OVERVIEW
In India, the value-added tex les industry is collec vely grouped into a single sector
commonly referred to as technical texles. Worldwide, Technical Texles are the fastest
growing segment of Texle sector. In the developed countries, the share of such texle
products has now reached 60% of all texles. The key demand drivers are the growth in GDP
and the growth in infrastructure and overall quality of living.
The company is all geared to get an opportunity to enter into larger market in the
value added market of FIBC (Flexible Intermediate Bulk Container) and other technical
texles. The Company embarked on a vigorous growth phase with more concentraon in the
manufacture of high quality environment friendly technical texles falling under Packtech,
Geotech, Agrotech & Oekotech segments.
The companys growth graph with respect to the financial showed a steep upward trend on
account of diversi caon into the value added Packtech products likes FIBCs for packaging
of food products; leno bags and addions of Agrotech products.
SYNOPSIS ON GROWTH OF NCIL
Neo Corp International Limited was incorporated in Year 15
February 1985.
NCIL, since its incepon in 1985, is dedicated in making tailor designed products under
Packtech. NCIL reached the status of a fore-runner International ly as a reliable supplier
of Packtech products.
With its current growth inia v e, NCIL has entered into other technical texle segments
like Geotech and Agrotech.
NCIL is a listed Public Limited Company with an equity base of Rs. 38.02 Crores. It is
listed on the Bombay Stock Exchange, Madhya Pradesh Stock exchange and Luxembourg Stock
Exchange. It approached public for subscripon in 1992 and went through Rights issue in
1996. NCIL has 6 subsidiary companies namely Euro Plast Limited, Sacos Indigo Private
Limited, Neo ex Infracon Limited, Polybase (H.K.), Poly Logic Interna onal Private Limited
and Prism Flxible Solu ons Private Ltd.
NCIL also enjoys a Star Export House status recognized by the Government of India
connuously from 1994 in view of the Companys excellent Export performance.
COMPANYS OUTLOOK
The technical texle business is one of the most promising and faster growing areas for
global and Indian texle industry. NCIL has planned for systemac and c onnuous addion of se
veral products under various technical texle segments. The object behind the same is to
provide holisc soluon to customer. For example geogrids, geonet and geomembrane shall make
basket of geosynthe cs complete. With consistent moderniza on and expansion with machinery
of latest technology, it is expected that the Company will be able to improve e ciency and
successfully face global compeon and will be one of the leading players in the domesc as
well as International markets. As a strategy, we always wanted to be one-stop shop for all
woven packaging needs of our customers. To this end, we have developed ourselves as a
mul-pr oduct, mul-loc aon and mul-mark et company serving to the needs of our customers.
We also propose to further invest in forward and backward integraon.
The companys growth graph with respect to the financial s showed a steep upward trend
on account of diversi caon into the value added Packtech products likes FIBCs for
packaging of food products; leno bags and addions of Agrotech products
STRENGTH & OPPORTUNITIES
• Connuous raw material availability that helps Company to control costs and
reduce the lead mes across the operaon.
• Availability of Low Cost and Skilled Manpower provides compev e advantage.
• Large domesc market, enabling to spread out risks.
• In house Research & Development and product development centre.
• Developing new FIBC models which provide innovaon in bag design and ulity .
• Improvements in infrastructure and regulaons.
• ISO quality standards, BRC and AsthOfficer aon will enable entry into niche
market.
• Increased requirement of Industrial Packaging in India.
• Worldwide ever increasing high demand.
• Increase in Infrastructural and Agricultural acvies to give boost to companies
Geotech, Buildtech and Agrotech market.
WEAKNESS & THREATS
• Fragmented Industry restricts the scope of enlarging base and emergence as
global leaders.
• Lack of desirable levels of Technological Development affect the producvity and
other acvies in whole value chain.
• Pricing pressure, as the market is price sensiv e.
• Enhanced compeon from other countries.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The Companys internal control systems are commensurate with the nature of its business
and the size and complexity of its operaons. These systems are designed to ensure that all
assets of the Company are safeguarded and protected against any loss and that all
transactions are properly authorized, recorded and reported. These are rounely tested and
cer ed and cover all offices , factories and key areas of business. The Company is fully
commie d to ensuring an e ec ve internal control environment. The Company has a sound
system of internal control in place, which assures the Board of Directors and the
management that there is a structured system to closely monitor and evaluate the e cacy
and adequacy of business planning, compliance with operang systems and accounng procedures
and policies, ensuring legal and regulatory compliances, protecng companys assets and
prevention and detecon of fraud and error. The company has adequate quali ed and
experienced execuv es to monitor the internal control systems. In order to achieve opera
onal excellence and to strengthen internal control system, Company has hired world class
people from Price water house Coopers (PWC) for complete transformaon of operaonal system.
PWC has helped our company to meet its HR measurement and benchmarking strategies to
improve producvity , discreonary e orts and return on investment in human capital. Proper
measurement and assessment will also provide clarity on opera onal/HR cost drivers to more
e ec vely manage our organiza ons assets, which is consistent with todays business
priories.
INFORMATION TECHNOLOGY
Company has implemented Systemac Applicaon Procedure (SAP) in the Company which has
enabled alignment of Strategies and Operaons, be er supply chain, control at operaonal
level and access to consolidated data. SAP is a world class system enforces best prac ces.
Among other Benefits , SAP provides real-me data, supports in strategy formulaon, leads to
adopon of uniform and transparent business prac ces render cost op misa on and value
enhancement.
The Company con nuously invests in upgrading the SAP pla orm to leverage the latest
funconality and technology enhancements to deliver business e ciencies.
During the year Company has introduced stringent Prevenv e Maintenance Schedules to
reduce down me. Also 24/7 P oint to Point Connecvity is established between all offices .
The Robust data-backup system has been introduced for the IT security and reliable
disaster recovery management processes to ensure that all critical systems are always
available. These are periodically reviewed, upgraded and tested for, adequacy, security
and reliability.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND
INDUSTRIAL RELATIONS FRONT
Your Company is commited to creating a transparent organization and a highly conducive
environment that is focused on people and their capability enabling them to deliver
superior performance.
The company is adequately manned with professionals in the field of Engineering,
Finance and Administraon etc. In order to meet the challenge of growth and new product
line, the company has organized in-house training of its sta and workmen to improve so
skills, technical knowledge, work culture and e cient manufacturing pracces. During the
year company took following inia v es:
A) Speak up- The Speak up program is a completely anonymous medium through which
you can let the management know your concerns without revealing your identy .
B) Library- Turning Point: we now have in house library for the employees.
C) Dr Reddys session: We conducted a series of session on health awareness in
associaon with Dr. Reddys foundaon.
D) Business Conduct Guidelines: ‘NCIL Business Conduct Guidelines that will
provide general guidance for resolving a variety of legal and ethical quesons for us.
E) Contact point hour: During this hour employee can share their
work related problems with the senior management.
F) Commities : Two new Commitiees -Abhivyak and Umang has been formed for employee
welfare and fun at work.
G) Implementaon of an Employability Assessment Test (EAT) that has had an immediate
impact on the quality of people being hired in the company.
H) Successfully running Internal Customer Service Feedback (ICSF) and KYC (Know Your
Customer) Milan that improved internal cfloor dinaon and communicaon among the thirty
odd departments in the company.
I) An elaborate Performance Management System linking performance parameters,
feedback systems, training and development for enhancing the potenal of employees
J) Conduc ng seminars and workshops to train front line managers and middle
management on the right people pracces to drive performance and improve producvity .
K) Regular Core Commitee meeting s for the senior management to understand and
assess the impact of human resource strategies on productivity, organizational diagnosis
architecture, evidence based management, trust building through right people pracces.
FORWARD-LOOKING STATEMENT
Management Discussion and Analysis forming part of this Report is in compliance with
Corporate Governance Standards incorporated in the lisng agreement with Stock Exchanges
and such statements may be "forward looking" within the meaning of applicable
securies laws and regulaons. Actual results could di er materially from those expressed or
implied. Important factors that could make a di erence to the Companys operaons include
economic condions a ecng demand / supply and price condions in the domesc and overseas
markets in which the company operates, changes in the Government regulaons, tax laws and
other statutes and other incidental factors.
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