shalimar wires industries ltd share price Management discussions


Since the year 2014, India’s Paper and Paper Board Packaging Industries has been growing at the rate 8 to 10% on Year to Year basis and currently the same stands at 5th Position. The Total Production is more than 20 million Tons and it is one of the fastest growing Industries as per NATION MASTER Database. Now, India’s Position in Writing & Printing segment is again growing and the growth rate is about 3% on Year to Year basis and India achieved the highest in CAGR Position in 5 years with more than 600 Paper Mills all over India.

The present demand is estimated at 20 ml tons which is projected to boost to 29-30 ml tons by 2028-29. India is the greatest growing market for paper in the world with a growth rate of about 8% yearly. Though India’s per-capita paper utilization is quite low compared to global peers, things are looking up and requirement is set to rise for present 20 ml tons to an estimated 28-30 ml tons by 2029-30 indicating great potentiality for growth at home. Besides, the real growth in Paper making activity is taking place in Asian region due to availability of Raw Material & Cheaper Workforce while the other part of the world has already come to a saturating stage. Therefore, being stationed in the developing region and with su_cient knowledge about paper making condition of Asian subcontinent, we see a great future in export potentiality for PMC products. We are also in the process of developing new PMC products to fetch more business from export market.


Paper Industry in the country has undergone a transformation of sorts in the last few years. The industry has gone up the sustainability curve and has become far more technologically advanced. In the last _ve to seven years, an amount of over Rs 25,000 crore has been invested in new e_cient capacities and induction of clean and green technologies. The paper industry is witnessing a paradigm shift from the demand perspective from demand for newsprint papers and printing writing papers to the packaging paper segment which is witnessing a rise, with growing demand for packaging from e-Commerce, food and food products, FMCG and the pharmaceutical sector. The installed capacity levels in packaging paper is seen picking up progressively, aided by the capex incurred in the recent past over FY2017 to FY2022, along with the capex planned over the next _scals. With the continued demand from FMCG, pharma and e-Commerce sectors, particularly for packaging paper, the growth is expected to be in the range of 8-10% in the next _scals supported by demand from the packaging segment.

The growth of Paper Industries has eventually resulted in growth of paper machine fabrics. Your company has envisaged required expansion to cope up the increase in demand and in the process of further development in terms of production capacity and quality of existing product line. Moreover, export opportunities are growing due to geo-political conditions.

Currently, while the demand for many paper products is almost at pre-Covid level, the competition among paper clothing manufacturers is _erce. This means that prices always under struggle, although a marginal improvement is expected at near future due to increase in demand.

Technology upgradation is a constant need and unless we upgrade our Plant & Machinery and continually develop our product it will be extremely di_cult to sustain our market share and further enhance it that depends lot on availability of softer fund for your Company. Your Company is also expected to create new business horizon in Metal Weaving segment creating new domestic & export market.


The outlook of Company appears bright. The Company anticipates modest growth in its operations in coming years and have taken steps to improve further in following areas :-

• Maintain high Quality Standards consistently.

• Create wide based product range to cater to export market.

• Modernize after-sales service.

• Improve e_ciency at all stages from procurement to disposal.

• Upgrading the Old machinery.

• Develop new design of fabric.

• Implementation of ISO : 9001 : 2015, QMS

14001 : 2015, EMS 18001 : 2007, OHSAS


Volatile technological environment and tough competition from domestic as well as foreign markets are area of concern for which Company’s focus is to make cost of production more competitive and reduce interest cost byFinancial restructuring with a view to withstand during downturn. Main area of concern are as under :

• Growth of Indian Paper Industry is yet to be satisfactory.

• Improved technology is expensive.

• Very high interest cost.

• Non availability of fund for expansion & Working Capital, delaying the implementation of project on time.


The Company has adopted internal control system commensurate with its size. The Company has appointed external _rm of Chartered Accountants as Internal Auditors and Company ensures its strict implementation so that assets and business interest of Company are adequately safeguarded. However, SAP implementation is also in progress.


The Company’s human resources strategy revolves around development of the individual. The Company undertook various Human Resources Initiative, namely –

• A Performance Management System.

• Training Programmes in the area of behavioural, management and technical skill up-gradation.

• Development of leadership capability

• Maintaining high level of employment relationship

The total Number of Employees employed in the Company as on 31st March, 2023 is 356.


The Company is making full use of Information Technology, all the branches and the regional o_ces of the Company are connected with the units by means of internet and ERP is implemented in most of the departments. The Company’s website namely provide all the details about the Company, its management and its products. SAP has also been implemented in its Uttarpara Factory and being upgraded from time to time.


Health, safety, security and environment (HSSE) is a key priority for your Company. Simply stated, our goals are: no accidents, no harm to people and no damage to environment. The health, safety and security of everyone who works for your Company, is critical to the success of business.


Statement in this Report, particularly those which relate to Management Discussion and Analysis, describing the Company’s objectives, projections, estimates and expectations may constitute forward looking statement within the meaning of applicable laws and regulations. Actual results might di_er materially from those either.