shree rama news Management discussions

A] INDUSTRY STRUCTURE AND DEVELOPMENTS

The Packaged Drinking Water Bottle Market in India is anticipating a CAGR of approx 20.75% upto March 2023. Increasing health concerns, and unavailability of clean drinking water have led to the growth of the bottled water market in India.

In India, packaged drinking water bottles are sold in four main types of Stock Keeping Units (SKUs) - one-liter bottles, two-liter bottles, 500 ML bottles, 200 ML bottles, pouches, and barrels of 15-20 liters. Among the different SKUs, one-liter bottles have acquired the largest market share of 42% in 2023, followed by 500 milliliter bottles and 250 milliliter bottles.

The packaged bottled drinking water has become popular in India. Di_erent kinds of _avored water containing fruit essence and artificial sweeteners like soda, cola, juice, and other sweetened beverages often act as a substitute to plain bottled water. At times consumers prefer _avored bottled water to normal bottled water. This shift is developing an opportunity to expand the product line of bottled water manufacturers in India.

B] OPPORTUNITIES & THREATS Opportunities: -

Increasing market trends

Increasing health awareness

Government Policies

Low production cost

Surging Tourism

Threats:

In recent years, a number of companies selling fake branded bottled water have cropped up in the market. These players do not maintain quality and hygiene standards, which in turn leads to health issues among consumers. As a result, consumers lose faith in bottled water, thus affecting the overall sales.

The PET are used for the packing of water in bottles is not recyclable which leads to the pollution and also is hazardous to environment.

C] SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The company has discontinued the production in its paper division. Hence there is only one operating segment i.e. Packaged drinking water segment. The production and performance of said segment is mentioned in Boards Report.

D] OUTLOOK

The organized sector for packaged water bottles is increasing with a CAGR of approx. 25 %. The market players in India have recently inclined towards institutional sales through partnership with airlines, movie theatres, and hotels. Such partnerships are eventually increasing the penetration of the product in the market, followed by rise in the overall sales volume in India

E] RISK & CONCERNS

Nearly 67% of the population resides in rural areas. However, the rate of penetration of bottled water is significantly low in these regions. This, as a result, hinders the growth of the market in India.

F] INTERNAL CONTYROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements.

G] DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE AND KEY FINANCIAL RATIO:

This has been dealt with in the Directors Report and key financial ratio are not comparable from previous year as the Company has discontinued its paper division.

H] MATERIAL DEVELOPMENT IN HUMAN RESOURCES /INDUSTRIAL RELATIONS FRONT INCLUDING NO OF PEOPLE EMPLOYED

The Company recognizes human capital as strategic resource and believes empowerment of employees across the organization in order to achieve organizational effectiveness. There have been no material developments/ significant changes in Human Resource during the year under review.

The Company employs 61 people as on 31.3.2023 as against 285 people employed as on 31.3.2022 as the Company has retrenched all its workmen related to paper segment as the division was not in operation since December 2021.

I) CAUTIONARY STATEMENT

The statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

	On behalf of Board of Directors
	For Shree Rama Newsprint Limited
	(Siddharth Chowdhary)
Date: 11.08.2023	Executive Director
Place: Ahmedabad	DIN: 01798350