Dear Valued Shareholders
I feel enthused and honoured to reach you through your Company's 26Annual Report. I take the opportunity to congratulate our Hon'ble Prime Minister of Indiain his landslide victory in the 2019 parliamentary election. We trust that the nationunder his vision and dynamic leadership will steer into an economic powerhouse withinclusive development. The tone of Hon'ble Prime Minister in his parliament house speech"Sabka saath sabka vikas sabka vishvas" inculcates the confidence in Indians.We have full trust and confidence that India under his visionary leadership will thrivemuch stronger unite the nation promote a prosperous democratic and integrateddevelopment agenda.
Gross Domestic Product (GDP) growth in India in the fourth quarter offinancial year 2018-19 slowed down more than expected to 5.8% from 6.6% in the previousquarter. This was the lowest quarterly GDP growth rate in the last five years. Annual GDPgrowth in financial year 2018-19 declined to 6.8% from 7.2% in 2017-18.
The Union Budget 2019 has maintained balance in fiscal discipline bykeeping lower deficit at 3.3% of GDP sustaining growth momentum and to make the IndianEconomy $3 Trillion economy in the current year with a vision to achieve $5 Trillion by2024-25. The Objective as it appears is to spur growth and development in the backdrop ofslowing economy weak consumption rural distress lack of job opportunities investmentand credit demand. The Government plans to invest Rs. 100 Lakh Crores in Infrastructure innext 5 years and proposes to set up an expert committee to study and evaluate the avenuesof funds. The ten point Government's "Vision for the decade" amongst otherincludes building physical and social infrastructure Digital India reaching every sectorof the economy Make in India with particular emphasis on MSMEs Start-ups Defencemanufacturing automobiles electronics fabs and batteries and medical devices Healthysociety - Ayushman Bharat well-nourished women and children safety of citizens andMinimum Government interference with Maximum Governance.
The Growth in the core sector of the economy fell to 2.6 percent inApril down from 4.9 percent in March as most sectors saw growth tapering off while usualperformance in the infrastructure segment put up a poor show. Data release by the Commerceand Industry Ministry on 28 May 2019 showed that the eight core sector industries i.e.Coal Crude Oil Natural Gas Refinery Production Fertiliser Steel Cement andElectricity saw slow growth in April after a rebound.
I am very optimistic that India will overcome all the hurdle obstaclesand will become developing to developed country in coming years. If India wants to become$5 Trillion economy by 2024-25 we need to increase our export by a minimum of 10% - 15%year to year.
Your Company supplies artificial leather to footwear segment. The Indiafootwear market is expected to exhibit remarkable growth in coming years on account ofrapid urbanization growing employment and improved standard of living. Robust growth ofthe fashion and lifestyle industry has expanded the scope of footwear business in India.
Your Company is also providing artificial leather into Auto Replacementsector and as per market report India is expected to emerge as the World's third largestpassenger vehicle market by 2021. Indian Government and the industry has set a target totriple industry revenues to $300 billion and expand exports sevenfold to $80 billion. Ifthese targets are achieved it is estimated that the sector could contribute more than 60million additional direct and indirect jobs and the result could be improvedmanufacturing competitiveness and reduced emissions.
To tackle emissions the government seeks to bring local standards upto par with global standards enabling India to leapfrog from BS-4 to BS-6 emissions (theEuro 6 equivalent) by 2020 Additionally India has implemented Corporate Average FuelEfficiency norms in which the manufacturers have to improve their fuel efficiency by 10percent between 2017 and 2021 and by 30 percent or more from 2022. With this growth inmind we set out our growth target of 10% to 15% in next 3 years and further 15% to 20%after 3 years in the automobile sector.
PU leather has good elasticity high tensile strength and gives feelof three-dimensional structure look. It is soft cleanable and has high abrasion. Theseproperties have played a major role in increasing the product's market penetration inautomotive footwear and furnishing sectors. High price of natural leather is also acritical factor that has propelled the need for its alternatives. Now I am glad toannounce that your Company will commence PU plant production in the end of the September2019.
Financial year 2018-19 was a year of challenges the prices of crudeoil increased and as your know that our 80% of raw material is based on crude oil. Inspite of the increase in crude oil price as per market situation during the year we havereduced our finished product price.
Despite of a weak demand being a one of the market leader inartificial leather your Company has reported decent operational performance in thefinancial year 2018-19. Your Company has achieved total revenue amounting to Rs. 594.89Crore and the net Profit After Tax (PAT) amounting to Rs. 87.17 Crore on Standalone basis.While the total revenue amounting to Rs.612.92 and the net Profit After Tax (PAT)amounting to Rs. 89.58 Crores on Consolidated basis.
As your Company's phenomenal history during the financial year2018-19 your Board of Directors have declared 3 interim dividends of total amounting ofRs. 3.00 per shares i.e. 60% of face value of Rs. 5 each of the Company and your Board ofDirectors has recommended Rs. 0.25 per share as final dividend for the financial year2018-19 to the shareholders in the ensuing Annual General Meeting.
I am pleased to share that your Company has made further investment of13700 Shares having face value of USD 1 per share at a rate of USD 73 per Share (facevalue USD 1 + Premium USD 72) in our Wholly Owned Subsidiary (WOS) i.e. Mayur UniquotersCorp.
I would also like to share that Mayur Uniquoters Corp WOS has madeinvestment of 450000 Shares having face value of USD 1 per share at a rate of USD 1 pershare i.e. equivalent to 68.18% of paid up share capital of Futura Textiles Inc. After theacquisition of 450000 shares Futura Textiles Inc became Step Down Subsidiary of MayurUniquoters Limited. Futura Textiles Inc is already established Company in Artificial/Synthetic Leather distribution network and will enhance the business development.
Your Company has received the following Rewards and recognition:
FS Tech Supplier Convention 2019 Gold Award received on 20April 2019 at Gurugram (Haryana) for acheving special performance in Quality for the year2018-19. Organized by TS Tech Sun India Pvt. Ltd.
Best Employer's Award 2017 Award received on 12 January 2019at Jaipur. Organized by the Employers Association of Rajasthan.
Rajasthan State Productivity Excellence Award 2016-17
Award received on 27 November 2018 at Jaipur. Organized by RajasthanState Productivity Council.
'Silver Award' & 'Bronze Award' receive on 25 August 2018in Two Kaizens presented by teams of Dhodsar Plant in "CCQC-2018" 6th SubChapter Convention on Quality Concepts Organized by QCFI at MNIT Jaipur.
On the path of quality environmental Occupational Health and SafteyManagement system your Company had a successful transition of IATF 16949:2016 ISO14001:2015 OHSAS 18001:2007.
Your Company is committed to be a responsible Corporate Citizen in theimprovement of quality of life of our employees thier families and local community. Weare actively engaged in working on promoting preventive health care sanitation undertakenconstruction of handwash stations and toilets in 100 schools in order to support Hon'blePrime Minister's vision for health and sanitation in rural areas making available safedrinking water promotion of improved educational infrastructure and teaching aid. Inorder to encourage our academically inclined children Mayur honours meritorious studentsof class 10 and 12 with gift cheques as an encouragement to pursue further studies. As anendeavour to support population control we are actively involved in family planningprogrammes in Phagi Village. Immunisation projects for children since the past 15 years isa huge success. Vocational training is one of our prime focus to financially empowerwomen.
We take immense pleasure to share with you that Mayur sponsoredsportsman Mr. Krishna Sharma is taking part in World Police and Fire Games in ChengaduChina. We look forward to his participation in upcoming Olympics in Tokyo too.
I acknowledge and appreciates the sincere efforts of employees at alllevels who have given their heart and soul to the organisation and have worked day in andday out to yield impressive results. I also take this opportunity to express sincereappreciation for assistance support believe and cooperation received from the CustomersSuppliers Bankers Financial Institutions Auditors State and Central GovernmentsAdvisors Community Society etc. I would also like to thank our Board of Directors andall Stakeholders including the members of the Company for their continuous support.
I thank you for your continuous support and look forward for a brightfuture ahead.
Suresh Kumar Poddar
(Chairman and Managing Director & CEO)
Place: Jaitpura Jaipur
Date: August 06 2019