With a strong belief in the country's potential and India's growth story, we have
deepened our roots by expanding our product portfolio, brand building and increasing touch
points. We are firmly focused on our branded business in india to capture the aspirations
of the New india
Dear Shareholders,
I am delighted to extend a warm welcome to you as you peruse our Annual Report for
2022-23. It has always been a pleasure to write to you this annual message and apprise you
of the business performance for the year.
The past year was a whirlwind of emotions, encompassing both formidable obstacles and
promising prospects. Through highs and lows, we persevered, steadfastly advancing along
our chosen path with determination and commitment. In May 2023. I've completed 30 years
with Carysil and as we embarked on the next chapter of our Company's journey in 2023-24.
I find immense pride in reflecting upon the tremendous distance we have traversed over
the past three decades. This period has endowed us with invaluable lessons, profound
experiences and noteworthy accomplishments.
Economic Overview
The global economy is gradually recovering from the impact of pandemic and at the same
time facing new challenges emerging from Russia's invasion of Ukraine. Tightening of
monetary policy by most Central Banks is expected to have a positive impact. Despite
monetary tightening, inflation is persistent in many key economies.
The Government of India has taken more balanced view to maintain inflation within the
tolerance limit without much sacrifices on growth. The Indian Government has increased
public spending for capacity expansion and infrastructure development, aiming to stimulate
demand, generate employment, and drive growth across industries. Structural reforms and
initiatives like 'Make in India,' 'AatmaNirbhar Bharat,' and 'Production Linked
Incentives' scheme will be the engines of growth. The Indian economy is expected to reach
$5 trillion GDP milestone by 2026-27. To attain this, the Indian economy will require to
register a strong growth and there are numerous growth drivers to fuel the same. The
macro-level demand and positive environment will help in Company's journey ahead.
Performance and partnerships
In any industry, risks are considered inevitable and cannot be overlooked. However,
they can be effectively managed and minimised. Our business model is adaptable, our
workforce is robust, and we maintain a flexible approach, always ready to take on any
challenges that may arise. Our optimistic mindset has allowed us to surpass our mid-term
target of Rs.500 Crore. This has also paved our way to achieve our next milestone of
Rs.1000 Crore revenue in the years ahead.
Our revenue for the year reached Rs.594 Crore depicting a growth of 21%. We have
reported EBITDA of Rs.108.9 Crore and PAT of Rs.52.8 Crore, lower than the previous year,
primarily due to prevailing geopolitical situation.
At Carysil, we have forged robust partnerships with prominent global players and
leading home retailers.
We have strong business relationship with leading big box retailers like IKEA, Grohe
among others.
Our partnership with Ikea has grown stronger, doubling our supply since July 2022. We
have extended supply of our Steel Sink to Grohe apart from Quartz Sink. This extension
reflects our commitment to on-time delivery and top-quality products. We are actively
pursuing new international partnerships to expand our global presence.
New Acquisition: The New Next Generation Taps I am happy to state that on April 03,
2023, our subsidiary, Carysil UK Limited, successfully acquired 70% majority stake in 'The
Tap Factory Limited,' a UK-based company, for 1.16 Million pounds, representing 70% of the
total enterprise value (TEV) of 1.65 Million pounds. The remaining 30% stake will be
obtained based on a six times multiple of the EBITDA over the next two years. This
acquisition marks our third successful venture in the UK and will provide us with valuable
technical expertise in faucet manufacturing, particularly in India. 'The Tap Factory
Limited' specialises in producing hot water taps with innovative technology that delivers
multiple flows from a single tap. By expanding our product portfolio with their
high-quality taps, we aim to meet the increasing demand for full kitchen suites and secure
a larger market share in the industry.
I am happy to state that on April 03, 2023, our subsidiary, Carysil uK Limited,
successfully acquired 70% majority stake in ‘the tap Factory Limited,' a uK-based
company, for 1.16 million pounds, representing 70% of the total enterprise value (TEV) of
1.65 million pounds.
Europe+1 Strategy: Riding High on the Opportunity
The ongoing geopolitical situation and energy crisis in Europe have led to a
significant increase in production costs. This situation presents us with a valuable
opportunity to strengthen our presence in the global market. The substantial rise in costs
and the persistent inflationary trend in European market will ultimately work in our
favour, as global retailers will prefer a stable supply with competitive price. We are
currently in advanced stages of discussions with some global players for the supply of our
products and look forward to a healthy order book.
Strengthening our core: Technology and innovation are the Key At Carysil we have always
prioritised the development of cutting-edge designs that captivate with their aesthetic
appeal and are powered by advanced technology to elevate the standards of our products.
Our dedication to innovation perfectly embodies our commitment to continuously excel and
deliver best-in-class offerings that surpass expectations. Continuing with our core
strength of innovation and our (ckiniptimistic mindset has allowed us to surpass our
mid-term target of ? 500 Crore. This has also paved our way to achieve our next milestone
of ? 1000 Crore revenue in the years ahead. commitments to provide value-added &
high-quality products,
• We have manufactured
Green Sink made with 100% biodegradable filler and the second for our Super X material,
which increases the strength of the Quartz Sinks and their durability
• We are putting efforts into enhancing the functional side of faucets (one faucet
multiple uses)
• We are launching eco-friendly and noiseless kitchen appliances from our factory
We have successfully implemented SAP in the Company and are committed to building a
stronger ecosystem for sustainable growth. It will ensure a complete integration of
internal systems and processes.
Nurturing 'Atma-Nirbhar' - Expansion and Progression
Aligning with the Government's vision of transforming India into a manufacturing hub
and a desirable destination for businesses, we are expanding our manufacturing
capabilities and expanding distribution networks. We have reached the one Million mark for
Quartz manufacturing capacity, increasing the capacity by 19% increase over the last year.
For the Stainless Steel sinks we have doubled the capability to 1,80,000 units per annum.
We have expanded our dealer network by more than 100%, taking the touchpoints to 3,100
dealers.
The successful launch of our flagship experience centre in Gurgaon enhances customer
engagement and provides valuable insights into their preferences.
Our collaboration with celebrities for our marketing campaign,
#The Heart of My Home has significantly contributed to the brand visibility.
The built-in kitchen appliances segment is expecting multifold growth opportunities.
To capitalise on the same we are increasing the capacity by 1,00,000 units p.a. in
first phase.
Our valuable assets
Our business thrives with exceptional human capital. Nurturing diversity, fostering
skill enhancement, and prioritising employee well-being are all integral to Carysil's
success. Together, we forge a prosperous path ahead.
Green initiative
We are committed to reducing carbon footprint and maintaining biodiversity and
therefore taken various steps towards our green initiative. Some of the initiatives are
listed hereunder
• Reduced use of plastic products
• Implementing Solar projects with a vision to operate 100% on renewable energy
• Water consewation
• Waste reduction and recycling
• Paper consewation by working on digital platform.
Closing Note
As I conclude I would like to emphasise that today India is at remarkable crossroads,
brimming with opportunities. With a strong belief in the country's potential and India's
growth story, we have deepened our roots by expanding our product portfolio, brand
building and increasing touch points. We are firmly focused on our branded business in
India to capture the aspirations of the New India.
Our transformation journey from just a sink Company to a one stop kitchen solution
propels our way forward.
We strongly believe and recognise the capabilities and competencies of our empowered
team. They are equipped to drive the growth and achieve the organisational milestones.
We are also committed towards fostering community well-being and harmonising business
growth with sustainability.
We extend our heartfelt gratitude to all our stakeholders, partners, employees,
investors, governments and customers for their steadfast support and belief in our
mission.
Your unwavering faith in us has been instrumental in our journey, and we are deeply
appreciative. Together, we will chart a course towards a brighter future. We eagerly
anticipate reconnecting with you next year with an exciting future to unfold.
Chirag A. Parekh
Chairman.