AGI Greenpac Ltd Management Discussions

Economic Review

Global Economy Overview

The global economy remained resilient in 2024 despite geopolitical disruptions. Global output grew by 3.3%, maintaining a steady pace that remained above recession thresholds, though still below pre-pandemic levels. Inflation showed signs of cooling, driven by sustained interest rate hikes and labour markets eased slightly, supporting stability. Real household incomes improved with nominal wage growth and falling inflation, even as weak consumer confidence dampened spending.

Global merchandise trade increased by 2.9% in 2024, outpacing GDP for the first time since 2017. Growth was uneven·the USA remained strong, the Eurozone struggled, India surged, and China slowed. Geopolitical tensions, including the Ukraine war and ongoing conflicts in the Middle East, disrupted trade routes and energy flows. Beginning in January 2025, tariff announcements added complexity to the global trade landscape.

Despite the trade rebound, disruption risks remained high amid resurfacing protectionist pressures. With inflation easing, central banks began shifting course, eyeing or initiating rate cuts to stabilise global conditions and sustain growth.

Outlook ^

Looking to late 2025 and 2026, trade policy is set to become a key driver of global economic trajectories. The WTO projects a 0.2% decline in global trade for 2025, reflecting rising trade barriers, policy uncertainties, and ongoing geopolitical tensions. Furthermore, the conflict between Israel and Gaza, alongside broader Middle East instability, adds further strain on global trade dynamics and energy markets. These trends could potentially raise stagflation risks, though countermeasures like tax cuts and deregulation could support investment and business confidence. Governments will need to balance industrial policy goals with strategic trade alignment to protect global competitiveness.

USA tariffs and regional slowdowns, particularly in

North America and Asia, are expected to weigh on forecasts. However, some developing economies may benefit from trade diversion as supply chains shift. Economic connector nations with strategic geography and trade agreements are likely to play a pivotal role in realigning trade flows.

Inflation is expected to moderate but remains exposed to recurring shocks from supply chains, geopolitics and commodity prices. Central banks are set to recalibrate policy but will proceed cautiously, given inflation risks tied to trade, wages, energy, and food. Global monetary policy will remain fragmented, with each central bank responding to local and global dynamics. Changes in USA tariffs are also expected to reshape global trade and trigger a reassessment of economic forecasts.

Indian Economy Overview

India has emerged as the fastest- growing major economy over the past decade, doubling its GDP from US$2.1 trillion in 2015 to US$4.3 trillion in 2025, outpacing all other major economies and solidifying its position as a global economic force.

The countrys growth has been driven by structural reforms, rapid digitalisation, and a favourable demographic profile. Strategic investments in digital infrastructure, financial inclusion, and manufacturing have boosted productivity, while the services sector remains a key growth engine. Public infrastructure spending and a push for self reliance in critical sectors have further accelerated momentum.

India has overtaken Japan (US$4.4 trillion GDP) and became the worlds fourth- largest economy, reflecting strong macroeconomic fundamentals, prudent policies, a stable banking sector, and fiscal consolidation. Inflation has largely stayed within the RBIs target band and non-performing assets are at multiyear lows.

Despite global headwinds, India continues to demonstrate resilience, recording GDP growth of 6.5% in FY 2024-25. The domestic economy remained stable, supported by structural strength and sustained reforms.

Indias economic outlook remains strong, with projections indicating it could add US$1 trillion to its GDP every 1.5 years, on track to become a US$ 10 trillion economy by 2032. This growth is driven by consumption, investment, expanding trade ties and rising FDI inflows.

Manufacturing and infrastructure are gaining momentum through initiatives such as Make in India and the National Infrastructure Pipeline, while the digital economy, powered by fin-tech and startups, is boosting productivity and inclusion. Improved ease of doing business and assertive economic diplomacy are attracting foreign capital and integrating India into global value chains.

However, headwinds persist. Geopolitical tensions and oil price volatility could impact trade and fiscal stability, while domestic challenges include inflation, rural recovery and climate- related disruptions.

To sustain momentum, India must deepen structural reforms, enhancing governance, simplifying regulations, enabling labour flexibility and expanding global integration.

With continued policy discipline, India is well-positioned to become an advanced economy by 2047.

Packaging Industry Review

The global packaging market is poised for strong growth, with projections indicating a rise from US$ 1.14 trillion in 2024 to US$ 1.38 trillion by 2029 at a CAGR of 3.89%, driven by surging demand in Asias (particularly in India and China) large food, and alcoholic and non-alcoholic beverage sectors. Additionally, the global shift towards paper and paperboard packaging is also gaining momentum.

Source: Mordor Intelligence

Indias packaging industry is poised to nearly double, rising from USD 84.37 billion in 2024 to USD 142.56 billion by 2029, driven by a strong CAGR of 11.06%. This growth is fuelled by rising demand from processed food, personal care, pharmaceutical, alcoholic and non-alcoholic beverage sectors, underpinned by increasing incomes, urbanisation, and evolving consumer lifestyles.

Sustainability is reshaping the industry. There is a growing shift to eco-friendly materials, as brands respond to consumer and regulatory demand greener alternatives. Meanwhile, advances in materials, coatings, and printing are enhancing packaging performance and shelf appeal, making packaging a key brand differentiator.

Glass Packaging Products

Industry Overview

The global glass packaging market is valued at US$ 67.28 billion in 2024 and is projected to reach US$ 93.69 billion by 2032, growing at a CAGR of 4.23%.

The Indian glass packaging market is expanding steadily and is valued at US$ 6.76 billion in 2025 and is projected to reach US$8.35 billion by 2030, growing

at a CAGR of 4.31%. Its rise reflects increasing industry and consumer confidence in glass as a reliable, sustainable and high- performance packaging solution.

Source: Mordor Intelligence

Growth Drivers and Trends

Increased Demand from Growing Consumer Base A rising population and a growing middle class are driving increased demand for packaged goods, particularly in the beverage, food, pharmaceutical, and personal care sectors, where glass packaging is preferred for its safety, sustainability and premium appeal.	Rising Income and Increasing Spending Power Increasing incomes and disposable spending are fuelling demand for premium and branded products, especially in urban areas, where consumers are increasingly healthconscious and aspire to higher- quality packaging like glass.	Increasing Investments in End- use Industries Significant capital investments in key sectors such as alcoholic, non-alcoholic beverages and pharmaceuticals are leading to greater demand for high- quality glass containers to meet production and quality standards.
Strong Alignment with Sustainability Goals Growing environmental awareness and the global push to reduce single-use plastics are driving demand for recyclable and nontoxic materials like glass. This resonates with both businesses and consumers seeking ecofriendly packaging solutions.	Enhanced Brand Image and Premium Appeal Glass packaging offers a premium look and feel, enhancing the perceived value of products, particularly in sectors like cosmetics, personal care, and high-end beverages. Its aesthetic qualities contribute to shelf differentiation.	Superior Product Preservation Glass provides excellent barrier properties, protecting the contents from oxygen, moisture, and other contaminants. This is crucial for maintaining the quality, flavour, and shelf life of food, beverages and pharmaceuticals.
Inert and Safe Material Glass is chemically inert, meaning it does not react with the product it contains. This makes it a safe and reliable packaging choice, especially important for sensitive products like pharmaceuticals and baby food.	Growing Preference for Recyclable Materials As circular economy principles gain traction, the infinite recyclability of glass makes it an attractive option for businesses looking to reduce their environmental footprint and appeal to environmentally conscious consumers.	Stringent Regulatory Requirements Certain industries, particularly pharmaceuticals, have strict regulations regarding packaging materials. Glass meets these stringent requirements due to its inertness and protective properties.
Versatility in Design and Functionality Advancements in glass manufacturing allow for a wide range of shapes, sizes, and colours, thereby offering brands flexibility in creating unique and functional packaging that meets specific product needs and consumer preferences.	Consumer Perception of Quality and Taste Many consumers associate glass packaging with higher quality and better taste, particularly for beverages. This perception can influence purchasing decisions and brand loyalty.

Security Caps and Closures

Industry Overview

The global plastic caps and closures market is estimated to reach US$ 85 billion by 2026, at a CAGR of 5.5% from 2021 to 2026.

The Indian plastic caps and closures market is projected to grow from US$ 1.8 billion in 2023 to US$ 2.9 billion by 2032, at a CAGR of 5.12%.

Growth Drivers and Trends
Increasing Demand for Tamper- evident Packaging Across sectors like food, beverages, healthcare, and especially premium alcoholic products and pharmaceuticals, there is a significant and growing need for closures that clearly indicate tampering and ensure product authenticity.	Growth in E-commerce and Supply Chain Security The rise of online sales channels necessitates robust security measures to ensure product integrity throughout the often-complex e-commerce supply chain, boosting the demand for secure closures that aid in tracking and authentication.
Rising Concerns about Counterfeit Products The increasing prevalence of counterfeit goods across various industries is a key driver in the adoption of security closures to protect brand integrity and consumer safety.	Premiumisation and Aesthetics For high-end products, there is a demand for premium closure designs with features such as embossing and metallic finishes to create a unique visual and tactile experience.
Consumer Awareness and Demand for Authenticity Consumers are becoming more aware of the risks of counterfeit products and are increasingly demanding assurances of product authenticity, influencing brand choices and packaging requirements.	Rising Alcoholic and Nonalcoholic Beverage Demand Rising disposable incomes and urbanisation in Asia-Pacific, Africa and Latin America are driving increased demand for bottled beverages, thereby driving greater demand for plastic caps and closures.

PET Bottles and Products Industry

Industry Overview

The global PET packaging market is growing and is projected to reach US$ 54.3 billion by 2028.

The Indian PET packaging market is projected to grow at a CAGR of 4.3% to reach US$ 3.5 billion by 2032, with Asia-Pacific being the fastest- growing market, supported by rising consumption in countries like China and India.

Growth Drivers and Trends
Growing Emphasis on Recycled PET (rPET) and Sustainability Increasing environmental concerns and the drive towards a circular economy are fuelling the demand as well as innovation in rPET.	Rising Demand across Key End-use Sectors The fundamental increase in consumption within the food and beverage, personal care and pharmaceutical industries is a primary driver.
Cost-effectiveness and Lightweight Properties PETs economic advantages and ease of handling due to its light weight make it an attractive option for manufacturers and consumers.

AGI Greenpac

We are a sustainable packaging products company that manufactures and markets various packaging products through our three businesses: AGI Glaspac, AGI Clozures, and AGI Plastek.

Our Competitive Advantages

Industry-leading Sustainability

Standards

? Operations integrate

decarbonisation and circular economy principles, staying ahead of regulatory and market trends

? Initiatives ensure environmental responsibility throughout the supply chain, promoting sustainable practices with our partners

? Operations prioritise the optimisation of resource use, energy, water and waste, demonstrating our commitment to minimising environmental impact

? Designs incorporate

biodegradable, compostable, and PCR materials, aligned with EPR goals and rPET adoption

Customisation and Brand

Enhancement Capabilities

? Dedicated decoration unit enables customised, high-end packaging for perfumery, cosmetics, and premium liquor

? Advanced digital printing enhances product authenticity and brand trust

? Tailored glass designs with custom moulds and premium finishes like embossing help create distinctive brand identities

? Collaborative design services bring brand visions to life through impactful packaging solutions

? Advanced technologies support intricate detailing, personalisation and rapid prototyping

Agile and Digitally-driven Operations

? Real-time data and flexible systems enable agile response to market dynamics and customer needs

? AI/ML-driven production scheduling and supply chain management improve efficiency and responsiveness

? Digitised supply chains provide full visibility and proactive risk mitigation

? Responsive digital operations help scale innovations, such as new product launches or design iterations, faster and more efficiently across the value chain

Differentiated Packaging

Portfolio

? Our product portfolio spans a wide range of sizes, from compact 1.5 ml pharma vials to large 5,000 ml bottles and jars, catering to diverse industry needs

? We offer prominently Flint (clear), Amber and Green glass containers along with other colours like various shades of blue and green, with year-round supply enabled to meet varying customer demands

? Our health-conscious packaging options include rPET bottles and sustainable materials, supporting the growing demand for ecofriendly solutions

Strong R&D and Product

Innovation Pipeline

? Our R&D roadmap proactively addresses future trends in sustainability, functionality, and premium aesthetics

? Innovation is driven by deep understanding of customer needs and market demands, ensuring relevant and impactful product development

? Continuous investment in R&D, debottlenecking processes and the development of high-quality glass containers

? Collaborations with SMEs drive inclusive innovation across packaging formats

? Our premium glass packaging solutions serve high-value segments, including personal care, food service and liquor

? We increased the use of cullet (recycled glass) in production, customised to specific client sustainability requirements

Fuelling Growth through

Strategic Capacity

Investments

? We have proposed the establishment of a new manufacturing facility in Madhya Pradesh with a capacity of 500 tonnes per day, which will boost our overall production capacity by 25% and strengthen our ability to serve the rapidly expanding Northern India market

? Strategic initiatives to enhance efficiency and unlock additional capacity within our current plants, maximising output

? Increasing capacity utilisation specifically to support the growing demand within the premium beverage market

Business Review - AGI Glaspac

At a Glance

We are Indias leading and profitable container glass manufacturer, operating three advanced plants · two dedicated to container glass and one specialised unit for cosmetics and perfumery. We offer innovative, sustainable, and customised packaging solutions supported by high-tech R&D and decoration capabilities.

Business Highlights

FY 2024-25 marked a pivotal year for us, driven by significant milestones across operations, innovation, and sustainability. Despite inflationary pressures impacting raw material, energy, and logistics costs, we demonstrated strong resilience through disciplined cost management, efficiency enhancements, and a continued focus on delivering innovative, sustainable packaging solutions. Our strategic emphasis on operational excellence resulted in a container glass capacity utilisation that consistently maintained around 95% during the year, even amidst scheduled furnace relining activities.

To further enhance efficiency through strategic technology integration, we implemented key digital solutions across our core functions. In manufacturing, our adoption of AI-powered in-line defect detection and IoT-enabled smart factory principles has significantly enhanced quality and efficiency. Furthermore, we optimised our supply chain through the deployment of an AI-enabled demand fulfilment dashboard and a digitised transport management system, ensuring enhanced responsiveness and streamlined logistics.

To strategically expand our market reach and cater to evolving client

needs, we intensified our focus on developing an innovative range of products.

Recognising the strategic importance of global presence, we established a new office in the United Arab Emirates to enhance our international engagement and promote exports through our newly incorporated subsidiary, Sun Reach Pack (FZE). Additionally, we continued our participation in key global exhibitions across the USA and Europe, strengthening relationships with existing clients and cultivating new business opportunities.

Driving Innovation through New Product Development in Glass Containers

Innovation drives our leadership in the glass packaging industry.

In FY 2024-25, we significantly advanced our New Product Development (NPD) efforts, responding to evolving client needs and sustainability goals through differentiated, high-quality design.

Developed

422 new product designs were created by our design studio, covering diverse aesthetics, ergonomic shapes, and lightweight structures tailored for sectors such as F&B, pharma and cosmetics.

Commercialised

154 products were successfully commercialised, reflecting a high conversion rate and seamless design-to-market execution.

Impact

Our streamlined NPD pipeline enabled rapid innovation, improved responsiveness to client feedback, and strengthened our market presence. The new products not only enhanced portfolio depth but also supported our sustainability agenda through design-led efficiency and material optimisation.

Outlook

We will continue to invest in smart design tools, agile manufacturing technologies, and sustainable materials, ensuring our packaging solutions remain innovative, brand-enhancing and future-ready.

Sustainability through Lightweighting

Our ongoing lightweighting programme highlights our dedication to sustainability and cost efficiency. By optimising the design of high-volume SKUs in our glass container portfolio, we have significantly reduced material usage while maintaining product quality and performance. These reductions translate to lower raw material consumption, decreased energy usage in production, and reduced CO₂ emissions across the supply chain.

Impact

? Environmental: Less glass per container lowers our carbon footprint and supports global climate goals

? Economic: Reduced weight improves freight efficiency and lowers logistics

? Operational: Cost-effectiveness across the value chain and deliver tangible benefits to customers

Awards ^

? Bronze Winner at the 2024 International Green Apple Environment Awards at Kensington Palace, UK, for sustainable packaging

? Best CSR Project award at the National CSR Impact Awards

? Recognised as a Best Brand 2024 by ET Edge for pioneering industry standards

? Named Fastest Decarbonising Packaging Products Company of the Year 2024 at the Suryacon Hyderabad, Telangana and Andhra Pradesh Annual Solar Awards

? Received the Innovation Excellence Award at the Diageo Annual Suppliers

Conference for advancing packaging innovations

? Honoured with the Innovative Application of AI award at the 7^th Edition Technology Excellence Awards 2025 by Quantic Business Media Private Limited

Certifications

? The Bhongir Speciality Glass Plant was awarded the IGBC Green Factory Building Platinum rating

? Our R&D centre and chemical lab achieved NABL accreditation (ISO 17025) and certifications for ISO 9001, 14001, and 45001, underlining our quality and innovation leadership

? Hyderabad and Bhongir plants received Gold and Silver awards at the CII EHS Excellence Awards 2023

? We were recognised with the SEEM National Sustainability Award - Gold 2023 for our efforts in climate action, water stewardship, waste reduction and employee well-being

? Received Great Place to Work? certification for the 4^th time in a row

Business Outlook

Our strategic compass is firmly pointed towards strengthening our position through focused and interconnected priorities.

At the heart of our strategy is a commitment to operational excellence, which we will achieve by driving continuous efficiency improvements and accelerating digital transformation across our existing plants. This will better position us not only to meet the needs of our valued customers but also to deepen our engagement with them across domestic and global landscapes, fostering stronger and more rewarding partnerships.

To capitalise on increasing demand, we are optimising our existing production lines to unlock additional capacity.

At the same time, we recognise strong growth potential in premium segments. To address this, we will continue investing in Research & Development and expand our decoration capabilities to serve the evolving needs of perfumery, luxury alcohol, and cosmetics sectors.

As part of our ambitious growth trajectory, we are expanding our overall capacity by approximately 25% through a new state-of-the- art greenfield glass container manufacturing facility in Madhya Pradesh. This strategic move further reinforces our leadership in the dynamic Indian packaging market, positioning us for sustained growth and enhanced value creation.

New Plant in Madhya Pradesh to Strategically Expand Capacity

To expand our container glass capacity by ~25%, we are setting up a new greenfield manufacturing facility in Madhya Pradesh with a planned daily output of 500 tonnes. Strategically located, Madhya Pradesh offers robust infrastructure, proximity to raw materials and access to key national markets. This proposed H 700 crore investment will meet the growing demand for premium glass packaging across key sectors such as alcoholic beverages, pharmaceuticals, and food. The facility will integrate advanced technologies and sustainable practices, will complement our existing plants in Telangana, and create over 1,000 direct and indirect jobs.

Business Review - AGI Clozures

At a Glance

We specialise in counterfeit-resistant caps and closures, primarily serving the alco-bev segment. Backed by an expert team and advanced technologies, we have quickly emerged as a frontrunner, setting new benchmarks in product security, quality and reliability.

Products	Counterfeit-resistant security caps and closures
Industries Served	? Liquor
	? Spirits
	? Pharmaceuticals
	? Cosmetics

Business Highlights

We delivered a year of strong business momentum and operational excellence by intensifying our focus on innovation, sustainability, digitalisation, and disciplined cost management.

To meet the growing demand for premium and specialty closures, particularly within the premiumising Indian liquor market, we strategically increased our production capabilities through facility upgrades, including IoT-enabled alerts and monitoring for injection moulding, utilities and energy.

Key advancements include progress toward developing Indias first domestically produced T-corks and stoppers. These offerings are being designed to provide distinctive aesthetics and flexible branding possibilities, aligned with the needs of the fast-growing premium liquor

segment. We also expanded our focus to the ophthalmic and ENT pharma sectors, where development is underway for specialised eye and ear drop bottles and caps.

We significantly strengthened our capabilities across key sectors.

This included the establishment of the Eye Dropper Project·a new ISO 15378-certified, GMP- compliant facility dedicated to medicinal primary packaging to cater to the growing demand for premium closures in the alco-bev and cosmetics industries, further solidifying our presence in high- value segment.

Technological innovation remained a core differentiator. Our world-class anti-counterfeiting solutions, such as UTC laser marking and multicolour digital printing, guaranteed product

authenticity through secure, traceable codes. Operationally, we achieved a step-change by digitally upgrading 24 injection moulding machines for real-time monitoring, enhanced productivity, and consistent quality. Moreover, an advanced air leakage detection system was introduced, optimising air and LPG usage for greater resource efficiency.

Beyond resource management, we focused on sustainable materials through prioritising lightweight closure designs, the use of biodegradable materials, and increased adoption of recycled content. These comprehensive efforts, designed in line with Green Building Principles, have resulted in our plant achieving a prestigious Platinum rating, a testament to our minimal environmental footprint.

Business Outlook

Building on our commitment to unparalleled value, we are focused on driving premiumisation across our entire portfolio by introducing world- class designs and incorporating innovative security closures that ensure both aesthetic appeal and product integrity.

Strategically leveraging our core strengths in precision injection moulding and innovative closure

solutions, we will foray into new, untapped markets, broadening our customer base within premium sectors such as cosmetics, perfumery, home fragrances, and beverages. Underpinning this expansion is a dedicated strategy to strengthen our supply chain resilience through increased localisation, firmly supporting the Atma Nirbhar Bharat vision.

To amplify our reach, we are

actively developing a stronger export pipeline via targeted international engagement and partnerships. Crucially, all our efforts will be integrated with the continuous development of innovative closures that meet the evolving needs and preferences of customers in both domestic and international markets.

Certifications ^

? Integrated Management System Certifications - ISO 9001/14001/45001 ? Food Safety Management System Certification FSSC 22000 Ver 5.1 ? IGBC [Indian Green Building Council] Re-Certification ? Awarded Platinum Re-Certification from IGBC with 83 Points

Business Review - AGI Plastek

At a Glance

We are a trusted name in PET packaging, offering high-quality bottles across segments such as pharmaceuticals, alco-beverages, food and soft drinks, personal care, agrochemicals, and dairy. Our solutions adhere to the highest regulatory standards, ensuring safety, consistency, and performance across every application.

Products

? PET bottles

? High Density Polyethylene (HDPE) bottles ? Polypropylene (PP) product

Industries Served

? Alcoholic beverages ? Liquor

? Pharmaceuticals ? Fast Moving Consumer Goods (FMCG)

? Dairy

? Agrochemicals ? Personal care ? Hospitality

Business Highlights

Last year marked a period of significant progress and real adaptability for us as we navigated a changing market with a clear strategic focus, allowing us to capitalise on emerging opportunities. This strategic direction led to a successful shift in our product range, significantly growing our presence in the premium beverage bottle segment.

While keeping environmental responsibility and sustainability as priorities, we are committed to innovating and manufacturing bottles for leading beverage companies, as well as introducing sustainable packaging solutions such as rPET jar for the food industry. We are focusing on increasing the supply of rPET bottles with higher recycled content to effectively meet the rising demand from environmentally

conscious customers across various sectors.

Integral to these strategic efforts was an accelerated digital transformation journey across key operational areas. This comprehensive digitalisation initiative, encompassing production,

supply chain management, maintenance, after-sales service, and human resources, is driving tangible improvements in forecasting accuracy, enhancing overall operational efficiency, and ultimately enabling us to deliver greater value to our customers.

Certifications

? ISO 9001:2015 (Quality Management System)

? ISO 14001:2015 (Environment Management System)

? ISO 45001:2018 (Occupational Health & Safety Management System) ? ISO 15378:2017 (Good Manufacturing Practices Standard For Pharma Application)

? Additionally, all 3 units certified to FSSC 22000 new version 6.0 (Food Safety System Certification) standards

Business Outlook

Our strategic focus in the coming years is to drive growth, supported by strong demand across key industries such as food, cosmetics, agriculture, and FMCG.

This momentum will be further

boosted by the gradual adoption of rPET packaging solutions. Recognising the evolving PET market dynamics, including increased availability and cost benefits of rPET, our immediate

strategy is to expand strategically in high-growth segments through investments in automation and digital processes.

People-centricity

At AGI Greenpac, we place people at the heart of our success. We are building a workplace where collaboration thrives, and a shared One Company mindset unites teams across functions and locations. Reflecting our strong people-first culture, we were certified as a Great Place to Work for the third consecutive year.

Over the past year, we have created an environment that supports the

professional aspirations and personal well-being of our employees. We undertook initiatives to promote health, safety, and inclusion across the organisation.

To prepare our people for future challenges, we have enhanced our learning ecosystem with targeted programmes·from technical training to leadership development·tailored to different career stages.

Talent acquisition remains a priority, with a focus on attracting high- potential individuals from leading institutions. These efforts, combined with our investment in capability building, are shaping a high- performing, future-ready workforce that drives sustained value for the business.

Risk Management

Our business employs a comprehensive risk management process to identify, assess and mitigate risks from both internal and external sources. Senior management consistently monitors our risk framework, ensuring we remain proactive in identifying and addressing potential risks.

Risk Appetite

We regularly review our risk tolerance and embed it into our overall risk management framework to enable informed and effective decision-making.

Risk Management Framework

The Risk Management Committee, consisting of senior members of the Board, is in charge of regularly overseeing the risk management process. The detected risks are classified as strategic, business, and operational risks. The Committee is responsible for monitoring the significant risks in each of the three categories and providing steps to mitigate them.

Risk Management Pillars
Culture and Values Our culture and values are integral to shaping our approach to risk management.	Strategy and Objectives Our strategy and objectives are aligned to reflect our defined risk appetite.
Learning and Development Training Learning and development programmes reinforce internal controls, ethical practices, anti-fraud measures, authority limits, crisis management, business continuity, and regulatory compliance.	Risk Policies and Control Standards All our operations are conducted in full compliance with established risk policies and control standards.

Business Risks

Risk	Impact	Mitigation Measures
Low Inventory Movement	Inadequate sales strategy has culminated in excess inventory.	Our efficient inventory management system facilitates accurate SKU mapping for phased introduction and removal. We employ big data analytics to plan the replacement of SKUs at the right time.
Currency Risk	Fluctuations in foreign exchange rates affect our profitability.	To hedge our foreign exchange position and decrease our exposure to fluctuations as needed, we evaluate in derivative instruments after careful consideration.
Interest Rate and Commodity Price Volatility	Any increase in interest rates or commodity price declines could have a detrimental impact on business.	To maintain the affordability of raw materials, we carefully plan the quantities of our inventory. To maintain our competitive advantage, we closely monitor both short-term and long-term interest rates.
Lack of Innovation	Inability to remain competitive in the market due to a lack of knowledge about breakthroughs and innovative technology.	We remain on top of developing trends by performing extensive market research and soliciting feedback from institutional clients regularly. Our R&D team is constantly striving to employ new technologies and create innovative solutions that satisfy our clients needs.
Inadequate Distribution Channel	Ineffective marketing and distribution can hinder sales and business growth.	At the moment, we are creating a business-to-business (B2B) model. Our institutional clients benefit from our ongoing innovation and reinforcement since we can guarantee higher product quality and faster turnaround times.
Substitutional Risk	PET and glass containers can be interchanged, which may affect the viability of either of these business groups.	We are well-positioned to give our clients a one-stop shop, offering them the choice of PET or glass packaging, allowing us to focus on packaging while preserving revenue streams. We keep on evaluating latest developments to take any actions if needed.
Employee Skill Development	A team with insufficient experience and low personnel competencies could hinder progress.	We have a strong employee engagement framework and a good hiring process in place, which has led to a higher retention rate. Our objective is to increase organisational effectiveness by honing personnel skills through carefully thought-out training initiatives.
Unorganised Sector	Low-cost solutions from unorganised competitors have the potential to reduce our market share.	The threat posed by the unorganised sector is steadily decreasing as a result of industrial consolidation and the implementation of the GST. Our unique products also cater to a wide spectrum of selective consumers with a variety of aims.
Working Capital Management	Short-term liquidity requirements can influence both growth and profitability.	We have robust working capital management in place, which helps with inventory optimisation, shortening the accounts receivable cycle, and improving cash flow.

Operation Risks

Risk	Impact	Mitigation Measures
Availability of Raw Material	The inability to secure a constant supply of raw materials at a fair price may have a detrimental influence on operations.	To avoid being reliant on a small number of merchants, we have established ties with a variety of sources. We have tried many vendor engagement tactics and have always maintained a planned inventory.
Cost Control	Profitability might decline if costs cannot be managed.	We use a variety of cost-cutting strategies to get more control over production costs. Throughout the year under review, we used alternate materials, different fuels, and automation to cut costs.
Operational Limitations	Production might be harmed if operations are continuously disrupted.	We were able to mitigate this operational risk by continually reducing operating bottlenecks and improving automation across several units.
Quality-related Concerns	Lowering or altering product quality might hurt revenue and cause customer turnover.	We conduct several rounds of quality testing at various stages of the value-creation process to ensure a low rejection rate and high product quality.
Health and Safety Risk	Any sort of mishap or loss of life can put an end to activities.	Workers in our factories receive EHS training to ensure their safety and strict adherence to employee health and safety regulations.
Loss of Key Managerial Personnel (KMP)	Any loss of KMP could have an adverse effect on the Company.	Our rewards, recognition, and pay system guarantees that key members of our management team are competitively compensated, keeping them motivated.
Loss of Suppliers	Any loss of suppliers could disrupt the Companys typical business environment.	All of our suppliers have strong, long-term relationships with us, and our vendors help us maintain these alliances. In addition, we maintain contact with a variety of vendors to avoid leaning too much on any one of them.
Product Failure and Lack of Differentiations	If we are unable to evoke a positive market reaction for our items, we may lose money.	We offer a diverse range of products to a variety of industries. Due to the breadth of our product offerings, the failure of a single item or line may have little impact on overall sales. We have a consumer- oriented R&D facility that is always developing new, relevant products.

Strategic Risks

Risk	Impact	Mitigation Measures
Geopolitical Risks	Geopolitical concerns may affect how effectively corporations perform.	We are able to prevent being overly reliant on any single product or market due to our broad product offerings across industries and market penetration.
Economic Unpredictability	A sluggish Indian economy could lead to a decrease in demand for our products.	The Indian economy has been one of the best performing ones among the developing economies and is expected to continue this growth over the foreseeable future.
Inability to Understand Customer Preferences	Our profit potential may suffer if we are unable to stay relevant and satisfy clients through design and product innovation.	To fulfil a diverse spectrum of customer needs, we are constantly expanding our product offerings by launching new product ranges and SKU categories in response to regular feedback from our institutional customers. We also conduct R&D, which helps with the continuous release of new products.
Customer Concentration	Excessive reliance on a limited number of clients might reduce profitability.	We engage with a wide range of clients. However, due to the complexity of our product offering and our client-centric mindset, we value long-term relationships with our institutional clients.
Inability to Adhere to the Regulatory Requirements	Any changes to the legislation may have an influence on our actions.	As part of our dedication to remaining people-centric and accountable, we follow all applicable regulatory norms, ranging from those pertaining to our employees wellbeing to those concerning environmental preservation.
Tariff Wars and Growing Protectionism	Any disruption in trade agreements between exporting partner countries may severely affect our operations.	To reduce the danger of tariff issues, we have formed amicable ties with our export partners and diversified our export portfolio.

Internal Control

The internal control systems are commensurate with the size, scale, and complexity of the operations of the Company. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with the applicable statutes, safeguarding assets from unauthorised use, executing transactions with proper authorisation, and ensuring compliance with corporate policies. We use SAP, a well-accepted Enterprise Resource Planning (ERP) system, to record data for accounting, consolidation, and management of information and connect to different locations for efficient exchange of information. The Audit Committee of the Board of Directors, comprising Independent Directors, review the effectiveness of the internal control system across the Company, including the annual plan, significant audit findings and recommendations, adequacy of internal controls, and compliance with accounting policies and regulations.

Internal

Financial Control

We follow proper Internal financial control as policies and procedures for ensuring orderly and efficient conduct of business, including adherence to the Companys policies, safeguarding of its assets, prevention and detection of fraud and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information. We also have documented Risk and Control Matrices (RACM) covering all activities, and all controls are tested for design and operating effectiveness as part of our Internal Financial Control Reporting framework. The financial controls are evaluated for both design and operating effectiveness by an external consulting firm of repute.

In our view, the Internal Financial Controls are adequate and are in line with best practices applicable to organisations of a similar size, nature, and complexity.