 10.51% CAGR in 2022 over a period of 2017. In Rope Market India is becoming less competitive as HHI index in 2022 was 1566 while in 2017 it was 1122. Herfindahl Index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means less numbers of players or countries exporting in the market. India has reportedly relied more on domestic production to meet its growing demand in Rope Market. India Rope market currently, in 2023, has witnessed an HHI of 1628, which has decreased substantially as compared to the HHI of 2919 in 2017. The market is moving towards moderately competitive.
Indian Economy Outlook:
The effects of the slowdown in global economic growth resulting from high inflation and the continuing war between Russia and Ukraine are also seen to be affecting Indias economic performance. However Indias economy continues to grow at a steady and confident pace, standing out as the fastest growing major economy in the world. Gross Domestic Product (GDP) is a measure of size and health of the economy. It is the total value of all the goods and services produced within a country. In 2024 25, real GDP growth was estimated at 6.5 per cent. The Reserve Bank of India expects the same rate to continue in 2025 26. This performance comes at a time when the global economy faces uncertainty, making Indias steady momentum all the more significant
Despite the sluggish growth in the latest quarter, we still expect India to be one of the major beacons of growth in 2025, driven by strong domestic demand and government expenditure. The efforts of the Union Budget 2023-24 to improve the disposable income of taxpayers in the country are expected to boost consumption via an increase in discretionary spending. In addition, the strong capital expenditure push provided by the Union Budget, with an increased outlay of 37.4% in comparison to the fiscal year 2022-23, is expected to drive growth, investments, and job creation. The governments reduction of over 39,000 compliances and decriminalization of over 3,400 legal provisions will also foster the ease of doing business in the country.2 Strong credit growth and resilience in financial markets are further expected to create an environment that supports investments.
Inflation in India has eased sharply, offering relief to both households and businesses. In May 2025, the year-on-year inflation rate based on the Consumer Price Index (CPI) stood at 2.82 per cent. This marks the lowest level since February 2019. It also reflects a drop of 34 basis points from the previous month.
India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. The countrys economy is expected to expand by 6.2 per cent in 2025 and 6.3 per cent in 2026, outpacing many of its global counterparts. In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting Indias exceptional outperformance.
Global Rope Market Insights:
The Global Rope Market is projected to grow at a CAGR of 6.8% during the forecast period, from 2024 to 2030, to reach a market size of USD 19.97 Bn. by 2030, up from USD 12.6 Bn. in 2023.
The industrial sector, where the rope has a wide range of uses because of its versatility in handling big items due to improved material developments, is the main driver of global market growth. Another significant aspect that is anticipated to positively affect future market growth is the growing use of rope in high-rise infrastructure construction, particularly in developing nations. Due to the commercial use of polyolefin fibre, the rising displacement of hard fibre ropes with synthetic has moved quickly in industrialised countries. With the use of synthetic ropes, the industry will undergo a revolution of changes.
Traditional materials like steel wire and nylon are being replaced in the market. Also, the nautical sector benefits from the widespread use of synthetic ropes in industrial operations. It offers advantages including stronger, lighter, floatable, and less corrosive mooring, ship-assist, inland towing, and hoisting lines. For lifting and hosting in applications as well as for the transfer of mechanical power, steel wire rope is one of the many varieties that is frequently used. In the future, the Indian governments "Housing for everyone by 2022" programme will continue to be a major driver of these kinds of ropes. The National Association of Home Builders reports that there have been 8.4% more single-family building permits issued in the United States. As a result, it is anticipated that these expanding residential household expansions will increase the demand for various types of ropes and drive-up application costs.
US Rope Market is poised to grow at a sustainable CAGR for the next forecast year.
Opportunities and Threats:
The increased demand from the marine and fishing industry owing to the adoption in boat lines and sailing applications as plastic ropes offer durability, good strength, water resistance, and reasonable prices will foster the growth of the Plastic Rope Market. Also, due to added advantages of plastic ropes, are preferred over cotton, jute, sisal fiber, and manila fiber ropes among various industrial applications. Polyester rope a type of plastic rope possesses some additional properties such as UV resistance, low stretch, and low creep therefore widely adopted for various applications led to creating the potential for the Plastic Rope Market in the upcoming years. Advancements in the manufacturing of plastic ropes coupled with research and development in material science owing to the improvement in the raw material properties have helped the market. Thus aforementioned factors are expected to drive the Plastic Rope Market over the forecasted period.
The rope is formulated by laying, twine is used to make rope, and twine is formed by spun of fibers. The ends of plastic ropes are generally melted and fused solid. The demand for plastic rope changes according to the size of the rope and its application. Plastic ropes are utilized in various industries such as the defense industry, shipping & marine industry, navy, petroleum Industry, port trust, and dock-yards, paper plants, electricity boards, sugar mill, railways and agriculture, and transport industry. Plastic ropes offer different product types such as PP, PET, Nylon, HMPE, and Specialty Fibers. Due to the wide range of applications Plastic Rope Market finds lucrative opportunities in upcoming years.
There are certain restraints and challenges faced which will hinder the market growth. One of the major restraints is the requirement of high maintenance costs. Also, advanced raw materials are required for the production of plastic ropes. These factors might hamper the growth of the Plastic Rope Market up to a certain extent during the forecasted period
The Global Plastic Rope Market is segmented on the basis of Product, Application, and Geography.
Challenges (Risks and Concerns):
Our Top 10 customers contribute almost 78.00% of our total sales for the year ended on March 31st, 2024, 2023 and 2022 respectively. Our Company is engaged in the business of manufacturing of comprehensive array of Plastic products. Our business operations are highly dependent on our customers and the loss of any of our customers may adversely affect our sales and consequently on our business and results of operations. The loss of one or more of these significant or key customers or a reduction in the amount of business we obtain from them could have an adverse effect on our business, results of operations, financial condition and cash flows. We cannot assure you that we will be able to maintain historic levels of business and/or negotiate and execute long term contracts on terms that are commercially viable with our significant customers or that we will be able to significantly reduce customer concentration in the future. Any decline in our quality standards, growing competition and any change in demand may adversely affect our ability to retain them.
We cannot assure that we shall generate the same quantum of business, or any business at all, and the loss of business from one or more of them may adversely affect our revenues and results of operations. However, the composition and revenue generated from these customers might change, as we continue to add new customers in the normal course of business. Though we believe that we will not face substantial challenges in maintaining our business relationship with them or finding new customers, there can be no assurance that we will be able to maintain long term relationships with such customers or find new customers in time.
Our Company is dependent on few States. Loss of any of this large States may affect our business operations.
Our domestic Sales are dependent on the Top 5 States including Madhya Pradesh, Uttar Pradesh, Bihar, Assam and Rajasthan. We generate almost 92.89%, 92.89%, 95.55% and 96.79% of the revenue of the Total Sales generated as on December 31st,
st
2024, March 31 , 2024, 2023 and 2022 respectively from these 5 states. Our domestic sales are depending on the above states and in future if any we are not able to sale our products to these states our revenue will impact majorly.
3. Our Company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect our business operations.
Our Top 10 suppliers contribute more than 90.00% of our total purchases for the year ended on March 31 , 2024, 2023 and 2022 respectively. We cannot assure that we will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect our purchases of stock and ultimately our revenue and results of operations. However, the composition and amount of purchase from these suppliers might change as we continue seek new suppliers for our product for better quality and price in the normal course of business. Though we believe that we will not face substantial challenges in maintaining our business relationship with them or finding new suppliers, there can be no assurance that we will be able to maintain long term relationships with such suppliers or find new suppliers in time.
Our business is dependent on our manufacturing facility. The loss of or shutdown of operations of our manufacturing facility may have a material adverse effect on our business, financial condition and results of operations.
Our manufacturing plant is subject to operating risks, such as the breakdown or failure of equipment, power supply or processes, performance below expected levels of output or efficiency, obsolescence, labour disputes, strikes, lock-outs, earthquakes and other natural disasters, industrial accidents and the need to comply with the directives of relevant government authorities. Although we take precautions to minimize the risk of any significant operational problems at our facility, our business, financial condition and results of operations may be adversely affected by any disruption of operations at our facility, including due to any of the factors mentioned above.
Our Company has not entered into any agreements/contracts for the supply of raw material and other utilities.
Risks related to shortfall or non-availability of raw material and other utilities may adversely affect our manufacturing processes and have an adverse impact on our operations and financial condition.
We do not have long term arrangements with our vendors/suppliers and we operate on a purchase order basis. There are no long-term supply agreements for our raw material and other utilities. Our inability to obtain high quality raw materials in a timely and cost-effective manner would cause delays in our production and delivery schedules besides increasing cost of production, which may result in us losing some customers and hence could lead to reduction in revenues. Hence, we also face market risks for each of these products.
Future Outlook:
The rope industry is poised for growth, driven by increasing demand in various sectors like construction, industrial handling, and renewable energy. The market is expected to expand due to the versatility of ropes in handling heavy loads, coupled with advancements in materials and manufacturing technologies. Specifically, the synthetic rope segment is projected to experience significant growth, fueled by its superior strength, lightweight properties, and increasing adoption in industrial and residential sectors. Companies that strategically invest in value-added product offerings and manage input cost risks will be well-positioned for future success.
Internal Control System and Their Adequacy:
The Company has clearly laid down policies, guidelines and procedures that forma part of the internal control system which provide for automatic checks and balances. The Audit committee reviews the effectiveness and efficiency of these systems to ensure that all the assets are protected against loss and that the financial and operational information is complete and accurate, in addition of external audit, company has also appointed Internal Auditor to list out any deficiency or loop halls in companys Internal Control and financial reporting, Audits are finalized and conducted based on the internal risk assessment. Significant findings are brought to the notice of the Audit committee of the Board and corrective measures recommended for implementation. Our work opportunities and competitive compensation policy helps us in attracting and retaining our personnel.
Health, Safety, Security and Environment
Health, safety, security and environment have always been an integral part of our value system, we always having concern about Health safety and security of our Employees, workers at their workplace, we are aiming at" Zero Accident" as goal of our company, when the matter is about health and safety, company always follow these some important measure
O Identification of hazard and risk present in work environment and its rectification.
O Continuous monitoring of unsafe condition and unsafe acts through safety inspection.
O Safety induction training for all employees and specific job safety awareness programs on a continuous basis.
Our factory are well equipped with required facilities including all machinery, crane, conveyor belt, other handling equipments to facilitates mooth manufacturing process and easy logistics. We endeavor to maintain safety in our premises by adhering to key safety norms. We are having enough greenery at our plant location and also having modern and efficient system to dispose of factory waste, mainly we focus on re- made process of waste and scrap and we always keep in mind about optimum use of energy resources and conservation of natural resources, company is continuously visited by pollution control officers and, we will do it good, if they found any lack of safety measure and other element to protect the surrounding environment of the company.
Cautionary Statement:
Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among other things, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.