Responsive Industries Ltd Management Discussions.


Responsive Industries Limited is a leading India-based manufacturer of polyvinyl chloride (PVC)-based products. The Companys main product verticals are Vinyl Flooring, Synthetic Leather, Luxury Vinyl Tile (LVT) and Shipping Ropes. The Companys products are marketed both in India and outside of it. The Company has been operating for greater than 30 years in the same industry. It has a state-of-the-art manufacturing facility in 65 acres park area located at Boisar, 120 km, north of Mumbai. The Company dominates in manufacturing across flooring and synthetic leather related

PVC products. It has established itself as a leading player in India as well as in the world by completing more than 5,000 projects, exporting the products to over 70 countries across the globe and has a wide network of over 300 active distributors spread across India

The Company produces 24 different type of flooring catering to every section of the society, ranging from hospitals, health care, transportation, real estate

offices and residences, which not only giving safety but aesthetic look to the surrounding where it is used. The major segments includes Vinyl flooring, Synthetic leather, LVT, Shipping ropes.

The Company has introduced new type of IMPACT flooring which is hard layer interlocking flooring in vide range of looks substituting wooden flooring, marble, granite and tiles. It is very easy to use and fast to lay, environment friendly as well as good in cost and looks. It is so easy and fast to install, full large area can be covered in hours where it would take days to do so.

During the year under review, the Companys performance was satisfactory and the Company was able to meet the demand of PVC product satisfactorily.

Despite the short-term challenges of COVID-19, the Company has extremely strong growth prospects and looks to emerge stronger from the crisis. The Company is trying to realize the dream of our honorable Prime Minister in being a Company on the lines of "Atmanirbhar Bharat".


The Company is among the market leaders in PVC product segment. The consumption of PVC products like PVC leather cloth is increased with reasonable percentage in both commercial and household purposes and for other PVC products like PVC sheeting, flooring the consumption in commercial purposes has been increased. With this growing demand of

PVC products in the domestic market as well as the overseas markets for commercial and household application, the Company is expecting several opportunities for profitable growth. The Company has all geared up to meet these challenges and continue to be among the leaders in this sector.

The threats that the Company faces are from geopolitical re-alignments, supply chain disruption and potential shut down due to COVID 19.


The Company is engaged only in single segment of products i.e. PVC products. The Company produces various types, grades and form of PVC flooring, PVC leather cloth, and PVC sheeting. Your Company has achieved Revenue from Operations of Rs. 4,340.55 million & recorded net profit after tax of Rs. 247.20 million for the year ended March 31, 2020.


With Companys increased capacity utilization, strong product development, market efforts, the Company is optimistic about its growth in the coming years.


Y our Company has a clearly documented Risk Management Policy.

The management team of the Company regularly identifies, reviews and assesses such risk and decides appropriate guidelines for mitigating the same.


The Company has instituted adequate internal control procedure commensurate with the nature of its business and the size of its operations for smooth conduct of the business. Internal audit is conducted on a regular basis and covers the key areas of operations. It is an independent objective and assurance function responsible for evaluating and improving the effectiveness of risk management control, governance processes etc.


Your Company has achieved Revenue from Operations of Rs. 4,340.55 million for the year ended March 31, 2020 as compared to Rs. 6,288.32 million in the previous year. Further, your Company recorded net after tax of Rs. 247.20 million as compared to Rs. 284.18 million for the previous year.

In terms of geographical market, performance of the Company is as follows.

(Rs. in Million)

Sales Year ended 31.03.2020 Year ended 31.03.2019
Local 2119.03 4020.70
Export 2221.52 2267.62
Total 4340.55 6288.32

Details of significant changes in Key Consolidated Ratios, if any (i.e. change of 25% or more as compared to the immediately previous financial year)

Debt equity ratio stood at 0.25 as on March 31, 2020 as compared to 0.17 as on March 31, 2019. This is attributed to increase in total borrowings during the year.

Net Profit Margin (%) appreciated to 5.48% in FY20 from 4.42% in FY19 due to significant progress achieved by the Company in its strategy of transiting to high value added margin products.

Interest Coverage Ratio stood at 1.78x in FY20 as compared to 4.49x in FY19. The interest expenses increased to Rs. 208.70 million in FY20 as compared to Rs. 126.74 million in FY19.

Return on Networth (RoNW) increased to 3.74% in FY20 as compared to 2.76% in FY19 due to significant improvement in net profit.


Y our Companys biggest asset is its employees. The Company provides suitable environment for development of leadership skills which enables it to recruit and retain quality professionals in all the fields. Your Companys industrial relation continued to be harmonious during the year under review.


Transparency refers to sharing information and acting in an open manner. Processes and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them. Your Company strives to provide maximum possible information in this report to keep the stakeholders updated about the business performance.


Statement in the management discussion and analysis describing the Companys objectives, projections, expectations may constitute a ‘forward looking statements within the meaning of applicable laws and regulations. Actual results could materially from those expressed and implied.

For and on behalf of the Board of Directors

Mr. Mehul Vala Mr. Mrunal Shetty
WholeTime Director & CEO Director & CFO
DIN: 08361696 DIN:08362895
Place : Mumbai
Date : July 17, 2020