Sheetal Cool Products Ltd Management Discussions.


Renaissance in the food style of people during celebrations, regular days, office days, fasting days and so on have inspired Sheetal Cool Products Limited, incepted in 1987 with ice cream as the basic products, to venture through the mesmerizing magical world of the essential requirements of all classes of people in relation to their diet with the productions of Milk, Milk Products, Indian Savouries, Frozen Food, Bakery Products, Sweet and Vegetables. We run with a mission to provide the best quality of the above products made in the most hygienic way and offer them at an attractive price point. A long process of hard work and perseverance has been experienced by each and every one who has been a part of Sheetal Cool Products Ltd. through out its victorious survival. By 2030, the company aspires to acquire a turn over worth Rs. 1500 cr. and to be among the top ten companies in the food industry of India by spreading its span on almost all the major states of India and a few popular nations across the world. The company is in process to export the products of SCPL in more than four countries in very near future. The Company has existence in the following states Gujarat, Maharashtra, Madhya Pradesh and Rajasthan. The company is making its venture the ice-cream market of Karnataka State.


Covid-19 Pandemic has adversely affected the economy of the whole world. Global growth is projected at -4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previous forecast. In 2021 global growth is projected at 5.4 percent. Overall, this would leave 2021 GDP some 6 percentage points lower than in the pre-COVID-19 projections of January 2020. The adverse impact on low-income households is particularly acute, imperiling the significant progress made in reducing extreme poverty in the world since the 1990s. The Indian economy shrank 7.5% yoy in Q3 2020, less than expectations of an 8.8% drop, amid easing of lockdown restrictions from June, higher demand during festival season and a rebound in manufacturing and utilities. It follows a record 23.9% plunge in Q2, bringing the economy into recession for the first time on record. On the production side, manufacturing (0.6% vs -39.3%) rebounded. The GDP is still seen contracting in Q4 as the pandemic is far from being controlled and the government announced a $10 billion stimulus package in mid-October only.


The visionaries expect Indian consumption of Ice Cream to catch up with China and see nearly a seven-fold increase in this market. While the global ice cream market is forecasted to record a CAGR of 4.7% by 2020, the Indian ice cream sector expects its growth up to a CAGR of 12.4% by 2022. The research suggests that in comparison to CY 2019s 191 million metric ton , the CY 2020 may grow about 195 million metric ton. The Frozen food industry holds an increase in demand for better, and hygienic products. One of researchers found that 81% of millennial and 78% Generation Z are willing to pay more for foods which meet these expectations. It has been projected that the turnover of sweets and nam- keen products may plunge by 35% as compared to 2019. But After the lockdown, the situation has been revived.


1. USFDA: ISOQAR on 28th August 2020 has certified SCPL with Global standards for Food Manufacture. The Company has been certified as on of the 10 companies in India with BRCG and FSMA with USFDA module for the production of Food products.

2. VEGETABLES: The Company has initiated the processing of various kinds of vegetables under the banner of Sheetal Vegetables. Fresh vegetables are sorted, chopped into pieces, blanched and IQF frozen to retain their natural benefits. Various vegetables processed and marketed here are ladies finger, mixed vegetables, potatoes, sweet potatoes, cauliflower, baby carrot, string beans, fenugreek, bitter gourd, bottle gourd, ridge gourd, sponge gourd, Ivy gourd, chopped spinach & guar.

3. WESTREN RAILWAY: SCPL has been listed in Western Railway. It has installed stalls at various junctions of Railways namely Bhavnagar Terminus, Veraval, Porbandar, Amreli, Dhola, Sasan Gir, Mahuva, Savar Kundla and Sihor.

4. EXPORT: Progress of SCPL is inevitable when hard work blends with perseverance. Container of Nam- keen products have been exported to Australia, Switzerland and Singapore. The company is in process of exploring various opportunities available in the overseas market.


The core purpose of the company is that it pursues to add joy to the lives of people by providing hygienic and quality products. It is built up on skilled labours under the guidance of competitive administrative block. Quality and hygiene are the trade marks and are never compromised. Sheetal Cool Products Ltd uses the latest technology to make its products hygienic. The machines are automated and provides greater perfection to the products. The timely update of the technology is one of the outstanding qualities of our directors. The company ensures cleanliness and tidiness all around. A cluster of staff is appointed to assert the hygienic presentation and activities of workers digitally and manually.


Ice Cream industries, Milk &Milk Products, Frozen Food industries etc. mushrooms rapidly in India . Many brands are coming up one after the other with a competitive spirit. This spirit may negatively affect the profit margin. Our company would assure confidence in the mind of the people related with it on stable progress. The stakeholders are confident enough to invest more and more as the company keeps up a steady progress in its growth even during the Covid - 19 Pandemic.


Your Company has in place internal control systems and procedures in commensurate with the size and nature of its operations. Internal control processes which consist of adopting appropriate management systems and implementing them are followed. These are aimed at giving the Audit Committee a reasonable assurance on the reliability of financial reporting and statutory & regulatory compliances, effectiveness and efficiency of your Companys operations. The Internal Control Systems are reviewed periodically and revised to keep in tune with the changing business environment.


The Company has been focusing on Ice Cream business while strategically introducing their products into fryms and namkeen segment. The highlights of operation of performance of the Company during financial year 2019-20 are as under:

• The revenue from operations increased by 10.83% to Rs.258.92 Crores in FY 2019-20 (Previous year Rs.233.62 Crore)

• The evenue from Ice Cream Segment increased to Rs. 183.45 Crore in FY 2019-20 (Previous year Rs.170.85 Crore)

• Employee Cost increased from Rs.13.81 Crore in FY 2018-19 to Rs. 16.22 Crore in FY 2019-20.

• Finance Cost increased to Rs.4.67 Crore in FY 2018-19(Previous Year Rs.3.43 Crore).

• The Company has incurred profit before exceptional items and tax of Rs.12.84 Crore in FY 2019-20 in comparison to Rs.8.40 Crore in FY 2018-19.

• The net profit after tax increased to Rs.9.80 Crore in FY 2019-20 from Rs. 2.07 Crore in FY 2018-19.


The human resource philosophy and strategy of your Company have been designed to attract and retain the best talent, creating a workplace environment that keeps employees engaged, motivated and encourages innovation. Your Company has fostered a culture that rewards continuous learning, collaboration and development, making it future ready with respect to the challenges posed by ever- changing market realities. Employees are your Companys most valuable asset and your Companys processes are designed to empower employees and support creative approaches in order to create enduring value. Your Company maintains cordial relationship with its employees. Its emphasis on safe work practices and productivity improvements unrelenting. Your Company has more than 310 employees on its rolls as on March 31, 2020.


Particulars 2019-20 2018-19
Sales/Income from Operations 25,892.92 23,362.54
Other Income 100.84 355.12
Sub-Total 25,993.76 23,717.66
Total Expenditure (before Interest & Depreciation) 22,655.33 21,486.66
Operating Profit (EBIDTA) 3,338.43 2,231.00
Operating Margin % 12.89% 9.55%
Profit/(loss) After Tax 980.95 206.83
Return on Capital Employed % (EBIT) (ROCE=Total Equity + LT Borrowings) 21.55% 20.62%
No. of months Receivables (Receivables/Sales*12) 1.17 0.49
Current Ratio (Current Assets/Current Liabilities) 1.37 1.34
Debt Equity Ratio (Long Term Borrowings/Net Worth) 0.86 1.05


The key financial ratios of the Company are as under:

Particulars 2018-19 2019-20
Debtor Turnover 24.57 10.27
Inventory Turnover 6.18 5.11
Interest Coverage Ratio 5.49 4.01
Current Ratio 1.34 1.37
Debt Equity Ratio 1.05 0.86
Operating Profit Margin 6.55% 6.77%
Net Profit Margin 0.89% 3.77%
Return On Net Worth 5.32% 20.14%

Cautionary Statement

This document contains statements about expected future events, financial and operating results of Sheetal Cool Products Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on\ forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of Sheetal Cool Products Limiteds Annual Report FY2020.

For and on behalf of the Board of Directors
Place: Amreli (Bhupatbhai D Bhuva)
Date: December 02, 2020 MANAGING DIRECTOR