The management of the Company is pleased to present this Management Discussion and
Analysis Report in compliance with Regulation 34(2)(e) of the Securities and Exchange
Board of India ( L isting Obligations and Disclosure Requirements) Regulations, 2015 (as
amended from time to time).
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
Major economies around the world have shown signs of economic slowdown, and in the
past, Despite uncertainty in western economies, India is projected to have a real growth
rate of 6-6.8% in FY24 as per the Indian Economic Survey 2022-23. Learning from the bitter
consequences of large non-performing assets and limited capital base in the past has
helped Indian banks to currently be better placed to withstand stress. Strict monitoring
by the regulators, healthy asset quality, and reasonable capital levels have made Indian
banks far more resilient to economic downturns compared to their US counterparts. The
India consumer electronics market size is expected to reach USD 124.94 billion by 2030.Rs.
This sector plays a crucial role in the Indian economy as it is expected to fuel
India?€™s US$ 5 Trillion economy growth. There is a huge scope of untapped
rural markets for the new industry players who are trying to set their foot in the
industry. This gives immense opportunities for the existing and new players to tap into
this untapped market to increase sales in India.
The consumer durables market is undergoing a significant transformation, with more and
more consumers investing in their homes and seeking innovative and time-saving solutions.
The pandemic has altered consumer behavior, with people becoming more house-proud and
investing more in their homes and appliances. While there are immense opportunities for
the consumer durables markets, there are some inherent challenges that the industry faces,
which needs to be addressed, in order to ensure the uninterrupted growth of the sector.
Chinese manufacturers create strong competition for Indian manufacturers, the cost of
production is signiRs.cantly lower in China as compared to India.Changing efficient
manufacturing norms also requires significant investments to be made in the sectors. Raw
materials needed to manufacture goods also are largely procured from China, making them
less cost-eRs.ective. However, Government of India is also taking leaps and strides to
support the growth of the sector, with PLI schemes being announced for IT hardware.
Companies which have been selected for being a part of the PLI schemes are expected to
fuel total production of US$ 21.64 billion. The Government has also announced
100% FDI for electronics hardware manufacturing in India. With China plus One strategy
being implemented by leading global economies, the opportunities for India are strong.
Geographically as well, India presents an attractive opportunity to the manufacturers, as
companies pivot towards India. India has immense potential to emerge as the future of
manufacturing hub for consumer durables not just for our own country, but also for the
overall globe. The Indian markets have shown sustained growth over the long term and
coupled with favorable consumer demographics and infrastructure growth in rural India. The
four main area of consumer appliance served by the Company are: LED TVs:
Onida launched Version 3 of the Fire TV Series with a variety of additional features
after the success of its 2 predecessors which is currently selling on amazon and oRs.ine
stores. Furthermore, the Rs.re TV was launched in multiple variants covering almost all
the TV segment sizes right from 32 to 55. Version 3 of the TVs came with a bezel less
design and also for the Rs.rst time saw HDR10 which is generally not present in smaller
screen sizes like 32 and 43. Another interesting feature that Onida added is the Dual
Functionality Voice Remote which is a unique feature where you can control both your TV as
well as your set top box via one remote. The upgraded Fire OS also gives access to 12000
plus apps from the Fire Store with personalization of up to 6 proRs.les. The 4K models
also came with Dolby Atmos Dolby Vision to give you a powerful viewing experience.
Moreover to satiate the Indian customers thirst for outstanding sound, Onida introduced
it?€™s Fire TV - Theatre Models which come with an additional sound bar that
produces 10x times more bombastic sound.
Onida is known for delivering what the customers need and keeping the demand of Indians
in mind, this year Onida will also be launching its next generation of Google and Android
TVs. Onida?€™s android TV will come in 32 and 43 for online and the oRs.ine
models will feature the KY Rock Speakers which is a great addition. Onida will also be
launching their Google 4K TVs in both online and oRs.ine markets in 43, 50, 55, 65 and 75.
Keeping in mind the demand for larger screen size, Onida extended it?€™s model
line-up and introduced a 75 inch TV too. AIR CONDITIONERS:
Onida introduces Heavy Duty Air Conditioners with the Power of 2 in 1. Powerful
Cooling. High ERs.ciency.
Indian customers want an Air Conditioner that provides strong cooling but at the same
time does not increase the electricity bill. Keeping this insight in mind we came up with
an Air conditioner that provides the best of both the Worlds to the Indian customer.
Powerful Cooling and High ERs.ciency.
Onida launched its 2023 range with the Power of 2 in 1 giving you Powerful Cooling and
High ERs.ciency. It introduced the BLDC technology that helps in less power consumption,
powerful air Rs.ow and low maintenance. Onida introduced a series of excellent features
like, Tri-Rs.lter puriRs.cation which protects the air from air borne particles. Remote
Sensor Technology which senses temperature around the remote and delivers the most
comfortable temperature as per your need giving you a comfort cooling experience. Long
piping Rs.exibility of upto 25 metres, giving you the liberty to set up your indoor and
outdoor unit as per your needs. It also provided a larger IDU and ODU to give the
customers the ultimate cooling experience.
These features added to the overall performance of the AC in addition to
it?€™s existing features like Flexi – 5 which helps the customers control
the cooling capacity as per their needs in real time. Keeping the durability in check,
Onida?€™s ACs come with Hydrophilic blue Rs.n technology whichRs. prevents the
accumulation of water on the surfaces of the Rs.ns.
In one of the Models, Onida also introduced Dual Drainage Flexibility which helps you
decide which side of the indoor unit you will need an outlet based on your home setting
and placement of the Air Conditioner without carrying out major civil changes.
WASHING MACHINES:
Powerful wash experts for all your washing needs.
One of the most widespread technologies in this century happens to be the washing
machine. In today?€™s world, it is hard to come across a home without a washing
machine. This appliance is solely responsible for giving people across the country a
significant amount of freedom as it deals with the responsibility to wash laundry. This is
where Onida came is and has designed washing machines over the years to meet the needs of
Indian Consumers. Not only did Onida widen their range in the past year but also
introduced a range of sleek and stylish High End Semi- Automatic Washing Machines to
complement its range of Top Load Fully automatic machines. Onida already has a wide range
of 5 star Top loading washing machines in 6.2, 6.5, 7, & 8 kg capacities selling both
online and oRs.ine giving the consumer effective and efficient wash program options.
Keeping in mind the Indian customers?€™ need for larger machines especially
by large families, Onida this year introduced 11kg and 12kg Semi-Automatic Washing
Machines which gives you a jumbo wash and can wash upto 30 clothes in one cycle. Onida
also launched designer high end glass models with pleasing designs you give you an option
of a premium machine bundle with a powerful motor, super drum wash with dual waterfall
technology. This year Onida is focusing on Washing Machines with a powerful performance as
Onida is known for their powerful and thorough wash performance and hence are the powerful
wash experts and will be focusing on this communication more. Onida?€™s Washing
Machine category will also be launching a few unique models in the coming months, one of
which includes an 8 Kg Fully Automatic Top Load Washing Machine with an In-built Heater
and Sensomatic Wash Technology.
Air Cooler:
In India, there are around 250-260 million households out of which a significant
percentage of the population uses fans and Air coolers during summers. Depending upon the
cooling requirement and availability of space. Air coolers such as Personal coolers &
Desert coolers are available in the retail market. Air cooling systems are widely accepted
since they are cost effective and consume less power to function.Rs.This is where Onida
came in and understood the need of Air coolers which are suitable for regions with dry
climates and can be used in all residential and commercial spaces with fresh air Rs.ow and
ample ventilation.
The Indian Air Coolers Market was valued at USD339.64 million in 2022 and is expected
to grow at a CAGR of 9.04% in the forecast period, 2023-2028, to reach USD1625.52 million
by 2028F The market is driven by the factors such as the rise in the disposable income of
middle-class families and the ongoing process of rural electriRs.cation across the
country. Also, the emergence of online sales channels and the continuous evolution in
technology are expected to create lucrative growth opportunities for the Indian Air
Coolers Market in the forecast period.
Onida, this year launched 5 new models in the personal cooler space and desert cooler
space with diRs.erent variants and litres. Moreover, the need of the hour in
India?€™s Hot Summers is efficient cooling and we made sure that the Air
Coolers are packed with a powerful cooling experience with long air throw. The Air coolers
also have a host of added features like Honey Comb Cooling Pads for a cooler moisturized
air, Water Level Indicator and Turbo Fan Technology for air throw upto
45 feet from a 90 litre Cooler. The Air Coolers are available both in oRs.ine markets
as well as on all online platforms.
2. OPPORTUNITIES AND THREATS
Opportunities
(a) India is expected to be one the largest consumer durable market by 2025.
(b) Demand for electronic goods is excepted to grow on the onset of rising incomes in
urban and rural areas, increasing urbanization, changing lifestyles, young aspirational
population, nuclear families etc.
(c) Huge scope of untapped rural markets gives immense opportunities for the existing
players to capture market to increase sales in India.
Threats
(a) Rapid changes in technology.
(b) Manifold increase in competition from International players.
(c) Fall of the Indian rupee against the dollar is creating problems for the consumer
durables industry as it increases the cost of product.
(d) An increase in the customs duty for any of the raw materials will also increase the
cost of production eRs.ecting the overall electronics industry.
3. RISKS & CONCERNS
(a) The Management Team periodically reviews the major risks and concerns which could
impact the business and accordingly formulate the mitigation plans. (b) Slowdown in the
Indian economy could adversely impact disposable income resulting in low consumer
sentiment.
4. PRODUCT-WISE PERFORMANCE DURING THE FINANCIAL YEAR 2022-23
(a) Washing Machine: This segment has witnessed a growth of 23 percent.
(b) Air Conditioner: This segment has witnessed a growth of 19 percent.
(c) LED/Panel: This segment has witnessed a growth of 9
percent.Rs.Rs.Rs.Rs.Rs.Rs.
5. OUTLOOK
Consumer goods companies have always faced the challenge of staying ahead of disruptive
forces. The pandemic intensiRs.ed this challenge. Due to which, the changes in demand is
apparent from two groups of people: those aRs.ected by the pandemic Financially and those
whose habits changed due to physical distancing and other pandemic control measures. These
changes in consumer behaviour have an impact on the consumer goods industry in three ways:
encouraged greater savings, increased consumption at home and reduced spending on
discretionary expenses.
While many consumer behaviour shifts are almost certain to be temporary, there are
strong indicators that there will be some permanent changes to consumer behaviour.
Possible changes might include a shift to brand value away from private-label, budget and
generic products, and a general tendency to consume more at home.
We expect brands to become even more important in the consumer goods sector than they
have been in the past as companies diRs.erentiate themselves in a market increasingly
reliant on online sales and marketing and distribution direct to consumers. Companies with
already established brands with loyal followings are at an advantage. More innovative
companies that are more attuned to understand consumer preferences are also more likely to
take advantage of multi-distribution channels to connect with their customers We at Onida
are well placed to manufacture home products in India to provide the customers with
innovate products through our well established multi-distribution channels. We remain
positive supported by Production Linked Incentive (PLI) scheme, a stable tax policy, and
low-interest rates, growing working population, higher disposable income, easier access to
credit and improving standard of living.
6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established a matured internal audit process for the Company as a whole
covering the corporate once and the branches all over India. Agenda for the audit/scope is
Rs.nalized and approved by the Audit Committee. The audit is carried out by reputed audit
Firms across head oRs.ce, plant and branches. The internal audit department of the Company
coordinates with the internal auditors and auditees and ensures proper follow up for
closure of audit concerns.
The Company has standardized SOPs in place in form of various manuals, policies and
procedures for all critical and important activities as recommended by the management.
Audit Rs.nding are placed in the audit committee and directions of the committee are
followed to improve internal control and avoid recurrence of events.
There is an evolved risk management strategy with standard operating procedures placed
before and approved by the Board of Directors of the Company and are legitimately followed
by the Company for the reporting and compliance purposes.
There are certain policies adopted by the Company for maintaining internal control
within the organization, which are as follows: - a) Risk Management Policy
This policy sets out Company?€™s risk, oversee?€™s management of
material business risks and internal control. The purpose of this policy is to encourage
an appropriate level of risk tolerance throughout the Company; establish procedures to
analyze risks within agreed parameters across the Company; establish appropriate risk
delegations and corresponding risk management framework across the Company and ensure the
Company has a risk management framework that can noticeably respond the risk proRs.le of
the Company. b) Whistle Blower Policy
This policy is formulated to provide opportunity to all employees to have access to the
Management or the Chairman of the Audit Committee, in case they observe any unethical and
improper practice or behaviour or wrongful conduct in the Company and to prohibit any
person from taking adverse personal action against such employee. c) Policy on Related
Party Transactions
This policy is framed to ensure compliance of the applicable provisions of the
Companies Act, 2013 and the rules made thereunder and SEBI (LODR) Regulation, 2015 as
amended from time to time and intended to ensure the proper approval and reporting of
transactions between the Company and related parties. Such transactions are appropriate
only if they are in the best interest of the Company and the shareholders.
7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Following are the Financial highlights of the Company for the year ended March 31, 2023
on comparable basis: - a. INCOME
The total income for the year ended March 31, 2023 was Rs. 1112.67 crores as compared
to Rs. 1197.51 crores in the previous year, a decrease of 7.08 %. b. COST OF SALES
The cost of sales for the year ended March 31, 2023 was Rs. 959.68 crores as compared
to Rs.1043.58 crores in the previous year. This cost was 86.44 % of the Revenue from
operations in the current year as compared to 87.54 % in the previous year. c. EMPLOYEE
REMUNERATION AND BENEFITS
Employee cost for the year at Rs. 66.04 crores increased by 18.79 % as compared to Rs.
60.68 crores in the previous year. The employee cost was 5.94 % of the total Income in the
current year as compared to 5.07 % in the previous year. d. OPERATING AND GENERAL
EXPENSES
Operating and general expenses in current year decreased to Rs.79.48 crores from Rs.
74.35 crores in the previous year. As a percentage of total Income, the operating and
general expenses for the year were at 7.14 % as compared to 6.21% in the previous year. e.
FINANCIAL EXPENSES
Financial expenses for the year was at Rs. 10.90 crores as compared to Rs. 14.08 crores
in the previous year. The Financial cost for the year is 0.98% of the total Income as
compared to 1.18 % in the previous year. f. DEPRECIATION
Depreciation charge for the year increased to Rs. 9.04 crores as compared to Rs. 7.77
crores in the previous year. g. PROFIT/LOSS BEFORE TAX AND EXCEPTIONAL ITEMS
Loss before tax and exceptional items for FY 2022-23 is Rs. 12.47 Crores as compared to
Rs. 2.96 Crores in FY 2021-22. Loss before tax and exceptional items was 1.12 % of the
total Income as compared to 0.25% in the previous year. h. EXECPTIONAL ITEMS
Exceptional loss for the year was Rs. Nil i. PROFIT/LOSS BEFORE TAXAND AFTER
EXCEPTIONAL ITEMS
Loss before tax and after exceptional items for FY 2022-23 is Rs.12.47 Cr. as compared
to a loss of
Rs. 20.07 Cr. in FY 2021-22. Loss before tax and after exceptional items was 1.12% of
the total Income in the current year as compared to a loss of 1.68% in the previous years.
8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING
NUMBER OF PEOPLE EMPLOYED
The Company takes pride in the commitment, competence and dedication exhibited by its
employees in all business areas.
The Company continually strives to strengthen its people in alignment with the business
needs and continue to engage them through various ingenuities in the realm of learning
& development opportunities, employee engagement activities and career growth. The
redesign in organization structure created a clear focus and perspective on branded
business and new emerging businesses. Teams collaborated at various levels to meet the
overall business objective.Rs. Under Onida Learning Academy – the learning &
development cell, various skill based, behavioural and technical training programs were
conducted to prepare and upgrade them for current and future roles in the organization.
This covered trainings for sales Rs.eld team, in-shop demonstrators, service engineers,
corporate and factory employees. The Company facilitated Digital HR initiatives to enrich
employee experience; various processes were driven digitally through the in-house portal.
The Company continued to maintain cordial relations at factory level. The overall
compliance framework was further strengthened by detailed assessment of all compliance
activities at respective factories.
The Company also connected with the extended family, that is the
employee?€™s family members by sending a surprise token to felicitate and
celebrate employee?€™s promotion. Various outbound programs for leadership
group were also organized to foster a spirit of engagement and team building.
The HR function will be working closely with management and business leaders in making
the company an employer of choice, building a strong talent pipeline and preparing
internal key talent to be future leaders of the organization. Your Company has 536
employees on its payroll as on March 31, 2023.
9. MATERIAL FINANCIAL & COMMERCIAL TRANSACTIONS INVOLVING SENIOR MANAGEMENT
The Company has in place a Code of Corporate Governance which stipulates that senior
management personnel shall make disclosures to the Board of Directors of the Company
regarding any material Financial and/or commercial transactions in which they are
interested which may have a potential conRs.ict with the interest of the Company. Cautionary
Statement
The statements made in this report describing the Company?€™s projections,
expectations and estimations may be forward looking within the meaning of applicable
securities laws and regulations. These statements are based on certain assumptions and
expectation of future events. The actual results may diRs.er from those expressed or
implied in this report due to the influence of external and internal factors beyond the
control of the Company.
The Company assumes no responsibility in respect of forward looking statements herein
which may undergo changes in future on the basis of subsequent developments, information
or events. Readers are cautioned not to place undue reliance on the forward looking
statements.
For and on behalf of the Board of Directors
|
Gulu Mirchandani |
| Place : Haridwar |
C hairman and Managing Director |
| Date: 26th May, 2023 |
(DIN: 00026664) |
+91-9892691696
