ICE Make Refrigeration Ltd
Chairman Speech
STANDING TALL.
DELIVERING CONSISTENTLY.
The financial year 2022-23 was ' healthy in terms of revenue which was backed by strong
growth across the value chain.
Dear Shareholders,
It gives me immense pleasure to address all of you and share Ice Make's performance,
progress, and notable achievements for the financial year 2022-23. At the outset, I thank
each one of you for your continued encouragement and support.
At Ice Make, we remain focused on creating measurable value for our customers and are
committed to delivering the highest standards of quality cooling solutions. We have been
one of the leading companies in our space, delivering with utmost trust, excellence, and
customer satisfaction. Today, there is a huge demand for cold storage equipment in
industries like pharmaceuticals & chemicals, dairy & ice cream, food processing
and hospitality, and e-commerce. Ice Make is always standing at the forefront for our
customers, especially in challenging market conditions.
Navigating the macro-economic scenario
The year 2022-23 was marked by several challenges, such as volatile and complex
geo-political situations, supply- chain tightness, and inflationary pressures. However,
there is an air of optimism around, with the long-term vision of the government and
rebounding sentiments of Indian consumers. The Indian economy is set to be on a better
footing, backed by strong macro fundamentals and prudent measures taken by the government
and regulatory bodies. While the economy is advancing well, the GDP growth for 2022-23 has
been revised to 7.2%. India is all set to witness greater achievements going forward.
Industry remains optimistic
India is currently the world's largest producer of milk, the second-largest producer of
fruits and vegetables, and has a substantial production of marine, meat, and poultry
products. Most of these are temperature-sensitive when it comes to storage and
transportation. Organized retail is expected to be among the biggest drivers of the cold
chain market in India. The food processing sector has also shown improvement in consumer
demand. The Indian government has announced the intent of establishing several mega food
parks which is likely to propel the growth of the cold storage industry. Healthcare
products such as vaccines, biopharmaceuticals, as well as clinical trial materials are
heat-sensitive and must be stored at extremely low temperatures. This is where the
expected growth in this sector is likely to drive the cold chain industry. Altogether, the
industry is optimistic, sailing through the challenges, and ready for the next leg of
growth and achievement.
Reflecting on the past year
For Ice Make, despite the challenging environment, the year gone by was full of notable
achievements and successes. During the year, in terms of the order book, we marked
consistent growth, securing an order of Rs. 11 Crores for the newly developed product
freeze-dryer from one of the renowned food processing companies in Maharashtra. In the
ammonia vertical, we received a substantial order value of Rs. 35 Crores from various
states like Jammu and Kashmir, Maharashtra, and Madhya Pradesh. We also received order for
39 units of 5-MT Solar Cold Room to be supplied in the states like Madhya Pradesh, Bihar,
and Odisha.
In terms of project fulfilment, we exclusively provided 1,200 customized freezers to
one of the leading e-commerce company-BigBasket. We completed a cold storage project in
Kanpur, Uttar Pradesh, for Namaste India Ice Cream with a storage capacity of 15,000 CFT
with -18?C to -25?C. We also completed a multi-purpose dairy processing plant in Nepal
for milk and paneer, with a total milk handling capacity of 50,000 liters. Furthermore, we
successfully completed a cold storage project with a capacity of 1,400 MT for storage of
spices in Mandsaur, Madhya Pradesh. The MS Corrugated Refrigerated container is engineered
to provide maximum impact resistance, combining robust construction with a lightweight
design.
It boasts uniform welds that minimize distortion. Our new capex planning of Continuous
Panel business is a part of our refrigeration business which shall be used in big cold
storage projects as well as infrastructure projects.
? Our Greenfield project for continuous panel is expected to be fully operational by
April 2024, with a capital expenditure of approximately Rs.50 to 60 Crores.
? We have expanded our presence in the eastern India by incorporating a subsidiary
company in West Bengal.
? The Continuous Panel business is projected to experience a 14% Compound Annual Growth
Rate (CAGR) year-on-year, while the Cold Chain and Storage business is expected to
register a CAGR of 15% to 17% from 2022 to 2027.
In terms of synergies, we have collaborated with Ashok Leyland and jointly completed
the UN Mission Refrigerated Truck Project. During the year, we incorporated a new
subsidiary named IceBest Private Limited. This expansion will enable us to cater to a
larger market size. All these achievements are a testament to this year's theme 'Driving
Growth. Expanding Possibilities.' which speaks about our strong capabilities, passion,
hard work, and innovation in every business operation.
Marking a robust performance
During the year, we marked a topline of f 313.32 Crores, up from f 206.80 Crores,
representing an uptick of 51.50%. We recorded a strong net profit of f 20.80 Crores, up
from f 7.32 Crores, compared to the previous year, resulting in an increase of 184.15%. On
a year-on-year basis, our EBITDA grew by 10.61%, from the previous year's 7.34%, resulting
in an increase of 44.55 %. Furthermore, we are committed and confident of achieving growth
within a range of 25-30% in overall profitability, with a steady EBITDA margin of 9-11%.
Our focus is on aggressively increasing the top line while maintaining a consistent PAT
margin of 5-7%.
Our technological prowess
In our current operational approach, there is potential for semi-automation, even
though achieving full automation may not be completely feasible. We regularly upgrade our
machinery to incorporate the latest technology and perform small tool-taking activities
throughout the year. However, our new Greenfield project for continuous panel
manufacturing will be fully automated, utilizing advanced technology machinery.
Sustainability initiatives at Ice Make
Ice Make has taken a conscious approach to embedding sustainability within its business
operations and decision-making process. Driven by a strong sense of environmental
responsibility, we are dedicated to contributing to the country's goal of achieving Net
Zero by 2050, further affirming our commitment to a sustainable future. Our objective is
to set clear and inclusive goals for all stakeholders, focusing on the identified material
areas. We aim to position ourselves as an industry leader and global frontrunner in
sustainability, catalysing significant positive change on a global scale.
Committed towards people and the community
Ice Make stays committed to its philosophy of giving back to the society. Our CSR
activities include categories like education, environment, health care, hunger &
poverty. In addition to these, we also have several people initiatives in place to create
a positive work environment and promote employee well-being.
In gratitude
I extend my heartfelt appreciation to all our stakeholders, our dedicated employees,
loyal customers, and supportive shareholders. It is their trust in Ice Make that has been
the foundation of our success. Together, with our shared vision and collective efforts, I
am confident that we will continue to evolve, grow, and exceed the expectations of each
stakeholder. I would like to extend my gratitude to the family members of all our
stakeholders for reposing their continuous support and trust in us.
Best Wishes,
Chandrakant P. Patel
Chairman & Managing Director.
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