Merino Industries Unlisted Share

Established in 1965 by the Kolkata-based Lohia family, Merino Industries Limited specializes in manufacturing decorative laminates, furniture, panel products, and potato flakes for a wide array of applications including homes, offices, commercial spaces, and public areas. In a significant development, MIL merged with its subsidiary, Merino Panel Products Limited (MPPL), in fiscal 2021, following approval from the National Company Law Tribunal. This strategic consolidation aimed at optimizing operational synergies and strengthening company’s market position. With a focus on quality, innovation, and sustainability, MIL has become a trusted name, offering diverse solutions to meet the evolving needs of its customers, thereby solidifying its presence and success in the industry.

Timeline

Business Segments

1. Information Technology: Specializes in enterprise solutions like ERP, CRM, SCM, and business intelligence implementation, offering value-added services across various industries.
2. Interior-Architectural Products: Provides decorative laminates in rich finishes, including classic matte, trendy leather, and modern jute and fabric options, catering to diverse interior design needs.
3. Food & Agro Technology: Known for producing Potato Flakes & Instant Snack Mixes, offering 100% classic Indian vegetarian snacks in the ready-to-cook market, requiring minimal cooking time and effort while preserving the authenticity of traditional cooking pleasure.

Manufacturing Capacities

1. Hapur, Uttar Pradesh: Laminates, Furniture, Panels, Restroom Cubicles, Cladding Solutions
2. Hosur, Tamil Nadu: Paper Foil, Wrap Profile, MDF/Particle Board Furniture
3. Dahej, Gujarat: Paper Foil, Wrap Profile, MDF/Particle Board Furniture, Restroom Cubicles
4. Rohad, Haryana: MDF/Particle Board Furniture
5. Halol, Gujarat (Upcoming): MDF/Particle Board Furniture

Commitment to Safety, Quality, and Environmental Excellence

Merino Industries emphasizes safety and customer satisfaction by offering easy-to-apply products and usage information for interior maintenance. Committed to quality, all facilities are ISO 9001, ISO 14001, and ISO 45001 certified, showcasing Merino's dedication to excellence and environmental and occupational health and safety management.

Product Range

Growth Drivers

1. Construction Sector Demand: Laminates are in high demand in India's construction sector, driven by the need for affordable housing, commercial buildings, and renovation projects.

   
   

2. Increasing Disposable Income: Rising disposable income among the middle-class population fuels demand for premium interior decoration products, including laminates.

   
   

3. Growing Indian Population: India's burgeoning population, projected to reach 1.5 billion by 2030 and 1.7 billion by 2050, drives demand for housing and innovative laminates.

   
   

4. Urbanization: Rapid urbanization leads to the construction of more homes, offices, and buildings, resulting in higher demand for laminates.

   
   

5. Surging Real Estate Demand: The Indian real estate market is expected to grow at a CAGR of 9.2% between 2023 and 2028, contributing to increased demand for laminate products.

   
   

6. Technological Advancements: Advancements in production technologies enhance efficiency, productivity, and cost-effectiveness, making the laminate industry more competitive and offering better-quality products.

   
   

7. Government Initiatives: Initiatives like Housing for All, Smart City Mission, and Make in India drive demand for laminates by promoting infrastructure development and manufacturing in the country.

Evolving Sustainability 

Financial Highlights

₹ in crores

The company's revenue recorded strong growth, reflecting a 23.06% increase to ₹2,205 crores in FY 2022-23 from ₹1,792 crores in FY 2021-22. Additionally, the EBIDTA also saw an increase by 7.35% to ₹270 crores in FY 2022-23 from ₹251 crores in FY 2021-22. Furthermore, exports showed notable growth, with a 20.07% increase to ₹640 crores in FY 2022-23 from ₹534 crores in FY 2021-22

Revenue Breakup

Dividend 

The Directors recommended a dividend of 90% (₹9/- per equity share) on July 27th, 2023.

Strengths

1. Established Presence and Diversified Revenue Profile.

2. Extensive Distribution Network and Export Presence.

3. Comfortable Capital Structure and Healthy Cash Accruals.

4. Stable Demand Outlook with Competitive Intensity.

Weaknesses

1. Stabilization Risk Associated with Large-Scale Particle Board Project.

2. Exposure to intense competition and changes in demand in the real estate sector.

3. Working Capital Intensive Operations.

4. Raw Material Price Fluctuation and Forex Exposure.

Outlook: Stable The "stable" outlook suggests that MIL is projected to maintain its robust business risk profile, supported by its well-established market position in the laminates industry, strong brand recognition, and efficient distribution network. Additionally, the timely stabilization of its new plant is expected to further fortify its standing in the market.

Merino Industries Annual Report 2022-23

Merino Industries Annual Report 2021-22

Merino Industries Annual Report 2020-21

Merino Industries Annual Report 2019-20

Merino Industries Annual Report 2018-19

Merino Industries Annual Report 2017-18