Sundaram Multi. Management Discussions


The global economy experienced a slowdown in 2022-23 due to high inflation rate, tightening financial conditions, increasing interest rates, rising geopolitical tensions, ongoing Russia and Ukraine war and some ongoing effects of Covid-19, as a result of these the global economy could only grow by 3.2% in 2022. With most of these challenges continuing in 2023, the global economy is projected by IMF to grow at 2.8% in 2023 which will be one of weakest growth rates since 2001. Concern over slowdowns in major economies remain, with recent troubles in banking sector aggravating worries that runaway inflation and tight monetary policy would hamper growth and financial investments. As per IMF close to 90% advanced economies will experience slowing growth this year.

The war weighs on the growth prospects while also posing a higher threat to emerging and developing economies than advanced ones it further intensified these with energy price rise, food and commodity price inflation, supply shortages and pandemic several other impacts of the war. The disadvantaged populations in low-income countries have been worst affected and in a disproportionate manner. Together, these reflect the overall risks to the economic prospects of nations having heightened, throwing the post-Covid growth recovery expectation into doubt, with the policy trade-offs becoming even more challenging.


The Indian economy demonstrated resilience despite challenges in the global environment on the back of strong demand, support from Government policies and strong banking system. As per World Bank report of April 2023, India was one of the fastest growing economies in the world in 2022-23 at 7% growth. Outlook for lndian economy remains positive for 2023-24 with projected growth at 6.3%. IMFs bi-annual World Economic Outlook projects lndias retail inflation to ease in 2023-24 to 4.9% from 6.7% in FY 2022-23 which will help improve demand and the discretionary expenditure. lndias direct and indirect tax collections were robust in 2022-23. Direct tax collections increased by 17.63% and indirect tax collections increased by 22% over the previous year. Merchandise and service exports estimated at US$ 765 billion jumped by 16% during the year 2022-23. IMDs prediction of ‘normal rains during the current year at 96% of long period average will be good for agricultural sector and rural economy of India. lncreased focus on infrastructure development by the Government of lndia and affordable data pricing has helped the rural and semi urban areas not only in terms of improved employment opportunities and income source but has also brought them closer to urban centres and thereby increasing aspirations for better life style. Rural consumption of FMCG products grew by 8.9% during 2022-23 which indicates increased preference towards

quality products. Changes in the weather pattern with increased unseasonal spells of heavy rains and larger periods of heatwaves during the summer months may however, have a negative impact on some sectors of the economy. With signs of resurgence of Covid-19 pandemic virus, the same needs to be closely monitored with increased preventive steps to control the spread so as not to adversely affect the economic growth in 2023-24.


The economy is expected to grow by 6.3%, a continued upward despite past challenges. The role of paper in promotion of literacy and education, propagation of information and knowledge and in packaging of commodities of commercial value, makes it an indispensable product. Indias prospects for sustained growth are strengthened by ongoing structural reforms and policies aimed at promoting investment and productivity. India is well-positioned to become a leading economy in the coming years by its expanding and youthful workforce. The Government has played pivotal role to emphasis on fostering entrepreneurship, innovation and in combination of startup ecosystem and rapidly growing digital economy, which are likely to further drive growth and create new opportunities for businesses and individuals. The overall Indias economy appears for a brighter future in 2023 and onwards.


Paper Industry, occupies a prestigious position, among the various manufacturing enterprises, in view of its significant contribution to the Society. Role of paper in promotion of literacy and education, propagation of information and knowledge and in packaging of commodities of commercial value, makes it an indispensable product. The books and stationery industry deals in a wide range of products and categories, comprising paper products, writing instruments, computer stationery, school books, office books products, among others. The pandemic and pace of digitalization impacted the industrys growth considerably in the past few years. However, in 2022-23 the industry has taken a runway. The Global Books and Stationery market is anticipated to reach a market size of USD 30 billion by 2031, registering CAGR of 4% during 2021-31.

• Paper and paper products are expected to account for 30% of the industry share.

• Global demand for writing and marking instruments is likely to register CAGR of 3.7% during 2020-27, and is expected to reach USD 21 billion in market size.

• Sustainable products with enhanced aesthetics and customization shall gain huge traction in the sector.

The Indian stationery market has registered substantial growth in the past few years owing to the growing urban population, changing lifestyle post COVID, and increasing demand for stationery products in the private and public sector, along with growing government initiatives in improving the education system. According to the report, India Stationery Market Outlook, 2027-28 the market is anticipated to grow at more than 8% CAGR for 202228. The rise in digital content surrounding stationery products and its use has also introduced an entirely new breed of influences and reviewers.

The total market of stationary is made from paper stationary and non-paper stationary products. Paper stationary market is further segmented into products for office use and non-office use. Non-paper stationary segment covers products such as writing instruments, office products, colours and other adhesive & technical instruments. In short, stationary market includes products like, notebooks, paper for office, pens, non-paper for office, pencils, colours and much more types. Among this entire category, apart from dominating paper stationary, nonpaper stationary category is contributed major market share. Further, writing instrument has chunked the largest pie of the non-stationary market with segment likewise, pen, pencil and others. All these lead to the one conclusion that evolving digitalisation has not yet proving as a threat for the stationary products as considering the potentiality of growth of market. Initiatives of the Indian Government in the Field of Education:

Numerous initiatives are undertaken by the Government and other social welfare institutions to promote Right to Education such as:

> PM Schools for Rising India: The Government launched a Centrally Sponsored Scheme (CSS) called PM Schools for Rising India (PM SHRI) on 7 September, 2022. These schools will be equipped with modern infrastructure and showcase the implementation of the NEP and emerge as exemplary schools over a period of time. Under the scheme, there is a provision for setting up more than 14,500 PM SHRI Schools, over the period FY23 to FY27 by strengthening the existing schools from those managed by Central Government/State/ UT Government/local bodies.

> ‘National Education Policy (NEP) 2020- NEP aims to uplift vulnerable, underprivileged, and underrepresented populations through education. The intent is to provide world-class education to all children, regardless of where they live or the economic background they come from.

> Samagra Shiksha Scheme- This Scheme seeks to integrate and treat school education holistically without any segmentation. The GoI has extended the Scheme for another five years, from 2021-22 to 2025-26.

> National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN) Bharat Mission- The Scheme aims to ensure that every child in India gains foundational numeracy and literacy by the end of Grade 3 and thereby establishes priorities and a plan of action for States/ UTs to attain the same objective.

Rising inclination towards pursuing higher studies have resulted in opening up of newer and better avenues thereby infusing higher demand and enhancing stationery industry growth prospects.

E- Learning

Over the years, higher and easier availability of internet and smartphone accessibility at affordable rates has paved the way for deeper penetration. This led to the EdTech sectors rapid growth, which was already on an upward flight even before the advent of the Covid-19 pandemic. However, there is no denying that the sector received a huge impetus amid the pandemic - leading to the almost overnight adoption of technological tools in the education sector. As a fruitful outcome of these disruptions, the e-learning initiatives further led to the adoption of the digital mode of learning in a big way. A huge part of this adoption can be accredited to the collaborative effort of all the stakeholders - the Government, private and public schools, tutors, coaching institutes, students, and teachers, who collectively facilitated this growth.

Indias current EdTech landscape mainly entails Pre-K-12/ college learning, test preparation, tutoring, upskilling and technology providers. Technology-enabled learning and understanding can surely help cover other remaining segments too. It can help plug the shortcomings in our countrys education system by alleviating concerns to make learning accessible, affordable and flexible for everyone. Additionally, and more importantly, it can also help address the eminent gaps arising from lack of proper school infrastructure, teacher absenteeism or unavailability, inadequate training of in-service teachers, lack of accessibility to learning, especially in remote areas, amongst many other challenges.


Our brand, Sundaram was established in 1985. It started off as a school and office paper stationery manufacturing company. With having a tremendous demand for quality products, we have recorded a strong year on year growth.

Sundaram is known for its quality in terms of value we provide. As a human right, we believe education is must for every child at an affordable price. In line with this vision, we have always striven to provide quality products at an affordable price to people. Today, we have wide varieties of products which are convenient and worthwhile to every age group. Quality Products with good service are the key factors for success in our industry. Our goal is to provide products to all the states in the country, and provide durable and high-quality products to consumers.

However the world today is shifting to a more web driven one but still the paper industry has its own significance. This belief combined with our 30+ years of experience has helped us to cover the paper stationery product market extensively with various manufactured products.

Over the past 30+ years the company has grown by many folds and diversified into various other verticals of business. Our dedication and passion to deliver the best has led us to explore new avenues and foresee the future.

With a wide range of over 200 products today Sundaram sells more than 5 lakh books everyday through its strong distribution network of 15000 dealers and distributors.

We design, manufacture and market paper stationery products - exercise note books, long books, note pads, scrap books, drawing books, graph books - for students of all ages, as well as office/ corporate stationery products and printing, writing & packaging paper.

With the strong brand and market penetration we are present in pan Maharashtra and have a strong brand recall among consumers. The brand Sundaram stands for trust, quality products and for a legacy. As its rightly said, "Education is the strongest weapon" we want to deliver quality products at the best rates to the entire country.

The times have changed, people dont take the risk of buying substandard products any more. The market for branded products is very huge today, and it can demand a premium. The extended products and high quality paper premium products can be introduced under the same brand. The brand will be used for other stationery products in the market in the near future.

SUNDARAM is mainly in the Business of School & Office stationery as well as E-learning segment. The enormous size of School and paper stationery industry of India makes it one of the most important sectors of Indian Economy. Increasing Economic Growth, High Literacy Rate, more Government Spending on Education, Growing Population, Urbanization, higher proportion of young adults, better living standards, shift in focus from inexpensive to quality products etc. are some major factors that are driving the paper stationery business to flourish. The thrust on education by the Government is the prime growth of the notebook industry.


E-class is a revolutionary product by our company, developed to help the students ease the burden of studies and score more marks. E-class is an innovative educational content for the students of Maharashtra State Boards 1st to 10th standards for all subjects, available in English, Marathi, Semi English, Hindi and Urdu medium as per the syllabus.

With the stress and difficulties in education arising every day, we have created content which will help the students learn in a better and a new way. It is said what we see (visuals) is often remembered more than what we simply just read. Keeping that concept in mind, we have converted the black and white textbook into audio-video animated content explaining each chapter and subject in detail.

E-Class is an attempt to encourage quality learning and help the process of learning by making it effective and engaging in innovative ways. At E-Class we have developed solutions and delivery platforms that enrich teaching and learning experience. The main aim is to go beyond the traditional black and white textbook approach and connect technology with education.

Edzam is a revolutionary online digital app and portal that has transformed the process of learning through the support of audiovisual content, assessment tool, question bank and analytical reports.

We believes that to become a leader in any field one must foster a conception of excellence in education. Education is the pillar and base of entire human life and we believe our learning solutions will not only help build the base but will make the education roots stronger forever. We are building an army of students for this nation and we support the Digital India mission strongly.


The paper industry has occupied a prestigious position, among the various manufacturing enterprises, in view of its significant contribution to the Society. With close to one-third of Indias population being under the age of fifteen, the country has a remarkable growth opportunity for the education sector. The outlook of this industry remains bright in light of growing middle- class population coupled with thriving income levels, boost in "Beti Padhao" campaign, increase in variety of courses offered by colleges and universities, growing emphasis of the Government, and more. However, accessing quality education and financial commitment to education development continues to remain challenging. The demand is expected to grow on account of an anticipated pick-up from the education sector with improving literacy rates and growing enrolment as well as increasing number of schools and colleges. Improving literacy rates, rising circulation and an increasing number of newspapers and magazines is expected to support growth in demand.

On the other hand there is sharp rise in the number of internet users has boosted the demand for e-learning platforms and courses. The global e-learning market has seen a tremendous increase in demand for content developed and designed to meet remote learning needs. Anyone from anywhere in the world can access self-paced learning modules offered by educational institutions. The educational institutions are collaborating with suppliers to leverage e-learning and expand their students reach. This indeed leads to more opportunities for the supply side of the e-learning industry. Important emerging trends like e-classrooms, micro learning, mobile learning and social learning are driving exponential growth in the market.

The eLearning companies in India are striving to replace the traditional education system with the modern education system by adopting latest educational technologies. The eLearning companies in India are working effectively with the government, and educational boards to make the cloud platform prevalent. Besides, by adopting learning analytics or big data analytics, these eLearning companies are helping online course providers design custom-made courses, ensure self-regulation of learners, conduct frequent auto-graded quizzes, and make grades and learning progress accessible to students. Thus, the evolution and rising awareness regarding latest technologies will increase the adoption of eLearning in the Indian market, thereby pushing growth in the online education market in India.


The risk is always the part and parcel of any business activity. The Company operates in a highly competitive environment that is subject to innovation and varying level of resources available to each player in this segment of business. The common risks inter alia are: Risk to Company Assets and Property, Employees Related Risks, Foreign Currency Risks, Risks associated with Non-Compliance of Statutory enactments, Competition Risks, Operational Risks, Business risk, Technology obsolescence, Investments, Retention of talent and Expansion of facilities. Business risk, inter-alia, further includes financial risk, political risk, fidelity risk, legal risk. Immense competition is faced by the company from the international players and unorganized sectors. The Company is constantly reviewing the risk that would impact adversely. Cost of raw material and inflationary pressure also increase the cost of manufacturing, but the availability of raw material from the suppliers at the right time and at the right price has enabled the company to reduce the cost of manufacturing. For Inflationary pressures and its impact the company has taken suitable cost control steps.

The Companys Human Risk is minimal as it enjoys a harmonious industrial relationship in the manufacturing units of the Company. Lack of clarity on future Government policy continues to be an area of major concern for the industry. The exact impact of this cannot be evaluated until the proposed changes are actually introduced and implemented.

Education system in India is evolving so as the content for the learning. Further Prices of raw materials are becoming unstable, and it may result in increase in cost of production, thereby compelling the company to realign the prices to manage the risks.


Our internal control system is reliable, efficient and crucial to the success of our Company. We review our numerous segments and sales operations with the help of the internal control system. We have deployed an effective internal control system, through which we review our sales operations and numerous sectors. This system assures proper maintenance of internal audit controls, like observing various operations, protecting assets and complying with regulations. The yearly internal audit covers important areas of business operations identified by a team of experts. Each area is reviewed by internal auditors, the Audit Committee and the

Board. The Audit Committee considers the inputs from the internal auditors and advices ways to enhance the internal controls, time and again.

Disclosure on Internal Financial Control and their adequacy & brief description on performance with respect to operational performance is given in Directors Report.


Particulars 2022-23 2021-22
Total Revenue 11,868.99 7,306.38
Operating Expense 10,512.33 5,916.12
EBITDA 1,060.59 1,325.90
EBITDA Margin 8.94 18.14
Depreciation 389.20 380.76
PAT 258.92 391.08
Capital Employed 12,288.22 11,019.53
EBIT 671.39 945.15
ROCE 5.46 8.57
Net worth 9,770.29 9498.10

Revenue: Our Companys overall total income increased to Rs. 11,868.99 Lakhs for 2022-23 from Rs. 7,306.38 Lakhs for 2021-22. This increase in revenue mainly attributed to opening up of schools and offices and increase in sales of stationery.

Expenses: Our Companys overall expenses increased to Rs. 10,512.33 Lakhs for 2022-23 from Rs. 5916.12 Lakhs for 2021-22. This increase in expenses can be attributed mainly to the increase in business volume as seen from increase in revenue.

Profit / (Loss): Our Company has gained profit of Rs. 258.92 Lakhs for FY 2022-23 as against the profit of Rs. 391.08 Lakhs in FY 202122. Thus, growing positively in upward direction.

Net Worth: Our Companys net worth increased to Rs. 9,770.29 Lakhs for 2022-23 from Rs. 9,498.10 Lakhs for 2021-22.

Due to improving macro-economic environment for the year under review the Company was enabled to restore its performance, this is quite perceptible from its financial record.

Overall for Financial Year 2022-23 gross revenue from the business operations of the Company was upright.


Human Resources are one of the most important ingredients to fuel future growth and progress of the organization. The Company therefore strives to align human resource policy and initiatives to meet business plans. Companys focus on promoting wellbeing of its employees, providing safe and congenial work environment. Training of employees to maintain high level of motivation is an ongoing process. Career development opportunities are provided at all levels and across all functions. In challenging business environment, company & its management has maintained healthy and cordial relationships with all the stakeholders.


Pursuant to the provisions of Regulation 34(3) of SEBI (LODR) Regulations 2015 read with Schedule V part B (1) details of changes in Key Financial Ratios are given as hereunder : Sr.

Ratio Year Ended
No. 31.03.2023 31.03.2022
1 Debt Turnover Ratio Times 29.88 49.15
2 Inventory Turnover Ratio Times 5.35 2.80
3 Interest Coverage Ratio Times 2.37 1.86
4 Current Ratio Times 4.39 2.49
5 Debt Equity Ratio Times 0.72 0.73
6 Operating Profit Margin % 4.88 6.64
7 Net Profit Margin % 2.26 5.56
8 Return on Net Worth* 2.65 4.12

*Due to higher input cost the return on net worth is lower than previous year.


The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The details of accounting treatment are given in Significant Accounting policies of the Financial Statements.


Statement in this Management s Discussion and Analysis detailing the Companys objectives, projections, estimates, expectations or predictions are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, stock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations.

For and on behalf of the Board of Directors
Sundaram Multi Pap Limited
Sd/- Sd/-
Amrut P. Shah Shantilal P. Shah
(DIN: 00033120) (DIN: 00033182)
Chairman & Managing Director Whole-time Director
Date: August 11, 2023
Place: Mumbai