2022-23 AGM Notes:
In 2022-23, Rubfila expanded its production capacity in Tamil Nadu by 2,500 MT per annum, reaching a total of 27,500 MT.
In the fiscal year 2022-23, the world economy faced difficulties, including recessions in the USA and Europe, which had global repercussions.
Despite various challenges such as geopolitical tensions, supply chain disruptions, trade imbalances, and rising energy prices, India remained relatively resilient compared to other economies.
Prices of raw materials and inputs slightly softened, they remained high in comparison to the pre-pandemic period.
International shipping costs decreased by the third quarter, but the overall economic environment remained challenging due to decreased demand.
Many large companies had to resort to mass layoffs, contributing to decreased consumption and economic challenges.
Rubfila, a rubber thread company, faced difficulties as its primary customer, the garment industry, experienced reduced demand.
Tiruppur, known as India’s hosiery capital, faced a lack of orders, leading to factory closures and downsizing, resulting in significant job losses.
The decreased demand for garments negatively impacted the demand for rubber threads, forcing Rubfila to scale down production in the second and third quarters.
has set up a 1 MW solar power generating facility at the Tamil Nadu plant which is expected to help the company save on the power charges.
Current year’s utilization at 70% compared to 80% in the previous year, due to change in consumption pattern, slowdown in textile industry and global economy challenges
Consumer industry will more 6 to 8 month to improve
increasing footprint in internatinal market (Export as gone up)
Risk Factors
Incresing competition in rubber thread led to pressure on realization (price war)
Increasing Raw Material prices led to pressure on margins
International raw material prices (Latex) lower than the indian raw material (latex) current diffenerce is arround 40% we can manage if gap between 10 to 15%
The potential revenue of a rubber thread manufacturing company operating at full capacity will indeed be influenced by the price of natural latex.
In tissue business Plant Capacity Utilization is (50%) and conversion capacity utilization is 90%
The management’s optimism about the Premier Tissues business and their expectation of improving margins with a 20% top line growth guidance
No guidance on latex ruber thread business
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