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The FMCG opportunity

Fast-Moving Consumer Goods (FMCG) industry continues to be one of the biggest long-term sustainable business opportunities that our country offers. Despite being one of the fastest growing markets globally for FMCG products, Indias per capita FMCG consumption is still amongst the lowest in the world, offering a huge runway for growth.

Indian FMCG Sector

The Consumer Packaged Goods (CPG), or Fast-Moving Consumer Goods (FMCG), industry in India is one of the main drivers of the Indian economy. This sector has been reporting good growth even during the COVID years, when most other industries were reeling under a demand crunch, riding on strong consumer shift in favour of natural healthcare products. While the sector continued to move forward on the growth track in the new fiscal, the operating environment turned challenging as the year progressed, marked by unprecedented inflation and its consequential impact on consumption. The frequent price increases and an overall slump in economic activity put pressure on the purchasing power of consumers. The Central banks decision to increase interest rates during the quarter to tame Inflation added to the slowdown. Volume growths were heavily impacted by high rates of inflation.

The slump was more pronounced in the heartland or rural India where consumers downgraded to affordable and lower priced packs, and rural growth rates remained below urban growths for all four quarters of the year. The emergence of new-age channels like Modern trade and e-Commerce helped urban markets report strong growth even as traditional channels witnessed a slight slowdown.

Rapid digital transformation

India continues to undergo rapid digitization with new-age technologies transforming the FMCG market, bringing opportunities for brands, consumers, and customers alike. Digital commerce is gaining more relevance as consumers seamlessly move between online and offline channels of trade. Traditional trade players are reinventing their business models to play a key role in the new digital India.

Operating environment

The operating environment this year continued to remain challenging. Geopolitical conflict in Europe and the global supply chain disruptions led to an unprecedented inflation in food, energy, and commodity prices. Aggressive monetary tightening measures from central banks worldwide led to further pressure on emerging economies. The widespread inflation posed major challenges for the country and for the FMCG industry specifically with prices of several commodities inflating to their decadal highs.

This had a significant impact on FMCG consumption as consumers tried to manage their household budgets by adjusting volumes and prioritising essentials over discretionary categories. The impact of slowdown in FMCG market was more pronounced in rural markets. However, urban markets led growth for FMCG supported by normalisation in economic activities after a couple of years of COVID induced disruptions.

Creating categories of the future

Urbanisation, increasing nuclear-family structures, and rising affluence is leading to the growth of new demand spaces and the premium segment. Leveraging our proven model of market development, we strive to address real and unmet consumer needs and, at the same time, build our portfolio across several categories. Our efforts in market development, over the last decade, have helped us create new segments.



Our core purpose is to serve our Customers with better Quality Products with On-time Delivery. We understand the customer needs, market trends mapping and provide value for money products. Our diversified product portfolio enables us to cater a wide range of preferences & consumer segment.


Chemist Pharma Stores falls under the Organized Sector in Retail Channels. More after the COVID pandemic, these stores not only focus into the Medicines and OTC Category, but also diversify various range of products pertaining to Healthcare and Personal care; thus increasing the demand of these products rapidly on the stores.

Your Company is focusing to expand its Modern Trade Outlet Channel Business in South Gujarat Region and on Pharma Wholesale Channel, which will help us to reach untapped chemist retail outlets. This will leads to increase in Sales Volume of the Company. Your Company is further more approaching to explore opportunity by adding new distribution business as C&F and Super Stockiest in the basket.

There is huge demand of Indian FMCG Products in the International Market, which is fulfilled by the Merchant Exporters. To extend its sales to a Global scale, your Company is trying to tap this opportunity to supply these Merchant Exporters.

Apart from this, your Company is exploring for the acquisitions of Distress Companies. Investing and growing up distress companies benefits the Business of the Company as it gets better financing options, already an established brand, existing customers, well-established supply chain, access to trained staff and proven internal processes, more financial reward in growth and greater likelihood of success. Your Company alongwith the Khemani Group enjoys a good financial backing which can turn around distressed business into a profitable one.


The risk that goods are accidentally or maliciously contaminated throughout the supply chain or that other product defects occur due to human error, equipment failure, or other factors cannot be excluded. Ensuring employee safety and wellbeing is a key priority for us. A skilled workforce is essential for the continued success of our business. The loss of management or other key personnel or the inability to identify, attract, and retain qualified personnel could make it difficult to manage the business and could adversely affect operations and financial results.

Climate change may impact our business in various ways through increased costs or reduced growth and profitability. Increased frequency of extreme weather events such as high temperatures, hurricanes, or floods could cause increased incidence of disruption to our supply chain and distribution network.


India is undergoing rapid digital transformation, new-age technologies are transforming the landscape of consumer goods market, bringing opportunities for brands, consumers, and customers alike. E-Commerce continues to gain traction as more consumers shop online and with more digital-first brands entering the market. With a technology-focused approach, retailers are reinventing their business models to stay more connected in the digital world.


The key highlights of the standalone financials are:


2022-23 2021-22

Revenue from Operations

77,84,596.74 68,19,240.92

Profit Before Tax

6,28,740.33 7,70,798.61

Net Profit

5,20,607.09 5,83,017.30


The Company has an adequate system of internal controls in place, commensurate with the size and nature of its business for the purchase of inventory, fixed assets and for the sale of goods or services. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, protecting assets from unauthorized use or losses, compliance with regulations.


We are committed towards safety of our people and assets and towards the protection of the environment through a variety of initiatives. The Company follows good business practices in health, safety, and environment related aspects to constantly set higher benchmarks and strives to exceed the same. Your Company being involved in the FMCG Industry, dealing with various kinds of essential services, had provided all the essential items. Our employees did take risk to keep our operations going and supplied essential goods to consumers so that the impact of the crisis can be reduced. While every business has its own highs and lows, the success of the Company in longer run depends on its ability to innovate to meet the evolving needs of customers and remain competitive.


The offices are well equipped with computer systems, internet connectivity, other communication equipment, security and other facilities which are required for our business operations to function smoothly.


During the year under review, industrial relations of the Company continued to be cordial and peaceful. We believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill-sets, interests and background that would be an asset for our business. Our employees look after administrative, secretarial, legal, marketing and accounting functions. Our manpower is a prudent mix of the experienced and youth which gives us the dual advantage of stability and growth. Our work processes and skilled / semi-skilled / unskilled resources together with our strong management team have enabled us to successfully implement our growth plans.


The report may contain certain statements that the Company believes are, or may be considered to be "forward looking statements" that describe our objectives, plans or goals. All these forward looking statements are subject to certain risks and uncertainties, including but not limited to, government action, economic development and risks inherent in the Companys growth strategy and other factors that could cause the actual results to differ materially from those contemplated by the relevant forward looking statements.

For and on behalf of the Board






Chairman & Managing Director

Whole Time Director & CFO

DIN: 02227389

DIN: 02227413

Place: Surat

Date: 02-09-2023