vikas multicorp ltd share price Management discussions

Your Board of Directors is pleased to share the present Management Discussion and Analysis Report based on the business of the company i.e. Polymer & Chemical Business, Agro Product, Infra products Business and Smart Product Business, and the business performance under each of its strategic pillars along with the Financial Statements for the financial year ended March 31, 2023.

CURRENT/CONVENTIONAL BUSINESS:

1. POLYMER & CHEMICAL BUSINESS: Your Company is in the business of trading and manufacturing of polymer compound like BASE polymers, PVC compounds, EVA, PP PE, additive and chemicals (meant for plastic processing). Also your company does the up-cycling of polymer compounds. For the polymer compound manufacturing your company has the Hi-Tech R&D lab to check online and final product and has expertise in designing compounds in more than 200 color in different physical specification based on the customer specification.

1.1 Polymer compound:

From the Year 2019, our company started the manufacturing of Polymer compounds such as PE compound, PVC Compound, V Blend SOE compound, PP granules, Thermoplastic Rubber (TPR) compounds. Thermoplastic Rubber (TPR) Styrene-Butadiene- Styrene (SBS) copolymers are a versatile family of compounds which combine a high strength, a comprehensive range of hardness and a low viscosity for the thermoplastic melt processing. The wear resistance and physical resistance are variable (depending on composition). Mostly used for common footwear. TPR may vary according to the type of process used, presenting itself in the form of compact TPR or TPR expanded. Our compounding unit is headed by team of experienced persons with over 39 years of experience in the field of polymers and around 27 years in the compounding of Thermoplastic Elastomers.

1.2 Recycled Compound:

As per Extended Producer Responsibility (EPR), the plastic waste shall need to be channelized to register waste recyclers and recycling of plastic shall comply with the prescribed Indian Standard (IS 14534:1998). Companies using Plastic Raw Material will ultimately responsible for collection, segregation, channelizing and recycling of the plastic waste materials according to their usage volume. Vikas Lifecare Limited (VLL) processing plans & activities have been designed keeping in focus on existing & upcoming laws for EPR as per MoEF for plastic waste management (recycling for plastics). Thats an exorbitant opportunity for your company which has a long experience & the required intricate technical understanding for Re Cycling & up cycling these plastic waste materials, along with complimenting the need of the plastic processors to fulfill their EPR Obligations. Your company is pioneer in plastic waste recycling, is scaling up its recycling strength to help build a circular economy, recycle post-consumer waste directly into moldable granules and subsequently give a second life to plastics.

In the recycled compound business segment Your Company engaged in research and development for up cycling the plastic waste and develop the technologies for recycling the multi-layer plastic waste (MLP) for that two patent has been filed for the same.

1.3 Chemical Business:

To develops its operations in the organic chemicals business. Vikas Lifecare Limited granted with the stage -I clearance from SIPB, Ethanol Distillery will be setup under the Ethanol Production Promotion Policy 2021, of Bihar State Government, which supplements the "National Biofuels Policy 2018" of the Government of India for setting up "Ethanol" Manufacturing Unit in Bihar with initial installed capacity of 60KL per-day. Considering the huge business potential of Ethanol project, your company is looking for the acquisition of entity for expeditious, fast track establishment of project as per the scheme of Central Government policy under the Department of Food and Public Distribution, Government of India.

Global Industry Review:

• The global plastic compounding market size was valued at USD 60.35 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2022 to 2030. Increasing substitution of natural rubber, wood, metals, glass, and concrete for plastic is expected to fuel the market growth. The demand for plastic is rising due to its use in various industrial applications on account of its ability to form desired shapes and easy molding.

• The demand for plastic is rising owing to its various industrial applications due to benefits, such as easy molding and the ability to form the desired shape. Plastic compounding involves an elaborate process with various stages, such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, before final pellet cutting and packaging. There is a diverse range of products available, depending on the additives and fillers integrated while processing the polymers.

• The global recycled plastics market size was valued at USD 46.09 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2022 to 2030. Increasing plastic consumption in the production of lightweight components, which are used in various industries including building & construction, automotive, and electrical & electronics, is expected to propel the growth of the market over the forecast period.

• The global ethanol market size was valued at USD 89.1 billion in 2019 and is anticipated to register a compound annual growth rate (CAGR) of 4.8% from 2020 to 2027. The demand for the product is driven by growing usage of the product as a biofuel. The rising consumption of alcoholic beverages is another major factor supporting market growth. Ethanol can be manufactured by both natural as well as petrochemical feedstocks. In the natural process, natural sugars are fermented in the presence of yeast.

Indian Industry Overview:

• Polymers are essentially used in the manufacture of various plastic products. In the consumption of the basic petrochemical, polymers form the bulk of demand with a share of around 55%.

• Polymers account for around 70% of petrochemicals and that is the reason that they are the most important constituent of the Indian chemical industry.

• The share of polymers in the product mix in India for various crackers ranges from 60% to 90%. The segment of polymers has registered a growth of 18% while there has been an increase of 26% in the capacities. The polymer consumption growth for 2017-2022 is 10.4%, GDP growth is 8% and import duty is 5%-0%. 11% of Indias total exports are of petroleum products.

• The Indian plastics industry produces and export a wide range of raw materials, plastic-molded extruded goods, polyester films, molded/ soft luggage items, writing instruments, plastic woven sacks and bags, polyvinyl chloride (PVC), leather cloth and sheeting, packaging, consumer goods, sanitary fittings, electrical accessories, laboratory/ medical surgical ware, tarpaulins, laminates, fishnets, travel ware, and others.

• Owing to the increasing application of HDPE pipes in various end use industries, the market for HDPE pipe is expected to witness substantial growth. The growth in demand from water irrigation systems in agricultural industry is expected to drive the growth of the HDPE pipe market. Rapid urbanization is anticipated to increase the demand for water supply, leading to increase in requirement of HDPE pipes. Furthermore, growth in sewage disposal infrastructure fuels the demand for HDPE pipes. However, volatile raw material prices attributed to fluctuation in prices of crude oil is expected to hamper the market growth. Conversely, innovation and technological advancements in PE pipe provide future growth opportunities to the HDPE pipes market in India.

• India ethanol market is projected to grow from $ 2.50 billion in 2018 to $ 7.38 billion by 2024, exhibiting a CAGR of 14.50% during 2019-2024, on the back of increasing ethanol use in applications such as fuel additives and beverages. Ethanol is a prominent alcoholic beverage, mainly found in beer, cider, wine, spirits and ale. Indian government is trying to reduce its dependence on imported crude oil and incentivizing Indian sugar manufacturers to produce ethanol for Oil Marketing Companies (OMCs). It is expected that ethanol production will increase by three to five folds in the future in order to meet the demand for its 20% Fuel Blending Program (FBP).

Key Market Movements:

• Plastics demand is increasing in the construction sector in floorings, insulation materials, storage tanks, performance safety windows, doors, pipes and cables. Growing residential and commercial projects in developing countries is boosting infrastructural development.

• Large investments in sectors such as water and sanitation management, irrigation, building & construction, power, transport, retail etc. are continuously being made.

• The demand for plastic is rising owing to its various industrial applications due to benefits, such as easy molding and the ability to form the desired shape. Plastic compounding involves an elaborate process with various stages, such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, before final pellet cutting and packaging.

• Plastic compounding market is segmented based on polymer type, end use, and region. Depending on polymer type, the market is classified into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. As per end use, it is segregated into automotive, building & construction, packaging, electrical & electronics, medical etc.

• Based on application, the water supply pipe segment is estimated to grow at the highest CAGR during the forecast period. The growth of the segment is attributed to the rise in demand for water infrastructure owing to growth in population.

• Water piping system initiated by Government under Jal Jeevan Mission for supply of water to every individual. For this project requirement of HDPE pipes require in enormous quantity.

• Ethanol is gaining support for application as fuel, owing to its renewable source and eco-friendliness with lower emissions. Ethanol has a higher octane number than gasoline, providing premium blending properties. The ethyl alcohol (ethanol) market size is projected to register a CAGR of over 5% during the forecast period (2021-2026).

• According to the Ministry of Petroleum and Natural Gas, India, the country has proponed the target of achieving 20% ethanol-blended fuel by five years and now to complete the target by 2025. The country needs 4 billion liters of ethanol for 10% ethanol blend, and for 20% ethanol blend, the country needs 1,000 crore liters of ethanol, which will cost approximately INR 65,000 crores.

2. FMCG-AGRO PRODUCT BUSINESS: Despite the challenging conditions prevailing during the year, your Company is ventured in to FMCG business segment. The FMCG Businesses comprising Branded Packaged Foods, Personal Care Products, Agri commodities have been growing at an impressive pace over the past several years and your company is doing best in trading of raw and finished cashew nuts and Rice.

Agro Commodities:

• Our Company has also started the trading of raw and finished cashew nuts and premium quality Rice to pursue one of its strategies of venturing into FMCG market. Company has also ventured into Agri Products business with diverse activities including Food & Crop Protection, Preservation & Storage, Crop Research, Crop Production Company is working towards gaining a foothold in the Agri Business with starting operations in the various facilities required for this business activities as soon as possible. For strengthen its agro product business your company has procured land at various strategic locations and have so far purchased approx 36.41 Acre land since June2021 and will further acquire land at strategic location with an ambitious target of 100-150 Acre cultivable land by the March 2023.Your Company is empanelled with National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) as exporter, Ministry of Agriculture, Government of India, for expanding the Agro Products business like Food Grains, Pulses, Spices, Oilseeds, Bio-Fertilizers and Miscellaneous other Products.

Global Industry Review:

• The agricultural products industry consists of the production of Cereals (such as wheat, rice, barley etc.), Nuts (almonds, hazelnuts, pistachios etc.), Oilcrops (cottonseed, groundnuts, olives etc.), Spices & Stimulants (coffee, hops, dry chilies etc.), Sugar (sugar cane, sugar beet etc.), Pulses (beans, peas, lentils etc.), Roots & Tubers (Potatoes, sweet potatoes, cassava etc.), Vegetables (cabbages, tomatoes, onions etc.), and Fruit (bananas, citrus fruits, berries etc.)

• The global agricultural products market had total revenues of $2,574.8bn in 2020, representing a compound annual growth rate (CAGR) of 6.5% between 2016 and 2020.

• Market consumption volume increased with a CAGR of 1.2% between 2016 and 2020, to reach a total of 7,221.9 million tonnes in 2020.

• The cereals segment was the markets most lucrative in 2020, with total revenues of $706.8bn, equivalent to 27.5% of the markets overall value.

Indian Industry Overview:

• India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 35.09 billion in FY20.

• According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025.

• India is the worlds second-largest producer of rice, wheat, sugarcane, cotton, groundnuts and fruits & vegetables. It also produced 25% of the worlds pulses, as of last decade, until 2019.

• The organic food segment in India is expected to grow at a CAGR of 10% during 2015--25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.

• Agriculture is the primary source of livelihood for about 58% of Indias population. Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20. Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.

• The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. Indian food and grocery market is the worlds sixth largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the countrys total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

Key Market Movements:

• The rising health consciousness among consumers in both developed and developing markets across the world has increased consumption of dried nuts and fruits. The product contains high levels of unsaturated fats, proteins, vitamins and fibres. The emerging trend for protein-rich diets has significantly increased the demand for dehydrated fruits among young adults. The increased awareness regarding obesity and lifestyle-related disorders has boosted the popularity of healthy snacks among consumers.

• Dry fruit containing snack bars, breakfast cereals and bakery products are gaining popularity in the retail. The health benefits of dehydrated fruits boost their consumption as a snack and as a raw ingredient in gluten-free and vegan bakery and confectionery products. Development across the food packaging industry has enabled manufacturers and processors to sell dehydrated fruits in small, portable, and ready-to-eat packaging. The increasing investment by manufacturers to extend product shelf life contributes to market growth.

• India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 35.09 billion in FY20. The organic food segment in India is expected to grow at a CAGR of 10% during 2015-25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.

• The government has set a target to buy 42.74 million tonnes from the central pool in FY21; this is 10% more than the quantity purchased in FY20. For FY22, the government has set a record target for farmers to raise food grain production by 2% with 307.31 million tonnes of food grains.

3. INFRA PRODUCT BUSINESS:

• Food grade plastic piping system for drinking water:

Your company has received mammoth response in the HDPE pipes for drinking water system. Last year Vikas Lifecare Limited has ventured into the arena of food grade piping systems for drinking water under the Jal Jeevan Mission and performing. Jal Jeevan Mission initiated by Department of Drinking Water & Sanitation, Ministry of Jal Shakti, Government of India. Your company possesses a rich experience in sourcing and supplies of food grade plastic raw materials for food & drinking water contact applications of plastic piping systems.

• Steel fittings & Steel Bars

Your company is doing well in these segments with increasing economic activities and governments thrust on infrastructure development, there is a huge demand of fittings by all major steel tube. To support Companys Infra Products trading business and as a measure of backward integration, Your company has been specifically focusing on growing its consumer products division, alongside continuously working to expand the offing to the conventional business segments, targeting to tap into the ever-growing business potential and the strong and steady demand for the infrastructural materials and products in India, which has a huge scope to offer opportunities for a long lasting and huge business growth.

Global Industry Review:

• The Global Infrastructure Market was valued at USD 2,242.3 Billion in 2021 and is expected to reach USD 3,267.3 Billion by 2027, registering a growth rate of 6.48% during the forecast period.

• The global steel rebar market size was valued at USD 219.2 billion in 2019 and is expected to grow at a CAGR of 7.2% from 2020 to 2025. The expansion of construction sector is anticipated to remain a key driver for market growth. Growing construction output, especially in emerging countries, such as China, Brazil, and India, and diversification program in the Middle East countries, are contributing to the demand for steel rebar.

• Major GDP contribution in the Middle Eastern countries comes from the oil & gas sector. However, countries in the region are focusing on the development of non-oil & gas sectors such as residential construction and infrastructure. For instance, the Saudi Arabian government, under its Saudi Arabia Vision Plan 2030, revealed an infrastructure investment plan worth USD 450 billion to reduce its dependency on the oil & gas sector for a more effective government, to diversify its economy, and build a robust society.

• For food grade piping system the global HDPE pipes market was valued at $17,907 million in 2017 and is projected to reach $26,518 million by 2025, growing at a CAGR of 5% from 2018 to 2025.

Indian Industry Overview:

• India is home to fifth-highest reserves of iron ore in the world.

• India will require investment worth Rs. 50 trillion (US$ 777.73 billion) across infrastructure by 2023 for a sustainable development in the country.

• Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.

• For Infrastructure business steel fittings and steel bars are very important tools for the growth in this segment.

• In FY22 (till January), the production of crude steel and finished steel stood a 98.39 MT and 92.82 MT, respectively. According to CARE Ratings, crude steel production is expected to reach 112-114 MT (million tonnes), an increase of 8-9% YoY in FY22.

Key Market Movements:

• The Infrastructure in India is estimated to grow at a CAGR of approximately 7% during the forecast period.

• During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.

• Increase in Road Infrastructure followed by the development of highways would be undertaken, including the development of 2,500 km access control highways, 9,000 km of economic corridors, 2,000 km of coastal and land port roads, and 2,000 km of strategic highways

• The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from 2018-30.

4. SMART PRODUCT BUSINESS:

• Your Company is moving ahead with the objective of broad-basing the product portfolio, and diversifying into futuristic and unique product lines, new edge businesses, complimenting and supplementing the existing business lines of the Company. Vikas Lifecare has entered into definite agreement with the existing promoters/shareholders for acquiring 75% equity of Genesis Gas Solutions Private Limited (the Genesis), a company engaged in the business developing "Smart Products" including Smart Gas Meters & Power Distribution solutions for the ever-expanding infrastructure in India. Genesis pioneers in smart gas and water metering in India and commands about 20% of domestic gas metering share in India.

• Genesis is currently having the first and the largest implementation of LoRa? technology in Smart Gas Metering in India. Genesis operates through leading operators of LoRa? in India and has also done few pilot projects outside India.

• Genesis Gas Solutions Pvt Ltd successfully developed and integrated LoRa? technology MIUs (Meter Interface Units) into prepaid gas meters which have already been commissioned at Indraprastha Gas limited (IGL).

• Beside the gas and water meter Genesis Gas entered into a Memorandum of Understanding (MOU) with "S I C K" India, a subsidiary company of "S I C K" A.G. headquartered in Germany, for promotion and marketing of a certain type of Ultrasonic Gas Meters in a pre-defined geographical territory including India and certain Asian countries as well.

Global Industry Review:

• As Your Company recently acquired The Genesis who is the manufacturer of smart gas and water meter. The global smart meter market size was valued at $21.79 billion in 2020 and is projected to reach $54.34 billion by 2030, growing at a CAGR of 10.10% from 2021 to 2030.

• Smart meters are electronic devices that accurately monitor electricity, gas, and water usage. These smart meters can send usage information through power line communication, radiofrequency electromagnetic radiation (RF), and cellular communication, helping the utility company to effectively manage the energy usage.

• Smart meters offer a host of benefits such as reduction of meter reading cost, preventing disconnection, removing inefficiencies in billing, and re-connection costs to corporations and consumers.

• The major factors that drive the smart meter market growth are development of communication network infrastructure, government initiatives, and high investments in digital electricity infrastructure. In addition, large scale installations of the smart meters by the utility companies are focusing on strengthening the distribution of the smart meters.

• Smart meters offers various advantages such as precise reading, avoiding manual involvement, maintaining data of usage, avoiding unaccounted consumption, and evaluating monthly tariffs.

• In recent years Asia Pacific witnessed a substantial growth in population. This is propelling residential, commercial and industrial sectors to grow immensely in the region. The region has witnessed a switch from traditional meter to smart meter in terms of electricity and this trend is estimated to follow for smart gas meter as well.

Indian Industry Overview:

• The growth of the smart meter market in India can be attributed to the increasing cost of electricity in the country and the growing need for energy conservation and management.

• India smart meter market is witnessing promising growth and anticipated to grow at a CAGR of 6.4% during the forecast period.

• In addition, stringent government initiatives to mandate the installation of smart meters in commercial and industrial facilities are expected to drive market growth during the forecast period.

• The Government of India is taking various initiatives to boost the adoption of smart meters in the country. It has already launched initiatives such as Smart Meter National Programme that aims to replace 25 crores (250 million) conventional meters with smart meters in India.

• Based on product types, the India smart meter market is segmented into smart electric meters, smart gas meters, and smart water meters. Among these, the smart electric meters segment accounted for the largest market share because of the increasing focus on better management of electricity consumption.

• Geographically, the India smart meter market is segmented into North India, South India, East India, and West India. North

India accounts for the largest market share due to the increasing public-private partnership to boost the installation of smart meters in this region.

Key Market Movements:

• The Asia Pacific is expected to dominate the smart meters market during the forecast period due to governments mandates for digitization of grid networks, utilities monitoring real-time analysis for grid and consumers usage.

• The region has been segmented into China, Japan, Australia, India, and the Rest of Asia Pacific.

• The Asia Pacific is the most populated region in the world and consequently witnesses a high electricity demand. China, Japan, and India are investing in grid expansion projects to increase distribution grid reliability.

• Based on the type smart meters market has been segmented as Electric,Gas and Water meters.

• Smart meter has gained immense traction on account of their attractive features including automatic meter reading, bill generation, greater transparency, and reduced meter reading costs.

• They have become essential part of smart grids and are gradually replacing conventional meters in end use verticals such as industries, residential buildings and commercial places.

• Governments across the world are spending billions of dollars on the installation of smart grids and smart meters, with the aim of improving the efficiency of power networks. Moreover, various new smart city initiatives are being constantly launched worldwide. This will create lucrative growth avenues within the global smart meter market during the forecast period.

• Leading Asia Pacific Countries such as China and India are continuously installing smart meters in residential and industrial buildings for achieving a cleaner and more efficient energy system. Various new projects are being launched by governments to encourage the adoption of smart meters.

COMPANY OVERVIEW:

Vikas Lifecare Ltd. (VLL) is an ISO 9001:2015 certified company, historically engaged in the business of manufacturing of Polymer and Rubber compounds and Specialty Additives for Plastics, Synthetic & Natural Rubbers. The company has been conventionally engaged in various business segments including Polymer & Rubber Commodity (bulk consumption) Compounds and Master-Batches. Manufacturing Up-Cycled Compounds from industrial and post-consumer waste and scrap materials like EVA, PVC, PP, PE etc., directly contributing to the Environment Protection initiatives from the Government of India and fulfilling the mandated EPR obligations for the conglomerates using hundreds of thousands of tons of plastic products and packaging materials.

VLL is also a Del-Credere agent of ONGC- The Oil and Natural Gas Corporation Ltd." Petro Additions Limited, a public sector undertaking producing a wide variety of base polymers and commodity plastic raw materials. VLL has a division engaged in Agro Products Business, The Company is empanelled with NAFED - The "National Agricultural Co-Operative Federation of India" and HOFED - The "Uttar Pradesh Horticultural Co-Operative Marketing Federation".

As a long-term business strategy, the company has most recently diversified its business interests beyond raw materials (B2B businesses) and forayed into the B2C segment with a host of consumer products for FMCG, Agro, and Infrastructure Segments; paving way for an aggressive business growth with adding intricately planned and selected product portfolios via acquisitions, joint ventures and tie-ups. VLL intends establishing / acquiring businesses in diverse segments thereby expanding its business stakes and a footprint across the country and beyond.

The company is holding 95% stake in Genesis Gas Solutions Pvt. Ltd. Engaged in the business of Smart Gas Meters being supplied to all the major Gas Distribution Companies for domestic and commercial consumers. Genesis pioneers in Smart Gas and Water Metering and commands about 20% of the Domestic Gas Metering business share in India.

The Company acquired 51.38% stake in M/s Shashi Beriwal & Co. Pvt Ltd on October 14th 2022. Accordingly, M/s Shashi Beriwal & Co. became subsidiary in the year 2022-23.

Shashi Beriwal & Co. Pvt Ltd is manufacturing packaged beverages including Fruit Juices of a wide variety, Aerated drinks including the most popular flavors like Cola, Orange, Mango along with very Indian Jeera and Shikanji drinks and has most recently forayed into the fast expanding market in India for "Energy Drinks". SBBPL has the manufacturing unit at Rai Industrial Estate, District Sonipat, in Haryana. The products are currently marketed across 8-10 states through a network of 20+ distributors. The manufacturing unit is FSSAI registered facility with a current capacity to produce 50 Kilo Liters /Day of the products in 100 Thousand retail size packs of Juices and 50 Thousand units of Aerated Drinks comprising of PET Bottles, Tetra Packs, Soft pouches and the company is planning to start launching retail packaging in disposable metal cans as well. This capacity is expandable upto 2 times with the current infrastructure available at the same site.

The Company has also acquired 30% stake in FMCG Retail Chain Stores Ardh Sainik Canteen against cash consideration of INR 150 Million on October 10, 2022.

Ardh Sainik Canteen Stores (ASC) is a unique concept for chain of retail stores, owned by Abhhyam Services Private Limited, wherein Canteen (Retail) Stores are being operated/opened across India by the retired paramilitary personnel/family members of existing jawans at their hometowns. The Present network of ASC comprises:

• 600 Running Canteens

• 140+ Vendor Partners

• 12 Running Depots

• 4500+ Canteen requests In Process With a vast portfolio of consumer goods including:

• Grocery

• Personal Care

• Fashion

• Stationery

• Electronics

• Home Care Products

Having a more than 2-decade strong operating history in the manufacturing of specialty chemicals for plastics industry, arms VLL with in-depth understanding of the product designing and market trends. The Company is having rich domain experience and in-depth knowledge of International and Local Polymer markets. We at VLL combine management expertise and best business practices - with high ethical standards. Our manufacturing facility is located at G-83, Vigyan Nagar, RIICO Industrial area, Shahjahanpur, Rajasthan, Alwar, Rajasthan-301706.

Vikas Lifecare Limited with the objective of broad-basing the product portfolio, and diversifying into futuristic and unique product lines, new edge businesses, complimenting and supplementing the existing business lines of the Company, have acquired 98% equity of MSR Apparels Private Limited (a company engaged in manufacturing of all types of textile garments and clothing accessories) from its existing promoters and shareholders in an all-cash deal for a total consideration of Rs 125 Millions thus it became a subsidiary company. Through this acquisition, Vikas Lifecare, which has recently diversified its business interests beyond raw materials, a B2B business, and forayed into the B2C segment with a host of consumer products including FMCG, Agro, and Infrastructure Products; is entering into another essential aspect of the life, Textile, Garments and Clothing.

Further "Vikas Lifecares subsidiary Genesis Gas Solutions enters into Joint Venture Agreement with Indraprastha Gas Limited (IGL) to set up Indias first Integrated Smart Meter Manufacturing Plant with Capital Expenditure of Rs. 1100 millions."

Segment Wise /Product Wise Performance

The Company is under four business segments which is trading(Base polymers, additives and chemicals meant for plastic processing , commodity compounds( Manufacturing up-cycled polymer compounds like EVA, PVC, PP,PE etc.), Environment protection( Recycling and up-cycling of plastic waste to fulfill EPR) and FMCG & Healthcare.

Current Business Segments

Our business is divided into different major segments which include Smart product Business( Smart gas and water meters), Polymer & Chemical Business (Recycling materials, trading and manufacturing of Polymer Compounds), FMCG segment (Agro Product), Infra Products( Steel fittings & Steel Bars), Food grade piping system for Jal Jeevan Mission.

Smart Product Business Division:

Moving further ahead with the objective of broad-basing the product portfolio, and diversifying into futuristic and unique product lines, new edge businesses, complimenting and supplementing the existing business lines of the Company, Your company has acquired Genesis Gas Solutions Private Limited (the Genesis), a company engaged in the business developing "Smart Products" including Smart Gas Meters & Power Distribution solutions for the ever-expanding infrastructure in India.

Your companys acquisition Genesis Gas Solutions Pvt Ltd (Genesis) has been awarded orders to supply 30000+ Gas Meters valued an approximate INR 31 Million from Gujarat Gas Limited, The Indias Largest City Gas Distribution company.

Genesis Gas Solutions received orders (i) for supplying 40,800 Natural Gas Meters, and (ii) for laying Pipeline and commissioning of Meter (Last Mile Connectivity) from Aavantika Gas Limited, a Joint Venture of GAIL (India) Limited & Hindustan Petroleum Corporation Limited under the Ministry of Petroleum and Natural Gas, Government of India.

Genesis Gas Solutions Pvt. Ltd (Genesis) has also entered into Joint Venture Agreement with Indraprastha Gas Limited (IGL) to set up Indias first Integrated Smart Meter Manufacturing Plant with Capital Expenditure of Rs. 1100 millions.

Further IGL and Genesis joined hands to establish Indias first Integrated State-of-the-Art Smart Meter Manufacturing Plant to manufacture Diaphragm Gas Meters equipped with IoT technologies like LoRa, LoRaWAN, Bluetooth, NFC, NB-IoT etc. These Smart Meters shall provide much needed solutions to manage consumers energy demand and metering with utmost accuracy and on real time basis. Initially, the Smart Meter Manufacturing Plant shall have installed capacity to manufacture 1 Million Meters annually, and is planned to be operational by April 2024. Genesis Gas Solutions Pvt Ltd has been awarded the orders for supplying Ultra Sonic Gas Meters to Indraprastha Gas Limited (IGL), one of Indias leading City Gas Distribution companies. These Ultra Sonic Meters will be deployed to the first ever project of IGL for custody applications, which is one of the largest business segments for Natural Gas supply to Industrial and Commercial applications.

Genesis had earlier received orders for ultrasonic Meters for Field Regulating Skid (FRS) for City Gas Distribution Companies during April 2023.

GENESIS had signed an agreement with SICK AG, Germany to supply Ultrasonic Gas Meters (FlowSic 500) for Industrial and Commercial gas customers. Genesis has developed a 4G Modem, and integrated its own MDM solution, EnerDash with the UltraSonic meters (FlowSic 500) being supplied by them to customers.

Recycling Material Division

With growing awareness of environment protection, initiatives of governments worldwide and continuous efforts on research and development in field of recycling materials, the plastics recycling industry is booming, spread across an informal amalgam of street pickers, small start-ups and non-governmental entities and is focused on the secondary use economy. Your company has developed the technology to recycle plastic waste for that has filed two patents.

In the Plastic waste Single use plastic like Multi-layer plastic (MLP) waste become the serious issue in the environment. MLP comprises of different layers of plastics and aluminum layer for their specific purpose in a packaging film, still does not find a viable recycling solution as the layers cannot be dissected apart and the matrix of various sorts of plastic in an MLP pose a great challenge for recycling and eventually to find a workable recycled material and its viable application.

Your company with the continuous effort of R&D team has developed a technology wherein the recycled MLP material can be used for producing pallets, interlock Tiles and subsequently various plastic articles making it a lucrative, scalable & rewarding business for the company eventually.

Your company is working towards patenting many more techniques, compositions and applications for the various firsts which have been in process with the VLL team since we started working towards niche, futuristic & potent opportunities that came along way on our journey in plastics since more than two decades now. These initiatives will not only help the company in strengthening its position in industry matrix but also the result in significant growth in revenues and profitability for years to come and stronger financial.

Trading of Polymer Compounds

Your Company is a polymers and polymer additive related Chemicals Trading House, based in the capital city, it has rich domain experience and in-depth knowledge of International and Local Polymers Market.

Your Company is a del-credre agent of ONGC Petro Additions Limited and its trading segment will grow correspondingly with the expansion and growth of the ONGC.

• Inter-Linkage of OPaL Plans with Companys Growth

OPaL is poised to become a key player in the growth of the polymer industry, because it has all the essential ingredients to become one of the best performing operators in the global petrochemical industry. OPaL has the combine advantages of adequate indigenous feedstock supplies, talented manpower, ready market and above all, a better and brighter domestic market, Vikas Lifecare Limited has been appointed by Opal as its del credre agent for supplying the plastic and raw rubber polymers on regular basis.

The demand for polymers in India is huge and is expected to further rise with the growth in GDP and thus will lead to growth in the supply of polymers by your Company to Opal.

Polymers are used extensively and have replaced traditional materials like Metal, Wood, Paper, and Glass in day-to-day life style. Economy of any region and per capita income & spending power directly impact the polymer consumption. As, global per capita consumption of polymer is 26 Kg per person per year, India is lagging much behind in terms of per capita having just 5 kg per person per year.

It is forecasted that the demand will be increasing in India at an annual rate of 12.5%. Growing Indian economy will push the Polymer consumption in near future and will be the major market to tap, thus your Company is all energized to meet the increasing demand of polymers in India and cater to economy at large through OPaL.

Polymer Compounds:

Vikas Lifecare limited was engaged in the manufacturing of different polymer compounds like PE compound, PVC compounds, V blend SOE compound, Polypropylene compounds and Thermo Plastic Rubber (TPR) compound.

FMCG-Aaro Product Business:

• During the first wave of Covid-19, the Company initiated trading in raw and finished cashew nuts to pursue one of its business strategies to venture and intends to expand into FMCG segment and thereafter to strengthen this business further started trading of certain agro products such as rice, pulses etc. and other allied activities.

• The company focused energies to scale up operations in the recently started FMCG business and the efforts have resulted in rich opportunities of dealing in variety of premium quality dry fruits, nuts and other premium consumer products as well.

• Your Company received an overwhelming response in this business segment and the domestic sales of Premium Cashew Nuts has already crossed Rs. 520 million mark and in addition we have successfully executed export orders equivalent of Rs 50 million of Premium Rice so far.

• While the Premium Rice business has been registering impressive numbers for the company in terms of sales and consistent growth of the Agro Products Division, the company has received its first Bulk-Load Export Order of 1500MT of Premium Rice in February 2022.

• To further fortify its food-prints, in addition of entering a MOU with National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) for export of agricultural products or commodities and articles to various countries across the world, the Company recently got registered/empaneled as an Approved Vendor with the U.P. State Horticultural Co-Operative Marketing Federation (HOFED) a Govt. of U.P. Enterprise.

• Your Company started its Agro Products Business Division only with Premium Cashew Nuts, Premium Rice etc. Subsequently, as a measure of backward integration, the company established a Premium Cashew Nuts processing unit at Karnataka, India which is running at optimum capacity utilization levels, encouraged with the response it is recently decided to double the processing Cashew Nuts processing capacity. As a long-term strategy the Company is focusing to sell of Agro Products in international markets and is continuously exporting Premium Rice. Now the addition of Crystal Sugar is also being embarked upon with an impressive Export Order.

• In addition, the company has also been acquiring agricultural land parcels to expand its business initiatives in Agro Products including vivid activities and operations aiming horticultural R&D, Cultivation, Preservation and Storage of Agro Products under this Business Segment.

Infra Product Business:

• Your company has entered into supplying of food grade piping systems for drinking water under the Jal Jeevan Mission initiated by Department of Drinking Water & Sanitation, Ministry of Jal Shakti, Government of India. Our Company ventured into infrastructure products with of drinking water pipes, fittings and bars.

• For drinking water pipes, we have already achieved a sale of Rs. 75 million within first 3 months of commencement of this vertical and in addition, the Company has already registered revenue of about Rs. 240 million of Steel Bars, since June 2021

Opportunities for sustainable growth:

• Increasing demand for the polymers and increased measures for sustainability by the government

• Relaxation in laws by the regulators and subsidies available on recycling materials by policy makers

• Increased opportunities through "Make in India" initiative by the Central Government.

• Wider audience and global use of the FMCG products and fast growth of the industry

• The Company is optimistic to exploit the opportunities available in the markets by harnessing its potential ad strengths.

• Continuing focus on organic growth

• Eyeing to create a meaningful presence outside of India

• Pursuing added value opportunities in various industries.

Financial Performance

The financials of the Company as on 31st March, 2023 in comparison with the previous year figures along with the key financial indicators are discussed as under:

Net worth

The Companys net worth viz. paid up share capital, general reserves and retained earnings stood at Rs.330.76 Crore as against the previous year where it stood at Rs. 198.64 Crores.

Borrowinas

The Companys borrowings aggregated to Rs. 15.50 Crore comprising of secured borrowings from banks and financial institutes of Rs. 13.04 Crore and unsecured borrowings in form of inter-corporate loans/ advances and loans from related parties is Rs 2.46 Crore in comparison to the previous year figures being Rs 6.57 Crore.

The total debt-equity ratio of the Company as on 31st March, 2023 was 0.05:1.

Trade Receivables & Trade Payables

Trade receivables at the end of financial year was Rs. 167.06 Crore and trade payables aggregated to Rs.57.10 Crore as against the previous year where Trade receivables and trade payables stood at Rs 50.37 and 64.68 Crore respectively.

Current Assets & Current Liabilities

The Current Assets of the Company stood at Rs. 195.15 Crore whereas the current liabilities aggregated to Rs. 82.74 Crore as against the previous year where the Current Assets and Current Liabilities were 111.26 Crore and 86.32 Crore respectively. The Current Ratio of the Company as at 31st March, 2023 was 2.36 as against 1.29 in the previous year.

Earnings per Share

The basic and diluted Earnings per Share (EPS) as at the end of financial year was -0.12.

Research & Development

Trading and carrying out recycling process in the chemical industry, as vast as the chemical industry is spread, the greater is the need to continuously work on the Research and Development aspect of the sector. The Company is well aware of the only improvisation and the product quality is the vital for the growth and sustainability of the Company.

R&D is one of the driving forces for expansion in the company. Research and development is one of our key strengths and is integral to our growth. We continue to build on our capabilities and competencies in the field of chemistry. Our in-depth expertise in process research, process development and analytical references enables us to provide integrated solutions to our global customers.

Your Company has successfully filed two patents for the technology on:

1 Recycling of Multi Layered Plastics (MLP) and converting it to granules and products for societal applications".

2 An improved process of recycling of waste plastic for making pallets & interlock tiles for industrial application"

Environmental Health and Safety

Chemicals have become an indispensable part of human life, sustaining activities and development, preventing and controlling many diseases, and increasing agricultural productivity. Despite their benefits, chemicals may, especially when misused, cause adverse effects on human health and environmental integrity. Widespread application of chemicals throughout the world increases the potential of adverse effects.

Growth of chemical industries, both in developing and in developed countries, is predicted to increase. In this context, it is recognized that the assessment and management of risks from exposure to chemicals is among the highest priorities in pursuing the principles of sustainable development.

We are subjected to extensive environmental law and regulations relating to the prevention and control for water and air pollution, environmental protection and hazardous waste management in relation to our manufacturing facility. Our company has obtained the necessary environment related approvals in relation to our manufacturing facility. We aim to comply applicable health and safety regulations and other requirements in our operation and comply with legislative requirements, requirements for our licenses, approvals, various certifications and ensuring the safety of our employees and the people working at our facility or under our management

Risks, Concerns, Internal Control Systems and their Adequacy

The major risk that concerns the Company is its business risk. The Company is subjected to a high business risk in terms of its high dependability on other Industries for demand of its products carrying the nature of raw materials. The Company has a risk management and mitigation plan. Periodic checks are carried out on all systems and processes as part of internal audit. The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. The Statutory Auditors also evaluate the efficacy and adequacy of internal control systems including controls with respect to the financial statements, its compliance with operating systems, accounting procedures and policies in the Company. Corrective actions are undertaken basis findings of audits.

Human Resources

Human Resource Capital is the most valuable asset for any organization. The Company places the utmost importance on maintaining cordial employer-employee relations both at its administrative offices and plant locations. The Company has developed a system to reward adequately and recognize employee contribution towards its growth. A remuneration policy has also been developed and adopted by the Company which provides for appointment and remuneration of Directors, Key Managerial Personnel and Senior Management.

Disclaimer

Statements in the Management Discussions and Analysis describing the Companys objectives, projections, estimates, expectations 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 economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax, corporate and other applicable laws together with the other incidental factors.