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Annual Report Highlights No : 9

#SupremeIndustries FY 22 Annual Report Highlights

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Supreme Industries is one of the leading plastic products manufacturing company in India was
established 8 decade ago.
The Company is operating from 25 manufacturing sites across 12 States and Union Territories. The

Company’s active Channels Partners strength increased to 4053 Nos in March 2022
The company operates in various product categories viz. Plastic Piping System, Cross Laminated
Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded

Furniture, Storage & Material Handling Products, Performance Packaging Films and Composite LPG
Cylinders.

FY 22 Highlights

Industry Updates

Covid second wave impacted company’s business in 1 st quarter which is generally the best
quarter for Supreme.

Thereafter, Polymer Prices saw continuous uptrend, putting pressure on Margins.

Company maintains positive outlook for coming years with softening PVC prices and
improved covid situation.

The Company’s active Channels Partners strength increased to 4053 Nos in March 2022.

Financials
Revenue: 7840.51 crores (% Growth)
Volume: 393908 MT ( % growth)
Exports: US$ 29.11 Million (as against US$ 18.35 million)
EBITDA: 1309.89 crore (Growth)
EBITDA Margin: 16.7% (down from 20.5% in FY 21
Operating Cash Flow: 470 crores (Cash flow in FY 21 was 1246 crores)

Segments

Plastic Piping System
Revenue: 5045.99 (YoY growth of 23.1%)
EBITDA: 783.88 (Degrowth of 4.5%)
The Division’s Value-Added Products sale was 41.89% compared to 39.27% in the previous
year.
Agri business was affected because of covid in the month of April and May. Since Agri

Demand is seasonal, loss couldn’t be recovered, which led to de-growth in volumes.
PVC prices were in uptrend for majority of the year which led to degrowth.
The Company incurred a Capex of R 132.26 crores in the year under review in its various

plants to build higher capacities and increased range
The Company has planned to start the production of HDPE Pipes at three more new
locations and all are expected to be in place during FY 22-23.

The Company plans to add manufacturing of Water Tanks at three more locations during FY
22-23. The Company also launched Premium range of Water Tanks branded as “Weather
Shield.
The Company had raw material availability problem, for CPVC, from its only source viz.

Kaneka, Japan on account of one of its plants having been shut down. The plant has
restarted production. Company also tied up with other sources to get increased volume of
CPVC resins.
Supreme added 338 products in Plastic Piping system range.

The Company has started manufacturing variety of Specialized Valves such as Butterfly
Valves, Swing Check Valves, Ball type non-return Valve etc.. These Valves have been
designed for different applications like Industrial, Agriculture and Plumbing segments.

The Company has commenced the manufacturing at Jadcherla, Telangana
The Company plans to start three new manufacturing units at new locations viz. Guwahati
(Assam), Cuttack (Odisha) and Perundurai (Tamil Nadu) for Plastic Pipes, Hoses, Water Tanks, Septic Tanks etc.

Consumer Products

Revenue: 405.09 (YoY growth of 14.3%)
EBITDA: 54.07 (Degrowth of 9.3%)
The prices of PP increased by almost 20% from October 2021 onwards, adversely affecting
the demand of furniture in the second half.
Revenue: 11% growth
Volume: 6% decline

The Company is now focusing on creating large retail showrooms for displaying plastic
furniture. Company opened 22 such showrooms in Eastern India in 21-22.
The Company introduced 12 New models during the year of various furniture items

comprising of chairs, tables, cupboards & baby furniture.

Industrial Products

Revenue: 1023.67 (YoY growth of 34.5%)
EBITDA: 85.26 (YoY growth of 34.3%)

Industrial Components

The year was marked by huge supply chain issues due to shortage of imported material
because of shipping and logistics issues, non-availability of containers, shortage of semi-

conductors etc. Supply chain was also affected by rising commodity and fuel prices during
the year.

There was marked shift in Customer Preferences in the market in Washer segment, from
Semi-Automatic to Fully Automatic Machines. This shift adversely affected the Company as it

has considerable presence in Semi-Automatic Washer parts

Material Handling

Material handling division’s (MHD) industrial crates range grew 32% in revenue and 15% in
volume terms.

With expansion in Capacities for Electric Vehicles, many companies are also encouraged by

Union Govt. incentives, new activities and new launches, will drive demand for MHD’s
Industrial Crate

Roto Pallets which are regular in demand especially by Pharma and Foods have posted
excellent results and grown by 50% in revenue and over 27% in volume terms.

The Company is expanding the roto moulding Pallets and other products infrastructure at its
Jadcherla (Telangana) Unit to cater to the demand of customers based at southern states.

Dairy segment grew by 90% in value and 60% in volume. E-commerce grew by 50% in
volume.

Due to two successive hurricanes in Coastal areas there has been serious disruption in
Fisheries sector and overall market for crates shrunk last year.

Composite Cylinder

All technical issues of the past have been satisfactorily resolved and division has not received
any customer complaint during the year under review.

The Company has received Letter of Intent (LOI) for supply of 7,35,186 Nos of 10 Kg. capacity

Composite LPG Cylinders valuing about Rs 170 Crores from Indian Oil Corporation Limited
(IOCL)

The Company has taken effective steps to install a new plant in the same premises to double
the capacity and is likely be operational by November, 2022, which will enable the Company

to make around 1 Million Nos per year.

Packaging Products

Revenue: 1210.11 (YoY growth of 16.9%)
EBITDA: 100.91 (Degrowth of 19%)

Packaging Films

The Performance Films Division has recorded 22% growth in Volume and about 49% growth
in Value.

The Total sale achieved was 9514 MT as against 7801 MT in the corresponding previous
year.

Protective Packaging

Protective Packaging division recorded 30% growth by value and 7% growth in volume

Due to high volatility of raw material prices, the division was unable to pass on the burden of
increased raw material prices fully to its customers impacting

Operating Profit Margins of the division.

The Company developed range of new products for Decathlon for their India market Retail Sales.

Cross Laminated Film

The Business of Cross Laminated Film & Products suffered a de-growth of 18.36% in volume terms

During the year the division has successfully carried out expansion of its capacity from 27000 TPA to 30000 TPA which is fully operational since March, 2022.

Capex

Company has incurred Capital Expenditure (capex) of R 259 crores, during the year under
review
The entire capex has been incurred towards ramping up the capacities in plastic piping
system, introduction of new products in various business segments, automation and

replacing some old production equipment with new technology machines.

Company has also incurred capex for increasing captive generation capacity of solar energy
apart from balancing equipment at various locations.

The entire capex has been funded through internal accruals only.
The Company has plans to commit capex of about Rs 700 Crores including carry forward commitments of R 280 Crs.

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