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Midas Infra Trade Ltd.

BSE: 531192 Sector: Consumer
NSE: N.A. ISIN Code: INE290M01022
BSE 00:00 | 23 May 1.19 0
(0.00%)
OPEN

1.23

HIGH

1.23

LOW

1.18

NSE 05:30 | 01 Jan Midas Infra Trade Ltd
OPEN 1.23
PREVIOUS CLOSE 1.19
VOLUME 6545
52-Week high 1.85
52-Week low 0.88
P/E
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.23
CLOSE 1.19
VOLUME 6545
52-Week high 1.85
52-Week low 0.88
P/E
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Midas Infra Trade Ltd. (MIDASINFRATRA) - Chairman Speech

Company chairman speech

Dear Shareholders

I am pleased to place before you the 27th Annual Report of Midas Infra TradeLimited with reflections on the year gone by and my thoughts on the journey ahead. TheCompany has entered in to Jewellery Trade by acquiring the business of HDC Private Limitedin the Financial Year 2016-17 and opening chain of Showrooms of Jewellery under thefranchisee of "SUNAR" in Delhi and NCR. The Business of the Company wasoutstanding and it recorded revenue of Rs. 15858.21 Lakh in this year.

It is an old saying that change is the only constant. Last few years have seen manyregulatory changes like:

• Introduction and reversal of abolition of gold on lease scheme

• Announcement of demonetization.

• Introduction Goods and Services Tax

• Jewellery purchase schemes falling under the ambit of Deposits

• Introduction and reversal of 80:20 ruling on gold imports

• Hallmarking

• PAN Card requirement for any sales above Rs. 2 lakh

• Imposition of excise duty for the first time on the jewelry industry

The Company has remained on its toes throughout to comply with the new regulations andchanging business environment. At the same time we welcome the new regulations as theywill go a long way in making the jewellery industry more transparent and increase themarket share of the organized players. Increasing regulatory environment increases thecompliance costs for the unorganized players and thus creates a huge growth potential forthe organized players.

The Indian consumption story continued to gather momentum during the year. Buoyed by7.2% growth in GDP India's affluent middle class and aspirational youth are the keydrivers of the impressive and increasing Indian consumption trajectory. Long-term reformslike the implementation of the Goods and Services Tax (GST) are in line with formalisationof the economy as they create a unified marketplace for the first time

The share of the organized players had been increasing in any case as the consumersprefer to buy jewelry from a branded showroom due to assurance of quality purity andavailability of a wider design range. The imposition of Goods and Service Tax regime from1st July 2017 further shifts the balance in favour of the organized sector andwe feel that the pace of this shift will only increase now.

Thus I see huge potential for growth not only for Midas but for other branded playersas well. The Indian jewelry market is huge and I feel that there is enough scope foranother 10 to 15 branded Companies. However it is very important to have a first moveradvantage to acquire the maximum market share and Midas's expansion policy is to achievethe same.

Though online channels are gaining transaction in our country especially in theyounger generation but for jewelry purchase touch and feel of the actual product stillremains a very important factor. I am now getting a lot of customers who have browsed ourproducts online liked them but come to our showrooms for purchasing the same. Hencehaving a physical presence on ground is a must for growth and customer acquisition. TheCompany would therefore continue to open showrooms for gaining access to the maximumnumber of consumers.

Some of the other ROE accretion steps being carried out by the Company include:

(1) Reduction in the quantum of inventory by digitising the same and making itavailable across all showrooms rather than physical inventory. This would be especiallyuseful for reducing the number of high value jewelry items which have a longer turnaroundperiod.

(2) Leveraging technology to create virtual showrooms and thus minimize investment inphysical showrooms.

(3) Strengthening our online vertical enables us to target consumers across wide areaand achieve sales with a minimal capital investment. This also helps us to leverage on theonline offline synergies between the two verticals.

(4) Leverage in house designing and manufacturing strengths to create higher marginjewelry of the likes of Flexia etc.

(5) Helping margins by identifying inefficiencies and rationalizing costs across allthe operations and processes.

I would continue to invest on strengthening my manufacturing and designingcapabilities. I sincerely believe that this sector becomes more and more organized theonly differentiating factor between the two organized/branded players will be theavailability of maximum number of designs at all price points. Hence I am very passionateabout this point. Having strong manufacturing capabilities permits me to reduce productioncosts retain skilled workers shorten product development and develop capability tointroduce newer collections rapidly.

This will enable the Company to gain a sustainable competitive advantage over itscompetitors.

Acquisition of exclusive franchisee of premium Jewelry brand "SUNAR" by theCompany has given us a presence in the high premium Jewelry segment within the country.The Company is confident that it will play a significant role in its growth in the comingyears.

I take this opportunity to convey my thanks to all the stakeholders vendors bankersand customers for all their support and encouragement throughout the year. I am alsothankful to all our employees who have continued to contribute to the Company's growthwith their exemplary performance and commitment.

Yours sincerely

Rajnish Chopra

Managing Director

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