Natl. Plastic Management Discussions


The Indian economy, if we extract the data from the budgeted speech of Smt. Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs, is termed as Recovery Complete. That means our economy comes at par and even more growth oriented than pre-covid.

India is set to be the second-fastest growing economy in the G20 in FY 2022-23, despite decelerating global demand and the tightening of monetary policy to manage inflationary pressures. GDP growth will slow to 5.7% in FY 2023-24, as exports and domestic demand growth moderate. Inflation will crimp private consumption but moderate at the end of the projection period, helping, along with improved global conditions, to boost growth to 6.9% in FY 2024-25, in line with the 20-year average (excluding the COVID-19 recession). After a spike in 2022, the current account deficit will narrow as import price pressures abate.

India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24, depending on the trajectory of economic and political developments globally. The baseline GDP growth of 6.5 per cent in real terms in FY24. The projection is broadly comparable to the estimates provided by multilateral agencies such as the World Bank, the IMF, and the ADB and by RBI, domestically. Credit growth to the micro, small, and medium enterprises (MSME) sector has been remarkably high, over 30.5 per cent, on average during Jan-Nov 2022.

Capital expenditure (capex) of the Central Government, which increased by 63.4 per cent in the first eight months of FY23, was another growth driver of the Indian economy in the current year. Surge in growth of exports in FY22 and the first half of FY23 induced a shift in the gears of the production processes from mild acceleration to cruise mode.



The plastics industry is currently home to about 50,000 industries, most of which are micro, small, and medium-sized enterprises (MSMEs). These enterprises contribute Rs. 3.5 lakh crore (US$ 42.89 billion) to Indias economy and employ more than 50,000 people. The country recycles plastic at a rate of 60%, which is higher than that of developed nations. The "Make in India," "Skill India," "Swachh Bharat," and "Digital India" initiatives of the government are increasing plastic production, and by 2027, it is expected that the plastics industry will generate Rs. 10 lakh billion (US$ 122.54 billion) annual revenue, with two lakh tonnes of exports.

The plastic industry in India made a promising beginning in 1957 with the production of polystyrene. Thereafter, significant progress has been made, and the industry has grown and diversified rapidly. The industry spans the country and hosts more than 2,000 exporters. It employs about 4 million people and comprises more than 30,000 processing units, 85-90% of which are small and medium-sized enterprises.

The total plastics exports between April-September 2022 stood at US$ 6.38 billion. During this time period, the exports of plastic raw materials, medical items, and pipes and fittings increased by 32.3%, 24.8% and 17.9% over the same time last year, respectively.

In May 2022, the exports of plastics and linoleum from India were valued at US$ 1,073 million. During the same period, medical items of plastics; plastic films & sheets; plastic pipes & fittings; FRP & composites; packaging items; cordage fishnets & monofilaments; and miscellaneous products recorded strong growth. The cumulative exports for April and May 2022 grew 2.6% YoY to US$ 2,173 million.


"National" a brand deals in various ranges of products that can suit all applications and different kinds of budgets. Consumers prefer National Moulded Furniture for its quality, colour, finishing and latest/ modular designs.

"National Plastics Industries Ltd." with its constant Endeavour for innovation will continue to introduce many new and innovative products both for domestic as well as International markets and thereby will fulfil its commitment to the society as a whole by offering premium quality products at the most affordable prices.


The gross turnover of the Company has improved to Rs. 129.02 Crore from Rs. 95.58 Crore in last year registering a growth of around 34.99%. The growth in gross turnover has reported because the Company was focused on institutional sales along with that retail sales was also brought up because of increase in distributors.

Your Company has registered higher profit before tax of Rs. 6.23 Crore as compared to Rs. 2.31 Crore in the previous year along with higher net profit after tax of Rs. 4.34 Crore as compared to Rs. 2.82 Crore in previous year.


Pursuant to provisions of Regulation 34(3) of SEBI (LODR) Regulations 2015 read with Schedule V Part B(i) details of the change in key financial ratios is given hereunder:

Name Category Year Ended Deviation in %
31/03/2023 31/03/2022
Debtors Turnover in Days 75.44 91.73 -21.26%
Inventory Turnover in Days 159.84 180.14 8.85%
Interest Coverage Ratio Times 2.96 1.83 20.01%
Current Ratio Times 1.62 1.41 12.16%
Debt Equity Ratio Times 1.36 1.35 11.91%
Operating Profit Margin % 15.50 14.63 4.35%
Net Profit Margin % 3.88 3.42 9.98%
Return on Net Worth % 23.78 8.86 11.16%
Debt Service Ratio Times 1.69 1.85 -15.53%
Trade Payables Turnover Ratio in Days 35.20 45.37 -38.46%
Working (Net) Capital Turnover Ratio Times 63.49 62.19 -16.17%
Return on Capital Employed Ratio % 0.16 0.09 13.83%
Return on Investment Ratio % 0.34 0.17 28.75%


With the reduction in GST rate from 28% to 18%, the Plastics Industry is relived from higher taxes to level playing platform. The Government has also lightened certain provisions and relief from some complex provisions. The reduction in GST rates and other initiatives of the government for ease of doing business has helped the company in various ways.

The company has kept its commitment to improve and increase the overall business growth and added varieties of new products to supply industry and government. The Company is also making hard effort to increase export business in near future. The Company is in the process to manufacturing new range of plastic furnitures with modern design and best quality in line with consumer preferences and useful utilities in reasonable price.

"National Plastics Industries Ltd." with its constant Endeavour for innovation will continue to introduce many new and innovative products both for domestic as well as International markets and thereby will fulfil its commitment to the society as a whole by offering premium quality products at the most affordable prices.


The Company is focussing to add new products for industrial sector and determined to emerge as a major player with its quality products and good corporate governance. With the government emphasis on environment protection there is a lot of scope in manufacturing of biodegradable plastics. These plastics are gaining popularity and traction since theyre all based on natural plant and vegetable extracts. They aid in green practices through benefits such as safer disposal, energy-efficient manufacturing and decreased toxic emissions. The company is focusing to imbibe these factors in its business.


The company are subject to rising rules and regulations that govern the production, disposal, and clean-up of hazardous chemicals, as plastic products usage contributes to environmental pollution. In addition, Product lifecycle has decreased from years to months, affecting the entire supply chain of plastic goods. Any major upward movement in the Crude Prices could change the inflationary scenario impacting on input prices and the margin of the Company.


The company is exposed to several potential risks like technological changes, political risks, product distribution both from internal and external sources but the same can be anticipated and curbed by addressing them in its early stages for a long-term corporate success.

The Company is of the opinion that recycling & reuse of plastics are expected to increase in our Industry, thus effecting the development innovation and sustainability too.

The company maintains an inbuilt mechanism to track any suspicious events and frauds in the business. In addition, the Board and the Audit Committee of the Company periodically reviews the risk management procedures and takes various preventive measures to mitigate the risk factors.


The Board has adopted policies and procedures for ensuring that all transactions are authorized, recorded and correctly reported, all assets are safeguarded and protected against loss from unauthorized use or disposition, reducing wastages and maintenance of proper accounting records for ensuring accuracy and reliability of its financial information. The Board has constituted an Audit Committee which meets periodically to review the financial performance and the accuracy of financial records and accordingly appropriate actions are taken by the management.


Industrial relations continued to be harmonious both at manufacturing unit as well as in branches.

Our employees are our greatest asset and we are committed to attract, retain and recognize talent. We encourage fresh minds and new ideas. The Company constantly facilitates and encourages its employees at all levels to enhance their knowledge and skills and continuously seeks to inculcate within its employees, The Company inculcates a strong sense of business ethics and social responsibility.

The Company endeavors to create a challenging and favorable work environment that encourages entrepreneurial behavior, innovation and the drive towards business excellence.


Pollution control is an essential task and responsibility in the manufacturing industry. The management is assured that all the plants of the Company are under appropriate Waste Management Systems and operate in harmony with the surrounding ecosystem. Adequate pollution control amenities are established at all the plants as per guidelines of pollution control authority and as per set norms.

For safety, the work force is provided with appropriate safety equipment and necessary training from time to time.


The Management Discussion and Analysis Statements made above are on the basis of the available data as well as certain assumptions as to the economic conditions, various factors affecting raw material prices and selling prices, trend and consumer demand and preferences, governing and applicable laws and other economical and political factors. The management cannot guarantee the accuracy of the assumptions and projected performance of the Company in future. It is therefore, cautioned that the actual results may differ from those expressed or implied therein.

Date: 26th May 2023
Place: Mumbai