Amco India Ltd Management Discussions

INTRODUCTION:

The Management of Amco India Limited presents the Management Discussion and Analysis Report for the financial year ended 31st March, 2025, outlining the performance of the Company during the year and its outlook for the future.

The primary objective of this report is to provide the Managements perspective on key developments in the business environment, the challenges and opportunities faced by the Company, and an analysis of its operational and financial performance. The report also highlights the Companys internal control systems, risk management practices, and significant initiatives undertaken on the Human Resources front.

The future outlook presented herein is based on the Managements assessment of the prevailing business and economic environment. However, actual results, performance, or achievements may differ materially from those expressed or implied in the forward-looking statements, as these are subject to various external and internal factors which are at times beyond the Companys control.

1. INDUSTRY STRUCTURE AND DEVELOPMENT: Aluminium Foil

India is one of the leading producers of aluminium foil, catering extensively to the requirements of diverse sectors, particularly pharmaceuticals, flexible packaging, Tobacco & Confectionery Products and Industrial Applications. At a global level, aluminium foil markets were influenced by volatility in energy and raw material costs, supply chain disruptions, and international trade dynamics. However, India benefitted from its strong domestic bauxite reserves, integrated aluminium capacity, and increasing shift towards value-added foil products. In FY 2024-25, the industry also experienced a structural push towards sustainability and circular economy practices. Overall, the aluminium foil industry is poised to remain on a positive trajectory, backed by domestic consumption growth, increasing exports, and government support. The industry is also witnessing a gradual transition towards higher value-added products such as laminated foils, speciality foils for medical and dairy applications, and foil-based flexible packaging solutions. Additionally, rising awareness of eco-friendly packaging, regulatory emphasis on recyclable materials, and substitution of plastics with aluminium foils in various applications created long-term growth opportunities.

PVC Films & Sheetings

During FY 2024-25, the industry witnessed a mix of challenges and opportunities. On the demand side, growth was driven by the expansion of the packaging sector, increasing usage of PVC films in decorative and protective applications, and rising demand from healthcare and pharmaceutical packaging. The construction and infrastructure sector also contributed significantly to demand for PVC sheeting in flooring, and other protective applications. On the supply side, the industry faced volatility in raw material prices, particularly PVC resins, due to fluctuations in crude oil and petrochemical markets, as well as global supply chain disruptions. The industry also continued to witness pressure from imports, particularly from China and other low-cost manufacturing countries, creating a highly competitive environment for domestic manufacturers.

2. OPPORTUNITIES & THREATS, RISKS & CONCERNS: Aluminium Foil:

India continues to remain a growing market for the aluminium foil industry, driven largely by its wide application in pharmaceuticals, beverages, personal care, food, and flexible packaging. The Company expects an improvement in demand for indigenous foil in the coming years, supported by capacity expansions by pharmaceutical companies. The aluminium foil market in India is projected to record a CAGR of 7.4% through 2034, on account of the rising use of aluminium packaging in the thriving pharmaceutical sector and the growing consumption of packaged food products.

The pharmaceutical industry in India itself is anticipated to grow at a CAGR of around 10%, reaching a valuation of USD 130 billion by 2030. The increasing demand for sustainable and secure packaging solutions for pharmaceuticals is further expected to drive higher adoption of aluminium packaging in the domestic market.

PVC Films & Sheetings:

PVC films and sheets, owing to their versatility, recyclability, and favorable environmental footprint, have wide applications in the packaging industry. The global PVC films and sheetings market was valued at approximately USD 28.9 billion in 2024 and is expected to grow at a steady CAGR of around 3.3% during

2025–2034. For FY 2025, the market is estimated to reach USD 29.8 billion, driven by increasing applications in packaging, construction, automotive, and consumer goods. This growth is likely to provide opportunities for the Company in expanding its product applications and market presence.

Risks & Concerns:

While the long-term outlook remains positive, the industry continues to face challenges such as volatility in raw material prices, increasing competition from both domestic and international players, and regulatory changes relating to environmental norms. Currency fluctuations and global economic uncertainties may also impact input costs and export competitiveness. The Company remains focused on mitigating these risks through strategic sourcing, efficiency improvements, and exploring value-added product segments.

Company Outlook:

Considering the strong growth potential in both aluminium foil andPVCfilmmarkets, the Company is well-positioned to leverage these opportunities through capacity enhancement, product diversification, and a sharper focus on quality and innovation. At the same time, proactive risk management strategies are being implemented to address industry challenges, ensuring sustainable growth and long-term value creation for stakeholders.

3. COMPANYS PERFORMANCE (PRODUCT WISE):

ALUMINIUM FOIL: The Company has executed orders for Packaging Industries, Pharmaceutical Industries,

Automobile Industries etc. The total revenue of the Company from Aluminium Foil during the financial year under review i.e 2024-25 is INR 966,662.95/- (Rs. in thousands) as against the revenue of INR 8,96,036.32/- (Rs. in thousands) during the previous financial year 2023-24.

PVC FILMS & SHEETINGS: The performance in the PVC Films & Sheetings segment has shown a downfall during the year under review. The revenue from PVC films & Sheetings for the financial year 2024-25 is Nil against the revenue of the financial previous year 2023-24 which was INR 1,637.69 (Rs. in thousands).

4. OUTLOOK:

Aluminium foil is increasingly recognized as a sustainable alternative to several non-biodegradable products such as polyester, LD and HD films, owing to its superior barrier and protective properties. It continues to play a critical role in the packaging sector, particularly in pharmaceuticals, where safety and product integrity are essential. India is one of the key producers of aluminium foil in the region, with established demand across flexible packaging, food, chemicals and pharmaceutical industries. In the packaging industry, aluminium foil is gradually replacing polyester due to its higher efficiency in preserving product quality. Changing consumer preferences, the rise in ready-to-eat food consumption and confectionaries, along with growing pharmaceutical requirements, are expected to drive sustained demand for aluminium foil in the years ahead.

With an improving industrial environment and supportive government policies, the Company foresees growth opportunities in both domestic and international pharmaceutical markets, which will contribute to an increase in foil consumption. The Company remains focused on consolidating its position as a reliable supplier to the pharmaceutical packaging segment and is working towards enhancing capacity in aluminium foil production and coating operations.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Amco India Limited has established a comprehensive framework of internal controls and risk management practices designed to safeguard its assets, ensure accuracy and reliability of financial reporting, and secure compliance with applicable laws and regulations. The Companys risk management framework integrates internal controls with its business processes and is aligned to the nature, scale and complexity of its operations.

The internal control systems are structured to promote operational efficiency, adherence to established policies, and timely identification of also ensure that regulatory requirements are duly complied with across all business segments.

The Audit Committee of the Board periodically reviews the effectiveness of internal controls, audit plans, risk assessments, and other significant audit observations. It also evaluates the adequacy of mitigation measures adopted by the management. The internal audit function, conducted by independent professional auditors, provides assurance on the robustness of internal processes and highlights areas for improvement. The recommendations arising from such audits are considered and addressed appropriately.

The Company recognizes the importance of a sound internal control environment in achieving its strategic objectives, safeguarding stakeholder interests, and supporting sustainable growth. Accordingly, Amco India Limited continues to strengthen its control systems to meet evolving business and regulatory requirements, ensuring transparency, accountability and long-term value creation.

6. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Amco India Limited continues to emphasize maintaining adequate liquidity and ensuring timely availability of capital at an optimum risk-adjusted cost to support its business operations. The Company has aligned its financial strategy with operational requirements to ensure sustainable growth and efficient resource utilization. The detailed financial performance of the Aluminium Foil and PVC Films & Sheetings segments is presented in the Annual Report under the head Segmental Reporting.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS: are the cornerstone The of its success and represent a key source Companyfirmly of sustainable competitive advantage. The human resource philosophy of the Company is centered on attracting, developing and retaining the right talent, while fostering a culture of performance, responsiveness and accountability.

During the year under review, the Company had 72 permanent employees. The Company continued to strengthen its human resource management systems and practices by providing structured training and development opportunities, both through in-house programs and external platforms, aimed at enhancing technical competencies as well as managerial skills across functional areas.

The Company maintained a strong focus on employee engagement, performance enhancement and creating an enabling environment to drive productivity and innovation. Industrial relations during the year remained cordial and harmonious across all locations of operation. With a committed and capable workforce, the Company is well-positioned to meet future challenges and pursue its long-term growth objectives with confidence.

8. SIGNIFICANT CHANGES:

The changes in the Key Financial Ratios of the Company during the year are provided below.

Particulars	Current FY 2024-25	Previous FY 2023-24	YoY Change (%)	Reason for change
Current Ratio	1.95	1.83	6.48	There is a very nominal change.
Debtor Turnover Ratio	6.98	7.56	(7.72)	There is a very nominal change.
Inventory Turnover Ratio	8.82	8.60	2.53	There is a very nominal change.
Debt Equity Ratio	0.34	0.28	22.49	There is a very nominal change.
Return on Equity Ratio	5.13%	2.34%	118.70	This ratio has been improved due to rise in Net Profits in F.Y 2024-25.
Interest Coverage Ratio	4.14	2.57	61.19	This ratio has been improved due to rise in EBIT in FY 2024-25.
Operating Profit Margin Ratio	1.45	0.13	1049.04	This ratio has been improved due to rise in Operating profits in FY 2024-25.
Return on Net Worth	9.26	6.29	47.16	This ratio has been improved due to rise in EBIT in FY 2024-25.
Net Profit Ratio	1.79	0.76	136.31	This ratio has been improved due to rise in Net Profit in FY 2024-25.

9. NEW PRODUCT DEVELOPMENT:

The flexible packaging industry has witnessed increased usage of aluminium foil as a preferred material for products traditionally packed in alternative substrates, such as Gutkha and Pan Masala. Recognizing this trend, the Company has successfully positioned itself as a supplier of aluminium foil catering to diverse and high-demand applications. The Company now supplies aluminium foil to leading players in the market for use in cigarette foil packaging, milk powder packaging, and packaging of medical and surgical equipment. This diversificationhas strengthened the Companys product portfolio and enhanced its presence across multiple industries.

10. BUSINESS INITIATIVES:

Amco India Limited remains committed to delivering sustainable and superior performance in a dynamic and competitive global environment. The Company recognizes that consistent growth requires a combination of sound strategic planning and disciplined execution. In line with this vision, the Company has undertaken several new initiatives across both its business segments, namely Aluminium Foil and PVC Films/Sheetings. These initiatives are directed towards entering new markets, enhancing production capabilities, and focusing on higher value-added products to strengthen market presence, improve operational efficiency, and deliver long-term value to stakeholders.

11. MANAGEMENTS PERCEPTION OF RISKS:

The Company recognizes that its operations are subject to exposure from various business, assets, and financial risks. A structured framework is in place to identify, monitor, and mitigate such risks in a timely and effective manner.

Business Risks:

In relation to Aluminium Foil, PVC Films, and Sheetings, the Company is exposed to risks arising from market fluctuations, volatility in raw material prices, and changes in import duty structures. The Company actively monitors industry trends, supply chain dynamics, and regulatory changes to mitigate the impact of such risks.

Assets Risks:

The Companys physical assets are exposed to potential risks such as accidents,fire,natural calamities, and other unforeseen events. To safeguard against such exposures, the Company maintains comprehensive insurance policies to ensure maximum indemnity in the event of loss. Further, it follows a system of continuous evaluation and updation of insurance coverage to ensure that conventional risks are adequately and prudently covered.

12. APPRECIATION & DEPRECIATION OF RUPEE AGAINST US $:

In case of Aluminium Foil, the currency fluctuation had significant impact on the products sale in the market.

13. RESOURCES: Material:

For Aluminium Foil, India has abundant deposits of bauxite, ensuring steady availability of the primary raw material. In the case of PVC Films & Sheetings, while raw materials such as PVC resin, DOP, stabilisers and fillers are generally available, the Company has faced challenges due to fluctuations in PVC resin prices, which impact cost structures. For Non-Woven products, the primary raw materials are PP granules and PP pigments, both of which are sufficiently available without any scarcity concerns.

Capital:

The Company continues to require additional funds to meet its working capital needs and long-term capital requirements in order to support enhanced production capacity and higher sales growth.

PVC Films & Sheetings:

PVC Films & Sheetings enjoy wide applications across diverse industries such as automobiles, stationery, luggage, and electrical insulation. Their inherent fire-retardant properties further strengthen demand.

14. CAUTIONARY STATEMENT:

The Statements made in the Management Discussion and Analysis describing the Companys objectives, expectations, or projections may be "forward-looking statements" within the meaning of applicable securities laws and regulations. The actual results may differ materially from those expressed or implied due to various factors. These include, but are not limited to, fluctuations in global and domestic demand-supply conditions impacting selling prices of finished goods, volatility in input availability and costs, changes in government policies and regulations, alterations in tax laws, economic developments within and outside the country, and other incidental factors such as litigation, industrial relations, and business environment uncertainties.

Place: Noida, U.P	For and on behalf of the Board of Directors
Date: 22.08.2025	sd/-	sd/-
	Rajeev Gupta	Vidhu Gupta
	Chairman & MD	Director
	DIN: 00025410	DIN: 00026934
	Add: C 53-54, Sector 57,	Add: C 53-54, Sector 57,
	Noida, U.P 201301.	Noida, U.P 201301.