Annual Report Highlights No : 7
FY 22 Annual Report Highlights
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1. Company Overview
• Mayur Uniquoters is primarily engaged in the business of manufacturing and sale of PU (Polyurethane) / PVC (Poly Vinyl Chloride) synthetic leather which is widely used in different segments such as Automotives, Footwear, Furnishing etc.
Mayur Uniquoters Ltd is the largest manufacturer of artificial leather in India.
3. FY22 Highlights
• During the year, Mayur has added a flame lamination plant to overcome product quality and deliver issues that it faced earlier when the process was outsourced.
• Flame lamination is the process of laminating flexible material with an open flame which is used to seal materials such as PVC to foam and fabric without using additional adhesive.
Some of the benefits of inhouse flame lamination plant are:
1. No need of adhesive
2. Time saving
3. Cost Effective
4. Fast & efficient
5. Convenience of using a variety of input materials.
• Production capacity of the flame lamination plant is 47.16 Lac Linear Meter/Annum
• During FY22, the company had been able to achieve highest ever turnover in the history of the Company during the reported financial year despite the challenges such as economic slowdown etc
• The global synthetic leather market size was valued at USD 31.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2021 to 2028.
• The rising scope of application across various segments, such as furnishing, automotive, clothing, bags, and others, will drive the market growth.
• Manufacturers have been spreading their sourcing, shifting especially to Asian suppliers, such as China and Vietnam, owing to the abundance of raw material and availability of low-cost labor.
• Mayur, has the largest capacity for manufacturing of synthetic leather in domestic organized segment with capacity of annual production of 48.60 Million linear meters of PVC coated fabric and 5.00 Million Linear meter of PU coated fabric
• The company is in the process to expand its PVC coated fabric capacity by adding its seventh coating line at Dhodsar plant
• MUL manufactures more than 400 variants of artificial leather from PVC polymer which finds application in footwear (shoes/sandals insole and uppers), automotive (seat upholstery and inner linings), furniture & fashion items (apparel).
• Mayur is also trying to enter the European and other export automotive OEM markets by targeting reputed customers and has received product approval from Mercedes Benz (Daimler) and BMW for their specific new car models.
The supply to Mercedes Benz by Mayur has already started in the year 2021. While supply to BMW is expected to start soon.
• MUL has already set-up its 100% subsidiary named Mayur Uniquoters SA (Pty) Ltd, South Africa which will develop logistics to facilitate exports to Mercedes Benz
• With PU plant ramp up, commencement of Mercedes business, BMW business in future and VW India business getting traction, we estimate strong earnings growth in the coming Financial Years.
• Mayur is also planning to enter into a retail business by setting up 100% Wholly Owned Subsidiary in India with the name Mayur TecFab Private Limited.
• The overview of financial performance with respect to operational performance of the Company can be obtained from the various following ratio analysis:
Debtor Turnover Ratio is 4.04 times
Inventory Turnover Ratio is 2.55 times
Interest Coverage Ratio is 77.68 times
Current Ratio is 6.09 times
Debt to Equity Ratio is 0.04 times
Operating Profit Margin Ratio is 21.14 percentage
Net Profit Margin Ratio is 13.37 percentage