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The Indian Wood Products Company Ltd.

BSE: 540954 Sector: Others
NSE: N.A. ISIN Code: INE586E01020
BSE 00:00 | 12 Aug 27.10 0.35
(1.31%)
OPEN

28.00

HIGH

28.00

LOW

26.25

NSE 05:30 | 01 Jan The Indian Wood Products Company Ltd
OPEN 28.00
PREVIOUS CLOSE 26.75
VOLUME 10502
52-Week high 45.95
52-Week low 24.65
P/E
Mkt Cap.(Rs cr) 173
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.00
CLOSE 26.75
VOLUME 10502
52-Week high 45.95
52-Week low 24.65
P/E
Mkt Cap.(Rs cr) 173
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

The Indian Wood Products Company Ltd. (INDIANWOODPROD) - Chairman Speech

Company chairman speech

Dear Fellow Shareholders

I will start with recording my deep condolence on record for the colleagues we havelost in Covid-19 battle last year. The past year has been a particularly challenging onefor India and its people. The COVID-19 pandemic has disrupted lives across all countriesand communities and negatively affected global economic growth in 2020 beyond anythingexperienced in nearly a century.

In line with the global economy India witnessed major economic disruptions inFinancial Year 2020-21 as the outbreak of COVID-19 perversely impacted human health andsafety of the country's inhabitants The informal sector where the vast majority ofIndia's labour force is employed has been particularly affected. As in most countriesthe pandemic has exacerbated vulnerabilities for traditionally excluded groups such asyouth women and migrants.

It has been a time of significant upheaval and a test of resilience. Yet it led us toadapt re-orient and accelerate learning while keeping the safety of our employees andbusiness ecosystem at the forefront.

Now I would like to present to you the Annual Report FY 2020-21 of the Company.

Indian Economy: Prolonged lockdown exacerbated existing vulnerabilities of thecountry including the weakened financial sector private investments liquidityconstraints and consumption demand. Mobility restrictions and social distancing led tounparalleled supply-chain disruptions and consumer demand fallout. This forced the IndianGDP to contract by 8.0% in FY 2020-21 as against a growth of 4.0% in FY 2019-20 marking arecession since 1980.

After a contraction in FY 2021 it is expected that the economy to grow at a modestpace in the first half of FY 2022. Growth is projected to reach 11.7% in FY 2022 in ourbaseline scenario. That said slow recovery in a couple of quarters will likely have animpact on next year's numbers as well. In FY 2023 growth of 6.9% is foreseen.

Impact on our business:

Katha Division: IWP is an established and dominant player in India's Katha Industryholding position of market leader. The last financial year FY2021 has witnessed aturbulent time effecting industries across segment your Company also cautiously managedits operations. IWP Katha division has

witnessed significant challenges in terms of the cost of raw material productionresults and revenue growth during the FY2021.

During the FY2021 Company's manufacturing unit of Katha & Cutch in union territoryof Jammu & Kashmir has successfully started commercial production w.e.f. June 272020 and the unit has achieved 90% capacity utilization in August 2020.

Spice Division: IWP's Spices is now being the one of the most preferred spices inthe markets it operates. Presently IWP Spices are available in the State of UttarPradesh Assam Delhi NCR. The IWP Spice's demand is growing rapidly. We constantly striveto keep ahead of the value chain so that we are able to meet the constantly evolving needsof our end customers.

During the FY2021 your company has successfully launched new packaged food &spices namely Fusili Pasta Marconi Pasta Ginger Garlic Paste Sabut Garam Masala MixedPickle Green Chilli and Mango Pickle in various SKU in the State of Uttar Pradesh NCRand Haryana. The products are well accepted by consumption segment customers in semi urbanand rural areas. Along with this your company had also launched a new product"SHAKTIKAVACH" an immunity booster which is mixture of exotic natural Spicesblended carefully to enhance human immunity. Your Company has ensured that we areconstantly on our toes to work on innovate new product categories to provide simple yettangible benefits to end consumers.

The operational and financial highlights are:

• Achieved sales volume of13034.26MTKatha in FY 2021as compared to 17378.53 MTin FY 2020;

• Sales of Cutch (by-product) increased from 433.96 MT in FY2020 to 466.34 MT inFY2021;

• Spice Division recorded a turnover of Rs. 1283.46 lakhs in FY2021 as comparedto Rs.1093.40 lakhs in FY2020;

• Capacity utilisation in Katha manufacturing 75%

The COVID-19pandemic while completely changing the way we live and do business hasalso given us an opportunity to be innovative in our approach. While we continue to driveproductivity and implement safety measures we will focus on innovation led growth toweather this crisis which is bound to have a lasting impact on all of us. I would like toexpress my gratitude to all our employees especially those in frontline roles who haveworked tirelessly to grow the business and ensure our products reach consumers acrossmarkets. I would also like to thank all our shareholders for their continued support andfaith in IWP We firmly believe that employees are our biggest assets. Their safety andgood health has been my top priority during these tough times. Given the scale and natureof the challenges posed by the pandemic we have put in place several initiatives for thesafety and wellbeing of our people through the course of the year.

We continue to invest lot of time and resources on R&D initiatives so that we arealways ahead of the curve. Moreover specially in case of our industry R&D is mostcritical where we continue to face unfair competition from the unorganised segment .We arevery confident that within H2 of FY22 we would be launching value added katha from ourBareilly plant.

At the end I want to express my deepest gratitude to doctors health workers and eachand every individual who are fighting battle against COVID-19. I am determined that we allwill come out as a winner out of these challenging times.

With these I thank everyone for continued trust and support in IWP.

Krishna Kumar Mohta
Chairman & Managing Director
(DIN: 00702306)

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