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Shaily Engineering Plastics Ltd.

BSE: 501423 Sector: Industrials
NSE: SHAILY ISIN Code: INE151G01010
BSE 00:00 | 02 Dec 1735.85 50.00
(2.97%)
OPEN

1705.90

HIGH

1755.10

LOW

1701.05

NSE 00:00 | 02 Dec 1721.55 31.00
(1.83%)
OPEN

1718.20

HIGH

1750.00

LOW

1679.90

OPEN 1705.90
PREVIOUS CLOSE 1685.85
VOLUME 120
52-Week high 2323.00
52-Week low 1500.00
P/E 47.62
Mkt Cap.(Rs cr) 1,592
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1705.90
CLOSE 1685.85
VOLUME 120
52-Week high 2323.00
52-Week low 1500.00
P/E 47.62
Mkt Cap.(Rs cr) 1,592
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shaily Engineering Plastics Ltd. (SHAILY) - Chairman Speech

Company chairman speech

The year 2021-22 will be remembered as the year when the world slowly and steadilystarted recovering from the hardships of the Covid-19 pandemic. When this crisis hit twoyears ago it compelled organisations to adapt to the changing environment while growingresilient swiftly. At Shaily we continued providing our clients with value-addedhigh-quality products in a safe and timely manner while prioritising our employees'safety health and well-being. Our focus was on safely charting a road for an evenbrighter future while taking urgent measures in response to Covid-19. We emphasisedensuring business continuity and the healthiest work environment for all and successfullyprovided the highest levels of cleanliness and safety at our facilities. Collectivelythis approach helped us navigate the challenges while constantly moving ahead closer toour goals and objectives.

The Economic Condition

Globally the general outlook has improved with decreasing infection rates andresumption of economic activities. But the geopolitical crisis in Ukraine hassignificantly changed the situation slowing the economic pace despite the world economyprogressively finding its footing. Businesses worldwide are concerned about the resultingincreased gasoline and commodities prices.

The Indian economy like others is also experiencing a resurgence with all macroindicators showing a good trend supporting the nation's growth story. Large-scalevaccination coverage and growing economic activities have bolstered public morale and theIndian Government's significant fiscal and other allocations have also boosted thecountry's economic story.

Our Performance in 2021-22

We are happy to share that we registered the highest ever revenue in 2021-22. Thiscould be made possible on the back of improved traction across segments and ramp-up inprojects.

Our visibility across various businesses gives us immense confidence in our ability toscale up further and grow. During the year we reported a revenue of Rs.574.68 Cr. asagainst Rs.363.18 Cr. in 2020-21 showcasing a strong 58% growth. EBITDA grew from Rs.62.1Cr. in 2020-21 to Rs.89.8 Cr. in 2021-22. EBITDA margins in 2021-22 were lower due to anincrease in raw material prices. We reported a net profit of Rs.35.2 Cr. as compared toRs.22 Cr. in 2020-21.

Our Developments

During the year we expanded our product offerings in the categories of devices andhome furnishings while also expanding our venture into healthcare-related items with anintellectual property angle. Our second- largest revenue-generating sector today ishealthcare and we added 12 new drug delivery systems to commercial production during theyear.

We acquired ip for a second pen injector during Q4 2021-22. And I'm particularlypleased to report that a Shaily-produced item for Sanofi won a sustainable design prize atthe ‘Pharma Pack' exhibition in Paris. Additionally we completed the contracts forthe pen injector with a top pharmaceutical firm in India. We have adopted a scalableapproach that will enable us to raise our income by two to three times over the next fiveyears.

Today we serve international markets through Shaily UK. Our focus is expanding toinclude contract manufacturing for medical devices items with our intellectual propertyand custom packaging. Our capacity to create our injection system platforms is nowbeginning to pay dividends. The business scope is broad in this sector and we intend togrow over the next few months and years.

Regarding toys we have begun building up our capacity after receiving orders frommajor players in the market. We have started commercialising the orders received under theautomotive and engineering segment and we anticipate ramping up in the current year.Since our clients intend to source heavily from India there are virtually endlessprospects for us to expand along with that.

Our business has raised money which we are using to expand our primary line ofbusiness home furnishings as well as for toys and medical devices. Over the next twoyears we aim to spend over Rs.200 Cr. on capital expenditures of which more than halfwill go into the Company's pharmaceutical division.

Society

The previous year's events showed that if economic social and environmental problemsaren't effectively addressed society's concerns will inevitably worsen - making it allthe more imperative to address the disproportionate effect on the most vulnerable.

We are aware that our Company owes it to the communities it operates within to make ameaningful contribution to the necessary change. We are progressing well on the socialimpact and sustainability plan we introduced in 2020-21 to merge our financial resourcesand business know-how more efficiently to have a stronger influence on communities. Weconcentrate on the social effect we have in the areas we serve to create a sustainableinclusive future for all by promoting small company development financial stability anda low- carbon economy. We are working with public and private sector organisations toaddress challenging problems by utilising our resources creativity and teamwork.Fostering an inclusive recovery from the Covid-19 pandemic and strengthening communitiesthat have been disproportionately affected are two important near-term priorities we haveidentified for Shaily.

Since the onset of the Covid-19 pandemic our staff has assisted the Government and thecommunity as a responsible employer. At Shaily we have implemented several communitymeasures to lessen the consequences of the outbreak including raising awareness of healthand safety issues providing food and sanitisers working with the local Government andengaging in several other activities.

Sustainability

To ensure our business's existence and prosperity in the future we believe inconducting business in a way that benefits the environment and the people who live in ourcommunities. We feel both these factors are equally and essentially important.

Our objective is to continuously enhance our procedures to use less water electricityand other precious natural resources. We believe this is the only way to consistentlymaintain competitiveness in a business environment that is becoming more dynamic whilealso continuing to offer sustainable development.

Our total sustainability plan heavily incorporates Lean Six Sigma which frequentlyleads to greater quality increased productivity and decreased waste in our manufacturingoperations and business processes.

We have also successfully converted items made from virgin materials to both recycledplastics and bioplastics while still meeting RoHS and other relevant compliances acrossour other business verticals such as Home Furnishings and FMCG.

Our Appreciation

In the end I want to extend my sincere gratitude to all employees for theirperseverance and immeasurable contribution to Shaily's success. I also want to express myappreciation to our suppliers bankers partners and customers for their unwaveringsupport. We are grateful for everyone's assistance in supporting our Company in theirspecial way. At Shaily we eagerly anticipate driving opportunities and possibilities aswe aspire to foster growth for our stakeholders.

Best wishes

Amit Sanghvi

Managing Director.

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