Chapter 1 Introduction

About SAFARI INDUSTRIES (INDIA) LTD. :-

Registered in 2007 , SAFARI INDUSTRIES (INDIA) LTD. has made a name for itself in the list of top suppliers of trolley bags in

India. The supplier company is located in Mumbai, Maharashtra and is one of the leading sellers of listed product.

SAFARI INDUSTRIES (INDIA) LTD. is listed in Trade India’s list of verified sellers offering supreme quality of 2 Wheel Trolley

Bag etc. Buy trolley bags in bulk from us for the best quality products and service.

Safari Industries (india) Limited is a Public incorporated on 08 July 1980. It is classified as Non-govt company and is

registered at Registrar of Companies, Mumbai. Its authorized share capital is Rs. 100,000,000 and its paid up capital is Rs.

44,773,000. It is inolved in Manufacture of plastic products

Safari Industries (india) Limited’s Annual General Meeting (AGM) was last held on 13 August 2020 and as per records from

Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2020.

Directors of Safari Industries (india) Limited are Sumeet Nagar, Vijaya Sampath, Dalip Charanjit Sehgal, Piyush Goenka,

Sudhir Mohanlal Jatia, Rahul Lalit Kanodia, Shailesh Jayantilal Mehta, Gaurav Sharma, Anuj Patodia, Punkajj Girdharilal Lath,

Safari Industries (india) Limited’s Corporate Identification Number is (CIN) L25200MH1980PLC022812 and its registration

number is 22812.Its Email address is investor@safari.in and its registered address is 302-303,A wing,The Qube, CTS

No.1498,A/2 M.V. Road,Marol, Andheri € Mumbai City MH 400059 In.

Chapter 2 company profile

Safari Industries (India) Ltd. engages in the manufacture and sale of luggage and luggage accessories. Its products include
hard luggage, which are mainly made of poly propylene and poly carbonate; and soft luggage, which are made of fabrics of
various kinds. The company was founded by S. H. Mehta in 1974 and is headquartered in Mumbai, India.
Board of Directors
Name/Title
Sudhir Mohanlal Jatia Chairman &
Managing Director
Sumeet Nagar Non-Independent
Non-Executive Director
Gaurav Sharma Non-Independent
Non-Executive Director
Anujj Kumar Patodia Non-
Independent Non-Executive Director
Piyush Goenka Non-Independent
Non-Executive Director
Shailesh Jayantilal Mehta
Independent Non-Executive Director
Punkajj Lath Independent Non-
Executive Director
Dalip Sehgal Independent Non-
Executive Director
Current Board Membership
Association For Development of Luggage &
Accessories, Safari Industries (India) Ltd.,
Affle (India) Ltd., Safari Investments Pvt
Ltd., Safari Lifestyles Ltd.
Safari Industries (India) Ltd., Malabar Aif
Managers Pvt Ltd., Malabar Investment
Managers Pvt Ltd., Neuland Health Sciences
Pvt Ltd.
Nephrocare Health Services Pvt Ltd., Safari
Industries (India) Ltd., Intergrow Brands Pvt
Ltd., Skyron Eco Ventures Pvt Ltd.,
Investcorp Credit Solutions Pvt Ltd., Arr
Advisory Pvt Ltd., Medi Assist Healthcare
Services Ltd. (Karnataka), Zolostays
Property Solutions Pvt Ltd., Bewakoof
Brands Pvt Ltd., ASG Hospital Pvt Ltd.
Prime Urban Development India Ltd., Safari
Industries (India) Ltd., Purav Trading Ltd.,
Aadarsh Jann Aawaash Ltd., Pee Dee Yarn
Processors Ltd., ATL Textile Processors Ltd.,
Anjana Syntex Co. Ltd., Pat Credit Ltd.,
Prime Vista Power Generation Ltd., Prime
Team3 Project Development International
Pvt Ltd., Classic Yarn Processors Ltd., Manoj
Yarn Processors Ltd.
Shilpa Medicare Ltd., Safari Industries
(India) Ltd., Arohan Financial Services Ltd.,
MSH Sarees Pvt Ltd.
Manappuram Finance Ltd., Vistaar Financial
Services Pvt Ltd., Beganto, Inc., Safari
Industries (India) Ltd., Aptus Value Housing
Finance India Ltd., All Services Under 1 Roof
India Pvt Ltd., SEED Infotech Ltd., All
Services Global Pvt Ltd., ABP Realty
Advisors Pvt Ltd., GH Infotech Services Pvt
Ltd., Netafim Agricultural Financing Agency
Pvt Ltd., Providian Corp., The California
State University, Accountnow LLC
Safari Industries (India) Ltd., Euro Vistaa
(India) Ltd., Euro Vistaa (Overseas) Pvt Ltd.,
Alliance Trading Co. Pvt. Ltd.
Graviss Hotels & Resorts Ltd., Safari
Industries (India) Ltd., Jephersons
Communications Pvt Ltd., Graviss Food
Solutions Pvt Ltd., Graviss Dairy Pvt Ltd.,
Mastroke Hospitality Pvt Ltd., Graviss Retail
Pvt Ltd., Graviss Restaurants Pvt Ltd.,
Graviss Fast Foods Pvt Ltd., S.H. Kelkar & Co
Ltd., Ice Holdings Pvt Ltd., Hotel
Kanakeshwar Pvt Ltd., Graviss Holdings Pvt

Vijaya Sampath Independent Non-
Executive Director
Rahul Lalit Kanodia Independent
Non-Executive Director
Ltd., House of Anita Dongre Ltd.
Intellect Design Arena Ltd., VA Tech Wabag
Ltd., Safari Industries (India) Ltd., GVS
Envicon Technologies Pvt Ltd., L&T Power
Development Ltd., Nabha Power Ltd., L&T-
MHPS Boilers Pvt Ltd., L&T-MHPS Turbine
Generators Pvt Ltd., Eris Lifesciences Ltd.,
Varroc Engineering Ltd., Craftsman
Automation Ltd., Ingersoll-Rand (India) Ltd.
Datamatics Infotech Ltd., Goa Institute of
Management, Techjini Solutions Pvt Ltd.,
Datamatics Infotech Services Pvt Ltd.,
Datamatics Software Services Ltd.,
Cybercom Datamatics Information Solutions
Ltd., Datamatics Vista Info Systems Ltd.,
CIGNEX Corp., Datamatics Global Services
Ltd., Lumina Datamatics Ltd., Safari
Industries (India) Ltd., Amon Technologies
Pvt Ltd., Delta Infosolutions Pvt Ltd.,
Datamatics Robotics Software Ltd.,
Datamatics Staffing Services Ltd.
EXPAND
Background

Started as a partnership firm in 1974 to manufacture plastic moulded luggage at Bombay Safari Industries (India) [SIIL] became a private limited company in 1980 and a public limited company

in Feb.’86. It was promoted by Sumatichandra H Mehta.The company manufactures injection moulded plastic articles and vacuum formed plastic articles at its plants at Bombay and Halol

Gujarat. The unit at Mumbai is mainly an assembly shop manufacturing plastic moulded luggage from bought out components. Fully integrated plant at Halol for the manufacture of plastic

moulded luggage was set up in 1982 with an installed capacity of 840 tpa. The capacity of this plant was increased to 1500 tpa in 1985. The company came out with a public issue in Mar.’86 to

part-finance the expansion project. The company expanded its capacity at its Halol plant from 1 lac pieces to 2 lac pieces pa in 1993-94.The company is planning to develop Luggage

Assembling and also Automation in Frame bending in the near future.

Nature of business

Safari Industries (India) Ltd. engages in the manufacture and sale of luggage and luggage accessories. Its products
include hard luggage, which are mainly made of poly propylene and poly carbonate; and soft luggage, which are made of
fabrics of various kinds. The company was founded by S. H. Mehta in 1974 and is headquartered in Mumbai, India.

Vision mission, quality policy

Vision

To be the most trusted luggage partner for people on the move.

Mission

Speed – We know that speed is the key to our success. Speed of thought, action and execution.

Alignment – We make and support business decisions aligned to our vision through experience and good judgment.

Freedom of thought – We express our views and opinions openly for the benefit of the organization, customers and
community

Accountability – We accept responsibility for our actions that influences our customers and colleagues.

Reliability – We are committed to give the best in class products and services to our customers without compromising on
quality on time and all the time.

Innovation- We believe in meaningful, productive and effective change. And know that solving problems only comes by
looking at challenges and opportunities from new angles and exercising our curiosity.

Values

Speed – We know that speed is the key to our success. Speed of thought, action and execution.

Alignment – We make and support business decisions aligned to our vision through experience and good judgment.

Freedom of thought – We express our views and opinions openly for the benefit of the organization, customers and
community

Accountability – We accept responsibility for our actions that influences our customers and colleagues.

Reliability – We are committed to give the best in class products and services to our customers without compromising on
quality on time and all the time.
Innovation- We believe in meaningful, productive and effective change. And know that solving problems only comes by
looking at challenges and opportunities from new angles and exercising our curiosity.

Products

Beautiful, sturdy and affordable, Safari bags are crafted by years of experience and a deep understanding of the Indian
traveller. To see our products, visit our web store.

Workflow model

A. Industry Structure and Developments:

During the first half of the year, the market witnessed a sharp decline in demand due to the COVID 19 pandemic. There was a significant recovery of demand especially in the

luggage segment in the second half of the year led by the opening of the economy as well as festive and marriage demand. The demand in the backpack segment remained

muted throughout the year due to limited opening of schools and colleges. The E-commerce channel saw the strongest uptick in demand in the second-half as the pandemic has

accelerated the jump in digital penetration as well as e-commerce adoption for higher ticket purchases. While the growth in Hyper channel is also bouncing back, but there was

some moderation due to poor participation in the market revival by one of the largest players in the sector and also because Malls continued to suffer from restrictions in many

cities. With the pandemic leading to consumer preference for walking into high-street stores rather than the enclosed environment of Malls, the General Trade segment also saw

a good revival in demand. The demand in the Canteen Stores Department segment remained muted throughout the year. While there is a large drop in industry growth due to

COVID 19 impact, the overall long-term outlook for the sector remains very robust. The pandemic has accelerated the shift from Unorganised to Organised players as many

avenues of supply for Unorganised players such as Chinese imports have become increasingly unviable, creating a supply gap in the market. As the pandemic is expected to come

under control this year with large scale vaccinations, the travel industry is set for an unprecedented boom when people look to get out of their houses after long periods of lock-

downs. Other structural factors driving industry growth continue to be in place such as accelerated shift in consumer preference away from unorganised labels to brands.

Company Development:

The Company growth was impacted adversely during the year due to the overall industry slowdown, but it continued to grow ahead of the market. The Company has progressed

towards developing into a well-diversified, multi-channel and multi-category business. The Company offers competitive and innovative range across all product categories

designed specifically for the tastes and preferences of its target consumers.The Company continued its efforts on building the Safari brand via strong advertising presence on

digital and e-commerce platforms focussed towards recruiting younger consumers into the brand. In line with the overall thrust on E-commerce, the Magnum brand was launched

on this channel to enhance the product portfolio targeting mass market value seeking consumers. Given the muted demand on the backpack segments the focus on Genie brand

was to drive growth in the E-commerce channel, and driving brand salience on the digital platforms to specifically target teenager and young girls. Due to the pandemic situation,

the Company limited the number of new product launches into the market but instead focussed on getting better sourcing efficiencies on existing products by shifting away its

heavy dependence on Chinese imports towards other manufacturing bases in India and Bangladesh. This shift in the supply chain is designed to bring substantial savings as well as

better supply security.

B. Opportunities and Threats: The COVID 19 global pandemic has impacted overall consumer demand across industries. With a second pandemic wave hitting the country, the

consumer demand in the sector is expected to be muted in the short term. The Company is continuing to focus on maintaining a tight control on operating costs, while investing

capital to build capacity for future demand as it shifts its supply chain dependence away from China. The Company will also continue to invest selectively in garnering higher share

of demand in selective channels to maximise sales in the segments that are expected to do relatively well. During the year, there was increased upwards pressure on raw material

cost and sourcing costs of imported products from China. To manage overall sourcing costs, the Company has significantly increased its procurement of Soft luggage and Backpack

categories from India and Bangladesh. The Company has also started to gradually increase prices for its products to cover the increase in costs. Given the uncertainty induced by

the fluctuations on the demand-side as well as high competitive intensity, to continue to outperform the market and sustaining profitable growth is the most important medium

term challenge. The Companys linear structure facilitates faster and better decision making which allows the Company to grab opportunities in time.
C. Segment / Product-wise Performance:

Significant demand momentum was observed in the Luggage category in the second half of the year. The trend of rising consumer preference for Zippered Hard Luggage category

continued as it is perceived to be more premium and durable. But at the same time due to supply gaps from smaller unorganised players the demand for the Soft Luggage was

also robust. The size preference within the Luggage category moved towards larger sizes. The Company continued to invest in Zippered Hard Luggage by continuing to expand its

range of Polycarbonate zippered cases as well as enhancing production capacity at its manufacturing plant in Halol, Gujarat. The growth in the Backpack category was muted

throughout the year as most schools and colleges remained closed for physical classes. Even in the office segment the demand was much lower owing to large scale adoption of

work-from-home. The growth in this segment is expected to remain poor in the medium term, till the pandemic recedes enough for physical attendance to become the norm

again.

D. Outlook:

While the revenues have dropped in the last year due to adverse impact of the COVID 19 pandemic on consumer demand for travel products, the Company has been on a strong

recovery path in the second half of the year especially in the Luggage segment. The Company will continue to build on this momentum with focus on specific Channels and

Categories that are showing promise of faster than market recovery. To diversify its supply chain and reduce costs, the Company has significantly increased its outsourcing of soft

luggage and backpacks from India and Bangladesh. This will result in substantial savings in procurement costs, which will help to partially offset the overall cost increases in Raw

Material and jump in sourcing costs from China. The Company has also made significant investments in modernising and improving its warehousing capability.The Company

continues reaping benefits of implementing SAP system which has a positive impact on operations and value chain. These improvements will help the Company in reducing costs

and making its supply chain leaner and more responsive to the changing market. Margins may continue to experience pressure on account of upward pressure on Raw Material

costs as well as currency exchange rates. To manage this, apart from the shift in sourcing the Company has taken a price increase for certain products last year and will continue

to work towards further improving price realisation through product innovations. The second wave of the pandemic has again added to uncertainty on the demand-side which is

likely to impact revenue in the near term, but the overall growth drivers are well in place for the Company for a fast recovery as soon as the overall situation improves.

E. Risks and Concerns:

The Company is exposed to various risks and uncertainties which may adversely impact its performance. The Companys future growth prospects and cash flow generation could

be materially impacted by any of these risks or opportunities. The major risks as identified by the Company are demand-risks due to COVID 19 pandemic, currency risk associated

with imports, unfair competition, brand strength etc. The Company follows the Enterprise Risk Management (ERM) framework to manage and mitigate such risks which is

primarily based on the integrated framework for enterprise risk management and internal controls developed by the Company.

F. Risks and Concerns:

The Company is exposed to various risks and uncertainties which may adversely impact its performance. The Companys future growth prospects and cash flow generation could

be materially impacted by any of these risks or opportunities. The major risks as identified by the Company are demand-risks due to COVID 19 pandemic, currency risk associated

with imports, unfair competition, brand strength etc.The Company follows the Enterprise Risk Management (ERM) framework to manage and mitigate such risks which is

primarily based on the integrated framework for enterprise risk management and internal controls developed by the Company.

Product/service profile
Ownership Pattern

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are

included in the relevant benchmark index.

We can see that Safari Industries (India) does have institutional investors; and they hold a good portion of the company’s stock. This can indicate that the company has a certain

degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it

wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past

earnings trajectory of Safari Industries (India), (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 5.4% of Safari Industries (India) shares are controlled by hedge funds. That’s interesting, because hedge funds can be quite active and activist. Many look for

medium term catalysts that will drive the share price higher. The company’s CEO Sudhir Jatia is the largest shareholder with 47% of shares outstanding. Malabar Investments, LLC

is the second largest shareholder owning 11% of common stock, and Safari Investments Pvt Ltd holds about 10% of the company stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the

decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. There is some

analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Safari Industries (India)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it

is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is

concentrated within this group.

Our most recent data indicates that insiders own the majority of Safari Industries (India) Limited. This means they can collectively make decisions for the company. That means

they own ₹4.7b worth of shares in the ₹8.9b company. That’s quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click

here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 10% stake in Safari Industries (India). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in

sync with other large shareholders.

Private Equity Ownership

With an ownership of 11%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged

by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the

investment after taking it public.

Private Company Ownership

We can see that Private Companies own 10%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these

private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we’ve discovered 1 warning sign

for Safari Industries (India) that you should be aware of before investing here.

Achievement /awads
The Company manufactures injection moulded plastic articles and vaccum formed plastic
articles. Safari Industries was started as a partnership firm in 1974 to manufacture plastic
moulded luggage.

Safari Industries (India) Ltd., which was incorporated on 6th July, 1980 took over the
undertaking and business of Safari Industries w.e.f. 16th November, 1980.

Fully paid up equity shares of the Company were issued in total consideration for the take
over. It was promoted by Sumatichandra H. Mehta and was converted into a public
limited company on 3rd February, 1986.

2003
-Voluntary delisting of the Company's equity shares from Ahmedabad Stock Exchange.
2007 -Safari Industries India Ltd has appointed Dr. Jagdish N Sheth and Dr. Shailesh J
Mehta as Additional Directors of the Company. -Safari Industries India Ltd has appointed
Mr. Niraj Goyal as additional director of the Company to hold office until next AGM.
-Hitachi Home & Life Solutions India Ltd has appointed Mr. Amit Doshias Director-
Corporate Affairs of the Company.

2010
-Safari Industries has recommended a dividend of Rs. 2.00 per share of face value of Rs.
10/- 2011 -Safari Industries has recommended a dividend of Rs. 2.50 per share of face
value of Rs. 10/-

2012
-Ms. Jigna Parikh has been appointed as the Compliance Officer of the Company.
--Registered Office of the Company has been shifted from 7, Jayalaxmi Industrial Premises
Co-op. Society Ltd., Khetani Textile Compound, Kurla, Mumbai - 400 070 to 8th Floor, A
Wing, The Qube CTS No. 1498, A/2, M. V. Road, Behind Taj Flight Kitchen, Near
International Airport, Marol Andheri (East), Mumbai - 400059 2013 -Appointment of Ms.
Jigna Parikh as the Company Secretary of the Company. -Appointment of Mr. Sudhir Jatia,
Managing Director, as the Chairman of the Board of Directors of the Company.

2014
-Appointment of Mr. Hetal Gandhi as an Additional Director of the Company. -Issue and
allotment of 80,000 (Eighty Thousand) equity shares of Rs. 10/- each at a premium of Rs.
590/- per share.
Feature growths and Prospectus

Safari continued its focus on building the Safari brand via launches of innovative new products and a new advertising campaign to drive visibility. The Magnum brand was

strengthened with a larger product portfolio and wider channel availability. The Genius & Genie brands that cater to teenagers & young adults segment, grew well in both the

Backpack category and the newly introduced Fashion Bags category. This is in line with the company’s strategic intent of addressing the complete short-haul needs of the target

consumers.

The company continued its focus on polycarbonate and backpack product categories. It increased its polycarbonate ranges especially for E-commerce

and Hypermarkets to drive strong share growth in these high growth channels. Further, it launched a fresh new range of backpacks with a significant up-

gradation in terms of features, design, and price. The range included several new to market concepts and was very well received across the channels and

consumers.

The company significantly increased its presence in the E-commerce and Hypermarkets with focused marketing activities in the top E-Commerce

horizontal platforms and Hypermarket chains. The Company also operates from more than 50 exclusive retail stores.