planters polysack ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is engaged in the business of manufacturers, coaters processors, Importers, exporters, buyers, sellers commission agents of and dealers in all types of chemicals, plastics, rubber, leather, foam, cellulose, was and their products of any nature and kind whatsoever and in particular High Density Polyethylene/ Polypropylene Sacks and fabrics with or without lamination of any of the products and or other packaging products or new substances being improvements upon, modifications of or resulting from any processes and or manufacturers of materials from the waste realised from any of the above mentioned products either on its own account or on commission.

OPPORTUNITIES:

Rise in demand from various end-use industries and increase in e-commerce sales drive the growth of the global flexible packaging market. On the other hand, stringent regulations concerning packaging restrain the growth to some extent. However, sustainable and new flexible plastics packaging solutions are expected to create lucrative o p portunities in the industry. The technologies in flexible packaging h ave u n d ergone significant change in recent years, with semi flexible packaging to advance flexible packaging. The rising wave of new technologies such as bio plastics based flexible packaging are creating significant potential in food and beverage, cosmetic and toiletries, and healthcare applications, due to their better protection and recycling benefits.

Further, the company plans to move into the different segments to grab the robust opportunities available in the market. The Company plans to expand the business and foresight the business opportunities in the agro business.

THREATS:

Immense Competition from the domestic and international player:

The Flexible Packaging Market is highly competitive owing to the presence of multiple vendors in the market. The market appears to be moderately concentrated with the major players adopting strategies such as product innovation, mergers, and acquisitions in order to stay competitive in the market.

Regulatory constraints:

Due to stringent government regulations, changing consumer preferences, and environmental pressures, manufacturers are steering their strategies toward circularity and leveraged new plastic technologies to develop recyclable and sustainable solutions that include specific properties such as oxygen, moisture, light, puncture, and chemical resistance, and easy-tear propagation. Key focus areas for manufacturers include the development of alternative bioplastics solutions such as polybutylene succinate and biopolyproplyene, along with the price and disposal of bioplastics.

SEGMENT WISE PERFORMANCE:

The Company operates in single segment currently.

RISKS AND CONCERNS:

Your Company had put a risk management framework in place post a comprehensive review of its risk management process. Your Company has taken a fresh look at the risk management framework. The review involved understanding the existing risk management initiatives, zero-based identification and assessment of risks in the various businesses as also the relative control measures and arriving at the desired counter measures keeping in mind the risk appetite of the organization. Macro-economic factors including economic and political developments, natural calamities which affect the industrial sector generally would also affect the businesses of your Company. Legislative changes resulting in a change in the taxes, duties and levies, whether local or central, also impact business performance and relative competitiveness of the businesses.

FUTURE OUTLOOK:

Based on the Indian Economy, the overall scenario and steps taken by the management, the future outlook of your company looks bright. The Company proposed to diversify its business activities in the near future. The Company wants to use the potential resources and labour in the agro business which the Company is expecting to earn revenue and profit from this business activities too.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Considering the size of the company, your company has adequate system of internal control to provide reasonable assurance that assets are safeguarded and protected from unauthorized use or disposition.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial performance of the Company for the year 2022-23 is described in the Directors Report under the head Financial Performance of the Company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

Your Company has undertaken certain employees development initiatives which have very positive impact on the morale and team spirit of the employees. The Company has continued to give special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock-out etc. Functional training and employee engagement was given adequate weight age d uring the y ear to enhance employee productivity and morale. Re-training on occupational, health, safety and environment were carried out in both the manufacturing facilities to improve awareness.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis Report, d escribing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.

By Order of the Board of Directors

For, Planters Polysacks Limited

Sd/-

Jignesh Kumar Patel

Managing Director

(DIN: 05257911)

Place: Mumbai

Date: 12^th May, 2023