Dear Shareholders,
It has been an extremely challenging year on account of inflation,
increasing input costs, falling prices of finished goods and increased competition in the
market place. From our experience of having gone through multiple commodity cycles, we
believe the bottom of this challenging market is behind us and that the future is looking
upwards.
Our net sales stood at Rs. 492.53 Cr during the financial year. It is
interesting to note that despite the fall in prices, we have been able to maintain our
revenue as compared to Rs. 490.65 Cr recorded in the previous year of FY 2021-22; this is
largely because of increased production through our new capacities and because the demand
has grown. Through the year, we incurred a loss of Rs. 27.09 Cr. The negative situation is
largely on account of inventory losses due to fall in prices and escalated fuel &
power expenses because of the Ukraine-Russia war.
Two notable positive developments. Our expansion is complete and we
have received approvals from multiple F&F companies for the samples we have submitted
to them, we are now eligible to participate in their half year / annual RFQs - steadily we
will grow our business in intermediates to utilise our capacities. Secondly our retail
foray through our 100% subsidiary Mangalam Brands Private Limited is gaining strength from
strength and has generated ~25% of the overall revenue of Mangalam Organics Limited; going
forward Mangalam Brands Private Limited through its wide and innovative product portfolio
will play a key driver not only in revenue enhancement but also margin accretion,
stability and value creation.
Our Segmental Performance
Camphor is the primary product in our "Terpene Operations"
segment. As India becomes the most populous nation in the world, the consumption of
camphor is bound to grow in sync.
As India's population pyramid becomes more rounded towards the middle,
a large number of people are entering the phase of life where one tends towards
spiritualism and religion a lot more than at a younger age. New use cases of camphor,
beyond puja, for aromatherapy are also picking up traction which will fuel the growth and
enlargen the user base. We have initiated sales of our terpene intermediates and look
forward to growing these through the years to come which will contribute to our growth.
On the "Synthetic Resins" front, we had robust demand and
good growth in terms of quantity produced - this prompted us to increase our capacities
for the same portfolio of products.
With growing requirements and healthy margins, our synthetic resin
strategy is in place. With a general move towards greener materials, we are noticing
increased requirements from domestic and foreign markets for our range of resins.
Our "Retail Operations" are redefined through the 100%
subsidiary "Mangalam Brands Private Limited". This enables us to build a
specific set of capabilities with a renewed effort. We have seen robust growth in all
three elements of our operations - "Mangalam", "CamPure" and
"Private Label". Through our General Trade channel, we are now present in shops
across 18 Indian states. Our Modern Trade channel gives us access to over 4000+ organised
retail stores. We continue to be the number 1 brand on E-commerce driving growth by
growing the category. On the branding front, we continue to spend money astutely through
digital and exhibitions with the focus on awareness and trial generation.
Once again, on behalfof the Management and Board of Directors, we would
like to take this opportunity to thank all our stakeholders, our shareholders, employees,
suppliers, and various government departments, for their unwavering support and trust. We
are glad to have your continued support and we will endeavour to meet your expectations.
Kamalkumar Dujodwala
Executive Director and Chairman
Pannkaj Dujodwala
Executive Director and Managing Director