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Safari Industries Annual Report Summary

  • Safari Industries (India) Limited ("the Company") is a public limited company domiciled in India. It engaged in manufacturing and distribution of luggage and luggage accessories and Safari Lifestyles Limited is engaged in the Marketing and distribution of Luggage and luggage accessories.

  • Industry Outlook

    • The post-pandemic market growth has been strong, particularly for the organized sector. The travel industry has experienced sustained growth with increasing travel frequency, hinting at a potential permanent trend.

    • The organized sector's long-term outlook is highly promising, driven by factors like substantial travel growth, rising preference for branded luggage, expanding school and office-going population, and sustained marriage demand.

  • Company's Outlook

    • The company has established a new manufacturing facility under its wholly-owned subsidiary, Safari Manufacturing Limited, located in Halol, Gujarat.

    • This new plant is dedicated to producing polypropylene zippered hard luggage. Additionally, the company has also increased its production capacity for polycarbonate zippered hard luggage within its existing manufacturing plant.

    • The company introduced a new brand, "Urban Jungle," in the casual premium segment, initially focusing on zippered hard luggage. The company is targeting younger consumers and digital growth by scaling up its Direct-to-Consumer business through its brand websites.

    • The pandemic disrupted supply chains, raising raw material costs, but as chains eased, material costs eased. Domestic manufacturing and increased procurement from the domestic market and Bangladesh improved margins. E-commerce growth and digital engagement are vital, with investments in brand websites and digital content.

    • Despite strong domestic growth, the risk of a global economic slowdown remains. The company's streamlined structure aids quick decision-making for seizing opportunities.

    • Pandemic-related supply disruptions and adverse shipping conditions favored domestically produced hard-luggage over imported soft-luggage. The shift towards hard-luggage was accelerated by consumer preferences for premium and durable options.

    • The company invested in expanding its range of hard-luggage, particularly polycarbonate and polypropylene zippered cases, and aimed to capitalize on resurgent demand in the backpack category driven by physical schooling and office attendance.

    • The company sustains growth beyond the market, driven by targeted strategies in key channels and consumer segments. Significant investments enhance warehousing, upgrading the SAP system, reducing costs, and increasing supply chain responsiveness.

    • Despite easing raw material pressures, the company aims to enhance price realization through product mix. Overall, with strong growth drivers, the company aims to maintain high growth and improved profitability.

    • The major risks as identified by the Company are demand-risks due to recessionary trends in the global economy, currency risk associated with imports, unfair competition, etc.

  • Company's Performance Consolidated Basis (2022-23 compared to the previous year):

    1. Total income increased to 1,22,144.05 Lakh from 71,315.71 Lakh.

    2. Profit before tax rose to 16,504.53 Lakh from 2,911.29 Lakh.

    3. Total comprehensive income grew to 12,480.34 Lakh from 2,189.39 Lakh.

  • Wholly Owned Subsidiaries' Performance:

  • Safari Lifestyles Limited:

    1. Total income increased to 227.71 Lakh from 95.21 Lakh.

    2. Profit before tax turned positive at 6.94 Lakh from a loss of (30.23) Lakh.

    3. Total comprehensive income improved to 9.16 Lakh from a loss of (34.28) Lakh.

  • Safari Manufacturing Limited:

    1. Total income surged to 11,663.62 Lakh from 1.20 Lakh.

    2. Profit before tax turned positive at 929.67 Lakh from a loss of (48.59) Lakh.

    3. Total comprehensive income improved to 751.88 Lakh from a loss of (45.90) Lakh.

  • The company's post-COVID-19 growth has led to increased hiring to meet demand. To grant ESARs to new hires, they intend to expand the equity share pool by raising the maximum number of shares under the ESAR Scheme to 3,00,000 shares, each valued at 2/-.

  • In the previous year, the company's paid-up share capital increased from Rs 4,47,79,000/- to Rs 4,74,22,580/- due to converting 13,15,790 Compulsorily Convertible Debentures to Equity Shares and issuing 6,000 Equity Shares through ESOP allotments.

  • The proposed reclassification involves transforming the Unclassified Share Capital into Equity Share Capital. This would result in an Authorized Share Capital of 10,00,00,000 (Rupees Ten Crore), divided into 5,00,00,000 (Five Crore) equity shares of 2/- (Rupees Two only) each.



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