Mallcom, the first PPE manufacturer in India with complete PPE range protecting industrial workers from “head to toe” today conducted its 37th Annual General Meeting. Considering the current scenario of social distancing, for the second time the Company provided an audio-visual platform to its shareholders at the estates to participate in the AGM. During the meeting, the shareholders were taken through some of the major developments in the Company and the industry.
Some of the developments are listed below:
PPE sector in India remained unidentified until the country reported the highest cases of COVID-19 pandemic. While India was already undergoing an economic slowdown at the end of the fiscal, the demand of PPE started gaining momentum.
Despite the challenges, through prudent responsiveness, in FY 20-21, Mallcom recorded a revenue growth of 14.3% and an increase in PAT of 39.8%. EBITDA increased to 4,023.39 lakhs in FY2020-21 compared to 3,338.32 lakhs in FY2019-20. Profit after tax increased by 39.8 % from 1,826.07 lakhs in FY19-20 to 2,552.24 lakhs in FY2020-21.
The Indian PPE market is increasing at CAGR of 12% due to adoption of strict regulatory framework for the safety of workers against various health risks in hazardous working environments. The high cost associated with workplace hazards post unlocking the economy, technological innovations for improved PPE fabric resulting in reduction of weight of the equipment has increased PPE demand in the country, thereby giving a healthy push to the Indian Personal Protection Equipment Market.
Mallcom PPE business reports over 14.3% revenue growth in FY20-21. In just five years, the company increased its production capacity in almost all segments and further strengthening its leadership position in PPE segment. Despite facing certain challenges on account of cheaper imports, domestic oversupply and weaker realizations, Mallcom reported a capacity utilization of around 82%, amongst the highest in India’s competitive PPE sector.
The 2020-21 pandemic made us explore immense life-sustaining channels and an opportunity to re-imagine the future and re-wire thought, strategy and action, to build a path to a safer, healthier and secure future. Such disruptive events not only test the resilience and adaptive capacity but can also unleash forces of innovation and creativity to shape a more sustainable and inclusive future.
“We at Mallcom believe it is imperative that business and industry, as large economic organs of society, act with compassion and embed societal value creation in their strategies to rebuild the future. With this vision, The Company has spent Rs. 31.51 Lakhs in CSR initiatives in FY 2020-21. Company has also donated Rs. 10, 01,000/- (Ten Lakh One Thousand) to the PM Cares Fund towards the Nations fight against COVID-19. Partnering with Local Authorities, Quasi-Government Authorities and NGOs, the company has, since the onset of this pandemic, distributed medical PPEs to frontline workers.
We took a host of measures such as providing COVID insurance of INR 1 Lakh per employee, providing flexible working hours, and continuous IT support to those working from home. We believe in honoring our commitment to all the stakeholders and especially during a time of need, therefore, during the lockdown and pandemic, there was no deduction of salary or layoffs. In fact, salaries were disbursed within the 3rd day of each month and increments were made as per schedule for FY 2021-22. Furthermore, paid COVID leaves of 7-14 days were granted to employees for them or their immediate family members testing positive, and the company sponsored travel arrangements for those facing troubles.
With the Global trend of finding an alternative to Chinese manufacturers, we anticipate larger export order volumes. With this in mind, we have started to ramp up our production capacity by setting up a new protective apparel manufacturing plant at Ghatakpur, Kolkata with a capacity to produce 2 lac units per month which should go live by April 2022. Our subsidiary Mallcom Safety Pvt. Ltd. has started production of high-performance outerwear and rainwear at its new unit at the Apparel Park SEZ in Ahmedabad, Gujarat. We shall also be inaugurating a new production line for our nitrile gloves tomorrow in our Falta SEZ unit.”, said Mr. Ajay Kumar Mall, Chairman and Managing Director, Mallcom India Limited.