Chapter 1

Introduction

Introduction to organzation

About SAFARI INDUSTRIES (INDIA) Ltd: -

For over a decade Safari Industries has devoted itself to making quality products for people on-
the-move. Our product portfolio includes luggage, backpacks, school bags, fashion bags for girls
& travel accessories. We create thoughtfully designed; competent products that make it easier to
experience the unadulterated joys of travel. Our brands include Safari, Genius, Genie & Magnum,
which are available across India. We aim to lead. Our soaring ambition is to be India’s No. 1 Bags
Company, targeting a revenue of Rs.1,000 crore by 2020. Featured in the Financial Times Top 1000
Fastest Growing Companies in Pacific-Asia 2017, we continue to work towards disproportionate
growth. Today, with a cumulative strength of 1,800 passionate Safarian’s, and our headquarters in
city of dreams, Mumbai, we are rapidly making strides towards our goal. If you are ready to take
charge of your career, come join us on our safari to be the Leading Bag’s Company. Join the tribe,
help us shape the future of the industry!

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.

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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.

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.

Industries 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

Chapter 2
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organzation profile

Name Safari Industries (india) LTD

Establishment year 1974

Head quarters Mumbai, Maharashtra india

Founder Sudhir jatia

No of Employees 1001-5000
1. Background
2. Nature of business
3. Vision, mission, quality policy
4. Workflow model
5. Product/service model
6. Ownership pattern
7. Achievements/Awards
8. Feature growth and Prospectus

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1. Background

Name/Tiltle Board of Membership

Sudhir Mohanlal Jatia Association For Development of Luggage & Accessories, Safari
Chairman & Managing Industries (India) Ltd., Affle (India) Ltd., Safari Investments Pvt Ltd.,
Director Safari Lifestyles Ltd.

Sumeet Nagar Non- Safari Industries (India) Ltd., Malabar Aif Managers Pvt Ltd.,
Independent Non- Malabar Investment Managers Pvt Ltd., Neuland Health Sciences
Executive Director Pvt Ltd.

Nephrocare Health Services Pvt Ltd., Safari Industries (India) Ltd.,

Gaurav Sharma Non- Intergrow Brands Pvt Ltd., Skyron Eco Ventures Pvt Ltd., Investcorp
Independent Non- Credit Solutions Pvt Ltd., Arr Advisory Pvt Ltd., Medi Assist
Executive Director 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
Anujj Kumar Patodia Non-
Processors Ltd., ATL Textile Processors Ltd., Anjana Syntex Co. Ltd.,
Independent Non-
Pat Credit Ltd., Prime Vista Power Generation Ltd., Prime Team3
Executive Director
Project Development International Pvt Ltd., Classic Yarn Processors
Ltd., Manoj Yarn Processors Ltd.

Piyush Goenka Non-

Shilpa Medicare Ltd., Safari Industries (India) Ltd., Arohan Financial
Independent Non-
Services Ltd., MSH Sarees Pvt Ltd.
Executive Director

Manappuram Finance Ltd., Vistaar Financial Services Pvt Ltd.,

Beganto, Inc., Safari Industries (India) Ltd., Aptus Value Housing
Shailesh Jayantilal Mehta Finance India Ltd., All Services Under 1 Roof India Pvt Ltd., SEED
Independent Non- Infotech Ltd., All Services Global Pvt Ltd., ABP Realty Advisors Pvt
Executive Director Ltd., GH Infotech Services Pvt Ltd., Netafim Agricultural Financing
Agency Pvt Ltd., Providian Corp., The California State University,
Accountnow LLC

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Punkajj Lath Independent Safari Industries (India) Ltd., Euro Vistaa (India) Ltd., Euro Vistaa
Non-Executive Director (Overseas) Pvt Ltd., Alliance Trading Co. Pvt. Ltd.
1. 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.

2. 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.

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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.

Quality policy

4. 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.

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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

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 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 highly 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:

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 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

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 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.

5. Product/service profile
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We are one of the leading enterprise Manufacturing and Supplying an exclusive assortment of 2
Wheel Trolley Bag from Mumbai, Maharashtra, India in order to cater to the various necessities
and demands of the customers. Designed to perfection, the offered 2 Wheel Trolley Bag is
manufactured using quality rich raw material which is sourced from the trusted vendors. Highly
acclaimed and demanded by our customers, this product is offered at very economic price.

Our firm is a leading Manufacturer and Supplier of huge assortment of Polycarbonate Trolley Bag
from Mumbai, Maharashtra, India with an to meet up with the variegated needs and demands of
the clients. Designed by making use of higher quality raw material and modern machines at our
pioneering production unit, the offered product is highly cherished by the customers due to its
high grade and unmatchable characteristics.

Our organization has established benchmarks in the industry by Manufacturing and Supplying our
customers an elevated quality range of 4 Wheel Trolley Bag from Mumbai, Maharashtra, India.
Offered 4 Wheel Trolley Bag is designed and developed with the help of optimum quality material
and latest techniques. We make it go through several tests to ensure its high quality and
flawlessness.

We have marked a distinct and dynamic position in the market by Manufacturing and Supplying
our customers a high-quality range of Pump Blue Colored 4 Wheel Trolley Bag 55 Cms from
Mumbai, Maharashtra, India. Every Pump Blue Colored 4 Wheel Trolley Bag goes through rigorous
checks to ensure quality and longevity. We manufacture our range as per our clienta s
requirements and make it available to them at the most economical rate.

As specialist in this field, we are successfully engaged in Manufacturing and Supplying the best
quality Heavy Duty Duffel Bag by being established in Mumbai, Maharashtra, India. Our offered
Heavy Duty Duffel Bag is provided in diverse specifications to meet the requirements of the
patron. This product is precisely designed at our highly cutting-edge production unit at par with
market quality standards.

Supported by a team of hardworking professionals, we Manufacture and Supply an excellent

quality Light Weigh Durable Backpacks by being based in Mumbai, Maharashtra, India. Our offered
product is manufactured by utilizing quality verified raw material and progressive technology at
our high-tech unit. Our quality associates conduct a series of checks on the provided product to
seek out any possible defect.
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6. 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.

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The same can be achieved by studying analyst sentiments. There is some analyst Researching institutional

ownership is a good way to gauge and filter a stock’s expected performance. 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.

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 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.

7. Achievement /Awads
The Company manufactures injection moulded plastic articles and vacuum 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
takeover. It was promoted by Sumatichandra H. Mehta and was converted into a public
limited company on 3rd February, 1986.

2003

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 -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.

8. 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,

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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.

chapter 3
Mckensy’s 7S framework and porter’s Five Force Model with special reference to organization under

study.

Mckensy’s 7s Framework

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Porters Five Force Model
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Porter’s Five Force is a model that identitfies and analysis five competitive force that shape
every industry and help determine an industry’s weakness and strengths. Five Force analysis is
frequently used to identify an industry’s structure to determine corporate strategy. Porter’s
model can be applied to any segment of the economy to understand the level of competition
within the industry and enhance a company’s long -term profitability. The Five Force Model Is
named after Harvard Business School professor, Michael E. Porter.
Porte’s Five Force is a business analysis model that help to explain why various industries are
able to sustain different levels of profitability. The model was published in Michael E. porter’s
book.” Competitive Strategy: Techniques for Analysing Industries and Comptetitors” in
1980.The Five Force model widely used to analyse the industry structure of a company as well
as its corporate strategy. Porters identified five underniable force that play a part in shaping
every market and industry in the world, with some caveats. The five forces are frequently used
to measure competition intensity, attractiveness, and profitability of an industry or market.

Porter Five (5) Forces Model was proposed by Michael E. Porter in 1979. The purpose was to assess
and evaluate the competitive positioning and strengths of business organisations. The model has
three horizontal competitive forces (Threat of Substitute Products or services, the threat of new
entrants and rivalry among existing firms) and two vertical forces (Bargaining power of buyers and
bargaining power of suppliers).

These forces shape the competition within any industry. The overall industry competitiveness
declines when these forces reduce profitability. Porter found SWOT analysis lacking in rigour. Many
new companies use the Porter Five (5) Forces Model to decide whether it is profitable to enter in a
particular industry.

Porter’s Five Force Analysis

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Threats of new entranrs

Threat of new entrants reflects how new market players impose threats to the existing market
players. If the industry will be profitable and barriers to enter the industry will be low, it will attract
more players and hence, the threat of new entrants. will be high.

Here are some factors that reduce the threat of new entrants for Extraordinary Journeys Wild Times
in the Safari Industry:

 Entry in the industry requires substantial capital and resource investment. This force also loses
the strength if product differentiation is high and customers place high importance to the
unique experience.
 Extraordinary Journeys Wild Times in the Safari Industry will face the low threat of new
entrants if existing regulatory framework imposes certain challenges to the new firms
interested to enter in the market. In this case, new players will be required to fulfil strict, time-
consuming regulatory requirements, which may discourage some players from entering the
market.
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  The threat will be low if psychological switching cost for consumers is high and existing
brands have established a loyal customer base.
 New entrants will be discouraged if access to the distribution channels is restricted
 Existing regulations support the entry of new players.
 Consumers can easily switch the brands due to weak/no brand loyalty.
 Initial capital investment is high.
 Building a distribution network is easy for new players.
 Retaliation from the existing market players is not a discouraging factor.
 Extraordinary Journeys Wild Times in the Safari Industry can develop brand loyalty by working
on customer relationship management. It will raise psychological switching costs.
 It can develop long-term contractual relationships with distributors to widen access to the
target market.
 Extraordinary Journeys Wild Times in the Safari Industry can also an investment in research
and development activities, get valuable customer data and introduce innovative
products/services to set strong differentiation basis.

Treats of subsuties product or service

The availability of substitute products or services makes the competitive environment challenging for
Extraordinary Journeys Wild Times in the Safari Industry and other existing players. High substitute
threat shows that customers can use alternative products/services from other industries to meet
their needs. Various factors determine the intensity of this threat for Extraordinary Journeys Wild
Times in the Safari Industry

The Threat of Substitute Products or services increases when;

 A cheaper substitute product/service is available from another industry

 The psychological switching costs of moving from industry to substitute products are low.
 Substitute product offers the same or even superior quality and performance as offered by
Extraordinary Journeys Wild Times in the Safari Industry’s product.

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However, this threat is substantially low for Extraordinary Journeys Wild Times in the Safari Industry
when;

 The switching cost of using the substitute product is high (due to high psychological costs or
higher economic costs)
 Customers cannot derive the same utility (in terms of quality and performance) from
substitute product as they derive from the Extraordinary Journeys Wild Times in the Safari
Industry’s product.
 Extraordinary Journeys Wild Times in the Safari Industry can reduce the Threat of Substitute
Products or services by clearly emphasising how its offered product/service is better than the
available substitutes.
 It should provide convincing reasons to the customers by offering a better experience and high
value for money.
 It can raise switching costs by working on loyalty.
 Lastly, it can improve the quality, maximise value for money and set strong differentiation
basis to discourage customers from using the substitute product.

Rively existing among firms

The Rivalry among existing firms shows the number of competitors that give tough competition to the
Extraordinary Journeys Wild Times in the Safari Industry High rivalry shows Extraordinary Journeys
Wild Times in the Safari Industry can face strong pressure from the rival firms, which can limit each
other’s growth potential. Profitability in such industries is low as firms adopt aggressive targeting and
pricing strategies against each other.

The Rivalry among existing firms will be low for Extraordinary Journeys Wild Times in the Safari
Industry if;

 There are only a limited number of players in the market

 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets different sub-segments
 The economic/psychological switching costs for consumers are high.

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  The exit barriers are low, which means firms can easily leave the industry without incurring
huge losses.

Similarly, there are some factors that increase the Rivalry among existing firms for Extraordinary
Journeys Wild Times in the Safari Industry For example, the company will face intense Rivalry among
existing firms if market players are strategically diverse and target the same market. The rivalry will
also be intense if customers are not loyal with existing brands and it is easier to attract others’
customers due to low switching costs. Competitors with equal size and offering undifferentiated
products with slow industry growth tend to adopt aggressive strategies against each other. These all
factors make the Rivalry among existing firms a major strategic concern for Extraordinary Journeys
Wild Times in the Safari Industry.

Extraordinary Journeys Wild Times in the Safari Industry should focus on the implicit needs and
expectations of its customers to strengthen the differentiation basis. It should raise switching costs
by developing long-term customer relationships. The organisation should also invest in research and
development activities to identify new customer segments. In some cases, collaborating with
competitors can be mutually beneficial. The organisation can look for this option as well.

Bargaining power of suppliers

Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted by suppliers
on business organisations by adopting different tactics like reducing the product availability, reducing
the quality or increasing the prices. When suppliers have strong bargaining power, it costs the buyers-
(business organisations). Moreover, high supplier bargaining power can increase the competition in
the industry and lower the profit and growth potential for Extraordinary Journeys Wild Times in the
Safari Industry Similarly, weak supplier power can make the industry more attractive due to high
profitability and growth potential.

Bargaining power of suppliers will be high for Extraordinary Journeys Wild Times in the Safari Industry
if:

 Suppliers have concentrated into a specific region, and their concentration is higher than their
buyers.

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  This force is particularly strong when the cost to switch from one supplier to other is high for
buyers (for example, due to contractual relationships).
 When suppliers are few and demand for their offered product is high, it strengthens the
suppliers’ position against Extraordinary Journeys Wild Times in the Safari Industry
 Suppliers’ forward integration weakens the Extraordinary Journeys Wild Times in the Safari
Industry’s position as they also become the competitors in that area.
 If Extraordinary Journeys Wild Times in the Safari Industry is not well educated, does not have
adequate market knowledge and lacks the price sensitivity, it automatically strengthens the
suppliers' position against the organisation.
 Other factors that increase the suppliers’ bargaining power include-high product differentiation
offered by suppliers, Extraordinary Journeys Wild Times in the Safari Industry making only a
small proportion of suppliers’ overall sales and unavailability of the substitute products.

Extraordinary Journeys Wild Times in the Safari Industry can strengthen its position against suppliers
by decreasing the dependency on one or a few suppliers. It will increase its price sensitivity.
Developing the long-term contractual relationships with suppliers from different regions not only
lowers their bargaining power but also allows Extraordinary Journeys Wild Times in the Safari
Industry to improve its supply chain efficiency. Finally, Extraordinary Journeys Wild Times in the
Safari Industry can find the alternate ways of producing the product if product demand is high enough
and the firm has required competencies and expertise. However, it requires detailed cost-benefit
analysis to determine its feasibility. Product redesign and diversification of the product lines can also
help the organisation reduce the suppliers’ power in the market.

Bargaining power of buyers

Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer service. This
force directly influences the Extraordinary Journeys Wild Times in the Safari Industry’s ability to
accomplish the business objectives. Strong bargaining power lowers profitability and makes the
industry more competitive. Whereas, when buyer power is weak, it makes the industry less
competitive and increase the profitability and growth opportunities for Extraordinary Journeys Wild
Times in the Safari Industry

There are some factors that increase the bargaining power of buyers:
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  A more concentrated customer base increases their bargaining power against Extraordinary
Journeys Wild Times in the Safari Industry
 Buyer power will also be high if there are few in number whereas a number of sellers (business
organisations) are too many.
 Low switching costs (economic and psychological) also increase the buyers’ bargaining
power.
 In case of corporate customers, their ability to do backward integration strengthen their
position in the market. Backward integration shows the buyers' ability to produce the products
themselves instead of purchasing them from Extraordinary Journeys Wild Times in the Safari
Industry
 Consumers’ price sensitivity, high market knowledge and purchasing standardised products in
large volumes also increase the buyers' bargaining power.

Some factors that decrease the bargaining power of buyers include lower customer concentration
(means the customer base is geographically dispersed), customers’ inability to integrate backwards,
low price sensitivity, lower market knowledge, high switching costs and purchasing customised
products in small volumes

Extraordinary Journeys Wild Times in the Safari Industry can manage the bargaining power of buyers
by increasing and diversifying their customer base. It can be done by introducing new products,
targeting new market segments and adopting the product diversification strategies. Marketing and
promotional strategies can also be helpful in this regard. Building loyalty by embedding innovation
and offering excellent customer experience can raise the switching costs, which will ultimately reduce
their bargaining power. Extraordinary Journeys Wild Times in the Safari Industry can adopt these
strategies to strengthen its competitive positioning in the market.

Porter’s 5 Force model

The application of Porter five (5) forces model in real-world context allows organisations to. make
wise strategic decisions. Impact and importance of each of the five forces is context dependent. By
using Five Force analysis, Extraordinary Journeys Wild Times in the Safari Industry can determine the
industry attractiveness, make effective entry/exit decisions and assess the influence of these forces
on their own business and competitors. Moreover, the dynamic analysis of this model can reveal
important information. For example, Extraordinary Journeys Wild Times in the Safari Industry can
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combine the Porter 5 force model with PESTEL framework to determine the industry’s potential future
attractiveness. In some cases, companies do not have the required information to analyse five forces.
In such a scenario, the analysis can be conducted with the help of assumptions. Mostly, consultants
consider this model as a starting point, and other frameworks (like PESTEL and Value Chain) are used
in conjunction for a better understanding of the external environment.

Chapter 4
SWOT ANALYSIS

Swot analysis or matrix is a strategic planning technique used to help a person or organization
identify streangths, and threats related to business competition or project planning.

This technique, which operates by peeling back layers of the preliminary stages of decision-making
processes and can be used as a tool for evaluation of the strategic position of a city or organization.
It is intended to objectives of the business venture or project and identify the internal and exrternal
factors are favourabale and unfavourable to achieving thoswe objectives. Users of a SWOT analysis
often ask and answer question top generate meaningful for each category to make the tool useful
and indentify their compitive advantage. SWOT has been descried as the tried- and-true of strategic
amalysis, but has also been criticized for limitations.

SWOT assumes that strengths and weaknesses are frequently internal-related, while opportumitities
and threats commonly focus are due to the external environment. The name is an acronym for the
four parameters the technique examines:

 Strengths: characteristics of the business or project that give it an advantage over others.
 Weaknesses: characteristics of the business that place the busyness or project at a
disadvantage relatative to others.
 Opportunities: elements in the environment that the business or project
 Threats: elements in the environment that could cause trouble for business or project.

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The degree to which the internal environment of the firm matches with the external environment is expressed
by the concept of strategic fit. Identification pf SWOTs is important because they can inform later steps in
planning to achieve the objective, given the SWOTs. If the objective is not attainable, they must select a
different objective and repeat the process.

Streangths
 Company with Low Debt
 
 Strong cash generating ability from core business - Improving Cash Flow from operation for
last 2 years
 
 Company with Zero Promoter Pledge
 
 FII / FPI or Institutions increasing their shareholding

Weaknesses
 Promoter holding decreased by more than -2% QoQ
 
 Inefficient use of capital to generate profits - RoCE declining in the last 2 years
 
 Inefficient use of shareholder funds - ROE declining in the last 2 years
 
 Degrowth in Revenue and Profit
 
 High PE with Negative ROE
 
 Decline in Net Profit with falling Profit Margin (QoQ)
 
 Promoter decreasing their shareholding
 
 Low Piotroski Score: Companies with weak financials
 
 Declining Net Cash Flow: Companies not able to generate net cash
 
 Major fall in TTM Net Profit

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 Shooting Star (Bearish Reversal)

Opportunities

 Rising Delivery Percentage Compared to Previous Day and Month, Strong Volumes
 
 Brokers upgraded recommendation or target price in the past three months
 
 Highest Recovery from 52 Week Low

Threats

 Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ)
 
 Company with negative growth and promoters decreasing shareholding QoQ
 
 Increasing Trend in Non-Core Income
 
 Stocks with high PE (PE > 40)

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Chapter 5
ANALYSIS OF FINANCIAL STATEMENTS
Balance sheet of safari industries india Ltd.

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Particulars Mar'21 Mar'20 Mar'19 Mar'18 Mar'17

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 4.48 4.47 4.47 4.45 4.15

Reserves & Surplus 205.74 225.38 195.48 168.00 96.78

Net Worth 210.22 229.85 199.94 172.45 100.93

Secured Loan 73.38 74.57 103.55 54.41 40.65

Unsecured Loan .00 .00 .00 .00 .00

TOTAL LIABILITIES 283.60 304.42 303.50 226.86 141.57

Assets

Gross Block 93.65 102.79 39.72 36.49 26.73

(-) Acc. Depreciation 26.93 23.36 10.78 5.02 3.43

Net Block 66.72 79.44 28.94 31.47 23.31

Capital Work in Progress .07 .23 .00 .16 1.09

Investments .05 .05 .05 .05 .05

Inventories 113.98 160.03 185.82 122.11 93.71

Sundry Debtors 90.60 147.67 141.08 103.70 58.45

Cash and Bank 4.42 .81 .69 2.79 4.85

Loans and Advances 120.33 26.71 28.07 19.71 15.87

Total Current Assets 329.33 335.22 355.67 248.30 172.88

Current Liabilities 110.34 109.29 79.61 51.15 54.97

Provisions 2.23 1.23 1.55 1.97 .79

Total Current Liabilities 112.56 110.52 81.16 53.12 55.76

NET CURRENT ASSETS 216.76 224.70 274.50 195.18 117.12

Misc. Expenses .00 .00 .00 .00 .00

TOTAL
ASSETS(A+B+C+D+E) 283.60 304.42 303.50 226.86 141.57
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Profit and loss account for year 2019 to 2021

Particulars Mar'21 Mar'20 Mar'19

Liabilities 12 Months 12 Months 12 Months

Share Capital 4.48 4.47 4.47

Reserves & Surplus 205.74 225.38 195.48

Net Worth 210.22 229.85 199.94

Secured Loan 73.38 74.57 103.55

Unsecured Loan .00 .00 .00

TOTAL LIABILITIES 283.60 304.42 303.50

Gross Block 93.65 102.79 39.72

(-) Acc. Depreciation 26.93 23.36 10.78

Net Block 66.72 79.44 28.94

Capital Work in Progress .07 .23 .00

Investments .05 .05 .05

Inventories 113.98 160.03 185.82

Sundry Debtors 90.60 147.67 141.08

Cash and Bank 4.42 .81 .69

Loans and Advances 120.33 26.71 28.07

Total Current Assets 329.33 335.22 355.67

Current Liabilities 110.34 109.29 79.61

Provisions 2.23 1.23 1.55

Total Current Liabilities 112.56 110.52 81.16

NET CURRENT ASSETS 216.76 224.70 274.50

Misc. Expenses .00 .00 .00

TOTAL
ASSETS(A+B+C+D+E) 283.60 304.42 303.50

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Cashflow statement for year 2018 to 2020

Mar 2020 Mar 2019 Mar 2018

Mar 2021

Operating Activities 111 71 -38

Investing Activities -100 -20 -6

Financing Activities -10 -49 44

Others 0 0 0

Net Cash Flow 0 0 0

Ratio analysis
Ratio

Per Share Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Basic EPS (Rs.) -9.34 13.72 12.20 10.08

Diluted Eps (Rs.) -9.34 13.71 12.17 10.05

Book Value [Excl.

Reval Reserve]/Share 94.23 103.12 89.84 77.68
(Rs.)

Dividend/Share (Rs.) 0.00 0.00 0.50 0.50

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 Per Share Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Face Value 2 2 2 2

Margin ratio

Margin Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Gross Profit Margin (%) -0.80 10.62 9.30 10.27

Operating Margin (%) -7.02 7.35 7.86 8.79

Net Profit Margin (%) -6.37 4.47 4.70 5.15

Return ratio

Return Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Return on Networth / Equity

-9.90 13.29 13.56 12.46
(%)

ROCE (%) -7.58 19.62 22.49 20.94

Return On Assets (%) -5.26 7.37 7.04 7.66

Liquidity ratio

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 Liquidity Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Current Ratio (X) 3.01 2.05 1.88 2.31

Quick Ratio (X) 1.78 1.04 0.87 1.15

Leverage ratio

Leverage Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Debt to Equity (x) 0.03 0.32 0.52 0.31

Interest Coverage Ratios (%) -3.98 4.94 10.16 12.71

Turnover ratio
Turnover Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

Asset Turnover Ratio (%) 82.62 164.87 149.55 148.64

Inventory Turnover Ratio (X) 2.88 4.29 3.10 3.41

Growth ratio

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 Growth Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

3 Yr CAGR Sales
-11.37 41.30 44.11 38.91
(%)

3 Yr CAGR Net
-1.50 73.55 87.38 124.86
Profit (%)

Valuation ratio

Valuation Ratios Mar 2021 Mar 2020 Mar 2019 Mar 2018

P/E (x) -64.91 29.27 0.00 0.00

P/B (x) 6.42 3.89 8.07 6.89

EV/EBITDA (x) -515.88 13.31 32.00 28.95

P/S (x) 4.13 1.31 2.80 2.85 8.50 010

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