MANAGEMENT DISCUSSION AND ANALYSIS REPORT Business Overview Your company is in the business of laminates i.e. Decorative Laminates, Metallic Laminates, Compact Laminates, Exterior Laminates, HCL etc. Stylam decorative laminates are suitable for a wide range of applications in both your home furniture and professional environment like wooden claddings/lining of walls and columns, lift linings, doors, shelves, vanity units, table tops, work-tops, office partitions, counters, cubicles, store fittings, desks, storage units etc. Stylam decorative laminates are available in wide range of colours in Solids and Woodgrains designs and in many evergreen and new texture finishes and are available in 5 different sizes to cater to your varying needs. Stylam Metallic (metal foil) laminates provides a modern decorative and innovative appeal to your interiors. Stylam Metallic laminates have bright and reflective surface aspects which render the ambience a modern and sleek look. These laminates are ideal for use in the hospitality, interior design, gaming, entertainment, retail, signage display and furniture industries. Stylam Compact laminates are formulated with inner core of celluloid fibres imbrgnated with special thermosetting resins. These resins and the special heat and brssure cycles impart properties of a solid , load bearing hard laminate, which is resistant to wide range of atmospheric and chemical agents for use in internal and external atmospheric conditions. High values of Flexural strength and tensile strength ensures that these laminates are suitable for saw cutting, drilling, machining and punching as per requirement. Stylam provides an exclusive range of subrme and contemporary colors, designs and textures to choose from our products add on to give an absolute luxurious and aesthetic look to your homes and commercial spaces. Over the past 23 years, the company has created multiple drivers of growth by developing a portfolio of world-class products. The company's philosophy is to attain transparency and accountability in its relationship with all its stakeholders, ensuring a high degree of regulatory compliance. Industry Structure and Developments The major end-use segments constitute are New Residential Construction, Residential Replacement, and Commercial Sector i.e. Furniture and interior infrastructure. With tremendous growth in real estate sector and rise in the disposable income of the country's middle class, there is an anticipated exponential growth in the demand for interior infrastructure products. The projected growth of the company is based on the push-and-pull effects of supply and demand determinants like the economic trends in India, growth of infrastructure and housing. The domestic laminates industry is highly fragmented with majority of sector comprising unorganized players though there has been increasing shift in consumer brference from unbranded to branded goods. Competition from both organised as well as unorganised players leads to pricing brssure for the players in the industry. In the Export segment however, demand has been stable on account of shift from the wood based panel products to engineered panels like MDF and particle board. India is one of the largest exporters of the laminates in the world. Players with established track record of delivering quality products in the export markets, including STYLAM have been consistently able to register growth in turnover over the years despite the global slowdown though the prospects of the company will be primarily driver by the demand from the real estate sector and its ability to manage currency fluctuations. Opportunities and Threats Opportunites • High potential and growing demand from both domestic as well as international market • Future expected growth in the Real Estate market Increase in Per Capita Income of a common person Threats • Fragmented Industry • Competitive Industry: transitioning from highly unorganized to organized sector • Price Sensitive Market • Competition from China Risks & Concerns: Risk Identification & Risk Measurement Corporate policies and activities performed by the company reflect variety of risks has occurred or can occur i.e. Credit risk market risk, sales risk, raw material risk, regulatory risk, product liability and liquidity risk. Risk Management & Risk Control There is integrated risk management framework i.e. risk management policy for product and currency and Company has implemented various procedures to review risk & to mitigate risk. Management has also involved in the risk assessment and minimization procedures. The board periodically discusses the significant business risks identified by the management and the mitigation process being taken up. |