Aik Pipes & Polymers Ltd Management Discussions

INDUSTRY OVERVIEW

The plastics and polymers industry is one of the most critical pillars of modern economies, finding applications across packaging, infrastructure, agriculture, automotive, telecommunications, healthcare, electronics, and consumer goods. Its unique properties— lightweight, durability, corrosion resistance, cost-effectiveness, and recyclability—make plastics indispensable in Indias industrial growth and everyday life.

1. Packaging

Packaging is the single largest end-use sector for plastics in India, accounting for over 40% of consumption. From flexible packaging films to rigid containers, plastics ensure durability, safety, and extended shelf life. HDPE, in particular, is widely used for bottles, jars, and industrial containers due to its toughness and chemical resistance. Rising e-commerce penetration and FMCG expansion continue to fuel demand.

2. Infrastructure & Construction

Plastics play a transformative role in infrastructure through applications such as HDPE pipes for water supply, sewerage networks, storm water management, gas distribution, and cable ducting. They are also used in geomembranes, insulation, and modular construction components. Government programs like Jal Jeevan Mission, Smart Cities Mission, and AMRUT are accelerating demand for polymer-based infrastructure solutions.

3. Agriculture

Plastics are vital for modern farming. HDPE and MDPE pipes enable efficient drip irrigation, sprinklers, and mini-sprinklers, reducing water wastage and energy consumption. Mulching films, greenhouse films, and water storage tanks further enhance productivity. With climate challenges and water scarcity rising, polymer-based irrigation systems are becoming indispensable for sustainable agriculture in India.

4. Telecommunication & Power

The growth of fiber optic networks, 5G rollout, and energy distribution projects has created strong demand for HDPE duct pipes and conduits. Their flexibility, crush resistance, and long service life make them ideal for protecting cables in telecom and power sectors.

5. Automotive

Plastics contribute significantly to vehicle light weighting, fuel efficiency, and design flexibility. HDPE is used in fuel tanks, bumpers, body panels, and fluid reservoirs, while engineered plastics support interiors and electrical systems. With the rise of electric vehicles and stricter emission norms, polymer demand in the automotive sector is expected to increase further.

6. Healthcare & Medical

Plastics play an irreplaceable role in healthcare, from syringes, IV bags, and pharmaceutical packaging to prosthetics and diagnostic devices. HDPEs non-reactivity and safety make it particularly suitable for pharmaceutical bottles and medical containers.

7. Electronics & Consumer Durables

Plastics provide insulation, light weighting, and design versatility in consumer goods such as home appliances, laptops, mobile phones, and wiring systems. HDPE is used in casings, wire insulation, and protective housings, ensuring product safety and performance.

8. Sustainability & Recycling

Globally, the plastics industry is embracing circular economy models. HDPE is considered more environmentally responsible compared to many polymers, as it is fully recyclable and reusable in multiple applications. Innovations in bio-based plastics, advanced recycling, and energy-efficient manufacturing are expected to reshape the industrys future, aligning it with sustainability and ESG commitments.

Overall, the long-term outlook for the plastics and polymers industry in India remains highly promising, supported by rising infrastructure investments, agricultural modernization, e- commerce growth, automotive innovation, and healthcare demand.

COMPANY OVERVIEW

AIK Pipes and Polymers Limited, driven by its passion for engineering excellence, has emerged as one of the fastest-growing companies in the plastic piping solutions segment. We specialize in manufacturing a comprehensive range of HDPE Pipes, MDPE Pipes, and PPR Pipes, catering to multiple industries including water distribution, agriculture, housing & infrastructure, telecommunication, gas transmission, and sewerage systems.

Our products are manufactured in a state-of-the-art facility equipped with advanced machinery, quality testing infrastructure, and a dedicated R&D laboratory. We source premium raw materials globally and follow stringent quality protocols. AIK Pipes is certified with major ISO standards such as ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, along with BIS certification, reflecting our commitment to quality, sustainability, energy efficiency, and occupational safety.

Recently, AIK Pipes launched its complete agri-irrigation series under the brand "BANAS",

offering drip irrigation systems, mini sprinklers, and farmer-focused water management solutions. BANAS is designed to serve Indias farmers with efficient, affordable, and sustainable irrigation technologies. This strategic move marks AIKs diversification beyond infrastructure into agriculture, creating a balanced growth portfolio.Since our incorporation as a private limited company in 2017 and subsequent conversion to a public limited company in 2023, the "AIK" brand has become synonymous with quality, trust, and engineering innovation.

FINANCIAL PERFORMANCE

Our revenues from operations for the fiscal year ended 2025 were Rs. 2509.70/- (in Lakhs) as compared to previous fiscal year ended 2024 were Rs. 3727.25/- (in Lakhs).

Management continues to explore new business opportunities in both infrastructure and agriculture markets to accelerate growth and create long-term stakeholder value.

COMPETITIVE STRENGTHS

• Strong brand reputation and growing customer base

• Comprehensive product portfolio across infrastructure and agriculture

• Experienced promoters, skilled workforce, and R&D capability

• Stringent quality certifications ensuring global compliance

• Strong financial position and operational efficiency

• Competitive pricing with uncompromised quality

THREATS & RISKS

• Increasing competition from local and global manufacturers

• Market volatility and economic slowdowns affecting demand

• Rising logistics and raw material costs

• Regulatory and policy changes

• Rapid technological shifts requiring continuous adaptation

The Board regularly reviews key risks and has established internal controls and mitigation measures to minimize business disruptions.

SEGMENT-WISE & PRODUCT-WISE PERFORMANCE:

The Company at present is engaged in the Business of Manufacturing of HDPE Pipes, MDPE Pipes, and PPR Pipes, catering to multiple industries including water distribution, agriculture, housing & infrastructure, telecommunication, gas transmission, and sewerage systems. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company. The Highlights of the Companys performance is as under:

Our revenues from operations for the fiscal year ended 2025 were Rs. 2509.70/- (in Lakhs) as compared to previous fiscal year ended 2024 were Rs. 3727.25/- (in Lakhs) and earned a net profit of Rs. 127.65/- (in Lakhs).

FUTURE OUTLOOK

The Company is well-positioned to capitalize on opportunities in both infrastructure development and agricultural modernization. With BANAS strengthening our presence in the agri-segment, and continued focus on water supply, sewerage, and EPC-related projects, AIK aims for robust growth in the years ahead.

Looking forward, the Company will focus on:

• Expanding distribution in new geographies

• Strengthening presence in EPC and government-led projects

• Scaling agri-irrigation solutions to serve farmers nationwide

• Driving innovation in sustainable products aligned with global circular economy trends

The long-term outlook remains positive, and the Company is confident of delivering consistent value to stakeholders.

RISKS AND CONCERNS:

Every Company is prone to internal and external risks, including risks around compliance, operational, strategic and many others. Many of these risks are inherent in the enterprise structure of any organization and may interfere with an organizations operations and objectives. Further as our Company is looking for the new Business opportunities the Following Risk associate for doing any business:

• Market Risk

• Reputation Risk

• Competition Risk

• Technological Risk

• Changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

• New and changing regulatory compliance, corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance.

The board of directors also reviewed the key risks associated with the business of the Company, the procedures adopted to assess the risks, efficacy and mitigation measures.

INTERNAL CONTROL SYSTEMS

AIK Pipes has in place robust internal control systems covering operations, finance, and compliance. Regular audits and monitoring ensure process efficiency, asset safety, and statutory compliance. This framework provides management with timely data for decisionmaking and ensures adherence to corporate governance standards.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT- INCLUDING NUMBER OF PEOPLE EMPLOYED.

Industrial relations continue to remain cordial during the year and estimated around 27 employees are on the Companys payroll as on 31st March, 2025 as compared to 29 employees on the Companys payroll as on 31st March, 2024.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS. ALONG WITH DETAILED EXPLANATIONS THEREFORE:

Significant Accounting Ratios:

Ratios	For the Year ended 31st March, 2025	For the Year ended 31st March, 2024	Variation%
(a) Current Ratio	2.64	2.48	6.35%
(b) Debt Equity Ratio	25.44	23.27	9.34%
(c) Debt Service Coverage Ratio*	5.00	6.99	-28.46%
(d) Return on Equity Ratio*	5.70	24.79	-77.00%
(e) Inventory turnover ratio*	3.68	7.56	-51.32%
(f) Trade Receivables turnover ratio*	1.70	3.40	-50.00%
(g) Trade payables turnover ratio*	5.82	8.05	-27.70%
(h) Net capital turnover ratio*	1.82	3.27	-44.34%
(i) Net profit ratio	5.09	9.15	-44.44%
(j) Return on Capital employed*	8.40	16.73	-49.81%
(k) Return on Investment	5.59	15.56	-64.07%

*Reasons for Variation more than 25%:

1. Decrease in Debt Service Coverage Ratio is due to reduce in profits.

2. Return on Equity is decreased due to reduce in profits.

3. Inventory turnover is decreased due to reduce in sale of company products.

4. Trade Receivables Turnover Ratio is decreased due to increase in Trade receivables at year end.

5. Trade payables turnover ratio is decreased due to less purchase of goods in credit.

6. Net Capital Turnover has also reduced due to Increase in Current Assets.

7. Net profit Ratio decreased due to decrease in Net Profits during the year.

8. Return on Capital Employed decreased due to decrease in Profits during the year.

9. Return on Investment is decreased due to decrease in Net Profits during the year.

Date: 05th September, 2025 Place: Jaipur	For and on behalf of the Board of Directors For AIK Pipes and Polymers Limited
	Imran Khan Managing Director (DIN: 07938677)	Ajayraj Singh Khangarot Director (DIN: 08374956)