Global economy
In the midst of a myriad of challenges, the global economic landscape finds itself once
again shrouded in uncertainty. The financial sector turbulence, persistent spikes in
inflation, the enduring aftermath of Russias incursion into Ukraine, disruptions in
supply chains, and ramifica of the Covid-19 pandemic the prolonged collectively
contributed to an atmosphere of doubt over the past three years.
The path to global economic revival in the forthcoming years is anticipated to bestrewn
with primary projection foresees a gradual deceleration, where growth is forecasted to
taper from 3.4 percent in 2022 to 2.8 percent in 2023, before ultimately stabilising at
3.0 percent in 2024. Nonetheless, a divergent scenario, marked by intensified sector
strains, could precipitate a sharp drop in global growth, hovering around 2.5 percent in
2023. The pivotal role of the natural interest rate in shaping monetary and fiscal
strategies is undeniable, and the escalation geopolitical tensions looms as a potential
harbinger of dire consequences.
Amidst the backdrop of moderating growth rates, apprehensions regarding inflation,
uncertainties encompassing debt sustainability, and the intricate interplay of global
politics, the outlook remains cautious
Indian economy
Amidst the prevailing global uncertainties, Indias economy continues to demonstrate
remarkable resilience. As per the Economic Survey of 2022-23, the nation is on the verge
of attaining a baseline GDP growth of 6.5 percent in real terms for FY24. The economy is
projected to sustain an impressive growth rate of 7 percent (in real terms) for the year
concluding in March 2023, building upon the momentum of an exceptional 8.7 percent
expansion in FY22.
A noteworthy testament to the nations economic vigour is the robustness of private
consumption, contributing to 58.4 percent of GDP in Q2 of FY23 - marking the highest level
recorded for all second quarters since 2013-14. Indias export growth has equally surged
in FY22 and the initial half of FY23, propelling production processes into a mode of
steady progress from a modest acceleration. However, amidst these promising developments,
concerns arise as headline inflation is projected to stand at 6.8 percent in FY23,
surpassing the RBIs target range.
Looking forward, the World Trade Organisations global trade projection foresees a
reduced growth of 1.0 percent in 2023, signalling potential challenges on the horizon.
Nevertheless, Indias economy remains vibrant, adaptable, and strategically poised to
navigate the
Indian e-commerce industry
E-commerce has revolutionised the way business is conducted in India. The B2C
e-commerce market in the country is set to expand by 10.75% annually, reaching a notable
US$ 107.3 billion in 2023. The promising narrative of the B2C e-commerce sectors medium
to long-term growth in India is indeed appealing.
Anticipated to steadily progress during the forecast period, the B2C e-commerce realm
is projected to witness a CAGR of 8.68% from 2023 to 2027. The Gross Merchandise Value of
B2C e-commerce in India is predicted to surge from US$ 96.9 billion in 2022 to a
substantial US$ 149.7 billion by 2027.
The B2C e-commerce domain is on a trajectory of rapid expansion across India in the
next five years. In the backdrop of escalating digitalisation, which has facilitated the
entry of millions of new consumers into online sales channels for their everyday needs,
competition among participants has intensified, encompassing customer acquisition and
market share. To harness the burgeoning B2C e-commerce landscape in India, numerous
newcomers in the sector embraced the social commerce business model to amplify sales and
enhance brand recognition among consumers. Now, these enterprises are shifting their focus
towards direct sales as market competition grows more intense. The government is gearing
up to launch an innovative platform that is set to further accelerate the growth of
Indias B2C e-commerce industry. The Open Network for Digital Commerce (ONDC), established
by the Indian Commerce Ministry as a non-profit organisation, has initiated trials in 85
cities nationwide and is scheduled for full-scale deployment in 2023. This interoperable
network will enable consumers using one app, such as the digital wallet Paytm, to locate
and order products from sellers registered on other platforms, like Amazon, and have them
dispatched by delivery service providers like Dunzo, which offers swift deliveries at
competitive rates. This innovative service is expected to provide a further impetus to the
e-commerce market in India, which has been on a robust growth trajectory over the past
three to four years due to the escalating digitalisation across the country. Young
demography, increasing internet and smartphone penetration, and relatively better economic
performance are some key drivers of this sector.
Source: Business Wire
Print on demand industry
In the ever-evolving landscape of commerce, the concept of mass customization has
emerged as a powerful business model. Rather than being a standalone market, mass
customization represents a dynamic approach that can be applied across diverse global
markets. This strategy caters to an array of stakeholders, ranging from individual
consumers and graphic designers to resellers, printers, teams, associations, and even
families. As communication and printing technologies transitioned into the digital realm,
the commercial printing sector underwent a transformation, marked by increased
accessibility and new business models.
One significant facet of this shift is the rise of Print on Demand (PoD), a method that
has swiftly become the preferred choice for both emerging and established e-commerce
ventures. This approach leverages lower per-unit costs and eliminates minimum quantity
requirements, fostering a landscape where personalization meets efficiency.
The global Print on Demand market attained a valuation of US$ 4.9 billion in 2021, and
it is poised for remarkable growth with a projected CAGR of 26.1% from 2022 to 2030. The
driving forces behind this expansion include the widespread adoption of the internet and
smartphones, as well as the upward trajectory of disposable income. These factors
collectively contribute to the surge in demand for personalised products, propelling the
Print on Demand market forward.
Within the product segment, apparel takes centre stage, capturing ~40% of the global
Print on Demand market in 2021. The projected CAGR of ~26% signifies the allure of
personalised fashion and unique products, coupled with the penetration of e-tailing within
the fashion space. The North American region, with the United States at its forefront,
reigns as a prominent Print on Demand market. This supremacy stems from the concentration
of PoD companies in the US, which dominate in market share.
Indian print on demand industry
Transitioning to the Indian Print on Demand market, a compelling narrative unfolds. The
personalised products industry in India is poised to reach several billion dollars, riding
on the anticipated worth of $1.7 billion in 2020. A robust foundation is laid by Indias
burgeoning middle class, projected to comprise 540 million individuals by 2025, coupled
with the countrys burgeoning online retail market, expected to hit $39 billion.
Indias vast population provides fertile ground for the Print on Demand sector, with
over 1.4 billion population.
As discretionary income continues to climb, consumers display a heightened interest in
customised and specialised goods, breathing life into the PoD industry. However,
challenges persist. Logistics, transportation, storage, warehousing, and inconsistent
internet access act as constraints to the sectors expansion. Indias diverse topography
makes building efficient transportation networks a complex endeavour, impacting order
fulfilment and shipping costs. Storage space limitations and inadequate warehousing
infrastructure impede scalability, while disparities in internet availability affect
workflow efficiency.
E-commerce platforms emerge as game-changers for Print on Demand enterprises, enabling
wider reach, digital marketing, and streamlined order management.
As smartphones and internet connectivity continue to proliferate, PoD businesses tap
into the demand for personalised products with greater agility. In conclusion, the Print
on Demand landscape symbolises a seismic shift in personalised product business models.
Mass customization, buoyed by digital technologies and changing consumer behaviours,
presents a paradigm where individuality and efficiency converge, shaping the future of
commerce. The industrys journey encompasses challenges and triumphs, underscoring its
remarkable potential within the global market.
Source: Stratis Research, GVR Print on Demand Market Analysis
Company overview
Established in 2015, Pace E-Commerce Ventures Limited stands as an emerging player in
the realm of online retail and print-on-demand manufacturing. Our distinct forte lies in
providing platforms that champion niche e-commerce, personalisation and uniqueness,
redefining the norms of customisation and creative expression. Our forward-thinking
approach is reshaping the very foundations of this domain, giving rise to an unparalleled
online marketplace that seamlessly connects consumers, retailers, creators, and artists,
offering a diverse range of solutions and products.
Pioneering Indias exceptional on-demand platform, we amass an array of offerings
within a unified and central space. We prioritise efficiency through economies of scale by
leveraging our on-demand manufacturing and printing capabilities.
Committed to catering to personalisation needs, we empower retailers and customers with
the freedom to customise across a wide spectrum of product categories. We proudly advocate
inclusivity by providing a platform that empowers artists, designers, and creators within
the unorganised sector, enabling them to unlock substantial earnings through our
innovative marketplace model.
FY23 financial performance discussion
Revenue from Operations for the year stood at 2,837.16 Lakhs, as compared to 1,049.58
Lakh in FY22, registering a growth of 70% year on year. Profit Before Interest and
Depreciation stood at 119.47 Lakhs, as compared to 92.51 Lakh in FY22, registering a
growth of 29% as compared to the previous year. Net Profit after Tax for the year stood at
62.25 Lakh as compared to 54.12 Lakh in FY22, thus registering a growth of 15% year on
year.
Key financial ratios
Ratio Name |
FY23 |
FY22 |
% of Variance |
Remarks for variance more than 25% |
| Current Ratio (In times) |
7.74 |
2.40 |
223.14 |
This indicates that Company is able to meet its short term obligations. |
| Debt Service Coverage Ratio (In times) |
0.00 |
0.00 |
167.21 |
This indicates that Company is capable to taking more debts. |
| Inventory Turnover Ratio (In times) |
18.25 |
5.47 |
233.37 |
This indicates that Company selling good quickly and there is
considerable demand for their products. |
| Trade Payable Turnover Ratio (In times) |
51.46 |
4.87 |
955.64 |
This indicate that the Company has plenty of cash available to pay off
its short-term debt in a timely manner. |
| Net Profit |
2.19 |
5.13 |
-57.31 |
This indicate that Company is more efficient at converting sales . into
actual profit |
| Debt-Equity Ratio (In times) |
4.58 |
5.34 |
-14.24 |
This indicates that Company implying greater financial risk. At the same
time leverage is an important tool that Company use to grow, and many business find
suitable uses for debt. |
| Return on Equity ratio (In %) |
0.88 |
0.77 |
15.03 |
This indicates that a higher portions of the assets are financed using
shareholders equity rather than borrowing money. |
| Trade Receivable Turnover Ratio (In times) |
3.35 |
3.73 |
-10.20 |
This indicates that higher portions of customers who are making their
payments quickly. |
| Net Capital Turnover Ratio (In times) |
1.56 |
1.11 |
40.87 |
This indicates that Company is able to generate higher amount of sales. |
| Return on Capital Employed Ratio (In %) |
1.88 |
3.59 |
-47.72 |
This indicates that Company is efficient to use of capital. |
| Return on Investment (In %) |
N.A. |
N.A. |
N.A. |
N.A. |
Human resources and industrial relations
We recognise that our people are our most valuable asset, and fostering a conducive
work environment is integral to our success. Our HR policies are designed to attract,
develop, and retain top-tier talent. We prioritise equal opportunity and diversity,
ensuring that our workforce reflects the vibrant anddiverse communities we serve. We
uphold fair employment practices, nurturing an inclusive workplace where employees can
thrive and contribute their unique perspectives.
We offer a range of initiatives to support physical, mental, and emotional health,
fostering a holistic sense of wellness. Additionally, we provide learning and development
opportunities that empower our employees to continually upgrade their skills and stay
aligned with the dynamic demands of the industry. We maintain open channels of
communication between management and employees, upholding the principles of transparency,
fairness, and mutual respect. Our aim is to create an environment where collaboration and
cooperation thrive, ensuring that the interests of all stakeholders are taken into
consideration.
We believe that a harmonious and engaged workforce is integral to our sustained growth.
Through robust HR practices and a commitment to positive industrial relations, we are
building a team that drives our vision forward and makes Pace E-Commerce Ventures Limited
a preferred workplace in the industry.
Internal control systems and their adequacy
At Pace E-Commerce Ventures Limited, a strong emphasis is placed on maintaining a
robust internal monitoring and control system. This system is meticulously designed to
ensure operational efficiency, safeguard company assets, and authorise financial
transactions.
Pace has implemented a comprehensive Budgetary Control system that facilitates
continuous monitoring of actual performance against financial plans. This proactive
approach enables the management to ensure strict adherence to financial targets. The
Companys organisational structure, along with a well-defined authority matrix and
internal regulations, collectively contribute to enhancing the overall efficiency of the
internal control system.
Our internal auditors play a crucial role in evaluating the adequacy and effectiveness
of internal control measures. Their assessment ensures strict adherence to accounting
principles and statutory requirements. The outcomes of these internal audit reports
undergo thorough review the by senior management and the Audit Committee of the
Board. In line with their recommendations, appropriate compliance measures are
implemented to reinforce the internal control framework.
This diligent approach ensures the accuracy of financial and other records. It also
guarantees the preparation of dependable financial statements and precise asset records.
By maintaining such a robust internal control system, we uphold the highest standards of
financial integrity and accountability at Pace E-Commerce
Ventures Limited.
Cautionary statement
In the course of our discussion regarding our business, it is important to draw
attention to the fact that certain statements within this communication encompass
forward-looking information, which entails potential risks and uncertainties. It should be
noted that actual results, performances, or achievements may deviate substantially from
what is expressed or implied within these statements. Various elements, including changes
in Government regulations and tax frameworks, policies of online payment gateways, brand
collaborations and agreements, economic developments both in India and globally, etc., can
contribute to such disparities.
We wish to emphasise that we do not undertake any obligation to publicly update or
revise these forward-looking statements, irrespective of any subsequent information,
future events, or additional factors that may arise. It is therefore imperative for
readers not to overly rely on these forward-looking statements, as they reflect of Pace
exclusively as of their respective dates.
Strengths
• Pioneering personalised e-retailing
• Flexibility and agility of the business model
• Minimised inventory risk and capital needs
Weakness
• Hyper-competitive e-commerce space
• Outsourced functions of the value chain may create dependence on respective
vendors
• Usability of personalized product is limited
Opportunities
• Countless permutations and combinations for product customisation
• More young professionals living away from home and wanting to own personalized
items to customization in fit, performance, and aesthetic design
Threats
• Macroeconomic risks including geopolitical and industry events
• Operational risks including ever-changing tastes
• Tech and cyber risks including data security, privacy, cyber security breaches
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