Remedium Lifecare Ltd Management Discussions.



The year 2019 was the defining year for the Indian economy. India s GDP reported a downfall of 6.9 percent in FY 2018-19 as compared to 7.4 percent of the previous year.

The year 2019 was marked by a number of key structural initiatives to build strength across macroeconomic parameters for sustainable growth in the future. The growth in the first half of the year suffered despite global tailwinds.

Downfall has also remained subdued due to the twin balance sheet problem that India has been facing. The issue here is that balance sheets of Indian companies and banks both have been under stress. While Indian companies remain over-leveraged, the banks are reeling under high non-performing assets.

Currently, the economy seems to be on the path to recovery, with indicators of industrial production, stock market index, auto sales and exports having shown positive results. India s economic outlook remains promising and is expected to strengthen further in FY 19-20.

India has already made a strong comeback after period of slow-growth, regaining the tag of fastest growing economy, in the world as per the Central Statistics Organization (CSO) and International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. India s GDP is expected to grow 7.4 per cent in 2018-19. Improved domestic conditions, potential revival in rural sector and small scale businesses resulting inan increase in FDI flows into the country and increase in infra-structure projects will drive India s growth in 2020 and beyond.

The World Bank has retained its forecast of Indias growth rate at 7.5% for the current financial year.In its Global Economic Prospects report, the World Bank also said growth rate is expected to remain the same for the next two fiscals."In India, growth is projected at 7.5 per cent in FY2019/20 (April 1, 2019 to March 31, 2020), unchanged from the previous forecast, and to stay at this pace through the next two fiscal years," the World Bank said in its report.


Indias electronics production is estimated at Rs 4.58 trillion in 2018-19, which despite accelerated growth in recent years, still represents only 3.3 per cent share of the global market, the domestic electronics hardware manufacturing sector faces lack of level-playing field against competing nations on account of "several disabilities which render the sector uncompetitive.

Indian Industries have taken a slew of initiatives; as a results of which production of electronics in India has risen to an estimated Rs 4.58 trillion in FY19, growing at a compound annual growth rate (CAGR) of about 25 per cent in the last four years, compared to a rate of 5.5 per cent in 2014-15.

The National Policy on Electronics 2019 aims to promote domestic manufacturing and export in the entire value-chain of Electronics System Design and Manufacturing (ESDM) to achieve a turnover of $400 billion (Rs 26 lakh crore) by 2025.

"Indias electronics production during 2018-19 is estimated to be Rs 4.56 trillion (about $70 billion) whereas the global electronics production is estimated to be of the order of $2.1 trillion (about Rs 136 trillion). Therefore, Indias share in the global electronics production is about 3.3 per cent only.

Outlining the issues faced by the sector include lack of adequate infrastructure, domestic supply chain and logistics, high cost of finance, inadequate availability of quality power, inadequate components manufacturing base, limited design capabilities and focus on research and development by the industry, and inadequacies in skill development.

The government has taken several steps for promotion of domestic electronics manufacturing industry and exports from the country, So far, 212 projects have been approved with proposed investments of Rs 55,182 crore. The incentives committed against these 212 projects are Rs 5,635 crore.


The global marketplace is constantly evolving. No other industry experiences more change than electronics. New technology becomes available at an alarming rate. In order to remain competitive in the electronics industry, electronics manufacturers must be able to keep up. Electronics companies of all shapes and sizes face the following challenges:

_ Technology evolves to meet the wants and needs of consumers. It s crucial for electronics manufacturers to have the right processes in place for new product introduction. Teaming up with a qualified contract manufacturer ensures new products meet all quality, volume and release requirements.

_ Demand for technology is rapidly changing. Because technology is so closely intertwined with demand, it is extremely vulnerable to changes in local conditions. Production capabilities should be kept lean and able to shift to meet changing demand.

_ New standards and regulations require electronics manufacturers to consider the environmental impact of a product s entire life cycle. Every aspect must be considered, from the manufacturing process and the chemicals used, to consumer energy use and disposal of the product.

_ Having good quality control measures in place ensures that only high quality products are produced. However, sometimes things go wrong. Being able to service faulty parts as opposed to replacing products under warranty saves both time and money. It also allows electronics manufacturers to provide a greater level of customer service and increase trust in their brand.

_ It s becoming more and more important for electronics manufacturers to produce smaller products that last longer and consume less power. This can be a challenge for manufacturers without the equipment or technology necessary to create new products. Contract manufacturers stay up-to-date with the latest technology and practices. They help companies produce new products without spending the cost and time involved with training and equipment

_ With so many electronics companies competing in the marketplace, it s more important than ever to produce good quality products. Consumers want electronic products that operate the way they should. Strict quality control measures ensure consistent quality of all products produced.


India produces approximately 10% of the world annual bicycle production, which is estimated at 125 Million units. The annual domestic demand of bicycles in India is approximately 10 million units, out of which around 2.5 million units is a government demand for the various welfare schemes. Exports out of India are largely to Africa and the less developed economies and negligible to western markets.

Today, the Indian bicycle manufacturing and bicycle parts industry is widely recognized for its quality standards in the international market.

The market for the premium or the lifestyle bikes targeted towards the lifestyle consumer is just about emerging on account of increasing individual incomes and higher aspiration levels of the middle income group. Growth in the specials segment (Sport Light Roadster, mountain terrain bike and children s bicycles) was higher than in the standard segment. The definition of high end bikes itself is changing.

Not only are the price points changing but even definitions of the segment are. Hitherto, cycles were simplistically segmented into gents, ladies, kids and high end. But now the lifestyle bikes are being segmented in line with the global trend that is based on their usage. There are Road bikes, Mountain terrain bikes and Children bikes etc.

The demand for these cycles at this stage is very limited but is set to grow at a frenetic pace in future. While the mass-market segment is experiencing a sluggish growth of between 4-6% annually the premium & lifestyle segment is growing at a CAGR of over 30%. The market size for the lifestyle cycles is estimated at not more than 0.25 million units annually but its only time that this segment will form an important part of the industry. Apart from rising input costs, cheap Chinese bicycles are also entering in domestic market.



1. Product development and Innovation is a serious challenge faced by the manufacturing industry. The evolution of a product a cycle is fast paced and by the time the product is standardized for manufacturing, the product is soon replaced or upgraded with newer or upgradedversion.

2. The engineers in today s manufacturing industry still practice the tried and tested manufacturing method. This is another challenge faced by many. Younger generations are faster at adopting latest technology and embracing younger generation is essential to modernize the manufacturing industry.

3. Health and Safety is given high priority and is also one of the top challenges faced in the manufacturing industry. 4. Manufacturing industry also faces challenges to balance maintenance with throughput. Breakdown or running low on supply can severely hurt production throughput. 5. Keeping abreast with regulations, implementing them and keeping track of the implementation is one of the big challenges faced by the manufacturing industry. This is even more complex for an multinational company


The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and applicable accounting standards issued by the Institute of Chartered Accountants of India. The details of the financial performance of the Company are appearing in the Balance Sheet, Statement of Profit & Loss Accounts and other financial statements forming part of this annual report.


Given the magnitude and nature of its business, the Company has maintained sound and commercial practice with an effective internal control system.The system ensures that all transactions are authorized, recorded and reported correctly to safeguard the assets of the Company and protect them from any loss due to unauthorized use or disposition. The adequate internal information system is in place to ensure proper information flow for the decision-making process. The Company also has well-established processes and clearly defined roles and responsibilities for people at various levels. The control mechanism also involves well documented policies, authorization guidelines commensurate with the level of responsibility and standard operating procedures specific to the respective businesses, adherence to which is strictly ensured. Internal audit is carried out frequently to create awareness and to take corrective actions on the respective units or areas, which need rectification.These reports are then reviewed by the management team and the AuditCommittee for follow-up action.


The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation.

Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.


The management discussion and analysis report containing your Company s objectives, projections, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Company s operation include raw material availability and prices, cyclical demand and pricing in the Company s principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

On behalf of the Board of Directors
For Roxy Exports Limited
Siddharth Chimanlal Shah
Date:09/08/2019 (DIN: 01343122)
Place: Mumbai Managing Director