Chairman’s Speech

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English.

Chairman’s Speech

Chairman’s Speech

Oct 29, 2021

Financial Year 2020-21: The Annual Report for the year has already been circulated. This Annual Report contains both stand-alone and consolidated financials incorporating the business operations of the UK Subsidiaries. The Directors Report vividly covers the impact of the first incidence of Covid-19 on the company during the year under report, the impact of the […]

Financial Year 2020-21:

The Annual Report for the year has already been circulated. This Annual Report contains both stand-alone and consolidated financials incorporating the business operations of the UK Subsidiaries. The Directors Report vividly covers the impact of the first incidence of Covid-19 on the company during the year under report, the impact of the second wave that commenced during the fag end of the FY 21, the current standing point, outlook, and future strategy.

Your company had to deal with the following major challenges during FY 20-21.

  • Lockdown that started during the second fortnight of March 2020 and continued during a major part of Q1 of FY 21
  • Gearing of supply chain – both own-manufactured and outsourced – to meet the spurt in pent-up demand till September 2020. Some sale opportunities were lost during Q2 of FY 21 due to supply chain constraints.
  • Volatility in channel-mix and the need to allocate sufficient stocks to different channels – online, large format, general trade and rural.
  • .Keeping the momentum of launch of new SKUs with most of the channels other than online just limping to normalcy.
  • Making alternate indigenous supplies for a couple of key products that were being imported from China. You are aware that your company has taken a policy decision to stop import of finished goods from China and make the company self-reliant without depending on China. The impact of Covid, delayed the process of indigenization. This also caused loss of sizable sale opportunities during FY 21.
  • Continuous hardening of key raw-material prices from the third quarter onwards and the need to take timely price-increases without disturbing the consumer sentiment.

Your company has successfully met each of the above challenges in record time that enabled your company to clock in an average monthly sale of Rs.200 crore during the last three quarters. Your company recorded a robust growth from the months of August 2020 onwards all the way up to mid-March 2021 i.e., when signs of second have started hitting the markets. Your Company’s innovative ‘Svachh’ range of pressure cookers and other new models of appliances were well accepted by the ultimate consumers.

Your company also improved its operating EBITDA margins significantly by improving efficiencies across all activities. By the end of FY 21, the supply chain has largely been streamlined with capacity enhancements both at own manufacturing locations and those at vendor level.

Against the above backdrop, it is considered commendable that your company, on standalone basis, achieved an all-time high sale of Rs. 2033 crores and an all-time of EBIDTA (before exceptional items) of Rs. 342 crores with an all-time operating EBIDTA margin of 16.8%. Standalone EPS was Rs.169.64 (PY Rs.143.21).

‘Cleaning Solutions’ business launched in FY 2017-18 has been gaining moment and witnessed a significant growth in FY 21

Prestige Xclusive Channel has been expanded and we now have more than 620 stores in place. Notwithstanding the difficult times, your Company continued to maintain its leadership in the core product categories.

Your company’s UK business through the subsidiary Horwood, has gained momentum during FY 21 both in sales and profitability.


On a stand-alone basis, your Company is debt-free and carried a free cash of around Rs.550 Crores (including short-term liquid investments) as on 31.3.2021 after incurring capital expenditure and investments in the UK subsidiary aggregating to more than Rs 68 crores.


Prestige brand continues to be recognized as the Super Brand in the Kitchen Segment. Various recognitions for your company’s innovations and stature have been mentioned in the Annual Report. As always, your company will be investing significant amounts in brand promotion and attractive campaigns.


Your Company is ranked within the Top 300 listed companies of India based on market capitalization.

In my last year’s speech, I had mentioned that “Every business and every venture has to discover its own ways to adapt to the new normal, find innovative ways in every aspect. The one who moves swiftly and takes proactive measures is bound to sail through these turbulent times and emerge stronger” Your company took the disruptions caused by the pandemic as an opportunity and took several proactive steps in digitalizing sales, marketing, and HR processes, launching digitalization initiatives in manufacturing processes and most importantly augmenting supply chain to ensure that your company is geared to meet the requirement of every sales channel that is used by the ultimate consumer. Your company is committed to the welfare its employees at all levels and has kept their morale high through various support measures to tide over these difficult times. Your company is closely mapping the various geographies in the domestic market based on the infrastructure spends of the State that can generate consumption in hither to dormant markets and is putting in place distribution efforts to reach these markets. Your company has already added over 2000 touch points in non-south geographies during FY 21 and this effort will continue in the coming years. Your Company has launched the ‘Judge’ brand to tap the value seeking consumer segment hitherto unaddressed by your company. This brand will also accommodate product categories not addressed by the flagship brand Prestige. The positing and planning of this brand is such that it will not cannibalize the Prestige space and that the margin and ROCE profile will further the cause of increasing the earnings per share. Your company has strengthened interactions with export customers and has established that your Company can be a viable alternative to China for sourcing products from our India facilities and this has started paying dividends as witnessed by the growth in export sales in FY21 and an encouraging order book for FY 22. Your company has also taken steps to enhance production capacities where required and will be in a better position to meet with demand during the year FY 22. As regards FY 22, while the month of April ‘21 started as per plans, the lockdowns caused by the second wave of the pandemic have impacted the originally planned domestic sales for the months of May and June. However, both sales and profit for the first quarter are expected to be well ahead of the Q1 of the previous year. Your company is geared to launch more than 100 new SKUs during FY 22. I am confident that the new normal of working from home and eating healthy food cooked at home will continue to augur well for the kitchen and home appliances industry and with innovative products and the new launches your company will be in a better position to gain deeper penetration. Though the covid pandemic has become a speed breaker, your company’s long-range plan of doubling the sales with stable margins is very much on the radar and investments in supply chain and innovation are being continued to reach this milestone.
I acknowledge the strong support received from the shareholders, employees, channel partners and banks during these challenging times and look forward to engaging with them more intensely.