raaj medisafe india ltd share price Management discussions

The Management Discussion and Analysis Report are prepared in adherence to the spirit enunciated in the Code of Corporate Governance, approved by the Securities and Exchange Board of India and in compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market Overview- Industry Structure and Development:-

Packaging Industry in India is a rapidly growing industry with enormous potential and future growth opportunities. The Indian packaging industry has grown quickly in recent years, becoming one of the country?s fastest-growing industries. The reason for this surge is that it provides attractive Growth and Investment Opportunities in a diverse variety of products and services at competitive pricing both domestically and internationally.

Because India?s population is at an all-time high, investing in packaging is a lucrative enterprise. Indians? increased per capita income and purchasing power have created opportunities for businesses willing to take advantage of these trends. Having said that, packaging will continue to play a vital role in almost every product. Packaging is critical in ensuring items reach their consumers securely, whether they are FMCG or pharmaceutical.

How the Packaging Industry Fits Into the Indian Economy:-

In today?s globalised world, the Packaging Industry is vital. The industry of paper, printing, and packaging (PPP) accounts for 4% of GDP. In other words, PPP products bring in more than $80 billion to India?s GDP each year. This money supports thousands of jobs and raises the living standards of millions more. It?s no surprise that investors want to know how to get started investing in PPP stocks and which industries are the most rewarding.

The India Packaging Market was valued at $50.5 billion in 2019 and is predicted to reach $204.81 billion by 2025, with a CAGR of 26.7 percent between 2020 and 2025.

The United States (50 percent of all exports), the United Kingdom, and all Western European countries are major export markets for Indian PE bags.

Under the automatic route, 100 percent FDI is allowed in India?s paper and packaging businesses.

This industry?s polymer consumption is higher than the global average, indicating that plastic packaging is becoming more prevalent in the country.

India has become a net exporter of packaging materials, accounting for about 2% of global packaging exports.

India?s current per capita polymer consumption is at 9.7 kg, compared to the global average of 28 kg, Singapore?s 43 kg, China?s 45 kg, Thailand?s 50 kg, Japan?s 56 kg, Malaysia?s 58 kg, and Taiwan?s 67 kg. This indicates that our country has a lot of untapped potential. The number of mergers and acquisitions in the sector is increasing, indicating institutional investors? interest.

The rising population, rising income levels, changing lifestyles, increased media penetration through the internet and television, and a growing economy are all driving up packaging demand. Furthermore, it is one of the fastest-growing industries in the country. The pharmaceutical and food and beverage industries are driving the market?s rapid expansion.

Huge investments in the food processing, personal care, and pharmaceutical industries are allowing the packaging market to expand. The emergence of India?s middle class, the quick expansion of organized retail, the expansion of exports, and India?s burgeoning e-commerce sector are all helping to fuel growth. The Indian Institute of Packaging (IIP) estimates that packaging consumption in India has increased by 200 percent in the last decade, from 4.3 kilogram per person per annum (pppa) to 8.6 kg pppa.

In a decade, the worldwide pharmaceutical packaging market is expected to double to $149 billion, with India generating a significant amount of plastic pharmaceutical packaging. Demand for packaging items will rise as demand for FMCG segments such as packaged food and beverages, personal care products, and so on grows.

Government Support: Low taxes, subsidies, grants, loans, and other incentives are used by the Indian government to encourage economic growth. Many of these programs are tailored to small businesses because they can help them compete on price with larger firms while still delivering high-quality goods and services.

Aluminium Cap in India is exported from more than 124 countries.

In FY 2020-2021 (Apr-Nov), Around 11.17 USD Million of Aluminium Cap is exported from India to USA. It is around 22.36% of the total export of Aluminium Cap.

Data Bridge Market Research analyses that the aluminum caps and closures market will project a CAGR of 4.75% for the forecast period of 2022-2029. Rising focus on the packaging product innovations and technological advancements by the manufacturers, growth and expansion of packaging industry especially in the developing economies like India and China, surging demand for innovative packaging solutions that are developed with advanced and innovative methods of manufacturing, growing rate of consumption of both alcoholic and non-alcoholic beverages and increased personal disposable income are the factors driving the growth of aluminum caps and closures market.

Internal Control:-

The Company has put into place an Internal Control system to monitor the movement of parameters considered important for the business. The Company has an Internal Audit Department reporting directly to the management. This department is responsible for monitoring of the above parameters with suitable internal control procedures.

Risk and Concern:-

Availability of desired RM at affordable price, growing competition, pricing and margins, Talent management, logistics will be the critical aspects for company as well competitions.

All the similar industries use the same strategy to capture the emerging markets but difference lies in the quality of execution.

The company to stay in market has to lower the cost of production and have to adapt the strategies as per the changing environment and policies to get strategic advantage.

Financial & Operational Performance:- (Rs. in Thousand)

Particulars	Year ended	Year ended	% Changes
	31.03.2023	31.03.2022
Gross Income	386454	347202	11.30
Net Profit/(Loss) After Interest, Depreciation & Tax	33298	30128	10.51

The Key Financial ratios of the Company are as under:

a.	Debtors Turnover	6.283
b.	Inventory Turnover	5.569
c.	Interest Coverage ratio	0.555
d.	Current Ratio	1.343
e.	Debt Equity Ratio	2.084
f.	Operating Profit Margin (%)	21.72%
g.	Net Profit Margin (%)	8.65%

Human Resources

Our Company believes in philosophy of communicating with the entire team in a two way process. Company also believes in the principal of proper delegation of authority which results in upliftment of Commitment level, responsibility and accountability of entire team right from Managing Director to Lowest level of administration. Every effort is made to implement the suggestions received and to encourage staff for more suggestion. During the financial year ended on 31st March 2023, the company has maintained cordial and harmonious relation with the employees, negligible attrition at staff and worker level, adherence to compliances, as applicable. Our focus would remain on hiring the right, retain them successfully and remain complied with the laws of land at any given point in time.

Cautionary Statement:-

Actual performance may differ from projections made as the Company?s operations are subject to various economic conditions, government regulations and other incidental factors.

		For and on behalf of the Board
		RAAJ MEDISAFE INDIA LIMITED
	Sd/-	Sd/-
Place: Ujjain	NAVIN JHAWAR	ARPIT BANGUR
Date: August 08, 2023	MANAGING DIRECTOR	CHAIRMAN
	DIN: 08729821	DIN:02600716