prince pipes fittings ltd share price Management discussions


Global Economy

2021 had been another extraordinary year owing to the continuing and pervasive impact of COVID-19, especially with the advent of new variants that caused significant challenges. Supply side constraints continued to disrupt financial markets and businesses globally. Central banks proposed an array of measures to ensure credit was available to businesses and individuals. Large-scale vaccination drives around the world, together with policy measures, were steps in the right direction towards economic recovery. Subsequently, global economies entered 2022 on a weak note with the spread of the Omicron variant, which had much higher transmissibility, but less severity compared to the Delta variant.

According to the World Economic Outlook (WEO) update, the world economic output was reported to be 6.1% in 2021, after declining to 3.1% in 2020. However, the prospects of an expected global economic recovery seem to be more challenging since the onset of the Russia-Ukraine war which continues to have global repercussions. In April 2022, the IMF had slashed the global growth forecast to 3.6% for 2022 from its earlier forecast of 4.4%, while the growth rate for 2023 has been projected at 3.6% (as against 3.8% earlier).

Scarring effects are expected to be much larger in emerging market and developing economies than in advanced economies-reflecting limited policy support and generally slower vaccination-with output expected to remain below the pre-pandemic trend throughout the forecast horizon.

The war in Ukraine has triggered a costly humanitarian crisis that demands peaceful resolution. Economic damage from the conflict will contribute to a significant slowdown in global growth. The conflict adds to the economic strains wrought by the pandemic. Although many parts of the world appear to be moving past the acute phase of the COVID-19 crisis, deaths remain high, especially among the unvaccinated.

Inflation is expected to remain elevated for longer than in the previous forecast, driven by war-induced commodity price increases and broadening price pressures. For 2022, inflation is projected at 5.7% in advanced economies and 8.7% in emerging market and developing economies-1.8% and 2.8% points higher than projected in January. Although a gradual resolution of supply-demand imbalances and a modest pickup in labour supply are expected in the baseline, easing price inflation eventually, uncertainty continues to persist.

Outlook

The IMFs downward revision of global growth forecasts, factor in a growth slowdown due to the possibility of an extension of sanctions to Russian energy exports along with the threat from the virus. Although output and investment in advanced economies are projected to return to pre-pandemic trends next year, they are most likely to remain low in emerging market and developing economies (EMDEs).

In addition to the war, frequent and severe lockdowns in China in key manufacturing hubs could lead to new bottlenecks in global supply chains. Higher commodity cost inflation and persistent price pressures could also lead to a tightening of monetary policy in many countries. In emerging markets and developing economies, the rise in food and fuel prices are critical challenges. The pandemic and war led disruption continue to deepen global supply chain challenges and inflation has become the most prominent concern globally. The higher interest rates regime points at making borrowing more expensive worldwide, straining public finances.

This underscores the importance of strengthening global cooperation to foster rapid and equitable vaccine distribution, calibrate health and economic policies, enhance debt sustainability in the poorest countries and tackle the mounting costs of climate change.

Indian Economy

Despite Covid 19 related uncertainties, economic activity rebounded sharply in the second half of the year due to successful implementation of the worlds largest vaccination drive.

By the end of 2021, around 44% of Indias population had been completely vaccinated. Indias gross domestic product (GDP) for the FY2021-22 expanded to 8.7% which is the highest in 22 years. The improvement in the economy comes over a GDP contraction of 6.6% during 2020-21 due to the pandemic and resultant lockdown-imposed curb to arrest the spread of the deadly coronavirus.

Gross Value-Added growth (GVA) during the fiscal ending March 2022 was at 8.1 % as against a contraction 4.8 % in the preceding year. As per the NSO data, per capita income during 2021-22 was Rs 1.5 lakh per annum at current prices, up from Rs 1.27 lakh in 2020-21, showing a growth of 18.3%. Gross fixed capital formation was estimated at Rs 47.84 lakh crore in 2021-22, up from Rs 41.31 lakh crore in the preceding year.

The economys near-term prospects have been darkened by a spike in retail inflation, which hit an eight-year high of 7.8% in April 2022. The surge in energy and commodity prices following the Ukraine crisis is also exerting a drag on economic activity. In May 2022, the Reserve Bank of India (RBI) raised the benchmark repo rate by 40 basis points in an unscheduled meeting to 4.40%. In early June interest rates were further increased by 50 basis points, a second hike within five weeks.

Agriculture sector, which was the only silver lining in FY21- slowed to 3% in FY22 as against 3.3% last year-all other sectors, except financial, real estate and professional services reported strong growth. Mining and quarrying sector grew by 11.5% in FY22 as compared to a contraction of 8.6% in FY21.

Similarly, manufacturing grew at a good pace of 9.9% as against -0.6% last year. Electricity, gas, water supply and other utility services segment grew by 7.5% during 2021-22. The segment had contracted by 3.6% in the previous fiscal.

Outlook

In June 2022, The World Bank cut Indias economic growth forecast for the current fiscal to 7.5% as rising inflation, supply chain disruptions and geopolitical tensions taper recovery. This is the second time that the World Bank has revised its GDP growth forecast for India in the current fiscal 2022-23 (April 2022 to March 2023). In April, it had trimmed the forecast from 8.7% to 8.0% and now it is projected at 7.5% as on 07th June, 2022. The report said that growth will also be supported by fixed investment undertaken by the private sector and by the government, which has introduced incentives and reforms to improve the business climate. A rise in prices across all items from fuel to vegetables and cooking oil pushed WPI or wholesale price-based inflation to a record high of 15.1% in April and retail inflation to a near eight-year high of 7.8%. Subsequently the RBI raised the benchmark interest rate by 90 basis points over May and June to 4.9%. The World Bank also noted that growth is expected to slow further to 7.1% in 2023-24.

In India, the focus of the Government spending has shifted toward infrastructure investment, labour regulations are being simplified, underperforming state-owned assets are being privatised, and the logistics sector is expected to be modernized and integrated.

Industry Overview

Indian Plastic Pipes and Fittings Market

Plastic pipes find application in irrigation, real estate construction for both residential, commercial and water supply and sanitation (WSS) development. In FY21, the industry size is estimated at Rs 400bn-420bn showcasing a ~10% CAGR over FY16-FY21 on account of increasing demand from irrigation and WSS sectors, and continuous replacement demand from metal pipes in residential real estate. Pipes will continue to form an integral part of infrastructure development as they are a cost-effective way to transport water. As per multiple estimates, the industry is scheduled to grow by 11-12% CAGR over FY21-FY25E and is expected to reach Rs 550bn-600bn by FY25E led by the Governments continued focus on increasing farmer income via better irrigation facilities and infrastructure, creation and improvement of WSS infra and implementation of ‘Housing For All schemes. Secondly there is a continuous expansion of newer applications for CPVC and HDPE pipes and increasing acceptance of UPVC pipes into other applications. Recent correction across polymers prices could lead to lower industry growth in value terms, as a decrease in raw material prices would impact realisations.

Types of polymers, industry size and its applications

Plastic pipes are made using different types of polymers and have varied applications:

Types of Pipes Industry Size - FY21, (Rs Bn)* Applications
Unplasticized Polyvinyl Chloride (UPVC) 254 Irrigation Cold water plumbing Drainage
Chlorinated Polyvinyl Chloride (CPVC) 65 Hot and cold-water system Industrial applications
High-density Polyethylene (HDPE) 60 Underground drainage structured wall WSS solid wall
Polypropylene 21 Hot and cold-water systems
Random (PPR) Industrial applications
Hot and cold-water systems
Composite pipe NA
Gas pipeline
Industrial applications

* Source – Equirus Securities report – July 2021

UPVC pipes (64-65% of Industry Demand)

The UPVC pipe segment is expected to grow at 10-11% CAGR over FY20-24 largely led by agriculture and plumbing segments. As per industry estimates, the segment reported a market size of ~Rs 254bn in FY21. About 65% of demand for UPVC pipes comes from Irrigation and Agricultural related activities and the balance from residential/commercial plumbing. Being the most widely used plastic pipes for cold water transportation systems, they also find extensive application in swimming pools, industrial process lines, saltwater lines and sectors like food & beverages, chemical and are appropriate for residential plumbing.

Being a cost effective and low maintenance product, with better longevity and durability than Galvanised Iron (GI) pipes, this segment has seen rapid replacement of GI pipes that has supported the demand growth of UPVC in the past decade. Unorganised industry players have an active presence in this segment with almost 50% of the industry retailing unbranded UPVC products. The UPVC segment is expected to see healthy offtake driven by the Governments several water-centric initiatives as well as focus on irrigation and agricultural infrastructure development.

CPVC pipes (15-16% of Industry Demand)

Chlorinated polyvinyl chloride (CPVC) is a thermoplastic product produced by chlorination of polyvinyl chloride (PVC) resin used for hot and cold-water lines. CPVC pipes are the first choice of material for potable water supply across the world and has been in use across the world for several years.

Since the late 2000s, CPVC found rapid growth in the Indian market. Today, nearly half the plumbing systems in India are made of CPVC and this segment has been the fastest growing in the plastic pipes industry in the last decade. In FY21, the segment saw a market size of Rs 65 bn. CPVC pipes became a preferred choice for developers once they were convinced of its advantages as better hot water sustenance due to the chlorine content, ease of Installation, faster turnaround time and less wastage of material. CPVC pipes find extensive use in plumbing applications, as well as hot and cold, potable water distribution systems. The segment although at an early adoption stage in India, has been a fast-growing division, due to benefits such as longevity, corrosion free, fire resistant, being lead-free, and the ability to withstand high temperatures. CPVC is broadly classified into two grades, namely (a) Pipe grade and (b) Fittings grade based on end use applications. Branded pipes and fittings players have historically maintained a strong foothold in this segment accounting for almost 80 % of the market, since CPVC is a specialized product with most of the raw material being imported and technology licensing required with globally renowned players.

HDPE pipes (15% of Industry Demand)

HDPE is a revolutionary thermoplastic used to overcome all shortcomings of pipes as a medium for ducting for optical fibre and other cables and the flow of fluids. It is popularly used and recommended by Consultants and Field Engineers due to its high flow efficiency, strength, longevity, low cost of operation and maintenance, and a host of other unique features. They find application in irrigation, sewerage & drainage, city gas distribution and chemical & processing industries. These pipes have been gaining prominence over traditional metal and cement pipes, due to durability, low maintenance and longevity versus metal pipes. Government schemes, such as PMKSY, are expected to lend support to the segment. This segment is expected to see 10-11% CAGR over FY20-24.

PPR pipes (4-5% of Industry demand)

PPR pipes and plumbing solutions are considered the best carrier of potable water, due to several preferred characteristics including low thermal conductivity – which for PPR is very low, meaning temperature cannot easily be conducted from the outside environment to the liquid in the pipe, and vice versa. This factor reduces heat loss or gain during the transferring of hot or cold fluids respectively, resulting in energy efficient systems and lower insulation costs for PPR piping. Other advantages are: Long Service Life & Durability - PPR piping systems can remain functional for over 50 years, at a wide range of fluid and environmental operating temperatures; Efficient Inner Surface - the inner surface of PPR pipe is very smooth and boasts a very low friction coefficient, compared to traditional types of piping; Chemical & Mechanical Endurance: Compared to traditional plastic piping systems, PPR offers very high resistance against abrasion by hard particles. This is especially important in cases of well water or industrial applications, where the transferred liquids may contain abrasive particles.

These pipes, which are used for various industrial purposes, are relatively more expensive compared with other plastic pipes, which restricts their usage. The PPR segment is expected to grow at 6-7% CAGR over FY20-24.

CPVC will continue to remain the fastest growing segment with ~15-17% CAGR over next 3-4 years, HDPE/DWC and UPVC are expected to grow at 10-11% and 8-9% CAGR respectively

Organized players continue to derive an edge – This is led by plumber education initiatives, consumer awareness, preference for trusted brands & better quality, adherence to BIS standards and a better quality of balance sheet

The share of organized players in the piping industry has expanded from ~50% in FY10 to ~67% in FY21. Top-5 players have consolidated their position from 22% in FY12 to ~37% in FY21

Over the last few years, branded pipes and fittings companies continued to gain strong industry lead and market share from unorganized manufacturers and a few larger regional organized players facing balance sheet challenges. Over the last few years, the larger pipes and fittings brands have continued to plough the industry by consistently investing in brand awareness, category education, local audience engagements especially in Tier 2 and 3 towns and cities, and targeted social media and below-the-line activities. All such efforts have contributed to greater plumber and consumer awareness, importance of quality and adherence to BIS standards in pipes, particularly for residential real estate projects. The growth of the organized segment has further been aided by greater lateral focus on value-added products and fittings and product portfolio expansion offered to channel partners. Consequently, organized players have become one-stop solution providers for plumbing applications. Among several variants of plastic pipes, demand for UPVC and CPVC have been consistently rising owing to affordability, high quality, durability, and newer applications.

With stronger focus on tax compliance due to e-invoicing/ GST regulations and stringent adherence to BIS standards, unorganized manufacturers continue to be impacted and are witnessing shrinking market share. Even in FY22, supply-side constraints and raw material cost inflation have hurt unorganized players impacting their profitability and balance sheet. Ability to build a resilient brand, focus on premiumisation, efficient influencer engagement, product innovation and efficient supply chain management will enable larger players to drive deeper roots into the industry, carve out a better leadership position and gain larger market share leaving unorganized players to grapple with operating challenges driven by volatility in imported raw material supply and stricter tax compliance.

Company Profile

Over 3 decades, the journey as evolved into a larger mission of creating innovations in plumbing, irrigation, storage, and sewerage systems to support Indias growing water infrastructure and water management needs

Prince Pipes - Leading the transformation in Indias water infrastructure

Prince Pipes and Fittings is one of Indias largest integrated piping solutions providers based in Mumbai. Over 3 decades, we have been engaged in the manufacturing of polymer piping solutions in five types of polymers - CPVC, UPVC, HDPE, PPR and LLDP. Over time, we have emerged as one of the fastest growing companies in the Indian pipes and fittings industry. With 1500+ distributors and 7 state-of-art facilities across India, the Prince Pipes brand is the hallmark of Quality, Trust, and Innovation. Prince Pipes and Fittings Limited is a Fortune India 500 company.

Vision Mission
To be an acknowledged leader in Indian plastic piping industry by exceeding customers expectations and maximizing bottom line for all our stake holders. Our mission is to bring a revolution in plastic piping industry through innovative solutions which would create a profitable growth and benefit our customers & the society at large.

Core Values

Ethical Standards:

We conduct business in an ethical manner and act as a good corporate citizen in all areas in which the organization operates.

Respect:

We respect & appreciate all individuals and cultural identities. We embrace the differences. We ensure harmonious working environment for all our employees.

Transparency:

Transparency is the hallmark of all our business dealings. We communicate openly and sincerely. We appreciate feedback.

Commitment to Quality:

We are committed to providing the best quality products to our customers.

Ownership:

We believe in accepting responsibility and ownership while embracing common goals, teamwork and collaborative decision making.

We market products under the brand names of Prince Piping Systems and Trubore. We continue to develop expansive operations across agriculture, plumbing, borewell categories, and are building the widest sewage product range and underground drainage solutions. With an exhaustive product portfolio of 7,200 SKUs positions we are an end-to-end solutions provider. Prince Pipes has an extensive a pan-India distribution network of over 1,500 channel partners. With seven manufacturing units at Athal (Dadra and Nagar Haveli), Dadra (Dadra and Nagar Haveli), Haridwar (Uttarakhand), Kolhapur (Maharashtra), Chennai (Tamil Nadu), Jaipur (Rajasthan) and Sangareddy (Telangana), we are well positioned to actively address the growing potential of the Indian pipes and fittings industry.

The Companys Jaipur manufacturing facility was recently awarded GOLD medal in the 8th edition of National Awards for Manufacturing Competitiveness (NAMC) 2021, organized by International Research Institute for Manufacturing, in strategic association with Moneycontrol.

Our Journey Since IPO in Dec 2019 Progressing from strength to strength

At Prince Pipes, we are powered by our mission, aspirations, operational excellence, and commitment to bring about a marked transformation in Indias water infrastructure. Since our IPO in December 2019, we have been unstoppable in our determination to advance and grow every aspect of our business. We have been able to beat the odds because we are passionate about our business and committed to create greater shareholder value. We strengthened our operations, improved our supply chain, expanded our product portfolio, forged stronger distributor & channel relationships, built our market presence, and continue to take every effort to build a world class organisation.

Throughout our journey of more than 35 years as one of Indias leading polymer pipes and fitting manufacturers, we are continuing to fortify strengths, contributing to the local economy, and in turn, setting in motion a virtuous cycle. Our journey since FY2020 has been a true testament to this, with new facilities being operationalised, stronger relationships being built, and greater commitments being made. From humble beginnings to emerging as one of Indias largest integrated piping solutions & multi polymer manufacturers, our journey continues to be an exciting adventure that has today culminated into a larger mission of creating innovations in plumbing, irrigation, storage, and sewerage technologies to meet Indias exponentially increasing water related challenges.

FY 2019-2020

Sep 2019: In addition to the six strategically located state-of-the-art manufacturing facilities, commenced production at a newly constructed plant at Jobner (near Jaipur), Rajasthan

Dec 2019: Successful listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in the month of December 2019

March 2020: Significant reduction in Debt profile post IPO. Debt to equity ratio at 0.31 as on 31st March 2020

FY 2020-2021

June – August 2020: launched StoreFit Water Tanks, EASYFIT RE, CABLEFIT pipes, and GREENFIT PP-R systems designed for hot & cold-water plumbing systems in buildings & Industrial piping installations

August- Sept 2020: forged key associations with global industry leaders Lubrizol - the inventors and worlds largest manufacturers of CPVC compounds and Tooling Holland BV – global leaders in mould manufacturing

Sept 2020: Continued to bolster presence in the Eastern India region through an asset light model by outsourcing the manufacture of high-volume low value PVC pipes – translating into efficient management of freight costs while strengthening our market share

Jan 2021: Started commercial production at Sangareddy facility, ahead of scheduled launch

Feb 2021: Awarded Brand of The Year – Pipes, by Reality+ INEX Awards 2021

March 2021: Nihar Chheda, AVP - Strategy Prince Pipes awarded the Economic Times Polymers - Next Generation Leader for the Year

March 2021: Celebrated World Plumbing Day through a unique radio campaign aimed at celebrating the resilient spirit of plumbers

March 2021: Attained Long term debt free status

FY 2021-2022

December 2021: Featured in the Fortune India 500 list – a coveted ranking of companies which is put together annually by Fortune India

January 2022: Long term rating improved from A (Positive) to A+/ Stable with positive outlook and short-term rating improved from A1 to A1+.

March 2022: Prince Pipes salutes plumbers through Shram Ka Sammaan Campaign on World Plumbing Day. In its fourth year of this campaign, every year our engagement has been growing stronger with growing membership on our Udaan loyalty platform. Plumbers have shown excellent participation in 7 cities across India for this event

New product launches:

? PE-FIT Aqua - HDPE Piping Systems: offers major advantages of polyethylene material which results in much lower installation and whole life cost when compared with traditional piping materials. Finds application in: Potable Water Pipe Network in rural & urban areas, Drip, Sprinkler and Lift Irrigation, Industrial Effluents, Infrastructure Projects, Government projects, Bore Well Application for Submersible Pumps, Mining Sector for Handling Slurries.

? CORFIT Manhole Chambers: made from PE (Polyethylene) material. Finds use in Commercial & Municipal sewerage/drainage networks.

On The Path of Responsible Growth

Our strategic levers

At Prince Pipes, we have outlined 7 strategic levers that will continue to drive our growth across existing and new markets, enhance our product value chain and strengthen our leadership position:

What we intend to do
Reinforcing the essence of brand Prince Pipes
Focused & continued efforts in brand premiumization: Continue to leverage depth of product portfolio with over 7,200 SKUs – one of the largest in the industry
Capitalise on the collaborations & global partnership with Lubrizol and Tooling Holland to reinforce global quality
Continue to invest in brand to strengthen brand connect with customers
Expand reach through distributors and channel partners
Product portfolio extension and expansion: Continuing to invest in R&D for developing innovative and high-quality products
Extending product line and portfolio development. Recently launched PE-FIT Aqua and Corfit Manhole
Chambers
Stronger relationship with dealer network and channel partners
Proximity to customer: Penetrate new markets and strengthening existing ones
Explore strategic collaborations
Build a strong influencer network
To scale up our distribution and penetration
Build greater manufacturing excellence Leverage our technical collaboration with Tooling Holland BV, a global leader in the international plastic
injection moulding industry based in Netherlands
Build product competitiveness backed by global standards & quality.
Capitalise on technology to optimise resources and increase efficiencies
Growth oriented with focus on sustainability
Lean balance sheet
Efficient financial management Cost efficient operations
Net cash positive
High governance and integrity
Build IT infrastructure that aids business growth and expansion
Initiated digitalizing of our value chain by building Sales Force Automation and Distributor Management
Leveraging technology Systems
Improve overall product experience and customer engagement
Manufacturing, supply chain and distribution prowess
Enhance greater value for stakeholders
Invest and nurture in building future-ready & inclusive business
Sustainable and inclusive progress Manufacture products which are smart, resourceful and pro-environment
Extend efforts to empower social capital
Ensure sustainable and responsible operations

Key strengths

Strong fundamentals paving the way for stronger progression

A 3-decade deep heritage and domain knowledge, one of the industrys largest product portfolios with over 7,200 SKUs serving a wide range of industry applications, robust manufacturing facilities across India, strong R&D thrust and a clear growth strategy in a high-potential industry, carves a strong investment case for Prince Pipes.

An end-to-end pipes and fittings solution provider

In line with our aim of being an end-to-end pipes and fittings solution provider, the company has been building a comprehensive product portfolio. We are in the process of developing products in consultation with various influencers in different categories and applications. As an end-to-end piping systems solutions provider, we offer customers a seamless experience - from plumbing, storage and sewerage solutions, and installation of products, which require other related products as well as plumber assistance. Our team offers expert advice based on application & project phase / condition - across all categories of projects, experts from Prince are available with the best fit pipes and fitting solutions.

With access to our large product portfolio, projects can take advantage of greater cost & quality efficiencies and ensure that plumbing installations use the most suitable material for unique project conditions.

Rapidly growing brand presence

As one of Indias largest integrated piping solutions providers, the Prince Pipes brand is the hallmark of Quality, Trust, and Innovation. As a legacy brand, the focus is now on going beyond ‘differentiation to ‘premiumisation of the Prince Pipes brand to combat competitive strategies. The approach, hence, is on creating a customer-led pull demand driven by strong appreciation of Prince brand attributes. Through well-crafted product-centric communication, grass root activations, brand engagements and associations, collaborations with target audiences at various levels, social media engagements, Prince Pipes continues to successfully implement brand premiumization which has led to improvisation in performance.

Manufacturing excellence

We take pride in our manufacturing excellence, which for us is the continuous improvement of our operations to reduce waste, increase production profitability, and gain a winning edge with quality, safety as well as innovation. Our state-of-art- manufacturing units in 7 locations across India (given below) are well placed to address the growing potential of the Indian pipes and fittings industry. We invest in best-in-class equipment to ensure efficient and safe operations.

Plant location Installed capacity (TPA) Production capacity (TPA) Products Year of establishment
Athal (UT of Dadra and Nagar Haveli) 11,110 9,444 Fittings 1995
Dadra (UT of Dadra and Nagar Haveli) 62,446 46,481 Pipes 2000
Haridwar (Uttarakhand) 89,163 69,913 Pipes and Fittings 2008
Chennai (Tamil Nadu) 56,009 41,916 Pipes 2012
Kolhapur (Maharashtra) 14,861 11,369 Pipes 2012
Jaipur (Rajasthan) 28,166 21,547 Pipes 2019
Sangareddy (Telangana) 42,532 33,619 Pipes and Fittings 2021
Total 304,287 234,289

Diverse product portfolio

We are a multi-player polymer Company with an exhaustive product basket. Our pipes and fittings made using five types of polymers – CPVC, UPVC, HDPE, PPR and LLDP – cater to extensive industry applications in plumbing, sewage, irrigation, industrial and underground drainage.

In line with our aim of being an end-to-end pipes and fittings solution provider, the company has been strengthening its comprehensive product portfolio. We have recently launched PE-FIT Aqua HDPE Piping Systems which results in much lower installation and whole life cost when compared with traditional piping materials; and CORFIT Manhole Chambers used in commercial & municipal sewerage/drainage networks.

Prince FlowGuard Plus is making deep in-roads as one of the safest, most reliable, and cost-effective plumbing solutions in the real estate industry. In 2020, our collaborations with Lubrizol [Headquartered in the US] - the worlds largest manufacturers and inventors of CPVC compounds – has created a strong & sustainable partnership in the piping industry. Prince Flowguard Plus CPVC plumbing systems is Indias first CPVC to win Ghriha Council Certification.

Robust and growing distribution network, deep & long-term relationships

The Company continues to make even deeper inroads into the urban, semi urban, Tier II, Tier III towns and strengthened its foothold in rural markets. With over 1,500 Channel Partners and distributors spread across India, Prince Pipes benefits from the long-term, trust-based relationships with a growing dealer and channel partner network to ensure smooth and cohesive operations. In addition to our distribution network, we have 11 warehouses on lease to focus on efficient supply and timely services.

In May 2022, the Company won the FEST Best Channel Loyalty Program for its unique customer loyalty program Udaan. Prince Pipes was one of the first corporates in the pipes and fittings industry to have launched a loyalty program in November 2016 for plumbers and dealers. ‘Prince Udaan was created as a loyalty program to cover all Prince Pipes channel partners. We are leveraging our distribution strength to bolster our competitive agility to respond to market demand faster and serve Indias growing needs of pipes and fittings product.

Building on strong business fundamentals

Driven by a resilient business model, the strategic measures implemented throughout the fiscal ensured that our operations were less affected by the impacts of the pandemic. Prince Pipes reported positive operational and financial performance across FY 22, undertaking several growth-oriented efforts that continue to deliver strong outcomes. Our performance and progress were driven by a strong focus and emphasis on the plumbing and SWR portfolio, aggressive efforts on brand premiumization which helped us drive value growth, and efficient cost optimization measures – factors that translated into healthy growth and margin protection. Guided by our corporate values, a talented team and successful execution of all our key strategic efforts, we have been driving market share gains, despite pandemic headwinds.

Sustained investments in brand building

We are proud custodians of a powerful legacy in the pipes and fittings industry. Over the past few years, we have further fortified our brand positioning through sustained investments in marketing and brand promotional activities engaging key influencers of the brand at various levels. The focus has been on increasing brand awareness and customer loyalty through creative promotions and new-age marketing, using both digital and traditional channels.

Several tactical positioning-led initiatives continue to be conducted to create the desired premium position in audiences perception led by close, on-ground activations, dealer interactions, plumber training on product portfolio education, and plumbing/installation related issues. We are also conducting extensive factory visits of plumbers, dealers and plumbing consultants giving them an opportunity to witness the product testing processes and helping them strengthen their confidence in the Prince brand. Films to showcase our wide range and applications of each product are created targeted at specific audience groups. The Company participates in high quality all-India level exhibitions that illustrates how the brand is a one stop solution from water storage to underground drainage This approach has led to greater understanding of the uniqueness of Prince Pipes ‘product bouquet, world class quality of pipes and fittings offered, superior post sales service and knowledge depth of technicians associated – all of which are helping form category perception and better engagement with the brand.

Robust controls and processes, strict audit systems ensure financial health

The Companys Internal and statutory auditors ensure adequate internal controls are in place with the periodic stringent reviews in regular intervals. Since the pandemic hit the nation in March 2020, the Company initiated various cost control measures during the COVID period that translated into strong performance of operating margins and profitability.

Prince Pipes overall organizational progress, and good growth momentum has been reflected in the improvement in both long and short-term ratings from CRISIL. Long term rating improved from A (Positive) to A+/ Stable with positive outlook and short-term rating improved from A1 to A1+.

The Companys prudent financial management has translated into a long-term debt free status since March 2021.

Focus on ESG for responsible growth

Over the years, the Company has been striving to build industry leadership by bringing together strengths to unlock new avenues for growth and delivering a more diversified suite of products and services to meet the water distribution needs of a growing India. We follow a triple bottom-line (3P – People, Planet and Profit) approach and judiciously manage the six sources of key capital repositories (Natural, Human, Financial, Manufactured, Intellectual and Social & Relationship) to achieve our strategic objectives.

Our drive for continuous improvement and innovation has enabled us to reduce process waste, lower energy consumption, increase productivity and release new products, thereby achieving higher customer acceptance and satisfaction. We have in place an Integrated Management System through which we constantly strive to reduce losses (internal rejection/energy losses) by providing necessary resources to achieve the targets and usage of energy and environment efficient products and equipment.

Business model

Oriented to deliver deep impact and bring transformative progress to Indias water distribution and infrastructure We operate in a competitive industry across India. To thrive in this environment, we operate an integrated business model that is focused on creating value at every point and for every stakeholder. Our business model is based on the following key pillars that enable us to leverage our strengths to always build value:

1. Growth led by end-to-end / extensive product portfolio with applications in plumbing, irrigation, storage, and sewerage segments

• A growing product portfolio of over 7,200 SKUs, which is amongst the largest in the industry

• Application-led innovation and new product launches

• Rapidly growing business associates, distributors, channel partners to expand pan India network founded on long term relationships ? Strong and expanding brand presence across India

2. Financial strength / Profitability

• Focus on value-accretive products & sharp marketing strategies leading to value growth ? Various efficient cost control measures during the COVID period that translated into strong performance ? Overall organizational progress, and good growth momentum reflected in positive ratings from CRISIL

• Robust internal controls in place with stringent reviews

3. Growing brand presence

? Strong focus on brand visibility through holistic, integrated marketing strategy ? Akshay Kumar as brand ambassador lends strong brand recall and carves distinct position aligned to trust and high quality ? Aggressive integrated communications through ATL, BTL, social media campaigns, tier 3/2 cities focused events – aimed at building brand awareness and demand pull

4. Manufacturing excellence

• 7 state-of-art manufacturing facilities across India

• Five contract-manufacturing units are located at Hajipur (Bihar), 2 in Aurangabad (Maharashtra), Hajipur Vaishali District (Bihar) and Balasore (Orissa)

• Jaipur manufacturing facility was recently awarded GOLD medal in the 8th edition of National Awards for Manufacturing Competitiveness (NAMC) 2021

5. Capability development

? New products launched PE-FIT Aqua -HDPE Piping Systems and CORFIT Manhole Chambers developed drawing upon deep understanding of market needs and application areas

• Skill up-gradation and safety trainings are imparted to all concerned employees/ workers, irrespective of their gender, or type of employment

• Considerable thought given to ensure environment preservation and successful implementation of several novel initiatives leading to conservation of companys resources and contribution to social welfare

• Leveraging technology judiciously aimed at creating greater value for organisation

6. Responsible value creation, building social capital

? Ability to share, relate and collaborate with stakeholders, promoting community development and wellbeing ? Strong engagement with several community causes to convey empathetic and trustworthy intent of the Prince Pipes brand ? Strong ESG focus reflected across business disciplines

Key Performance - Financial Highlights

Advancing with resilience and stability Financial Highlights (in Rs million)

FY 22 FY21 y-o-y change (%)
Revenue 26,568.32 20,715.17 28.3%
Other income 54.71 175.99 (68.9%)
EBITDA 4,156.11 3,616.33 14.9%
Profit before tax (PBT) 3,368.71 2,991.48 12.6%
Profit after tax (PAT) 2,494.03 2,218.32 12.4%
Ratios FY22 FY21 Change
Debtors Turnover (x) 6.94 8.12 (-14.4%)
Inventory Turnover (x) 6.28 7.24 (-13.3% )
Debt Service Coverage Ratio(x) 2.83 1.73 63.2%
Current Ratio (x) 1.89 1.88 0.8%
Debt Equity Ratio (x) 0.12 0.08 45.1%
Operating Profit Margin (%) 15.6% 17.5% (190) Bps
Net Profit Margin (%) 9.4% 10.7% (130) Bps
Return on Equity– RoE (%) 21.6% 23.6% -8.3%

Balancing Risks and Opportunities

A well-established Risk Management System that tracks, targets, and mitigates existing and emerging risks

Approach to risk management

We have adopted a top-down approach for identifying and managing risks across the organisation. In the top-down approach, the principal challenges impacting the achievement of the organisational objectives have been articulated. Accordingly, the risk library comprises key strategic and business risks applicable.

Guiding principles

At Prince Pipes, risk management is guided by a set of principles that ensure that the procedure abides by the following parameters:

Shareholder value based Business Process based
Risk management is focused on sustaining the creation of shareholder value and protecting the same against erosion Risk management is embedded in existing business processes to facilitate management of risks across processes on an ongoing basis
Assurance in reporting Regular review
Risk management provides support in establishing correct processes to manage current risks and report the effectiveness of these processes to stakeholder groups All programs are reviewed on a regular basis to ensure its impact in a dynamic business environment
Types of risks Risk description Mitigation
Industry Risks:
Slowdown in economic activity Plumbing, irrigation, water transportation and sewerage applications are the key segmentsdrivinggrowthintheplasticpipes industry. These sectors are dependent on the level of activity in residential and non- residential construction, agriculture, and industrial spaces. A slowdown in any of these sectors is likely to impact financial performance. Sectors like real estate, agriculture, industrial, etc. are dependent on overall economic performance, Government policies & regulations, and budget allocations. The increasing Government investment in housing and sanitation, building and construction, and irrigation and schemes such as, AMRUT, Har Ghar Nal Se Jal, Housing for All and Smart Cities are expected to provide impetus to the pipes industry. They offer great opportunities for organised players like us and allow us to maintain sustainable growth.
Raw material supply Increase in raw material prices can affect profitability. UPVC, CPVC, HDPE and PPR resins are the key raw materials used in the production of pipes. Their prices depend on crude oil prices. Any upward movement in crude oil prices impact raw material prices of resins. We leverage our long-standing relationships with suppliers and try to mitigate raw material price hikes. Long-term contracts with suppliers, backed by a well-defined inventory management helps us hedge any volatile price movement in commodities.
Competition We operate in an industry that is highly competitive. To remain relevant and ahead of our peers, we strive to strengthen the Companys competitive strengths. Map competitive landscape closely, focus on improving operational strengths & efficiencies, periodic strategic meets to stay ahead of industry. Our strategically located manufacturing facilities, wide distribution network, diverse products, and our ability to provide comprehensive plumbing, irrigation and sewerage management solutions allow us to maintain significant competitive advantage.
Operational Risks
Operational efficiency Manufacturing operations may be impacted due to circumstances not completely within the control of the Company. Unexpected breakdown or technical issues could adversely affect the production and/or cost overruns. Continuous monitoring, periodic review and timely maintenance of equipment and infrastructure. Adoption of technology has helped gather information related to any potential/ actual breakdown, ensuring minimal impact on the operation. Special focus to strengthen operations with sustained investments in newer technologies.
Logistic and Supply Chain Disruption in supply chain or distribution related logistical issues. Other related issues might include receipt of material, vendor payments issues. Checks and processes are reviewed and recorded on regular basis to take stock of inventory, invoicing processes, stocks and dispatched goods management. The Company ensures that the receiving department is independent of the purchase and invoice processing department. Independent checks are done by bill booking department on rates, destination, tonnage claimed, and other charges levied (detention, reimbursements, etc.), if any after confirmation is received from User department.
Enterprise Risk Management spanning Anti- Fraud Control Framework Financial Risks Risks can include counterfeit goods circulating in the markets and on-boarding of new customers / channel partners / distributors accepted without performing due diligence. The risk relating to counterfeit goods has been assessed, and appropriate and relevant action has been planned to mitigate the risks. Processes are in place to monitor effectiveness of such actions, with corrective action undertaken where these are ineffective.
Foreign exchange We import some raw materials and equipment used in our manufacturing plants. Any unfavourable movements in the exchange rate would impact our performance. We constantly evaluate exchange rate exposure arising from foreign currency transactions. We enter into a variety of derivative financial instruments such as foreign exchange forward contracts, interest rate swaps and cross-currency swaps to mitigate this risk.
Changing regulations and policies The Indian Government has imposed an antidumping duty (ADD) on CPVC resin / compound imports from China and Korea for a period of five years (valid up to February 2025). This move is followed by provisional anti-dumping duty announced on August 26, 2019. Earlier, CPVC resin was sourced from various geographies, including Korea, China, Japan, and Europe. Post Government regulation, the Company has stopped sourcing the same from China and Korea. Since our raw material imports are not concentrated from these geographies, we have been able to mitigate this risk to a large extent.
Credit Majority of our sales to distributors are on an open credit basis, with standard payment period between 15-30 days. Inability to collect the receivables could adversely affect our performance. We purchase raw materials from domestic suppliers on credit terms of less than a week and purchase imported raw materials on credit terms of 90-150 days. However, the standard payment term with distributors is generally between 15-30 days. We use working capital facilities to fund the timing difference between the payment for raw materials and the receipt of payment for manufactured products. In addition, we also use channel financing to optimise the working capital requirements and improve collections/debtor days.
Regulatory Risks Regulatory / legal Evolving regulatory changes in tax, legal and industry scenario may impact the Companys performance A dedicated team regularly monitors all evolving regulations and provides timely inputs to the Company for prompt and corrective action.

Sustainability

Committed to purpose-led growth

We have deployed systems and processes that are designed to promote responsible manufacturing practices, robust resource management and compliance with applicable rules and regulations. Our systematic approach towards reducing carbon footprint and creating a positive impact on the environment includes improving energy efficiency, increasing the share of renewables in the energy mix while moderating our use of water and minimising waste generation.

Principles governing our sustainable approach for organizational progress

Sr. Business Principle Actions
1. Business conducted with ethics, transparency, and accountability The Companys core management team practices ethical behavior at all levels across the Company making it an essential part of the work culture so that every employee of the Company conducts himself with professionalism, honesty, and integrity.
The Company has in place a Human Resources Manual covering internal code of conduct and business ethics which every employee needs to abide by. We ensure that genuine concerns of misconduct/ unlawful conduct can be reported in a responsible and confidential manner through the Companys Vigil Mechanism.
The Company ensures transparency of operations by ensuring that the statutory disclosures are governed by the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information, Determination of Materiality Policy, etc. All necessary disclosures are published on regular basis and investor presentations and important updates uploaded on its website.
2. Providing goods and services that are safe and contribute to sustainability The Company endeavors to implement the principles of sustainability into the various stages of product or service lifecycle, including procurement of raw material/ service, manufacturing products or delivery of service, transportation of raw materials and finished goods, and disposal by consumers.
The Company ensures that manufacturing processes and technologies required to produce its products are resource efficient and sustainable, even while designing the products.
3. Promoting the well-being of all employees We believe in giving our employees ample opportunities of growth by encouraging them to suo moto take up initiatives in the interest of the Company so that they are motivated, result oriented and committed to achieve excellence in their domain.
The Company follows a strict policy against child and involuntary labour, in any of its offices and plants. We ensure fair, timely and transparent payment of statutory wages to all its employees without discrimination.
4. Respecting the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized The Company identifies its stakeholders, understands their concerns, and commits to engage with them. We acknowledge, assume responsibility and are transparent about the impact of our policies, decisions, products, services, and associated operations on the stakeholders.
5. Respecting and promote human rights We recognize the Companys impact on the communities in which we operate. We believe that local issues are most appropriately addressed at the local level. We are also committed to creating economic opportunity and fostering goodwill in the communities in which we operate through locally relevant initiatives.
Within its sphere of influence, the Company promotes awareness and realization of human rights across its value chain.
6. Respect, protect, and make efforts to restore the environment We strive to utilize natural and manmade resources in an optimal and responsible manner and ensure the sustainability of resources by reducing, reusing, recycling and managing waste.
We continuously seek to improve our environmental performance by adopting cleaner production methods, promoting use of energy efficient and environment friendly technologies and use of renewable energy.
7. Association with relevant authorities based on integrity We ensure that our engagement with the relevant authorities is guided by the values of commitment, integrity, transparency, and the need to balance interest of diverse stakeholders.
We engage with industry bodies and associations to influence public and regulatory policy in a responsible manner.
The Company works with industry organizations which are engaged in policy advocacy in a responsible manner and ensure that advocacy position remains consistent with its values and philosophy.
8. Support inclusive growth and equitable development The Company is committed to ensure protection of interest of all its stakeholders. To achieve inclusive growth and equitable development, we engage in various CSR projects.
We also innovate and invest in products, technologies and processes that promote the well-being of society and make efforts to complement and support the development priorities at local and national levels.
9. Provide value to customers and consumers in a responsible manner The Company discloses all information truthfully and factually as per applicable laws and educates customers through product labelling, advertisements, van activities, factory visits, trainings to dealers, and other associates.
We have in place, an adequate consumer feedback mechanism to address consumer concerns and feedback. The Company also ensures that the customers data collected by it does not infringe upon the right of privacy of its customers.

Persistent focus on Environment, Social and Governance [ESG] goals:

Total Carbon footprint generation reduced from 52,137 MT in FY-21 to 49,645 MT in FY-22, i.e., reduction of 1,052 MT (4.8%)

Carbon footprint in kg of CO2 per Kg of production reduced from 0.395 in FY-21 to 0.387 in FY-22, i.e., reduction of 2.1%

Renewable source of energy increased from 10.71% in FY-21 to 15.96% in FY-22 i.e., growth by 51%

STP installed capacity in all our plants increased from 87KLD to 205KLD to improve water recycling capacity i.e., increased by ~136%

Reducing our impact on the environment or focusing on clean energy and environment

From procurement of raw materials, to ensuring sustainable manufacturing facilities, until distribution, our resources are used with the aim of valuing and conserving our larger communities and the environment. Some of our key efforts have been directed as follows with positive outcomes:

Environment conservation through carbon reduction, energy consumption, water & waste management

We have phased out lead-based chemicals and Ozone depleting substances in existing equipment

Maintaining Environmental Aspect Impact register

We aim to reduce carbon footprint by 5% every year

Our Water Utilization Ratio (WUR) has reduced by 3.9% y-o-y, by improving awareness among employees to save water

Driving the circular economy, a system in which nothing is wasted. We store products in use for as long as possible while extracting maximum value from products ? ~ 99% of waste generated is recycled in-house across our manufacturing units while other plastics are sold to third-party for recycling

Have in place instruction documents for each plant setting out the procedure for processing internal rejection including grinding, segregation, reuse, and treatment of non-usable wastage. The Company also submits necessary returns on hazardous and other wastes as prescribed by the State Pollution Control Boards/ Committees for each of its plants

Empowering communities

We prefer locally available goods and services, other considerations being comparable. Company has taken several initiatives for the development of local and small suppliers of goods and services

We have developed packing material and hardware/ spare items supplier locally, to ensure the development of surrounding communities

We educate utility services providers including plumbers on various aspects related to solvent applications, new techniques, soft skills, and product usage to better their service capabilities

In May 2021, the Company airlifted oxygen concentrators from international partners to contribute to Indias relief efforts in fighting the surging second wave of Covid-19 ? The equipment was handed over to states of Bihar and Rajasthan in two phases within the month ? Further it also donated oxygen concentrators to Telangana Government

We distributed STOREFIT water tanks of 500 litres capacity, to villages along L.O.C. Kashmir with the help of the Indian Army ? This was aimed at bringing ease of living, better health and improve the quality of life of rural India

Conducted vaccination drives for first and second doses, at Mythri Hospital, Hyderabad, to secure health of all dealers, distributers of our company and plumbers in Hyderabad

We distributed food grains and groceries to devotees during the Rath Yatra in Odisha

In December 2021 we announced "The First Prince Udaan Scholarship Program In Ludhiana" - Initiative aimed at enabling potential children of plumbers to take off towards a successful future ? Children of plumbers in Ludhiana in standards 5 to 10, who have scored above 70% in Maths and Science will be eligible for the Scholarship. It is also extended to students who have lost a parent during COVID, to support them to ensure continuity in their education ? The Prince Udaan Scholarship Program in Ludhiana is an extension of our Udaan loyalty program which was one of the first loyalty programs to be introduced in the pipes and fittings industry on pan-India basis

Organised our flagship event World Plumbing Day: In March 2022, conducted Shram Ka Sammaan Campaign commemorating all-India events across Mumbai, Pune, Hyderabad, Bangalore, Jaipur, Patna and New Delhi. The Prince Plumber Song was launched in several languages across India which gained large social media visibility. ? The Company felicitated plumbers for its long-standing association, inspiring them about dignity of labour, and sensitizing them on skill upgradation ? We provided over 5,000 loyal plumbers with accidental insurance policies, a first in the industry

People

Our strategic objectives, our mission and vision are brought to life by our employees who are members of our Prince Parivaar. It is their commitment and motivation to accomplish the overarching objectives that we have set for ourselves, that drives the organization to remain goal-oriented and progress with greater vigour, enthusiasm and passion, year after year. This is critical to create value for our clients and ensure long-term sustainability of our business.

Regular programs conducted for enhancing the skills of its employees, improve career development - Driving specialized training programs like Six Sigma

Foster a people-centric culture that enables outperformance. Our unwavering focus is on attracting, nurturing, and retaining talent, while promoting inclusivity, diversity, and transparency

Respect and promote human rights of all individuals. We are committed to identify, prevent, and mitigate adverse human rights impact resulting from or caused by business activities beforehand or if they occur, through human rights due diligence and mitigation processes

Provides a workplace environment that is safe, hygienic, humane and which upholds the dignity of the employees. It provides facilities for the well-being of its employees including those with special needs

Complies with the statutory provisions pertaining to employees and about the health, safety and well-being of our staff

We continue to provide several internal and external training opportunities to upskill our employees and enhance their skillsets. As on March 31, 2022, we have a team of 1,665 people, working together towards the organisations singular vision and growth

Employee engagement and welfare activities undertaken during the year include:

Health Related initiatives:

Loser is the winner (weight loss initiative) – Post pandemic health being the prime importance we had conducted the competition to make people health conscious also gave sessions by nutritionist

Health talk webinars with eminent doctors

Learning the Indian Way – YOGA + Meditation sessions for a month

Emotional Health – Session with psychiatrist on Child Mind Psychology

Celebrations to commemorate Republic Day, Womens Day and Indian festivals were organized to strengthen bonding and collaborative spirit amongst all staff members.

Employees also engaged in social welfare causes and activities to contribute to overall wellbeing were organized with enthusiasm: ? Financial support to employees & contractors during pandemic were provided ? Contributed Rs.5.00 lakh in coastal beach cleaning ? A social media campaign is ongoing #WeAreInItTogether to build emotional connect for employees during pandemic and create awareness of all efforts being undertaken by the Company ? A social media campaign #WhyThisKolaveri –has been created to promote a culture of greater transparency within the organisation

Health, Wellness, and Safety

Safety and well-being of the Companys employees is paramount and non-negotiable. The Company follows industry accredited best practices on health & safety across our operations and conduct all our processes in a responsible manner to safeguard our employees.

Building a culture where employees exhibit and practice safe behavior:

Occupational Health and Safety is centrally governed by our OHSMS certification process and is supplemented by plant Safety Committees. The Company has in its staff, specially trained safety professionals along with trained line management. Some of the initiatives taken in Health & Safety are listed below.

Introduced new safety performance measurement metrics i.e., LTI (Lost Time Injury) and AFD (Accident Free Days) which is benchmarked against the top industries in the world. the Company has achieved the targets taken in the year 2021-22

Behavior Based Safety (BBS) initiative is a formal community-based prevention programme aimed at fostering a zero-accident culture. Primary objective of BBS was to identify hidden habits and environmental factors that predisposed people to the cause

• The approach to implement BBS in the Company is focused on identification of potential hazards & mitigate it through HIRA (Hazard Identification & Risk Assessment). Individuals were able to conduct their duties in a more responsible manner through our initiative of consultation & participation of employees in safety related activities

Following specific safety/ EHS and skill up-gradation trainings are given to the employees:

• Daily Toolbox Talk (TBT) on activity related topics

• Training in first aid through St. John Ambulance, an organization which teaches and provides first aid & emergency medical services

• Behavior Based Safety (BBS) training through outside expert faculties

• EHS awareness training for new employees

• HIRA (Hazard Identification and Risk Assessment) training & Environmental Aspect Impact

• Safety auditor training

• Practical training on how to operate the fire extinguishers, Fire hydrant, etc.

• Mock drills every quarter

• Environment day and safety week celebration in plants to improve awareness through slogan/ essay/ drawing competition and tree plantation

Wherever possible, employees have been assisted with finding suitable diagnostic centres and hospitals for COVID-19 related testing and treatment

• The Company continues to propagate messages of physical distancing, importance of masks, washing hands with soap, using hand sanitizers, etc. through multiple avenues and on multiple forums

• Through various employee wellness programs targeted at physical, mental and financial wellness as well as disease and ailment control, the organization has strived to ensure high morale among its workforce even through these difficult times

Innovation

Our core knowledge, experience and expertise represent our intellectual capital, which drives us to create value for our customers, understand the applications desired in the industry, and utilize the learnings to create and develop industry-first products. We proactively embrace technological developments and encourage discussions and dialogues that will spur innovation across a wide spectrum of disciplines and departments across all our operations. We motivate our talent pool to nurture and implement innovative ideas, with reward schemes which has led to operational improvements across our plants.

In line with our aim of being an end-to-end pipes and fittings solution provider, the company has been actively strengthening its comprehensive product portfolio. We have launched the following products: PE-FIT Aqua - HDPE Piping Systems: offers major advantages of polyethylene material which results in much lower installation and whole life cost when compared with traditional piping materials. Finds application in: Potable Water Pipe Network in rural & urban areas, Drip, Sprinkler and Lift Irrigation, Industrial Effluents, Infrastructure Projects, Government Projects, Bore Well Application for Submersible Pumps, Mining Sector for Handling Slurries.

CORFIT Manhole Chambers: made from PE (Polyethylene) material. Finds use in Commercial & Municipal sewerage/ drainage networks.

Holding Patents:

Driven by intense industry expertise accumulated over 3 decades, Prince Pipes has striven to cultivate an innovative mindset to resolve various water related challenges. It is proud to hold the following patents:

Single Piece Nahani Trap- a single-piece UPVC injection moulded trap preventing entry of pests, small insects, foul gases into the house through water inlets

DWC Coupler- a technology that to ensure long lasting, leak-proof pipe joints

Injection moulded Vent cowl - preventing entry of pests and small insects

We have implemented SCADA systems & automation for compounding process and real time data monitoring systems for production process. We have adopted automation in non-core processes such as pipe lifting and product packaging to further optimise the cost. These initiatives will optimise costs and help Prince Pipes to be viewed as a progressive, and future- ready brand.

Quality Control, Assurance & Certifications

Our stringent quality parameters create a strong aspect of competitive advantage. We enjoy product and process approvals from discerning project partners in the real estate, infrastructure, and agriculture sectors, who have become a proud point of reference for Prince Pipes. As a result, we have emerged as a dependable supplier of pipes and fittings to quality-demanding customers across several industries. Being of high quality, our products are the natural preferred choice amongst customers. In addition, we have implemented Integrated Management Systems (IMS), which comprises of Quality Management System – QMS (ISO 9001:2015), Environmental Management System - EMS (ISO 14001:2015), Occupational Health & Safety Management Systems - OHSMS (ISO 45001:2018) and Energy Management System – EnMS (ISO 50001:2018) across all our plants & corporate office except Telangana, which is planned in FY23.

A wide range of our products adhere to Bureau of Indian Standards [BIS], American Society for Testing and Materials (ASTM) and other quality standard. SILENTFIT pipes are certified by Fraunhofer IBP, Germany and Trubore brand products adhere to BIS, ASTM, Water Regulation Advisory Scheme (WRAS). The Company uses techniques such as Kaizen, Lean Six Sigma, which monitors function improvements and involves employees across the organisation, from the top management to the production lines. We implement stringent quality checks and testing systems in place through several key processes -- right from the procurement of raw materials to manufactured products and packaging for ensuring superior quality. Multiple parameters are also tracked to ensure no quality slippage - such as the mean time between complaints, customer complaint hit rate, cost of poor quality, percentage of wastage and corrective and preventive measures are undertaken to mitigate the issues and maintain the quality of products and subsequently customer delight. With the reopening of the economy and the waning of the pandemic, the demand environment continues to be favorable for government-mandated BIS certified products in India, warding off competition from unorganised players. Prince Pipes, being a dominant pipes and fittings player in the country, is best positioned to take advantage of the scenario.

Internal Control

The Company employees efficient systems of internal controls for business processes, operations, financial reporting, fraud control and compliance with applicable laws and regulations, among others. A well-qualified team of professionals manage core functional areas including finance, procurement, manufacturing, logistics, sales and marketing, human resources, and information technology. The Management team oversees designing, implementing, and maintaining adequate internal controls relevant to the preparation and presentation of the restated financial information. Regular internal audits and checks ensure that responsibilities are executed effectively. The Audit Committee, along with the management, actively reviews performance and statutory information with the help of internal auditors. It also reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them in view of changing business needs.

Cautionary Statement

Certain Statements found in the Management Discussion and Analysis may constitute "Forward Looking Statements" within the meaning of applicable securities laws and regulations. These forward looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance and achievements expressed or implied by these statements. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward looking Statements become materially incorrect in future or any update made thereon.