As of July 31, 2023, Polysil Irrigation Systems had a network of 425 dealers and 8 distributors across 6 states: Maharashtra, Madhya Pradesh, Gujarat, Haryana, Tamil Nadu, and Uttar Pradesh. The company's distribution system includes multiple stock points in these states, facilitating product accessibility for farmers.
Polysil operates in both open and institution/project markets. In the open market, products are sold to channel partners or dealers who, in turn, sell to farmers. Subsidy payments from government agencies are received after installation and verification. In the institution and project market, the company secures work orders directly from nodal agencies, participating in tenders for project market operations in Andhra Pradesh, Gujarat, Tamil Nadu, Haryana, and Uttar Pradesh.
Polysil's products serve various industries, particularly agriculture and the horticulture sector. It has a diverse customer base, with the top ten customers contributing 60.48% of revenue in Fiscal 2023. Sales are primarily driven by long-standing relationships with the 425 dealers, established over multiple years.
The company offers a diverse product range, including drip irrigation systems, sprinkler irrigation systems, disc filters, screen filters, hydro-cyclone filters, sand (gravel) filters, compression fittings, valves (electric & mechanical), fertilizer tanks, digital controllers, and pressure gauges. These products find applications in agriculture and horticulture.
The company has 425 dealers and 8 distributors nationwide who serve as intermediaries between the company and farmers. Business growth in open markets relies on attracting additional dealerships. The stability of the dealership network is crucial for maintaining market share.
Polysil Irrigation Systems has significant indebtedness, totalling Rs. 1.7 crores in long-term borrowing and Rs. 12.41 crores in secured short-term borrowings as of March 31, 2023. Financing agreements impose restrictions, and non-compliance may adversely impact the business.
Unsecured loans, including Rs. 1.37 crores from the Promoter Director, are subject to recall by lenders at any time, posing a potential financial risk.
Polysil Irrigation Systems's insurance coverage may not provide adequate protection, potentially impacting business, results, and financial condition.
The manufacturing unit in Vadodara, Gujarat, exposes the company to regulatory and geography-specific risks, including weather, natural occurrences, and changes in the economic and demographic landscape of Gujarat.
Revenues and profits are influenced by various factors, and any adverse changes may affect business operations and financial conditions. For instance, revenue from operations decreased by 31.08% to Rs. 37.623 crore in 2022 from Rs. 54.6 crore in 2021.
Polysil Irrigation Systems, promoters, and directors are involved in pending litigation, and adverse decisions in these cases may impact business and operations.
In the years ending March 31, 2023, March 31, 2022, and March 31, 2021, the expenditure on raw materials amounted to 46.45%, 37.29%, and 34.55% of the revenue from operations in each corresponding period. The inability to secure raw materials promptly, at competitive rates, and under terms acceptable to the company may adversely impact its operations. During the same periods, the top 10 suppliers contributed 52.51%, 56.32%, and 64.51%, respectively, to the company's financial structure.