mangalam organics ltd share price Management discussions


Global Economic Overview

The global economy witnessed a recovery in 2022 following two years of a pandemic-inflicted environment. The International Monetary Fund (IMF) in their report of April 2023 estimates growth in global Real Gross Domestic Product (GDP) for 2022 to increase by 3.4% on the back of a 6.3% increase in 2021. A higher-than-usual growth in 2021 was due to a low-base effect of 2020 as a result of the global pandemic during which GDP contracted by 2.8%. 2022 saw inflationary trends across the globe, particularly in developed economies of United States of America (US), United Kingdom (UK) and Europe, which resulted in tighter monetary interventions by central banks which in turn stifled growth. Continuing invasion of Ukraine by the Russian Federation disrupted supply chains causing an increase in food, commodity and energy prices. Finally, a resurgence of COVID-19 in China weighed on the global economy in 2022.

IMF forecasts global growth for 2023 to decelerate to 2.8% from 3.4% in 2022 before rising to 3.0% in 2024. This forecast is lower than expected growth rates a year ago. The economic slowdown in 2023 is concentrated in advanced economies especially the Euro Area and UK where growth is expected to fall to 0.8% and -0.3% in 2023. A lower growth in 2023 is attributable to prevailing tight monetary and financial conditions, recent signs of stress in the banking system, rising debt levels in certain countries including lower and middle-income countries, rising geoeconomic fragmentation, stickier than expected inflation and no signs of truce in the Russia-Ukraine war. In contrast, emerging and developing economies are showing stronger economic prospects than advanced economies. In the medium-term, the IMF forecasts global inflation to fall to 7.0% in 2023 and to 4.9% in 2024 on the back of gradual softening of interest rates, unwinding supply chain disruptions and a fully reopened Chinese economy putting the global economy back on the growth track.

(Source: IMF - World Economic Outlook Update, April 2023).

The World Banks Global Economic Prospects report of January 2023 was more conservative in its estimates by forecasting global economic output to decelerate sharply to 1.7% in 2023 and thereafter grow by 2.7% in 2024. Among the advanced economies, US grew by 2.1% in 2022 and is estimated to grow at a slower pace by 1.6% in 2023 and 1.1% in 2024. The UK grew by 4.0% in 2022 but is estimated to contract by 0.3% in 2023 and thereafter grow by 1% in 2024. UKs contraction is mainly due to tighter fiscal and monetary policies, financial conditions and high energy prices. The Chinese economy grew by 3.0% in 2022 and is estimated to grow by 5.2% in 2023 and 4.5% in 2024. Chinas economy has been opening up since the withdrawal of its zero-tolerance policy on Covid-19. It reported a good first quarter growth of 4.5% backed by growth in exports, infrastructure investment as well as a rebound in retail consumption and property prices. Indias growth rate was 6.8% in 2022 and is estimated to grow by 5.9% in 2023 and 6.3% in 2024 supported by resilient domestic demand. The economies of Maldives and South Africa grew by 12.3% and 2.0% respectively while Sri Lanka contracted by 8.7% in 2022. In 2023 Maldives and South Africa are estimated to grow by 7.2% and 0.1% respectively while Sri Lanka is projected to contract by 3.0%.

(Source: IMF - World Economic Outlook, April 2023)

India Economic Overview

India is now the fastest growing, major economy in the world. The First Advance Estimates of National Income released by the National Statistical Office (NSO) of the Government of India in January 2023 estimates Indias GDP to have grown by 7.0% in FY 2022-23 following a growth of 8.7% in FY 2021-22. Total Consumption grew by 7.0% in FY 2022-23 mainly due to private consumption. Growth in exports for FY 2022-23 seems to have plateaued at 12.5% while Imports grew by 20.9% in FY 2022-23. By sectors, agriculture grew by 3.5% during FY 2022-23 after a growth of 3.0% in FY 2021-22. Mining grew by 2.4%, manufacturing by 1.6% and construction by 9.1% while electricity, gas water supply and other utilities services grew by 9.0% in FY 2022-23. Services sector exhibited the strongest growth in FY 2022-23 at 9.1%. Within services, trade, hotels, transport, communication and broadcasting related services constituting about a third of overall services, grew by 13.7%. Indias service exports have nearly doubled in a decade to USD 322.72 billion for FY 2022-23 according to provisional data of the Ministry of Commerce. Indias foreign currency reserves stood at USD 578.45 billion as of March 31, 2023 covering approximately 9 months of imports due to timely interventions of the Reserve Bank of India (RBI). The consensus of GDP growth for FY 2022-23 was in the range of 6.5% to 7.0%.

(Source: India Economic Survey 2022-23 - January 2023 and National Statistical Office estimates)

Indias economic recovery from the pandemic exhibited a K-Shaped recovery where certain sectors like information technology, e-Commerce and financial services registered healthy recoveries while other sectors such as retail trade and consumer discretionary were highly impacted. Travel and hospitality remained beneficiaries of such recovery. Indias service exports have risen at a staggering pace since the pre-pandemic period. Service exports have increased by more than USD 60 billion per year as India gains global market share. Exports are not only of Information Technology services but also professional management and consultancy, research and development and expanding Global Capability Centres.

This growth is expected to bring in higher employment, higher disposable income and thus a higher propensity to spend by white- collar people working in such sectors. This is an important factor in making economic growth broad- based and inclusive. HSBCs Economic Research believes that there is a growth relay at play.

It reported - "The formal sector drove growth from the pandemic lows and is now passing the baton to the informal sector, which was weak for several years but has started to grow across the rural and urban sectors. As a result, for now, overall growth remains stable."

(Source: HSBCs Global Economic Research, March and April 2023)

The outlook for FY 2023-24 is optimistic. Retail inflation ebbed out to 5.6% in March 2023 from a peak of 7.79% in April 2022 and is expected to moderate to 5.2%. Core inflation which remained above 6% for the year eased to 5.8% in March 2023. Among the high frequency indicators, direct and indirect tax collection has shown strong momentum, bank balance sheets are strong, adequately capitalised and credit offtake during the year was highest since FY 2011-12. RBI paused increase in interest rates in April, 2023 after a 250 basis points increase during FY 2022-23 citing reasons of resilient economic activity and expected moderation in inflation. The Indian Rupee is stable, the Current Account Deficit is expected to remain moderate and consumer sentiment is high.

(Source: RBI Monetary Policy, April 2023, Revised Estimates - Ministry of Finance, April 2023).


Global Chemical Industry

The disruption of 2022 has helped the chemical industry position itself to lead the coming materials transformation. The global chemicals market grew from USD 4700.13 billion in 2022 to USD 5079.29 billion in 2023 at a compound annual growth rate (CAGR) of 8.1%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe.

The chemicals market consists of the sales of petrochemicals, industrial gas, ethyl alcohol, organic chemicals and inorganic chemicals, resins, synthetic rubber, and artificial and synthetic fibers and filaments, pesticides, fertilizers, and other agricultural chemicals. The chemicals industry establishments produce a variety of chemical products by processing raw materials such as air, water, natural gas, oil, metals and minerals.

Asia-Pacific was the largest region in the chemicals market in 2022. North America was the second-largest region in the chemicals market. Interest rates were low in most developed countries during this period. This positively impacted the growth of the chemicals market.

Chemical companies are increasingly adopting sustainable and eco-friendly processes to eliminate the negative impact of chemical manufacturing on the environment. Evolution in technology and chemical sciences enables chemical companies to utilize alternative fuels to produce chemical products.

(Source: Chemicals Global Market Report 2023)


Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16- 18% of the world production of dyestuffs and dye intermediates. Indian colorants industry has emerged as a key player with a global market share of ~15%. The countrys chemicals industry is de- licensed, except for few hazardous chemicals. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at global level (excluding pharmaceuticals).

The Indian Chemical industry has a huge role to play to make India a USD 5 Trillion economy by contributing around USD 300 Billion to the GDP by 2025. The industry is growing with CAGR of 9.3% and is expected to attract investments of Rs. 8 lakh crore by 2025. As the sector plays a significant role in enabling the growth of the Indian economy, the country needs to build a competitive landscape for the chemical industry.

The Indian chemicals industry stood at USD 178 Billion in 2019 and is expected to reach USD 304 Billion by 2025 registering a CAGR of 9.3%. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute USD 383 Billion to Indias GDP by 2030.

An investment of Rs. 8 lakh crore (USD 107.38 Billion) is estimated in the Indian chemicals and petrochemicals sector by 2025.

Moreover, according to the CRISIL report, the specialty chemicals market in India would grow faster than China, increasing its market share to 6% by 2026 from 3-4% in fiscal 2021. A shift in the global supply chain brought on by the China+1 strategy and a resurgence in domestic end-user demand will fuel significant revenue growth of 18-20% in 2022 and 14-15% in 2023.

(Source: India Brand Equity Foundation - Chemical Industry India)


Pine Chemicals

The viability of the pine chemical industry lies in the principles of sustainability. The industry has been a pioneer in developing sustainable value added products from a renewable resource, even before the term became popular globally. Pine chemicals are recovered from the pine tree (genus Pinus) through three different methods of craft pulping, tree tapping and wood stumps. The biomass is extracted in the form of crude sulphate turpentine, gum turpentine and wood turpentine. They are processed in a bio refinery into a spectrum of marketable products used in a wide array of applications such as paints, inks, adhesives, perfumes, edible flavours, fragrances, food additives, vitamins, automobile tires etc. Because of its multiple uses and organic properties, pine chemical market is on a high growth trajectory.

According to a report of IndustryArc, the global pine-derived chemicals market is projected to reach USD 5.91 Billion by 2025, after growing at a CAGR of 4.20% during 2020-2025.


Terpenes are aromatic compounds found in many plants, especially conifers. The term terpenes originates from turpentine, which is a pine chemical and it contains resin acid and hydrocarbons. Because of its strong odour and high resistance capabilities it is widely used in various applications like essential oil, fragrance, flavouring agent in industrial uses. Demand for terpenes is being driven by its growing use in industries such as cosmetics, food & beverages, paints & coatings, rubber, and pharmaceuticals. However, fluctuation in supply of terpenes and high cost extraction process are creating market challenges. Despite the challenges, with growing market applications and increasing investment, more players are expected to enter the terpenes industry.

The global Terpenes market was valued at USD 991 Million in 2022 and is expected to reach USD 1450 Million by 2027, growing at a CAGR of 7.9% from 2022-2027.

Synthetic Resins

Synthetic or manmade polymers, such as polyacrylamide, polymethacrylate, and polystyrene, are used as media in different chromatography applications. Synthetic copolymers, such as polystyrene divinylbenzene and methacrylate copolymers, are used as base matrices in chromatography. These resins are suitable in laboratories or analytical-scale experiments because of their high mechanical stability and ability to withstand large pH ranges. All these factors drive the market for synthetic resin.

The Synthetic Resin Market size is projected to reach a value of USD 521.6 Billion by the end of 2027 after growing at a CAGR of 4.8% during the forecast period 2022-2027

Aroma Chemicals

Aroma chemicals are cyclic compounds that find application in additives and fragrances. They can be either synthetic aroma chemicals, or natural aroma chemicals. Key factor driving demand for aroma chemicals is its increasing application in Flavour & Fragrance (F&F) and nutraceutical sector.

Aroma chemicals are used in various applications and are mostly found in spices, food, perfumes, soaps, wines, detergents, fragrance oils, and others. Increasing consumer demand for natural-based products over synthetic chemicals and a shift of consumers towards fragrances and exotic scents are likely to drive the market growth. The growing demand from the fragrance and food & beverage industries, along with the rise in consumer spending is driving the overall market size.

The latest report by IMARC Group, titled "India Aroma Chemicals Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," finds that the India aroma chemicals market reached a value of USD 235.2 Million in 2021. Aroma chemicals are chemical substances that are used as ingredients in flavors and fragrances.

The global aroma chemicals market is expected to grow from USD

5.41 Billion in 2022 to USD 5.81 Billion in 2023 at a compound annual growth rate (CAGR) of 7.4%. The aroma chemicals market is expected to reach USD 7.42 Billion in 2027 at a CAGR of 6.3%.

India represents one of the leading consumers and exporters of aroma chemicals in the Asia Pacific region. Various types of chemical aromatics, such as benzene and toluene, are used to enhance the flavour of food and beverages, thereby making them more appealing to consumers.

Growing Demand from Fine Fragrances Application:

• Aroma chemicals are an important group of organic molecules used as ingredients in flavours and fragrances.

• Formulations of fragrance from aroma chemicals are used globally, for imparting attractive aroma and pleasing scents to perfumes, toiletries, and detergents.

• The growth of the fragrance industry is primarily driven by the increase in demand for natural fragrances from developing nations and significant technological advancements to meet the changing consumer demands.

• Additionally, the increasing demand for customizable and niche fragrances is driving the consumption of aroma chemicals, since consumers are looking for personalized fragrance experiences and exotic scents.

• Further, the rising importance of organic and natural fragrances in aromatherapy, which influences the emotional and psychological wellbeing, is expected to drive the demand for the market studied

Opportunities and Threats

Opportunities Threats
1. Demand for Pine chemicals is growing because of its organic and environment friendly properties and numerous benefits 1. Volatility in foreign exchange rate
2. Cheaper imports from China
2. India has abundance of natural ingredients like spice and herb used for making aroma chemicals 3. Competition from unorganised players
3. The growth of population in India will lead to more demand and consumption of Camphor for religious purposes. 4. Geopolitical tensions impacting export
4. Apart from religious use, Camphor is also being used by the young generation as car freshener and room freshener for its numerous benefits related to air purification 5. Lack of adequate research and development in the sector.
5. Demand for synthetic resin is growing fast due to its applications in flexible packaging and automotive sector 6. Raw Material Price Volatility
6. Growth of Flavour & Fragrance (F&F) and nutraceutical sector is driving demand for aroma chemicals significantly 7. FMCG slowdown


The key operational segment of the Company is Chemical manufacturing.


Mangalam Organics Limited (henceforth referred to as MOL or the Company) is a leading pine chemicals manufacturer in India. The Company produces Terpenes from Pine chemicals, from which a number of sub products like Camphor, Isobornyl Acetate, Isoborneol and Dipentene and Sodium Acetate are manufactured. It also produces Synthetics Resins under the single segment of chemicals. It is engaged in the manufacturing and selling of Camphor and by-products and various Synthetic Resins in India and abroad. The strength of its pine chemical products lies in the fact that they are extracted from natural resources and are devoid of the side effects of synthetic chemicals. The market performance of these products is not dependent on crude oil and the volatility of its prices.

Applications and uses

The Companys products have applications in a number of sectors such as religion and worship, pharmaceuticals, flavour and fragrance, rubber & tyre chemicals, paints and varnishes, among others. The Company caters to both domestic and the international market. In addition to having a wide reach and strong footprint in the domestic market, it is expanding its global operations. As its products have a variety of industrial applications, it has established a strong B2B and B2C presence, despite facing competition from domestic and international players.

Geographical presence

The Company has created a niche for itself in the pine chemicals industry as one of the major players with its customers spanning across Europe, Asia, Africa, USA and Middle East. With its decades of domain experience and backed by an experienced management team, MOL is creating its base in the Indian retail market with its branded offerings in camphor. The Company is tying up with a number of retail brands and e-commerce platforms to augment its B2C business.

Products and Applications

Business Segments Products Applications
B2B - Terpene • Camphor • Isobornyl Acetate • Isoborneol • Dipentene • Sodium Acetate Camphor: Religious use, healthcare products, hygiene products Isobornyl Acetate: Fragrance and flavor Isoborneol: Fragrance and flavor Dipentene: Paints, cleaning and degreasing agents Sodium Acetate: Textile and dyes industry, Leather tanning
B2B - Synthetic Resin • Terpene Phenolic Resin Adhesives, Tyres, Rubbers, Chewing Gum, Printing Ink
• Alkyl Phenolic Resin
• Rosin Esters
B2C - Retail Operations • CamPure- Homecare and personal care products based on Camphor
• Mangalam- Camphor tablets for Pious uses and Bhimseni Camphor for aroma therapy.
• Private Labelling Initiatives

Manufacturing Capabilities

The Company has a state-of-the-art manufacturing facility spread across about 25 acres (101,200 Sq. Meters) at Kumbhivali village in the Raigad district of Maharashtra. The manufacturing site also has a logistic advantage as it is situated on the Mumbai-Pune expressway for Pan-India road connectivity. Container terminal Jawaharlal Nehru Port (JNPT) is situated about 60 kms away from the plant.

The manufacturing operations are highly automated and run by a robust operation system that efficiently integrates the functions related to quality control, stores, packing, dispatch, maintenance and R&D. The Company regularly reviews the plant systems, procedures and practices to enhance productivity, efficiency and safety. The manufacturing activities of the products confirm to statutory pollution control standards.

Product Portfolio


MOL manufactures a wide range of high demand products under this sub-segment. This is the key raw ingredient for producing camphor and related products. The Company is focusing on production efficiency and quality control so that it can produce international quality intermediate products and their derivatives for the fragrance and flavour industry. The Company has been exploring new product development from terpenes and is further exploring the retail opportunity to expand its market reach through diversification.


Camphor is the primary product of the Company which contributes 80% of total sales in Terpenes. Due to its ability to impart a sense of complete purity to the religious devotees, it finds the widest application in religious use in the domestic market. This is a naturally derived product that completely burns off with no residue. Camphor was earlier sold as a commodity. However, as it presents a large retail opportunity, it enables the Company to forward integrate and diversify into the FMCG space by retailing the products through Modern Trade, General Trade and E-Commerce. The Company continues to leverage the growing retail opportunity and is confident of continuing growth in the years ahead. It continues to grow capacities and grades offered from the same unit to capture a larger market share in the domestic and export markets. MOL has the following registered brands.

Retail Portfolio

Mangalam Camphor tablets for religious purposes and Bhimseni Camphor for Aroma therapy
CamPure Home care products based on camphor such as Camphor Cone, Camphor Sticks, Camphor Air Purifiers, Camphor Hand Wash, Camphor Soap Bar, Camphor Hand Sanitizer, Camphor Liquid Vaporiser.

Isobornyl Acetate

With the expansion coming online MOL is able to expand its product offering by also supplying intermediate product Isobornyl Acetate to leading fragrance and flavour companies across the world. Presently the product is in approval stage at various companies and we look forward to the time when the product will be a major driver for growth


Isoborneol finds application in fragrance and flavour industries across the world. The product has also got accelerated growth in the last few years on account of increased consumption of isoborneol flakes used for aromatherapy and well-being.


Dipentene is a by-product in Camphor manufacturing and is used as a solvent in the paints industry. The Company offers various grades of this material. Dipentene is a ready substitute in formulations of cleaning and degreasing agents, as Limonene faces supply shortages. It is also witnessing demand growth in the export market as a substitute for Limonene.

Sodium Acetate

Sodium Acetate is used as a dye intermediate by textile and dye manufacturers. It also finds application in leather tanning industry and is exported to Europe.


MOL manufactures three broad types of synthetic resins, with each of them having a large domestic and export market. The Company is confident of all the categories in this segment and is continuing its efforts to enhance margins and build higher volumes in each of them.

Terpene Phenolic Resin

Terpene Phenolic Resin finds application in the adhesive, tyre and rubber industries as a tackifier. The Company foresees an increase in volumes, revenue and profitability over the years ahead.

Alkyl Phenolic Resin

Alkyl Phenolic Resin finds application in Neoprene and Chloroprene rubber-based adhesives. The Company is working with consultants to improve its quality of products as per global standards and leverage the growing export opportunities.

Rosin Esters

Rosin Esters finds application in pressure sensitive adhesives. The Company is working with consultants to improve its quality of products as per global standards and leverage the growing export opportunities.


During the year under review, Standalone Revenue from operations for FY 2022-23 stood at Rs. 466.97 crore, as against Rs. 490.92 crore in FY 2021-22 a negative growth of 4.88%. At consolidated level Revenue from operations for FY 2022-23 stood at Rs. 492.53 crore, as against Rs. 490.65 crore in FY 2021-22 a growth of 0.38%. Flat Growth in revenue was due to continuous corrections in sales price of camphor in FY 2022-23 and increased competition in domestic market. In FY 2022-23 Retail operations have been demerged and transferred to wholly owned subsidiary of the Company.

Further, on Standalone basis, Company registered a Net Loss of Rs. 25.27 crore for FY 2022-23, a decline of 146.60% as compared to Rs. 54.23 crore profit for FY 2021-22. At Consolidated level, Company registered a Net Loss of Rs. 27.09 crore for FY 2022-23, a decline of 150.47% as compared to Rs. 53.68 crore profit for FY 2021-22.The substantially decrease in profit ratio was due to continuous price corrections in Camphor. On Standalone basis, Companys EBIDT declined to Rs.-2.01 crore in FY 2022-23, from Rs. 92.65 crore for previous year, a decline of 102.17%. On Consolidated level also EBIDT declined to Rs.-2.43 from Rs. 92.43 crore in FY 2021-22.

Details of Significant Changes in Key Financial Ratios

Key Financial Ratios for FY 2022-23 are as under:

1. Interest Coverage Ratio

FY 2022-23 FY 2021-22
-1.47x 20.00x

Decrease in Interest Coverage Ratio was due to loss on account of lower selling price of finished goods vs higher priced, well stocked up raw material by the Company as compared to FY 2021-22.

2. Current Ratio

FY 2022-23 FY 2021-22
1.41x 1.76x

Company has availed substantial working capital facility which resulted in lower Current ratio as compared to FY 2021-22.

3. Debt Equity Ratio

FY 2022-23 FY 2021-22
0.76% 0.78%

Increase in Debt Equity Ratio as compared to FY 2021-22 was due to considerable increase in short term and long term liability.

4. Operating Profit Margin (%)

FY 2022-23 FY 2021-22
-3.99% 15.83%

Decrease in Operating profit margin was due to lower sales realisation and increase in raw material prices during the year as compared to FY 2021-22.

5. Net Profit Margin (%)

FY 2022-23 FY 2021-22
-5.41% 11.04%

Decrease in Net profit margin and loss was due to lower selling price of finished goods vs higher priced, well stocked up raw material by the Company as compared to FY 2021-22.

6. Return on Net Worth

FY 2022-23 FY 2021-22
-9.09% 17.80%

Profitability has been decreased resulting in loss due to lower sales realisation and increase in raw material prices during the year, which resulted in lower net worth as compared to FY 2021-22.


Risks are a part of any organizational setup, the bigger the market, higher the risks. Operating in a highly competitive and changing economic and business environment brings its own share of risks. Some of the key risks specified by the Company are:

Competition risk: Any market share losses for the company to the global and domestic players will adversely impact the financial results of the company.

Macroeconomic risk: Any slowdown in economic growth of the country and resulted drop in consumption may lead to a slowdown in FMCG sector. Consequently, this would adversely affect Indian Chemical industry causing lower capacity utilizations for the company.

Raw material price risk: Fluctuation in the price of raw materials or shortage in the supply of raw materials used by the Company poses a threat to its revenue and competitive position.

Concentration of customers risk: Dependency on a few large clients also poses a risk to revenue as any fall in the order book number can impact the business negatively.

Regulatory Compliance risk: Regulatory Compliances covering various federal, state, local and foreign laws relating to various aspects of the business operations are complex and non- compliances can result in substantial fines, sanctions etc.

Operational risk: Functional and Operational risks arising out of various operational processes.

Business Continuity risk: Business Continuity risks arising out of climate change related and other disruptions like natural disasters, IT outages, pandemic, terror and unrest, power, water and other resource disruptions etc. which may challenge or impact our customers business and availability of People and process, Technology and Infrastructure.

The Company monitors and analyses all relevant parameters relating to above risks for the manufacturing site to minimise risk associated with protection of environment, safety of operations and health of people at work with reference to statutory regulations and guidelines defined. The Company fulfils its legal requirements concerning emission, waste water and waste disposal. Improving work place safety continued to be top priority at the manufacturing sites.


For the year 2023-24, the Company will further continue to look at sustainable growth by focusing on:

• Increasing domestic and export market share

• Increasing efficiency of the Companys present production capacity

• Boosting the B2C business

Increased competition from global and domestic players is putting pressure on sales prices. Increase in prices of certain raw materials also puts pressure on contribution. However, with global growth of chemicals focused more on Asia, it is expected that there will be further growth in the chemical industry.

During the year 2023-24, the Company further expects its investments in various projects to add to the top and bottom-line.

The Company will continue with its efforts to improve the bottom line by further increasing efficiency in their existing production capacity, while re-looking at business strategies and models, wherever necessary.


The Company has a well-established system of internal control and internal audit, commensurate with its size and complexity of the business, with regards to efficiency of operations, financial reporting, compliance with applicable laws and regulations. The Company continually upgrades internal control systems by adding better process control, various audit trails and use of external management assurance services, whenever required. The internal control system is supplemented by extensive internal audits, conducted internally by the finance and account department. The findings of Audit Team are discussed internally as well as in audit committee meetings. The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening them.


In the current age of dynamic, challenging and changing business environment, the Company believes that its People i.e. Human Capital are its important and vital assets. Skills acquired by the employees through training are assets for the Company. Thus, training and development strategy aims to build coherent workforce capabilities, skills or competencies required to ensure sustainable and successful organisation. The Company always strives on maintaining healthy and strong employee relations by devising strategies that ensure high productivity and employees satisfaction. A positive atmosphere of trust has been created. The headcount as on March 31, 2023 was 294 employees on the payrolls of the Company.


This document contains some statements about expected future events, financial and operating results of Mangalam Organics Limited, which are forward-looking. By their nature, forward- looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward- looking statements.