Mallcom plans constant growth with expansion and innovation in product line with adapting to digitization in parallel

Mallcom, the first PPE manufacturer in India with complete PPE range protecting industrial workers from "head to toe" today conducted its 38th Annual General Meeting. The company provided an audio-visual platform to its shareholders to participate in the AGM this time, still recovering from Covid effects. 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 gained momentum after Covid-19. In the wake of economic recovery and policies by the government, the industry for PPE improved as well.

In FY 21-22, Mallcom recorded a revenue growth of 12.36% and an increase in PAT of 20.93%. EBITDA increased to 4900.10 lakhs in FY2021-22 compared to 4023.39 lakhs in FY2020-21. Profit after tax increased by 20.93% from 2552.24 lakhs in FY20-21 to 3086.40 lakhs in FY2021-22.

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 12.36% revenue growth in FY21-22. In just five years, the company increased its production capacity in almost all segments and further strengthening its leadership position in PPE segment.

Among other developments, the company's credit rating has been upgraded from A-(Stable) to A (Stable) as assigned by ICRA. The company has also entered a new segment with the introduction of aesthetically designed safety shoes- "FREDDIE". While the central government's initiatives on worker's safety and health have helped in the better acceptance of PPEs and other safety products, Mallcom India's lifestyle safety shoe range have set up a benchmark for unparalleled quality which is crafted to perform exceptionally well in almost every work environment but in style.

Mallcom experienced solid domestic growth because of economic revival post the pandemic. Factors like, economic issues and lack of stable government in neighbouring countries such as Sri Lanka, Pakistan, Bangladesh are also causing importers to consider other options such as India. From business development point of view, the signing of FTA agreements in Australia and UAE has opened up these two markets exponentially and the company is expecting breakthrough with new contracts being signed in the coming financial year with the UK and Canada regions. Overall, some normalcy in shipping cost is helping importers and exporters to pass on the cost to consumer and therefore easing the pressures on margins.

Ajay Kumar Mall, Managing Director, Mallcom India said, "With the Global trend of finding an alternative to Chinese manufacturers, we anticipate larger export order volumes. Our new protective apparel manufacturing plant at Ghatakpukur, Kolkata is operational and all set to ramp up the production capacity to produce 2 lac units per month. 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. A new production line for nitrile gloves was started in Falta SEZ unit."

Source : Equity Bulls

Keywords

Mallcom PPEManufacturer AGM