Annual Report: 2023
The following is a detailed summary of the Merino Industries Limited Annual Report for 2022-23.
Corporate Overview:
Merino Group, established in 1965, is a leading Indian manufacturer and marketer of interior solutions, emphasizing quality, innovation, and diversification. Headquartered in Kolkata, the company exports its products to 81 countries. The company's philosophy centers on global competence, universal well-being, and fair practices. Their product range includes laminates (HPL, Compact, Special, Performance), panels (Meister, Awan Door), worktops, MRS products, solid surfaces, luxury vinyl tiles, plywood, blockboards, and door solutions, catering to various sectors. Merino boasts 5 state-of-the-art manufacturing facilities, and 30 Merino Experience Centres across India and internationally.
Financial Highlights (FY 2022-23):
Operational Highlights:
Product Range & Innovation:
Merino offers a wide array of products, including HPL, Compact Surfaces, Panels, Exterior Grade Compacts, Worktop solutions, Solid Surfaces, Luxury Vinyl Tiles, Plywood, Blockboards, and door solutions. They are implementing SAP to improve operations and enable data-driven decisions. Merino has launched over 30 designs in its Contemporary Arts Collections and expanded its portfolio with 30+ designs in other ranges. The company has also obtained CE certification for its entire range of HPL and Compact products.
Geographic Presence & Market:
The company has a presence in 81 countries, with domestic revenues of ₹1,53,478.49 Lakhs and export revenues of ₹64,071.74 Lakhs.
Engagement Platforms:
The company aims to provide an enriching customer experience through Merino Experience Centres (MECs), digital tools like the Merino Visualiser, and Building Information Modeling (BIM) material library.
Chairman's Message:
Chairman Rup Chand Lohia notes India's impressive economic strides, its position as the fifth largest global economy.
Key Performance Indicators:
The report shows that key performance indicators were generally positive, with increases in revenue, EBITDA, and profit after tax. The company has a low debt-equity ratio and positive return on capital employed (ROCE).
Operating Context & Growth Drivers:
The company notes that it is adapting to a dynamic world by monitoring market trends. Key growth drivers include growing construction demand, increasing disposable income, a growing Indian population, increasing urbanization, surging real estate demand, technological advancements, and government initiatives.
Business Model:
Merino's business model delivers long-term value through financial, intellectual, manufactured, natural, and human capital. It aligns with its vision to co-create a sustainable future, focusing on financial performance, manufactured capital, human capital, intellectual capital, natural capital, and social and relationship capital.
Sustainability Initiatives:
Merino is committed to resource optimization, water recycling, and reducing its ecological footprint. They aim to increase the proportion of renewable energy and are implementing technologies to minimize their carbon footprint, achieving 72% of energy needs from renewable sources. The "Nirmal" programme promotes sustainable actions and outcomes, striving for balance between economic, environmental, and social performance.
Environment:
Merino focuses on preserving natural resources, reducing carbon footprint, and increasing the percentage of renewable energy in its mix. 84% of heat energy requirement of all manufacturing units is catered by biomass and process wastes.
Water:
Merino aims for water neutrality through the 5R approach (Reduce, Recycle, Reuse, Replenish, and Restore), recycling 72,000 KL+ of water annually.
Air:
Merino strives for low emissions and improved air quality, implementing wet scrubbers, electrostatic precipitators, and bag filters in its lamination plants.
Soil:
Merino promotes organic manures and afforestation and has produced 295 MT+ of bio-compost/manure in FY 2022-23. It supports farmers engaged in agroforestry and implements agroforestry practices.
Waste Management:
Merino follows circular economy principles, converting waste into useful gases and compost.
Social Responsibility:
The company aims to build a future-ready workforce, investing ~30,000 person-hours in training, fostering continuous feedback, and offering career progression opportunities. The company also fosters community well-being through healthcare and education initiatives, including Sri Hara Kasturi Memorial Trust which is providing healthcare and education to several people
Governance:
Merino emphasizes strong governance, transparency, and accountability across its operations.
Auditor's Report:
The Independent Auditor's Report indicates an unmodified opinion on the financial statements.
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