Raaj Medisafe India Ltd 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 Listing Agreement/SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015.

Industry Structure and Development

Packaging is among the high growth industries in India and developing @ 22-25% per annum and becoming a preferred hub for packaging industry. Currently the 5th largest sector of Indias economy, the industry has reported steady growth over past several years and shows high potential for much expansion, particularly in the export market.

Today plastics are the material of choice in packaging for the sectors such as FMCG, food and beverages, pharmaceuticals etc. . In India, a large chunk of products that households buy for daily use are packaged in plastics. Plastics are used heavily for packaging due to innovative visual appeal for customer attraction and convenience. Additionally, they improve the hygiene quotient and shelf-life of the products especially in food and beverages segment.

Overall, the Indian packaging industry is valued at over USD 32 Bn and offers employment to more than 10 lakh people across the country through ~10,000 firms.(as per FICCI).

The global caps & closures market is growing at CAGR of 4.9%-5.9% rate annually and is projected to reach US$68.71 billion size by 2021. Aluminium caps and closures market, when studied in the context of this growth, can be seen slowing down moderately because of the rising demand of plastic caps & closures, corks, and a faster shift to PET-disposable bottles. Although aluminium still remains the most viable packaging material in terms of lightness, formability, effective barrier quality, and recyclability (read- environmental friendliness), rising competition from a number of new-age packaging materials is making it somewhat unattractive to the bottle makers.

The Indian market for caps is growing at high rate annually, largely due to renewed demands for packaging from the beverage and pharmaceutical industry.

Global Industry Analysts, Inc. (GIA) has released a new global report on the medical nonwoven disposables markets. The research firm says the market is projected to reach US$22.7 billion by 2020, driven by increasing awareness over the importance of health and hygiene, and growing emphasis on infection control in healthcare settings.

Nonwoven disposables are one of the important constituents of healthcare industry with the products disposable attribute offering an edge over woven fabrics used in hospitals. Growth in the global market for medical nonwoven disposables is being driven by factors such as rapid advances in nonwovens production technology, increased focus on preventing hospital acquired infections (HAIs), and improving healthcare infrastructure and services across developing countries. Focus on infection control as a means to cut healthcare costs implies that hospitals and other healthcare facilities are looking at disposables as essentials. Growing awareness over the spread of infectious diseases such as AIDS and hepatitis has fuelled demand from hospitals for clean, sanitary and disposable products for safeguarding patients and doctors from infections. Health needs of an aging population, increasing incidence of chronic illnesses, and the continuous rise in hospital admissions are driving demand for medical nonwoven disposables. Market growth is also attributed to the rise in surgical procedures (inpatient and outpatient) and the trend towards home healthcare. With stringent regulations adopted for safety at healthcare facilities, demand for nonwoven products such as facial masks, gowns, drapes, gloves, and wipes is on the rise. Apart from medical supplies market, non-wovens are also used in adult incontinence care products.

All our three segments are expected to grow at high pace considering the market dynamics.

1. Hospital Hygiene Division- Disposable Lenins, pillow, adult diapers are futuristic projects contributing towards awareness to control hospital acquired infections (HAI).

2. Containers and Closers - HDPE containers and closures are catering Pharma and FMCG clients and have big market potential to grow and capacity expansion is a immediate need.

3. ROPP Caps and seals- This segment contributes towards major growth due to cost economics and wide acceptability of products in to Pharma and beverages industry.


The current scenario defines that the market conditions will be favorable for the company and it is expected that the company will thrive in future only if it adapt the changes arising in the environment.

Taking into the account all the above it is expected that while the growth in profitability would be a challenge, the concrete plans and strategies set up by the management will help the company to overcome the challenges.


Dematerialization of Companys Shares facility is available with NSDL through our Share Transfer Agent M/s Ankit Consultancy Pvt. Ltd.

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

Emerging markets will be the growth engines for pharmacy but as opportunities will be high risk and threats will move side by side.

The challenge for growth goes beyond cost and it includes flexibility, innovation and distribution. 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 000 )

Particulars Year ended 31.03.2020 Year ended 31.03.2019 % Changes
Gross Income 59190.99 48015.79 23.27
Net Profit/(Loss) After Interest, Depreciation & Tax (13645.56) (15921.30) 14.29

Human Resources

Your 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 year 2019-20, the company has maintained cordial and harmonious relation with the employees.

Cautionary Statement

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

For and on behalf of the Board


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DIN: 05269584 DIN:02600716