SINTEX INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
Your Directors have pleasure in presenting the 81st Annual Report of the
Company, together with audited accounts for the year, which ended on March
Your Company`s financial performance for 2011-12 was heartening considering
the external adversities that plagued the economic and industrial
environment of the country.
(Rs. in crore)
Gross turnover 2,629.65 2,674.21
Gross profit 421.54 567.94
Less: Depreciation 98.05 89.25
Profit before tax 323.49 478.69
Less: Provision for taxation - Current tax 64.63 95.48
MAT Credit Entitlement (15.05) (22.09)
Deferred tax 36.58 40.68
Profit/(loss) after tax before
prior period items 237.33 364.62
Add/(Less): Short provisions
for taxation of earlier years (7.63) (7.06)
Profit after tax 229.70 357.56
Balance of profit of previous year 1,157.00 888.60
Profit available for appropriation 1,386.70 1,246.16
General reserve 25.00 40.00
Debenture redemption reserve 33.27 28.58
Proposed dividend on equity shares 17.74 17.74
Tax on dividend 2.88 2.84
Balance carried to balance sheet 1,307.81 1,157.00
Total 1,386.70 1,246.16
Your Company`s posted a Gross turnover of Rs. 2,629.65 crores in 2011-12 as
against Rs. 2,674.21 crores in the previous year 2010-11. This under
performance was primarily due to the degrowth in the monolithic
construction business - the Company`s flagship business vertical - a
conscious decision by the management to control the ballooning working
capital requirement consequent to the decline in cash flow from these
projects from government agencies. The key business driver for 2011-12 was
the prefabricated structures supported by marginal growth in the custom
moulding segment for domestic OEMs The textiles business also witnessed
EBIDTA slipped to Rs. 578.67 crores against Rs. 648.52 crores in the
previous year, while Net Profit decelerated to Rs. 229.70 crores as against
Rs. 357.56 crores over the same period Cash plough back into the business
was Rs. 468.18 crores in 2011-12 as against Rs. 567.93 crores in 2010-11 -
providing an adequate cushion to fund growth initiatives to capitalise on
The earning per share stood at Rs. 8.48 (basic) and Rs. 8.48 (diluted) in
After considering your Company`s profitability, cash flow and expansion
needs, your Directors are pleased to recommend a Dividend of Rs. 0.65 per
equity share on a face value of Rs. 1/- each on 27,29,90,866 equity shares
fully paid-up as on March 31, 2012 (previous year Rs. 0.65 each per equity
share on a face value of Rs. 1/- each on 27,29,90,866 equity shares) and
any further equity shares that may be allotted by the Company upon the
conversion of FCCBs prior to book closure date for 2011-12. This dividend
will be paid subject to the approval of shareholders at the forthcoming
Annual General Meeting.
The total quantum of dividend, if approved by the members will be Rs. 20.62
crores, including dividend tax.
Business review and divisional performance:
Your Company`s performance was depressed in 2011-12 impacted by a
considerable decline in the monolithic construction segment which
overshadowed the otherwise healthy growth in other business verticals and
sub-segments. A detailed discussion of your Company`s operations is given
under `Management discussion and analysis report.`
A. Plastics division:
This is the Company`s flagship business which accounts for more than 90% of
the Company`s revenue. Over the years, the Company moved up the value chain
from manufacturing plastic products for final consumption to leveraging
plastic products into creating unique solutions - monolithic construction
is a case in point.
The plastics division of the Company exhibits a heartening performance
despite external challenges which were compelled a slowing down of business
operations in key business verticals. It clocked a turnover of Rs. 2,161.83
crores as against Rs. 2,278.95 crores in 2010-11.
Monolithic construction: Fiscal 2011-12 was the toughest for this business
division as funds inflow remained a concern due to the government`s
preoccupation with other priorities and challenges. Your Company
consciously strategised to accelerate execution for projects with timely
cash flow visibility to optimise working capital requirement. Despite this,
the Company witnessed a growth in revenues and order book size through
efficient project management skills. Your Company displayed intelligent
project management skills by executing the single-largest township
development project in Delhi - constructing 600 buildings.
Prefabs: Your Company`s prefab business generated sizeable revenue in 2011-
12, facilitated by increased social spending by the government on
healthcare and education. In 2011-12, your Company received sizeable
business volumes from Madhya Pradesh to strengthen its healthcare
infrastructure across the state. Additionally, your Company successfully
marketed prefab solutions as the preferred solution for educational
infrastructure in forest and tribal areas, which was well received by
decision-making agencies with reasonable business inflow.
Building products: Your Company strengthened its presence in the interiors
business primarily doors; it introduced unique promotional schemes with
reasonable success. Additionally, it bundled doors and windows with
monolithic and prefab projects. Also, your Company launched and
aggressively marketed plastic kitchen cabinets as a value-for-money product
with inherent benefits over the plywood-based traditional variants.
Sandwich panel segment, essentially a business-government model (B-G
model), your Company marketed these products through its retail network (B-
C model) to increase customer awareness and volumes.
Water and liquid storage: Water tanks, the Company`s flagship brand,
maintained its growth and expanded its presence across geographies with
greater reach in rural and semi-urban markets, maintaining a dominant
position. In 2011-12, your Company launched the high-value, triple-walled
white water storage tanks pan-India through a unique positioning which
transformed a commodity into an aspiration. Additionally, your Company`s
underground FRP tanks were approved by IOCL, HPCL and BPCL for installation
at all new dispensing stations pan-India - a huge opportunity over the
coming years. Your Company successfully marketed these products to large
malls and commercial complexes for liquid storage purposes.
Sub-ground structures: Your Company made significant progress in this
business vertical which comprised manhole structures, underground septic
tanks covers and packaged water treatment solutions - these products
received approvals from a number of state government authorities. Your
Company successfully marketed a sizeable volume of septic tanks in urban
locations leveraging its key USP - underground applications leading to
Your Company created a special marketing team to strengthen the awareness
of its decentralised packaged waste water treatment solution from managing
liquid waste with considerable success - the Company successfully marketed
these products to state agencies and private builders.
Environmental products: Your Company is a leader in portable, prefabricated
and moulded biogas plants in India, a unique solution perfectly suited for
Indian villages bereft of basic utilities primarily electricity. The
product received clearances from central and state governments as it
provided energy to rural areas - the government`s top priority. During the
year, your Company marketed good volumes across Gujarat, Maharashtra,
Karnataka, Tripura and Kerala.
Custom moulded products: The Company has two important segments in this
division - 1) products which are customised to certain applications and 2)
products which are customised to customer requirements. The pallets
business registered a robust growth as your Company intelligently segmented
the market with unique products to suit various applications. In the SMC-
based enclosures targeted to the power distribution space, your Company
established its footprint in Kerala, Uttar Pradesh and Uttarakhand in 2011-
12. During the year, it also initiated the product approval process in
Himachal Pradesh, Punjab, Haryana, Tamil Nadu and West Bengal. In the OEM
business, the Company customised a number of products for global and large
Indian corporate brands which will generate significant returns over the
B. Textiles division:
Your Company created a niche for itself in the value-added textile segment
by supplying high-end yarn dyed structured fabrics for men`s shirting, yarn
dyed corduroy, ultima cotton yarn-based corduroy and fabrics for ladies
The Company`s textiles business managed to maintain turnover of Rs. 467.82
crores as against Rs. 439.79 crores in 2010-11.
The improved performance was on account of increased demand from domestic
as well as international markets. The Company`s recent entry into ready-to-
stitch fabric received favourable response in the domestic market and it
plans to further develop this market. Your Company increased its product
portfolio in the ladies wear segment, registering robust volumes.
Your Company is working towards strengthening its infrastructure by
replacing existing machinery with sophisticated equipment to improve
product quality and machine productivity to capitalise on growing
opportunities. Additionally, your Company`s innovation in product
development is also expected to create a demand pull for its products from
discerning international brands.
The Company`s subsidiaries Zep Infratech Limited, Bright AutoPlast Ltd,
Wausaukee Composites Inc., Nief Plastics SAS and Sintex Infra Projects Ltd
provide infrastructure and highly-engineered custom moulding solutions.
These companies work closely with each other to generate more business and
enhance profitability of the Group.
Performance of subsidiaries:
During the year, your subsidiaries registered a moderate performance. While
revenues grew to Rs. 1,904.53 crores in 2011-12 against Rs. 1,883.55 crores
in 2010-11. Profit after tax dipped significantly to Rs. 65.56 crores from
Rs. 102.45 crores over the same period. Their contribution to consolidated
revenues remained stable at 42% in 2011-12.
1) Zep Infratech Limited
The Company strategically diversified as a holistic infrastructure company
due to a meltdown in the telecom infrastructure segment. The Company aims
to streamline business with other group companies (Sintex Infra and Zillion
InfraProjects) to improve technical, project management and execution
skills, and take advantage of a large work force availability.
The Company`s current focus areas include:
* Value-added and O&M (operation and maintenance) services to telecom
* BT shelter installation for defense sector at high altitudes.
* Cold chain management solutions I Prefabs for classroom in rural areas.
The Company successfully transitioned its operations as an infrastructure
solutions provider and is working on small projects to build credentials.
2) Bright AutoPlast Ltd.
The Company specifically focuses on auto and electrical sectors for custom
moulding solutions. It successfully created synergies with Nief to gain
better technical skills to work with MNCs in India. This resulted in good
topline growth for the Company despite challenging conditions.
During the year, the Company commissioned its Precitech division
undertaking European technology. The unit specialises in manufacturing
precision parts for the electrical and automotive sectors. The Company also
started manufacturing fuel tanks, fuel filler pipes, air vent assemblies,
precision parts in engineering materials and a range of interior parts for
various MNCs in India.
3) Wausaukee Composites Inc.
The Company manufactures high-engineered composites for OEMs in mass
transportation, construction equipment, agricultural equipment, wind
energy, medical and security imaging, corrosion-resistant material
handling, architectural and commercial site furnishings, therapeutic and
specialty bathing system and recreation industry.
During the year, the Company appointed a new CEO to focus on growth,
expansion, new technology adoption and creating new business segments. In
2011-12, the Company received orders from NeuroLogica for medical imaging
x-ray compound and the US Airport for baggage screening x-ray.
4) Nief Plastics SAS
The Company manufactures thermoplastics and thermosetting sub-assemblies
for clients in automotive, electrical, medical, aeronautics, defense,
household appliances and building industries. During the year, the Company
successfully shifted its manufacturing presence to low-cost locations in
Hungary, Slovakia, Tunisia and Morocco, resulting into higher margins.
The Company received a major order from Snecma Safran to supply aeronautic
parts for Airbus and Dassault Aviation. The Company also received `best
supplier award` from Schneider Electric and Safran.
5) Sintex Infra Projects Ltd.
Sintex Infra focuses on executing all infrastructure projects of the parent
company. The Company has a track record of executing civil and mechanical
construction work in airports, industrial plants, residential and
commercial complexes, road and land development projects among others.
During the year, the Company successfully bagged a major project worth
Rs.1,300 crores for civil and mechanical construction of Shirpur power
Employee stock option scheme:
The shareholders of the Company had approved of its employee stock option
plan (Sintex Industries Limited Employees Stock Option Scheme 2006) in
February 2006. This ESOPS is administered by the Sintex Employee Welfare
Trust on the basis of recommendations of the Compensation Committee of the
Board. In terms of the plan, the Company periodically granted stock options
to eligible employees. The Company will conform to the accounting policies
specified in the guidelines as amended periodically. The details of the
scheme are set out in Annexure I of this report.
In accordance with the requirements of Section 256 of the Companies Act,
1956 and the Articles of Association of the Company, Shri Rushikumar
Pandya, Shri Rahul A. Patel and Shri Amit D. Patel, the Directors retire by
rotation, but being eligible, offer themselves for reappointment at the
ensuing Annual General Meeting.
The necessary resolutions for obtaining the approval of the members for the
aforesaid re-appointments are contained in the Notice of the ensuing Annual
A brief resume of each of them, the nature of their expertise and the names
of the companies in which they hold directorships and the details of
membership of the committees of the Board are enclosed. Your Directors
recommend their appointments and re-appointments.
Your Company did not float any deposit scheme to which provisions of
Section 58A of the Companies Act, 1956 and the Rules made thereunder are
Listing of shares and securities:
The names and addresses of the stock exchanges where the Company`s
securities are listed are given below:
* The National Stock Exchange of India Ltd, Exchange Plaza, Plot No. C-1, G
Block, IFB Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051
* Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street,
* Ahmedabad Stock Exchange Ltd., Kamdhenu Complex, Panjrapole, Ahmedabad-
* Singapore Exchange Securities Trading Limited, 2 Shenton Way, # 19 - 00
SGX Centre 1, Singapore-068804. (FCCB`S US$ 225 million)
* Bombay Stock Exchange Limited (Wholesale Debt Market), Phiroze Jeejeebhoy
Towers, Dalal Street, Mumbai-400001 (NCD Rs. 250 crores and NCD Rs. 350
The Company paid listing fees to all the above stock exchanges for F.Y.
Management Discussion and Analysis:
Management Discussion and Analysis Report for the year under review as
stipulated under Clause 49 of the Listing Agreement is presented in a
separate section forming part of the Annual Report.
Corporate Governance Report:
Your Company has taken structured initiatives towards Corporate Governance
and its practices are valued by the various stakeholders.
In terms of Clause 49 of the Listing Agreement, a Report on Corporate
Governance for the year ended March 31, 2012, supported by a certificate
from the Company`s Statutory Auditors confirming compliance of conditions,
forms part of this Report.
Your Company has made all information, required by investors, available on
the Company`s website www.sintex.in
Your Company is also in the process of implementing Corporate Governance
Voluntary Guidelines, 2009 issued by the Ministry of Corporate Affairs,
Government of India in December, 2009.
Directors` Responsibility Statement:
Pursuant to the requirement under Section 217 (2AA) of the Companies Act,
1956 with respect to Directors Responsibility Statement, it is hereby
1. In the preparation of the annual accounts for the year under review, the
applicable accounting standards have been followed and there have been no
2. The Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent, so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit of the Company
for that period.
3. The Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities.
4. The annual accounts of the Company have been prepared on a going concern
Consolidated financial statements:
The Consolidated Financial Statements have been prepared in accordance with
the Accounting Standards prescribed by the Institute of Chartered
Accountants of India, in this regard.
In accordance with the general circular issued by the Ministry of Corporate
Affairs, Government of India, the Balance Sheet, Profit & Loss Account and
other documents of the subsidiary companies are not being attached with the
Balance sheet of the Company. However, the financial information of the
subsidiary companies is disclosed in the Annual Report in compliance with
the said circular. The Company will make available the Annual Accounts of
the subsidiary companies and the related detailed information to any member
of the Company who may be interested in obtaining the same. The annual
accounts of the subsidiary companies will also be kept open for inspection
at the Registered Office of the Company and that of the respective
subsidiary companies. The Consolidated Financial Statements presented by
the Company include the financial results of its subsidiary companies.
Conservation of energy, technology absorption and foreign exchange earnings
A statement containing the necessary information required under Section
217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules, 1988, are given
in the Annexure II forming part of this Report.
Particulars of employees:
The information required as amended under section 217(2A) of the Companies
Act, 1956, read with Companies (Particular of Employees) Rules, 1975, forms
part of this report as Annexure III. However, as permitted by section 219
(1)(b)(IV) of the Companies Act, 1956, this Annual Report is being sent to
all shareholders excluding the said Annexure. Any shareholder interested in
obtaining the particulars may obtain it by writing to the Company Secretary
at the Registered Office of the Company.
All the insurable interests of the Company, including plant and machinery,
stocks, loss of profits, standing charges and insurable interest are
M/s. Deloitte Haskins & Sells, Statutory Auditors of the Company, retire
and being eligible, have indicated their willingness to be re-appointed.
The observations made in the Auditor`s Report are self-explanatory and do
not call for any further comments under Section 217 of the Companies Act,
The Central Government has approved the appointment of M/s. Kiran J Mehta &
Co, Cost Accountants, Ahmedabad (Membership No. 00025) for conducting Cost
Audit for the Financial Year 2011-12 for the Textile Business of the
Company. The Cost Audit report of the Textile Business, for the year 2010-
11 was due for submission within 180 days from the close of the financial
year. It was submitted on 5th September 2011.
Yours Directors are highly grateful for all the help, guidance and support
received from valued customers and various government, semi-government and
local authorities, suppliers and other business associates, vendors, as
well as the various banks.
Your Directors thank all the members of the Sintex Family and business
partners for their trust and confidence reposed in the Company.
Your Directors wish to place on record their sincere appreciation for the
efforts and contributions put in by all associated with the Company at all
levels, to ensure that the Company continues to grow and excel.
On behalf of the Board,
Date : May 10, 2012 Dinesh B Patel
Place: Ahmedabad Chairman
Annexure - I to the Directors` Report:
Disclosure pursuant to the provisions of SEBI (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999.
Details of the grants as on March 31, 2012
a. Total number of options
covered under the plan 10,00,000
b. Total number of options granted 10,00,000
c. Pricing formula An exercise price of Rs. 45.85 per
equity share shall be payable by an
employee pursuant to the ESOP
The employee can opt for conversion
of the options by applying to the
Trust by a written notice during
the exercise period, in a specified
format accompanied by payment of
the exercise price and all
applicable taxes. Such notice is
required to be provided by the
employees to the Trust not less
than 30 (thirty) days before the
exercise of the options by the
d. Vesting schedule All options granted on any date
shall vest at the expiry of 36
months from the date of the grant
e. Options vested 10,00,000
f. Options exercised 38,500*
g. Options lapsed Nil
h. Variation of terms of options No terms of the ESOP scheme have
i. Money realised by exercise of
j. Total number of options in force 9,61,500
k. Person-wise details of options
(i) Directors 10,000
(ii) Key managerial employees 9,90,000
(iii) Any other employee who
received a grant in any year
of options amounting to 5% or
more of options granted during
that year Nil
(iv) Identified employees who are
granted options, during any one
year equal to or exceeding 1% of
the issued capital (excluding
warrants and conversions) of the
Company at the time of grant Nil
l. Diluted earnings per share On exercise of option during the
period under review there is no
dilution earning per share.
m. Weighted average exercise price An exercise price of Rs. 45.85 per
equity share shall be payable to
the ESOP Scheme
n. Weighted average fair value
of options Not applicable
o. Description of method and
assumptions used for estimating
fair value of options Not applicable
* Consequent upon sub-division of the each equity share of the company from
Rs. 2/- per equity share into two equity shares of Rs. 1/- each, the
employees of the Company eligible for equity of the company under Sintex
Industries Limited Employees Stock Option Scheme, 2006 (ESOP 2006) be
entitled to two equity shares of Rs. 1/- each, on exercise of option under
the said Scheme, at an exercise price of Rs. 45.85 per equity share, as
stated in the said scheme.
Annexure "II" to Directors, Report:
INFORMATION REQUIRED UNDER SECTION 217 (1)(e) OF THE COMPANIES ACT, 1956
(1) Conservation of Energy:
(a) Energy conservation measures taken:
1) Existing MS Water Supply Pipeline of Yarn Dyeing Department is replaced
with ASTRALCPVC line for rustless water supply and it consumes the less
power because of the resistance less surface.
2) New Substation installed for converting Grid Power from 11 KV to 66 KV
enabling us to draw the cheaper power from open access.
3) In the Process Division, an overhead water tank was installed. Prior to
this, water was supplied through a pump, which was running for 24 hours
continuously. After the installation of an overhead tank, the working of
the pump is reduced.
4) Condensate water from CRP plant is taken back into system for re-use,
resulting in cost savings. This Water is fed to feed water of boiler and
due to its high temperature the boiler efficiency is increased.
5) Modifications were carried out on the pipe line at the old ETP plant.
Earlier effluent was pumped to the Central Effluent plant through two pumps
(50HP and 40 HP). Post the modification, usage of the 40HP pumps was
eliminated resulting in significant energy saving.
6) Installed 10 inch CETP effluent supply line for eliminating one no. 40
HP pump working.
7) The excess supply and exhaust fans of the Humidification plants were
stopped for getting optimum %RH and thus reduced the power consumption of
8) For the supply of raw water, a submerged pump was installed which
utilizes less power compare with the earlier centrifugal pumps.
9) In the softening plant, borewell water was supplied by two centrifugal
pumps, which was then converted into one submerged pump, reducing power
10) At Effluent Treatment Plant, the aerator fans working is minimised
accordingly to the DO value which were continuously ON before and thus the
major power is saved.
11) The blower fan used in the effluent treatment plant is staggered for
12) Installed Energy Efficient Grundfoss Pump at Feed Water of Boiler in
the place of old more power consuming pump
13) During the year under review, several modifications were made in the
moulding machines to increase the production with the same levels of energy
inputs. This is expected to reduce energy consumption. Several measures
were undertaken to reduce energy consumption in the other manufacturing
(b) Additional investments and proposals, if any, being implemented to
reduce consumption of energy:
1) In Textile Division, We are introducing Pressure Powered Pump for
collecting the steam condensate from all wet processing machines to reduce
the generation of thermal energy.
2) In Textile Division, we are introducing Effluent Heat Recovery Skid
which recollect the thermal energy from the hot effluent of yarn dye house
and gives the hot water output for the dyeing machines.
3) In Textile Division, we are working on replacement of underloom
tubelights by LED strips which consumes 50% less power than the tube light
fixtures without affecting the light output for quality inspection and
4) In the textile division, by replacing high-efficiency ring frames, power
consumption reduced and productivity increased.
5) In the textile division, staffy-made yarn dyeing machines were replaced
with fully-automatic Gofront-made yarn dyeing machines, which are more
6) In the plastics division, we plan on installing energy-efficient burners
and light fittings in the entire plant.
(c) Impact of the measures (a) and (b) above for reduction of the energy
consumption and the consequent impact on the cost of production of goods:
1) In the textile division, quality production is achieved by saving a
considerable amount of power.
2) The above mentioned measures resulted in energy saving and a subsequent
reduction in energy costs, reducing production costs.
3) In the plastics division, the impact of energy saving devices will be
peripheral in the beginning. However, it will be substantial if the entire
program is implemented.
(d) Total energy consumption and energy consumption per unit of production
with respect to the Company`s products:
Details are provided in Form A annexed hereto.
(2) Technology Absorption:
(e) Efforts made in technology absorption:
a) In the plastic division we were able to assimilate and develop products
based on technology of Containment Solutions, USA in the field of
underground tanks, manholes, wet wells among others.
b) We developed several package type waste water treatment plants and
septic tank models to address problems related to wastewater treatment at
the site in a decentralized manner through technical collaboration with
M/s. Aqua Nishihara Corporation Ltd., Japan.
c) We also developed appropriate technologies and techniques for windows,
doors, SMC Products among others.
Details are provided in Form B annexed hereto.
(3) Foreign Exchange Earnings and Outgo:
(f) Activities relating to exports, initiatives taken to increase exports,
development of new markets for products and services and export plans:
In the textile division, the Company obtained "OEKO TEX" Standard 100
Certificate for its eco-friendly products, certified by TESTEX,
Switzerland. Ongoing initiatives are undertaken to explore new markets and
widen product reach, through regular meetings with customers and
participation in exhibitions. These initiatives enhanced the
competitiveness of our products in global markets.
(g) Total foreign Exchange used and earned.
(Rs. in crores)
i) Foreign Exchange earned including direct exports 34.25 38.56
ii) Foreign Exchange used 27.84 43.06
FORM - A
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSUMPTION OF ENERGY.
(A) Power and Fuel Consumption
(a) Purchased: Unit (lacs) 259.69 270.84
Total Amount (Rs. lacs) 1,745.91 1,647.71
Rate/Unit (Rs.) 6.72 6.08
(b) Own Generation
(i) Through Captive Power Plant: (M&W)
Units (lacs) 47.40 17.45
Units per liter of Diesel/Furnace oil/Gas 3.42 3.12
Cost/Unit (Rs.) 10.40 7.92
(ii) Through Captive Power Plant: (GT)
Units (lacs) 478.09 514.30
Units per SCM of Gas 3.50 3.52
Cost/Unit (Rs.) 7.81 5.42
2. Furnace Oil: (Qty. Kilolitres) 1,306.91 468.68
Total Amount (Rs. lacs) 465.13 116.99
Average Rate (Rs./litre) 35.59 24.71
(a) Natural Gas
Quantity Consumed in M3 7,088.91 5,859.77
Total cost (Rs./lacs) 679.34 500.41
Rate/Unit (1000 m3) (Rs.) 9,583.22 8,539.80
(b) RLNG Gas
Quantity Consumed in (000) SCM 13,647.27 14,593.14
Total cost (Rs. lacs) 3,735.68 2,789.61
Rate/Unit (000 SCM) (Rs.) 27,373.00 19,115.88
Quantity consumed (in lacs kgs) 28.45 31.37
Total cost (Rs. in lacs) 1,604.81 1,461.82
Rate/unit (Kgs.) (Rs.) 56.41 46.60
Standard Current Year Previous Year
(B) Consumption per
Unit of Production:
1. Electricity (Units)
a) Fabrics on
basis No Specific 2.21 2.16
b) Yarn (per kg.) Standard as such 5.57 4.92
(per kg.) The consumption 0.58 0.57
(per kg.) per unit depends 0.85 0.90
(per kg.) On the Product 0.59 0.58
Thermoforming Mix 2.90 2.77
2. Gas Consumption
(Textile - on
production mtr. basis) 0.71 0.71
(Textile on production
meters basis) 0.17 0.10
(Per kg.) 0.22 0.22
(Per kg.) 0.02 0.02
(Per kg.) 0.20 0.25
The variation in consumption in power and fuel was due to a different
product mix between current and previous year.
FORM - B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION OF
TECHNOLOGY, RESEARCH & DEVELOPMENT:
Research and Development (R & D)
1. Specific areas in which R & D : Prefab shops, prefab houses, kiosks,
carried out by the Company modular toilets, portable toilets,
underground water tanks, underground
petroleum tanks, septic tanks,
package type wastewater treatment
systems, bamboo houses etc.
2. Benefits derived as a result : Plastics Division developed various
of the above R & D. technologies and techniques in the
field of plastics for the manufacture
of above products.
3. Future plan of action : Plastics Division will continue to
work on the improvement of major
products as well as develop
specialized applications on existing
4. Expenditure on R & D
a) Capital : Nil
d) Total R & D expenditure as
a percentage of total turnover.
Technology absorption, adaptation and innovation:
1. Efforts, in brief, made towards technology absorption, adaptation and
Efforts are made to improve cost effective technology for productive and
2. Benefit derived as a result of the above efforts e.g. product
improvement, cost reduction, product development, import substitution etc.:
The Plastics Division has introduced a number of new products and opened up
new areas of business.
3. Information regarding technology imported during the last five years.:
MANAGEMENT DISCUSSION AND ANALYSIS
Global economy: The global economic environment, which was tenuous at best
through the early part of 2011, turned adverse in September 2011. The
global recovery was threatened by intensifying strains in the euro area and
fragilities elsewhere. The global GDP grew 3.8% growth in 2011,
significantly lower than the 5.2% growth in 2010. Capital flows to
developing countries in 2011 declined by almost half as compared with the
previous year. Europe seemed to have entered recession, while growth in
several major developing countries (Brazil, India, and to a lesser extent
Russia, South Africa and Turkey) slowed partly in reaction to domestic
policy tightening. As a result, and despite relatively strong activity in
the US and Japan, global economic growth and world trade slowed sharply.
As per World Economic Outlook, global economy growth is expected to slow
down to 3.3% in 2012. This is largely because the euro area economy is
expected to enter into a mild recession in 2012 as a result of rising
sovereign yields, the effects of bank deleveraging on the real economy and
additional fiscal consolidation. Economic growth in emerging and developing
economies is expected to average 5.4% - a significant drop from the 6.2%
growth registered in 2011. Despite a substantial downward revision,
developing Asia is still projected to grow rapidly at 7.5% in 2012.
Indian economy: In 2011-12, India found itself in the heart of these
conflicting demands namely balancing growth and price stability without
adequate innovative latitude in policy making to sustain economic growth.
As a result, Indian economic growth declined to 6.5%% in 2011-12 from 8.4%
in 2010-11. Despite low growth, India remains one of the fastest-growing
global economies, as all major countries including the fast-growing
emerging economies witnessed a significant slowdown.
The economic slowdown was due to two critical factors:
* Global factors contributed to the domestic economic slowdown,
particularly the euro zone area crisis and near-recessionary conditions
prevailing in Europe; sluggish growth in many other industrialised
countries, like the US; stagnation in Japan; hardening international crude
oil prices, among others.
* Domestic factors, primarily the tightening of monetary policy, in
particular, raising the repo rate to control inflation and anchor
inflationary expectations, slowed down investment and growth, particularly
in the industrial sector.
Sector 2010-11 2011-12 (AE)
Agriculture and allied activities 7.0 2.5
Industry 6.8 3.6
* Mining and quarrying 5.0 (2.2)
* Manufacturing 7.6 3.9
* Electricity gas & water supply 3.0 8.3
Services 9.2 8.8
* Construction 8.0 4.8
* Trade, hotels, transport,
storage and communication 11.1 11.2
* Financing, insurance, realty
and business services 10.4 9.1
* Community, social and personal services 4.5 5.9
GDP at factor cost 8.4 6.9
Period Agriculture Industry Services
1990-91 29.6 27.7 42.7
2000-01 22.3 27.3 50.4
2010-11 14.5 27.8 57.7
2011-12 13.9 27.0 59.0
*AE - advanced estimates
(Source: Reserve Bank of India, March bulletin)
India`s trade deficit expanded from US$ 130.2 billion in 2010-11 to US$
174.7 billion in 2011-12 as imports grew faster than exports. This was due
to two factors:
* Hardening of crude oil prices globally
* Significant rupee depreciation in the second half of the fiscal, making
it one of the worst performing currencies in Asia
Net Foreign Direct Investments (FDI) in India was positive with inflows at
US$ 20.6 billion in 2011-12 against US$ 7.7 billion in 2010-11 - a positive
note for India`s industrial sector over the coming years.
Going ahead, the government estimates a GDP growth of 7.6% in 2012*13.
While this appears a reasonable estimate, inflation will continue to be a
significant challenge for the government especially due to the recent hikes
in excise duty, service tax rates in the Union Budget 2012 and the sharp
increase in railway freight rates in the first week of March 2012. The
rupee will also be stretched as India Inc readies for large FCCB repayments
The plastics sector:
India`s plastic consumption is expected to grow at a healthy rate on the
back of growing substitution, expanding middle income groups and new
applications. Plastic products are increasingly finding application in all
sectors of the economy, replacing other competing products such as steel
The plastic processing industry is highly fragmented. Presently, 75% are in
the small-scale sector but accounts for only about 25% of polymer
consumption. The top 100 players account for just 20% of the industry
turnover. The industry also consumes recycled plastic, constituting about
30% of total consumption.
Despite being an industry dominated by unorganised players (70% of the
industry size), the organised players over the last few years outpaced them
in terms of growth through constant innovation and regular introduction of
niche products and thereby gradually eating into their share.
The plastic processing sector comprises three broad segments namely
injection molding, blow molding and extrusion, catering to the requirements
of a wide array of applications like packaging, automobile, consumer
durables, healthcare, among others. The continuous industry growth and
visible opportunities over the horizon increased the number of processing
units from 25,000 in 2010 to 30,000 units in 2011.
According to the All India Plastics Manufacturers` Association (AIPMA),
domestic consumption has been growing at 10-12% CAGR over the last decade.
Going ahead, the size of the plastic processing industry -which currently
stands at Rs. 850 billion (9 million tones), is expected to touch Rs. 1
trillion (12.5 million tones) in 2012 and Rs. 1.3 trillion (18.9 million
tones) by 2015. The exponential growth will see this number go up to 40,000
units, employment will increase to close to 4 million in 2012 and 7 million
by 2015 from the current 3.5 million-plus people (direct and indirect). To
achieve this target, India will require 42,000 new machines and an
investment estimated at US$ 10 billion by 2015.
The Company and its performance:
Interestingly, a business venture which commenced with textile
manufacturing emerged as a household name, pan-India, for its `Black`
plastic tanks. With time, Sintex has come a long way. In its sector, the
`Sintex` brand is recognised as a pioneer in plastic processing by creating
unique solutions which extended the application of plastics exponentially.
It is credited with creating new markets for plastic products across it`s
3.5 - decade presence.
Sintex offers a wide product range that includes liquid/solid storage
solutions, home interior products, prefabricated and monolithic structures,
custom moulded products (consumer and industrial segments) and
infrastructure solutions. It is the only plastic processing company with
manufacturing facilities pan-India and in six nations to cater to the
growing global demand.
The Company`s plastics business performance was subdued -revenue declined
to Rs. 4,066.36 crores in 2011-12 against Rs. 4,121.89 crores in 2010-11,
primarily due to the under performance of the monolithic construction
segment, its flagship business vertical, which was partially offset by a
healthy performance in the prefab segments. Impacted by inflationary
headwinds, the EBIDTA declined to Rs. 660.65 crores in 2011-12 against
Rs.758.35 crores in 2010-11. The plastics business accounts for 90% of the
Company`s consolidated revenues, 86% of EBIDTA and 85% of PAT.
The plastics business is divided into two major segments 1) building
products and 2) custom moulding.
Strategic developments, 2011-12:
* Reduced execution of the monolithic business in line with the delayed
payments from government agencies; it optimised the Company`s working
* Strengthened the Group`s growth prospects by leveraging synergies between
the parent and subsidiaries namely Nief and Sintex.
* Renamed Durha Construction as Zillion Infraprojects Ltd; Sintex holds 30%
equity in the Company with an option to increase it to 51%.
* Strengthened synergies between Sintex Infra, Zillion Infrastructure and
Zep Infratech for infrastructure projects.
* Commissioned Namakkal plant for the prefabricated business and Nagpur and
Namakkal plant for the custom moulding segment.
A. Building products:
The building materials division comprises monolithic construction, prefabs,
interiors, water tanks, sub-ground structures, septic tanks packaged waste
water treatment solution and environmental products.
1) Monolithic concrete constructions:
The Company`s monolithic construction business, the largest revenue
contributor, witnessed very challenging year due to the government`s
preoccupation in managing the economic slowdown which significantly
decelerated the decision-making process and fund disbursement to projects -
in-progress or completed - expanding the working capital cycle. As a
result, earnings from this business segment was considerably lower than the
The Company created a significant presence in Uttar Pradesh by bagging
large projects. It also displayed project management skills by executing
the single-largest township development project in Delhi by constructing
To overcome the plan sanction and fund disbursement paralysis, the Company
adopted a selective approach by bidding for projects with a visible and
timely cash flow. Additionally, the Company strategised to restrict its
geographic spread to ensure fast project execution of its order book.
More pertinently, the Company will focus on moving up the value chain
through the following initiatives:
* Focus on State Housing Board projects that promise faster approvals and
have budgetary fund allocation.
* Cater to middle income group (MIG) and high income group (HIG) segments
for high value projects.
* Focus on verticalisation by strengthening execution capabilities; scout
for housing projects with tall structures (G+10 and above) to address land
* Minimise geographical spread; develop a strong foothold in identified
areas where the opportunity is large and cash flow is visible and scale the
value chain to undertake large projects.
2) Prefabricated structures:
Prefabs are considered the most cost-effective solution in rural areas,
given the higher prices of conventional building materials, logistical
problems, labour shortage and technical superiority of this solution.
Besides, it is the only solution for hilly areas where conventional
construction is largely ruled out due to the terrain.
The Company focuses on the small and medium-sized structures which can be
erected for diverse applications and hence provide a wide opportunity
canvas. It helps sustain business growth over the medium term.
The Company`s prefab business recorded reasonable revenue growth in 2011-
12, facilitated by increased social spending by the government on
healthcare and education. In 2011-12, the Company received sizeable
business volumes from Madhya Pradesh to create dispensary, primary and
community healthcare centres (with labour rooms) across the entire state to
improve the health infrastructure for its people.
During the year, the Company successfully marketed prefab solutions for
unique application in forest and tribal areas namely `gurukuls` (learning
centre) and complete university campuses which include the main building,
hostels, canteen, toilets and annex structures. It received encouraging
business to set up infrastructure in tribal areas in Gujarat (gurukuls) and
East India (Universities).
These products received approvals from several states in India and are in
advanced stages of approval in Bihar and Bengal.
Going ahead, the Company will strengthen its footprint in East India and
expand capacities to cater to growing demand.
Sandwich panels: The sandwich panels are made of colour-coated steel and
PJF/concrete/other fillers as packing material to provide insulation. These
panels can be used as walls, internal partitions and roofing. Sandwich
panels are the most appropriate for warehousing and cold chains for its
superior insulation property against other competing products. Sintex uses
its sandwich panels for its prefab solutions.
Essentially a business-government model (B-G model), the Company marketed
these products through its retail network (B-C model) to increase customer
awareness and volumes.
Going ahead, demand for sandwich panels is expected to increase in line
with growth in the prefab business. Additionally, the Company plans to
expand this product`s retail presence on a pan-India basis.
3) Water tanks:
Sintex is synonymous with the black water tank in every household and
visible on roof tops pan-India. Currently, the Company is the market leader
in the water storage tanks industry in India with a more than 60% market
share. Over the years, it scaled the value chain by offering value-added
tanks to diverse customers (across the social strata) and in multiple
The various initiatives undertaken by the Company to strengthen its market
share include the following:
* Created two different product brands (Sintex and Reno), catering to high-
end and low-end markets with sub-segments within them catering to all
* Segmented the market further by launching Reno Tuf, a superior version of
vanilla Reno brand.
* Launched the high-value, triple-walled white water storage tanks through
a unique positioning which converted a commodity into an aspiration.
* Launched coloured water storage tanks in the Reno segment aimed at the
semi-urban and rural markets which increased product penetration.
Going ahead, the Company will focus on upgrading water storage solutions of
the residents of Tier-II and III towns to high-value products.
The Company marketed these environment-friendly solutions to replace
traditional timber, aluminium and steel with numerous advantages - low-cost
maintenance, rust-proof, termite-proof, water-proof, light-weight and easy-
In 2011-12, the Company strengthened the visibility of these products
through the following initiatives:
* Launched and aggressively marketed plastic kitchen cabinets as a value-
for-money product with inherent benefits over the plywood-based traditional
* Manufactured D-I-Y (do it yourself) products that can be easily
installed. The Company also trained and employed carpenters to provide
installation services to end-users.
* Bundled doors and windows (made out of this material) with monolithic and
The Company targets to undertake franchise-based models for windows to
offer customised solutions to users.
5) Sub-ground structures:
The Company offers water pollution management solutions through its sub-
ground structures that include septic tanks and packaged waste water
Septic tanks: Growing urbanisation and industrialisation multiplied liquid
waste generation pan-India. The growing load can scarcely be managed by the
hugely out-dated and inadequate pollution management infrastructure. This
created a huge demand for storage solution for liquid waste.
To address this issue, Sintex created small and medium septic tanks (NBF
series) suitable for storing liquid for about 50-500 people. The Company
successfully marketed a sizeable volume of these tanks in urban locations
leveraging its key USP - underground application leading to space saving.
Packaged waste water treatment solution: The Company created decentralised
packaged waste water treatment solution from managing liquid waste between
1,000-6,000 ltrs. This solution is specifically targeted for gated-
community projects and for the ever expanding periphery of urban and Tier-I
cities. This system has the following benefits:
* Treats liquid waste at the generation point and facilitates water
recycling for all purposes except human consumption.
* Eliminates the electricity cost of pumping liquid waste from the
periphery to the centralised waste treatment facility and reduces the load
on the system.
The Company successfully marketed these products to state agencies and
private builders. It created a special marketing team to strengthen the
awareness of this novel solution among builders, architects, consultants
and government agencies.
6) Environment products:
Solid waste management products: The Company manufactures products for
solid waste management which are distributed to municipalities across all
states. The products include storage bins of various sizes for diverse
applications such as push carts, dumpers and containers.
Biogas units: The Company is a leader in portable, prefabricated and
moulded biogas plants in India. This unique solution is perfectly suited
for Indian villages which are bereft of basic utilities, primarily
This unit is most suited for households owning two cows. The excreted waste
of cows is converted into energy and the treated waste can be used as a
fertiliser in the farmer`s field. Additionally, this solution makes the
neighbourhood more hygienic.
The product received clearances from Central and State Governments as it
provided energy to rural areas - the government`s top priority.
During the year, the Company marketed good volumes across Gujarat,
Maharashtra, Karnataka, Tripura and Kerala.
B. Custom moulding division:
The Company has two important segments in this division - 1) products which
are customised to certain applications and 2) products which are customised
to customer requirements.
For products which are created for specific applications, the team markets
the product`s for that particular application; for the second segment, the
team markets its internal capability to match stringent customer
The product development cycle is long for this product class (especially
for customer-specific products); once approved, it provides long-term
revenue visibility with superior profitability.
1) Industrial containers and FRP tanks:
Industrial containers: The Company manufactures large industrial tanks to
store dyes, colours and chemicals in multiple sizes to suit diverse
industrial uses. Rising industrialisation and increasing thrust towards a
safe working environment accelerated the demand for these products. In
2011-12, the Company introduced large sized roto-moulded tanks (1,000 ltrs
and above) especially targeting the chemicals and textiles sector for
FRP tanks: The Company introduced high-strength, non-corrosive and non-
reactant storage tanks especially to store fuel in dispensing stations - as
a replacement to RCC and steel tanks which, over time, get corroded
resulting in soil contamination. The Company`s products were approved by
IOCL, HPCL and BPCL for installation at all new dispensing stations pan-
India - a huge opportunity over the coming years. The Company successfully
marketed this underground storage solution to large malls and commercial
complexes for storage purposes (generator fuel, fire fighting, water,
sewerage, among others).
Going ahead, the Company will work to create a pan-India presence of such
tanks in infrastructure, commercial and retail sectors.
2) Plastic pallets:
Growing distance between manufacturing and consuming areas increased
manufacturing volumes, improved material handling systems, greater reliance
on the hub-and-spoke distribution model for a pan-India presence and larger
warehousing needs grew the demand for pallets.
The Company manufactures lightweight, cost-effective and customised plastic
pallets, catering to various industries like pharmaceuticals, automotive,
electrical, engineering, textiles, fisheries, logistics and warehousing,
In 2011-12, the Company segregated its product repository into four
segments for focused marketing - its philosophy being the right product, in
the most cost-efficient process and for to the right sector: I Pharma
pallet: Uniformly moulded pallets, these products have no welds or joints
and meet good manufacturing practices
* Dynamic pallet: These products are customised for racking and packing
* Export pallet: The are specially designed light pallets for exports (6 kg
compared with 25 kg traditional ones)
* Poly pallet: These pallets are for non-pharma industry applications
This strategy worked reasonably well as pallet offtake increased
3) Insulated boxes:
The Company has a large repository of insulated boxes which were primarily
exported to Australia. Recently, the Company realigned its marketing
strategy. It positioned insulated boxes as part of its cold chain
management solution - a sector high on government priority. This allows the
Company to promote insulated boxes through government programs namely the
National Rural Health Mission.
In 2011-12, the Company undertook a number of initiatives which promises to
increase product offtake in the coming years: I Received approvals from the
Marine Product Export Development Authority which will help market its
boxes to all seafood exporters.
* Strengthened the visibility of the boxes in Tier-II and III towns and
rural areas facing acute electricity shortage to store perishable
* Marketed the boxes to government agencies for their vaccination programs.
* Initiated marketing of boxes to fishermen in the east coast.
The Company also remodeled the boxes to match specific customer
requirements. Besides, it widened its export presence to de-risk against
dependence on a single geography. Besides, the insulated box business with
large corporates namely global beverage and ice-cream manufacturers
sustained its pace.
4) Custom moulding for OEMs:
The Company developed a number of products to its custom moulded basket for
large and globally-respected corporates. The Company strategised to develop
products which facilitated optimum utilisation of existing processing
technologies. The Company is building a strong customer base of marquee
clients. But labour unrests and strikes at operating unit of some customers
impacted growth in this segment, which otherwise would have been robust.
In 2011-12, the Company developed the following products:
* Fuel tanks and mud guard to M&M, AMW, Ashok Leyland and Escorts-off-road
* Fuel tanks for generator set manufacturers namely Kirloskar and Cummins.
* Packaging crates for the engineering sector, primarily some of the Tata
* Enclosures to leading corporates in the electrical sector.
* Starter panel boxes for pumps and motors for the agricultural industry.
* Fertiliser and pesticide drums.
* Components for the cooling tower sector.
5) SMC products:
The Company manufactures tamper-proof enclosures of different sizes for
housing various meters and other equipment. They include meter boxes,
distribution boxes, service connectors, pole connection box and polymeric
insulation and cross arms for power transmission poles. The products
primarily minimise power theft in last-mile power distribution. The
products are approved across India under the Electrical Reform Program
initiated by the Central Government.
In 2011-12, the Company established its footprint in Kerala, Uttar Pradesh
and Uttarakhand. It also initiated the product approval process in Himachal
Pradesh, Punjab, Haryana, Tamil Nadu and West Bengal.
The Company is creating product awareness among governmental agencies and
corporates in the power distribution space which should generate sizeable
business volumes in the coming years.
As a first step towards de-risking from an overdependence on the power
sector, the Company developed enclosures for water meters to avoid meter
* Move up the value chain in each product segment and command better
* Reduce capex investments and improve working capital scenario by
undertaking selective projects with visible cash flows.
* Stabilise capacity expansion and create synergies among group companies
to maximise returns.
* Focus on cost reduction through technological upgradation and efficient
Indian textile sector:
The Indian textiles industry is valued at US$ 55 billion with 64% of the
demand being domestic. It accounts for 14% of the industrial production,
12% of total exports and 4% of the country`s GDP. The total exports during
April-December 2011 grew by 23.87% over the corresponding period to US$
23.78 billion. The overall textile export in 2011-12 is expected to reach
US$ 30 billion. (Source:Ministry of Textiles)
The sector attracted a cumulative FDI inflow of USD 1.03 billion during
January 2000 to October 2011. (Source: Department of Industrial Policy and
The domestic consumption for man-made fibre is expected to grow at a CAGR
of 5.8% from 2.8 million tones in 2011-12 to 3.72 million tones in 2016-17.
During the same period, the cotton yarn segment is expected to grow at a
CAGR of 10%.
(Source: CARE Research)
Indian cotton industry:
The cotton production in 2011-12 is expected to reach 34.25 million bales
with a yield of 481 kg/hectare. The trends of cotton production,
consumption and trade over the years are given below:
Trends in cotton production, consumption and trade
(Units in million bales)
Cotton year (1st October- Production Imports Exports Consumption
2007-08 30.7 0.6 8.8 23.7
2008-09 29.0 1.0 3.5 22.9
2009-10 29.5 0.7 8.3 25.0
2010-11 32.9 0.5 5.5 27.5
2011-12 (Expected) 34.25 0.6 8.4 25.3
The global textiles industry is expected to grow at a CAGR of 6.6% and
reach US$ 1 trillion by 2020. The Indian textiles industry is expected to
grow 16% during 2012 to reach US$ 115 billion (US$ 55 billion exports and
US$ 60 billion domestic). (Source: Economic Times)
India`s share in the textile and apparel world trade is expected to
increase from 4.5% currently to 8% and reach US$ 80 billion by 2020. The
export scenario in the country is further expected to improve as China`s
dominance as a low-cost exporter is expected to reduce given the rise in
wage prices by two to three times.
The Company and its performance:
Sintex created its niche in the value-added textile segment by supplying
high-end yarn dyed structured fabrics for men`s shirting, yarn dyed
corduroy, ultima cotton yarn-based corduroy and fabrics for ladies wear.
The Company`s textiles business managed to maintain turnover of Rs. 467.80
crores in 2011-12 as compared to Rs. 435.87 crores in previous year 2010-
11. The stable performance was on account of increased demand from domestic
as well as international markets. The textiles business accounted for 10%
of the consolidated revenues. The Company`s recent entry into ready-to-
stitch fabric received favourable response in the domestic market and it
plans to further develop this market.
Developments in the textile business:
* Purchased dyed-yarn and even outsourced own yarn for dyeing to meet the
* Studied the trend in cotton prices, engaged in spot buying and matching
orders as per cotton prices to reduce price fluctuation.
* Installed a 66kV distribution system for continuous power flow.
* Engaged in power trading to reduce per unit cost of power.
* Received orders for high-end jacquard napkins from airlines.
* Penetrated the ladies wear segment in both national and international
markets and positioned it as a niche and upmarket product by supplying
* Strengthened dealer network across India to penetrate the retail sector.
* Developed a niche in fashion clothing through fabric products such as
double layer fabric, poly stretched without lycra, excel fibre, cotton
linen, 100% linen, cotton viscose, cotton excel, special quality corduroy
(with better feel and compact weave) as per European standards.
* Develop new fashionable and eco-friendly products.
* Develop new product concepts in home furnishing with finishes like
flame/water-repellent, acrylic coating, anti-microbial, teflon, dura-white,
stain resistant and stay black.
* Develop new products with finishing varieties like work bluetta, double
face, crinkle, aush fabric, cotton linen, by slub, shear sucker.
* Market new products like 100% cotton jacquard napkins, piece dyed
jacquard and plain upholstery (blended and 100% polyester), yarn dyed
jacquard upholstery, piece dyed fancy jacquard curtains, yarn dyed fancy
jacquard curtains (silk imitation) and fabric for automobiles.
* Develop matching products in the home furnishing segment to enable cross-
Sintex`s risk alleviating initiatives results from its detailed risk
management framework comprising prudent norms, structured reporting and
control. The risk management approach complies with the Company`s strategic
direction, in line with shareholders` desired total returns, the Company`s
credit ratings and its desired risk appetite.
Sintex`s culture fosters continuous learning, with result-oriented
meritocracy. During 2011-12, the Company`s employee strength reached 3,587
people. The management engages in imparting functional and attitudinal
training to employees to improve productivity; a regular recruitment
process along with an unbiased performance appraisal system with an inbuilt
feedback system was initiated. During the year under review, the Company
formulated a compensation structure to provide members with tangible and
Internal controls and audit:
At Sintex, stringent internal control systems and procedures facilitated
optimal resource utilisation by keeping a check on unauthorised use of
products. The Company`s regular checks at every stage of its production and
dispatch cycle ensured strict operational and quality compliance. An Audit
Committee, headed by a Non-Executive Independent Director, reviewed audit