Dear Shareholders
I am pleased to share the Annual Report for the FY2023-24.
India stands tall as an oasis of opportunity amidst global turmoil and supply chain
disruptions. The Government's continuous efforts towards strengthening the domestic
economy through enhanced annual outlays for capital spending, policy shifts towards
improving the ease of doing business and creation of a world-class digital infrastructure
and payments platform have all contributed towards fuelling an annual GDP growth rate of
minimum 7% for the last three years, and over 8% in the year under review. The motive of
'Aatmanirbharta' (self-reliance) pursued through innovative schemes like the Production
Linked Incentive (PLI) scheme to provide an impetus to manufacturing, the Start- Up India
scheme to create an ecosystem for entrepreneurship in digital and technology ventures and
the creation of the National Infrastructure Pipeline have set a strong foundation to
propel the realisation of a Viksit Bharat with a USD 35 trillion economy size by 2047.
During the year under review, your Company has benefitted from all the positive policy
interventions and that is evident from the Company's stellar financiaI performance.
This year marks a monumental milestone for us. I am immensely grateful for what we have
achieved together. Your unwavering support and trust have fuelled our transformation and
allowed us to emerge stronger than ever with the wherewithal to overcome every obstacle
that has come our way. Your confidence has been driven our success, and we remain
steadfastly committed to delivering long-term value and sustainable growth.
The year gone by was an extraordinary one for your company as in many ways the future
direction of Mayur took shape in financial year 2023-24. Not only did the Company perform
extremely well across parameters but also years of hard work and planning has started to
bear fruit in financial year 2023- 24. I am truly excited about the future of Mayur and
share the year's developments and progress with you all in confidence.
The global synthetic leather market size is estimated to grow from $41.1 billion in
2024 to $88 billion by 2035, growing at a CAGR of 7.17%, during the forecast period,
2024-2035.
The Asia Pacific synthetic leather market size was estimated at USD 1 7.95 billion in
2023 and is predicted to be worth around USD 39.99 billion by 2033, ata CAGR of 8.3%from
2024 to 2033.
The Asia Pacific encountered the largest value share of more than 42.64% in the year
2023 and expected to maintain the same trend over the analysis period. The growth in the
market size over the next decade is likely to be the result of the anticipated surge in
demand for vegan and sustainable materials. By product, the polyurethane (PU) synthetic
leather segment registered a maximum market share of 53% in 2023. By application, the
footwear segment is expected to captured the biggest revenue share of 31% in 2023.
The synthetic leather market is expected to grow significantly over the forecast period
owing to the rising demand for synthetic leather in footwear and automotive applications.
Increasing demand for synthetic leather in the footwear industry owing to cheaper prices
is expected to fuel the market growth over the forecast period.
Synthetic leather has been replacing genuine leather at a steady rate. The market is
expected to gain considerable market share in the footwear segment in the coming years on
account of rising usage of artificial leather grades in boots, sneakers, women's sandals,
and men's formal shoes. Moreover, increasing per capita disposable income is expected to
boost the demand for synthetic leather in various application segments.
Increasing market penetration of synthetic leather materials in automotive interior
applications is expected to be a critical factor for growth. Car manufacturers are
adopting synthetic leather materials owing to their high durability, wear resistance, and
cost-effective production.
Increasing demand of footwear expected to be a major factor that propels the overall
market growth for synthetic leather. The production process of synthetic leather has
evolved over the past few years to curb down the rate of hunting and protect the animal
life.
During the financial year 2023-24 the Company has been awarded the "FORBES ASIA
BEST UNDER A BILLION 2023".
The Company has total annual production capacity of 48.60 million linear meters of PVC
coated fabric and 5.00 million linear meters of PU coated fabric, which makes it one of
the largest manufacturers of artificial leather in India.
The Company is supplying directly to US automotive companies i.e.
Mercedes Benz, BMW, Chrysler and Ford also supplying to Honda, Maruti, MG Hector,
Mahindra, Tata, Volkswagen, Nissan, Toyota, Kia, Hyundai in India. Your company exports
the products to United States, United Kingdom, South Africa, China and other European
Countries etc. We have a diversified clientele across various industries and caters to the
synthetic leather requirements of reputed players in automotives and footwear industry.
The Company is also in furnishing business through our wholly owned subsidiary Mayur
Tecfab Private Limited under the brand name "TEXTURE AND HUES" to serve our
retail customers in India.
Your company, being a leader in the synthetic leather industry and an organized player,
has been able to leverage the emerging opportunities and has delivered exemplary
performance in the coming years both in national and international business.
During financial year 2023-24, we delivered strong financial performance in terms of
revenues and profitability growth. Despite the challenges, Your Company has achieved total
revenue amounting to Rs. 79,501.36 Lakh and the Net Profit After Tax (PAT) amounting to
Rs. 1 1,954.78 Lakh on Standalone basis. While the total revenue amounting to Rs.
83,482.67 Lakh and the Net Profit After Tax (PAT) amounting to Rs. 12,246.83 Lakh on
Consolidation basis.
Your Company continuously wishes to contribute reward to shareholders of the Company,
by announcing dividends to enhance the net worth and confidence of our esteemed
shareholders. Accordingly, your Board of Directors has again recommended Rs. 3 per share
as dividend forthe financial year2023-24 in the ensuing 31st Annual General Meeting of the
Company.
We had a R&D facility to ensure continuous evolution and innovation of the
products. This facility is a guiding light of progress, primarily focusing on new product
development, enhancing productivity, and reducing energy consumption and environmental
impact. These pillars serve as major drivers, propelling us towards a sustainable,
efficient, and environmentally responsible future.
Our ESG strategy reflects how we are putting our purpose into action. Every day, we
seek new and better answers to transform the world, while making us stronger and more
resilient. We are acting with urgency to protect our planet's limited resources and be a
leader in the fight against climate change. We are measuring our progress and providing
increased transparency on our performance. Across our environmental work, we are also
committed to being a force for equity, and are working with communities on the frontlines
of climate change to create shared opportunities and build a more just world.
Our proactive approach is on capitalising growth opportunities within the leather
industry, and supporting India's decarbonisation goals. This is aimed at presenting us as
a return focused, forward- thinking, resilient, and innovative company ready for future
opportunities, while accelerating current growth momentum. Together, we are building an
organisation to capitalise on our unique capability of providing solutions across the
value chain.
Given the state of the business and with such a passionate team that is capable of
making a difference, I have absolute confidence that your Company is well placed to
deliver yetanother big year in FY 2025.
I want to take this opportunity to express my sincere gratitude to our Board of
Directors, employees, valued consumers, distributors, suppliers, and shareholders for
their continued support and contribution to ourshared success.
With Warm Regards
Suresh Kumar Poddar
Chairman and Managing Director and CEO
DIN:00022395