Shilp Gravures Ltd Management Discussions.


The Reserve Bank of India (RBI) trimmed Indias growth forecast for FY21 as the coronavirus pandemic has disrupted economic activities. "The GDP growth in 2020-21 is expected to remain in the negative territory with some pick up in second half. The economic activity in India was severely impacted by the nationwide lockdown in the last two months. The biggest blow to the economy has come from the slump in private consumption. Consumer durables production has reduced 33% in the March. Service sector has contracted - passenger and commercial vehicle sales, domestic air passenger traffic and foreign tourist arrivals have slumped in March. However, agri sector remained the ray of hope. (source RBI)

The RBI estimates that apart from resilient sectors such as agriculture and allied activities, other sectors of the economy will be affected adversely by the pandemic, depending upon its intensity, spread, and duration. In view of the uncertainties surrounding the direction this crisis and its resultant disruption take, only modest upside is expected from monetary, fiscal, and policy initiatives that are being taken in response at present. The IMF projects Indias GDP growth at 1.9% for 2020, and a stronger growth of 7.4% in 2021.

The Indian Government has announced bold economic stimulus measures to combat the sharp slowdown caused by the lockdowns. It is expected that the various measures aimed at helping the MSME sector out of the morass of liquidity problems and lack of credit will help reinvigorate their economic activity. Similarly, various measures targeted at various economic segments are designed to address some long existing issues, such as labour reforms, to improve the investment climate and attract more investments from overseas, as the world tries to diversify its manufacturing base.

In the short term, significant monetary and liquidity measures taken by the RBI, and fiscal measures taken by the Government are expected to mitigate the adverse impact of COVID-19 on domestic demand, and help spur economic activity once normalcy is restored.



The Packaging Industry in India is segmented by End-user Industry (Food, Beverage, Healthcare, Cosmetics, Personal Care, and Household Care, Industrial) and Material Type (Paper, Plastic, Glass, Metal). The India Packaging Market was valued at USD 50500 Million in 2019, and it is expected to reach USD 204810 Million by 2025, registering a CAGR of 26.7% during the period of 2020-2025.

The rapid growth of the market is primarily driven by the pharmaceuticals and foods and beverages industries. Huge investments in the food processing, personal care, and pharmaceuticals end-user industries are creating scope for expansion of the packaging market. According to a recent data released by the Associated Chambers of Commerce and Industry of India, the market size for organized packaged food is expected to reach INR 780 million, in 2020.

The rise of the Indian middle class, rapid expansion of organized retail, growth of exports, and Indias rising e-commerce sector are further facilitating growth. According to the Indian Institute of Packaging (IIP), the packaging consumption in India has increased 200% in the past decade.


Gravure is an advanced, high-tech printing process operating the fastest and widest printing presses in the world, and is was the first printing process to employ a totally digital environment. The gravure printing process holds a prominent place in the printing industry with its efficient, long run, highspeed and consistently high-quality printing method and is well aligned with its simplicity as well as the negative impact the process has on the environment. Growth towards environmental sustainability is a powerful move for the gravure industry and it must take a further step in to sustainable practice and and procedure.

Gravure is used for labels, cartons, packaging, gift-wrap, wall and floor coverings, and a variety of precision coating applications. In the face of uncertain economic times, the gravure market is striving to maintain margins and market share while focusing on technological advances to drive growth.

Your Company serves complete cross-section of the gravure industry such as: Flexible Packaging, Anilox Rollers, PVC Flooring, Decorative Laminates, Specialty Coatings, Artificial Leather, Gift Wrapper, Security printing and Transfer printing etc. India has an advantage of large volume consumption of consumer products and therefore gravure is the most preferred technology to handle such volumes due to economy of scale, availability of skilled manpower and high quality printing.


A Flexible packaging has been the prime-mover of the packaging industry. Owing to developments across consumer and industrial markets that use polymeric films, improvements in manufacturing practices, and continued technological innovations, the packaging market has been able to continually grow and evolve. As a result of the various features that come along with flexible packaging right from the ease of handling, storage, to being cost efficient, flexible packaging has carved a strong position for itself on the global turf.

The demand for flexible packaging has increased at a rapid rate, as it can be used for various purposes. Moreover, with advancements in packaging material and packaging technologies the demand in the flexible packaging has also grown at a significant rate. The demand for flexible packaging is also seen in various industries such as food and beverages, consumer goods, pharmaceuticals, and many others. Thus, the growing use of flexible packaging in different industries is projected to boost the demand for flexible packaging and expand the flexible packaging market.

The packaging industry in India is predicted to grow at 18% annually, with flexible packaging growing at 25% and rigid packaging at 15%. Packaging Gateway dives into this billion-dollar market to investigate the future of packaging industry in India. Packaging is the fifth largest sector in Indias economy and is one of the highest growth sectors in the country. According to the Packaging Industry Association of India (PIAI), the sector is growing at 22% to 25% per annum.

In recent years, India has seen sustainable packaging growth due to the increase of packaged food consumption and awareness, and demand for quality products. Consumer awareness surrounding packaged food, specifically packaged food deliveries, has heightened. With benefits such as functional convenience in handling & transportation, cost effectiveness and brand protection from counterfeiting, flexible packaging industry worldwide is led by a strong growth.

Your company continues to cater the Indian Packaging Industry with its dedicated endeavors which in turn stimulates the growth of the Company in the future. Your company has been investing in training the manpower and upgrading the technology from time to time to keep the pace with the changing trends.


The presence of large number of players in the market and entry of new entrants in the flexible packaging market is projected to intensify the market competition. The market competition is seen on the basis of price, quality, services, and innovation. The leading players in the market putting efforts by introducing innovative and bio-based packaging materials.

Moreover, the environmental norms and regulations are getting restrict day by day, which is also hindering the growth of flexible packaging market at the global level. To prevent themselves from being flagged by various stakeholders, flexible packaging companies have to account for designs that address environmental issues, end-of-life disposal, and reduction of greenhouse gas and water footprints. This could prove to be a costly process. Flexible packaging companies not only have the pressure to innovate in their offerings but at the same time must also ensure that their products are designed to protect the packaged contents from the external environment. Choosing a packaging material that can survive factors such as sunlight, UV rays, high and low temperature, humidity, moisture, and rain is a herculean task. Also, the environmental conditions vary from region to region. Hence, to design and implement a packaging material that meets all these parameters is most likely to put flexible packaging companies in a big dilemma.


As on March 31, 2020, the Company has only two reportable segments, that of i) manufacture of engraved copper rollers and ii) energy generation through wind mill. The segment revenue, results, assets, and liabilities include the respective amounts identifiable to each of the segment and amount allocated to it. The figurative parameter in detail is provided in Note no. 44 (Segment Reporting) in the Note to Financial Statements.


An overview of the financial performance is given in the Boards Report. The Audit Committee constituted by the Board of Directors periodically reviews the financial performance and reporting systems.


Particulars Standalone Consolidated
2019-20 2018-19 2019-20 *2018-19
Revenue from operation 6587.00 7413.16 7064.59 -
EBITDA 973.35 1713.58 974.07 -
Profit after Tax (PAT) 113.45 771.42 86.87 -
Basic/ Diluted Earnings per share 1.84 12.54 1.41 -

*Note - As with ef fect from 9th August, 2019, M/s Etone India Priviate Limited, Howrah, West Bengal (herein after referred to as "Etone"), acquired by the Company, the disclosures of previous period/year data does not applicable.

KEY FINANCIAL RATIOS (Standalone basis) :

Ratios 2019-2020 2018-19
Debtors Turnover 71.05(days) 67.62(days)
Inventory Turnover 80.18(days) 70.83(days)
Interest Coverage Ratio 0.96 6.54
Current Ratio 1.94 2.82
Debt Equity Ration 0.44 0.40
Operating Profit Margin 5.84% 13.87%
Net Profit Margin 1.66% 10.23%
Return on Net worth 1.73% 11.79%


The Company has laid down internal financial controls. The policies and procedures adopted by the Company ensure orderly and efficient conduct of its business, safe- guarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable information.

Your Company have an Audit Committee and has met four times in the year. Audit Committee ensures proper compliance with the provisions of the Listing Regulations, Companies Act, reviews the adequacy and effectiveness of the internal control environment and monitors implementation of internal audit recommendations. Besides the above, Audit Committee is actively engaged in overseeing financial disclosures. The recommendations of the Internal Auditors and the Audit Committee are followed up effectively for implementation.


Shilp employs more than 450 employees directly and indirectly. It believes that the quality of these employees is the key to its success and is committed to providing necessary human resource development and training opportunities to equip employees with additional skills to enable them to adapt to contemporary technological advancement and evolving workplace requirements. The focus of any industry is usually on its men and machinery and if these are looked after well then any business is sure to succeed. We took up extensive in-house on the job training for various category of employees and fresh recruits. This year in addition to having annual health check-up we also informally educated our employees on TB. Your Companys Human Resource agenda makes the "EMPLOYEES" its focal point and hence their well-being, skill up gradation and livelihood has been the most targeted area.

Besides the extensive in-house trainings and seminars our employees got an opportunity to meet with their families through our annual Garba Night. The Garba night was also a platform for kids of employees to show their dance talent which was appreciated through various prize categories. Upgrading of skills was another focus and this year saw many employees at shop-floor get multi skilled.

Through our annual health check-up we could reach out to employees who had been diabetic or hypertensive or suffering from other ailments and through continuous monitoring and counseling they were brought into regular parameters. Your Company agenda to build a performance driven culture aiming at constant growth has been a priority throughout and to sustain continual high performance standards and growth it is the focus on the work culture and good management practices that bring in the desired results. All these factors have attributed in making the human resource at the Company a culturally diverse yet one of the best functional teams at work.


Statements in the Management Discussion & Analysis Report describing the Companys objectives, projections, expectations, opinion and predictions may please be considered as "forward looking statements" only. Actual results may differ materially from those expressed or implied. Important factors that could influence the Companys operations should be viewed in light of changes in market conditions, domestic demand and supply conditions, prices of raw materials, economic developments in the country, changes in the government regulations, tax laws and other statutes and such other incidental factors which are material to the business operation of the Company.

On the behalf of the Board of Directors of

Shilp Gravures Limited

Ambar Patel Shailesh Desai
(Managing Director) (Director)
Place: Rakanpur (DIN: 00050042) (DIN: 00169595)
Date : June 20, 2020