WITH THEECONOMIC GROW THOF INDIA PICKING UPPACE WEARE ALL SE T TOBE A PAR T OFTHISGROW THENGINE WI TH THECOMMISSIONING OFO UR ANDHRA PRADESHPLAN T. WITHA THRUSTONDEPLOYING S TATE-OF-THEAR T TECHNOLOGYAND PRODUCT INNOVATION WEAIM TOCAP TUREANDSUSTAININCREASINGLY LARGER MARKE T SHAREAND CREATEVAL UEFOR ALL O URS TAKEHOLDERS.
I extend my warm greetings to all the stakeholders associates and the entire communityassociated with Rushil Dcor Limited. I am glad for this opportunity to share ourCompany's business progress achievements and progressive outlook with you all. Butbefore I proceed I sincerely hope you and your dear ones are safe and urge you tocontinue taking good care and be cautious in these uncertain times.
The Year that was
The year 2020 saw Indian industries and their counterparts worldwide reeling under theimpact of the Covid-19 pandemic. This never-seen-before health crisis and the toll it tookin the form of the first and second waves on India's economic zeal and social spirit hasbeen monumental.
With the Government and society's unrelenting safety measures the number of cases hasgradually subsided. The economy is slowly yet
firmly inching back towards normal and so are different industries across varioussectors.
I am happy to state that we have reopened our business while ensuring the highestpossible safety measures and precautions for all our employees and business associates. Inthe year ended 31st March 2021 we registered a revenue of `339.77 Cr. with EBITDAand PAT at `39.29 Cr. and
`13.72 Cr. respectively.
Despite such turbulent market conditions we were able to maintain the previous year'stopline. Operating margins were impacted due to the continued expenses incurred evenduring the various lockdowns. However we drew upon our advantage to maintain our marketshares across all our brands. In fact our Q4 2020-21's performance is a good indicationof our recovery in terms of revenue and operating profit vis--vis the Q4 of 2019-20.
On the Path of Growth
The onset of Covid-19 did not augur well with the Indian economy especially in thefirst couple of quarters of 2020-21. However the economy showed grit and resilience andis back on its course of growth and expansion. According to the latest report by AsianDevelopment Bank India's GDP is estimated to grow @10% for the financial year 2021-22;having contracted by 7.3% during the fiscal year 2020-21.
As far as the Wood Panel and Decorative Laminates industry are concerned we are safelypositioned to capture a large share of the growing market with our flagship brands VIR Laminate VIR MDF and VIR PVC.
We identify steady growth of the commercial and housing real estate sector as ourprincipal growth driver. Due to rising safety awareness amongst general masses andlarge-scale vaccination drives conducted by the Government of India both commercial andhousing real estate segments have been abuzz with construction activity. The insistence ofthe Government of India in providing housing for all has also been a major boost. Therising income of the urban households has translated into rising demand for well-furnishedliving and workspaces with high aesthetic appeal.
This has led to the demand for trendy ready-to-assemble (RTA) furniture that is pocketfriendly durable and eye-catching. The furniture industry has traditionally relied onPlywood for its manufacturing requirements. However
Plywood is being gradually replaced by the medium density fibreboard (MDF) that isequally durable highly affordable and environmentally sensitive.
At RDL we strongly believe that MDF is a futuristic product. Speaking from the growthtrends demonstrated by the MDF segment it can be safely assumed that the MDF will takeover a large part of Plywood segment in the coming decade.
Laminates and MDFs were the second and third highest revenue grosser after Plywood inthe wood furniture market in India in 2020. Currently the MDF segment has reported a CAGRof about 15% per annum (p.a.) and is soon anticipated to increase to 20%. The market sizeof MDF in India is Rs.18 Billion. India imports 2.4 lac cubic meters of MDF every year.With our Andhra Pradesh (AP )plant soon reaching its optimum capacity we expect Rs.350Cr. of annualized turnover in the MDF segment only.
The market size of laminate segment in India is Rs.50 Billion and presents anopportunity of a 10% CAGR every year. According to the Department of Commerce andIndustry Indian imports under the segment during the year 2020-21 were to the tune of
PVC market in India presently worth
Rs.10 Billion is estimated to expand at 10% CAGR. We are expanding our dealershipnetwork across the nation to increase our market presence in these segments too. Thusbeing well-heeled amongst the industry leaders in decorative laminates and MDF RDL canproudly identify with its motto of growth and excellence.
Being in harmony with the community
We as a Company believe in maintaining a sustainable work environment and deeply carefor the community and environment in which we operate. Corporate social responsibility(CSR) has been a core part of our value system ever since our Company's emergence. Ourgoal is to aid significant socio-economic development. The vital areas of CSR activitiesfor us have been education health and well-being projects and eradication of hunger andpoverty.
Our overall strategy is based on the principles of organic growth operationalimprovement strong financial position and innovative products. Our focus is onpenetrating the existing markets further through multiple channels. Different segments andthe multitude of channels have played a crucial role in targeting a large market share inSouth India.
In the end
I want to thank the entire team of RDL for their untiring efforts hard work anddedication. I would also sincerely like to thank all the stakeholders for their undeterredsupport and faith in our Company. This trust is what motivates us to achieve newer heightsand grow consistently.
Take care and stay safe!
(*Source: www.statista.com https:// economictimes.indiatimes.com/industry/indl-goods/ https://www.mordorintelligence.com/industry-reports/wood-furniture-market-in-india)