Amco India Ltd Management Discussions.


The management of Amco India Limited presents the analysis of performance of the company for the financial year 2019-20 and its outlook for the future. The objective of this report is to present the Managements perception of the various developments in the business environment, challenges and opportunities before the Company as well as to provide an analysis of the Companys performance. This report also summarizes the Companys internal control measures and developments in the Human Resources front. The outlook is based on assessment of the current business environment and thus the Companys actual results, performance or achievements could differ from those projected in any forward-looking statements.


ALUMINIUM FOIL: There are many major Aluminum Foil manufacturers in India who caters the total demand of the product in different field of pharmaceuticals and flexible packaging industries. As aware the Indian economy has been passing through a period of sustained decline in the recent past and this continued during the year under review as well. The other market factors have dropped due to stiff competition in the market. PVC FILMS & SHEETINGS: There are around dozen PVC Films & Sheetings manufacturers in India. India is among the worlds fastest growing polymer markets. India is the second largest demand hub for polymer in Asia after China, accounting for 10-12% of the total Asian consumption.


Outbreak of COVID-19 and the measures announced by the government should help half of FY 2020-21 but liquidity measures, growth, environment challenges are the areas of concern in the near future.

ALUMINIUM FOIL: India is known to be a growing market for Aluminium Foil industry. High cost of production, slower machinery can become a threat for the industry and entry of some large scale industries of Aluminium foils which spoiled the market by creating abundance of supplies with no equivalent increase on the demand side of products. The Company expects improvement in demand of indigenous foil due to capacity increase by pharmaceuticals companies in last one year and years to come.

PVC FILMS & SHEETINGS: The demand growth during FY 2019-20 was driven by higher economic activity, rising disposable income levels, increased spending on infrastructure and uptrend in the packaging and automobiles sector. There is a growing market for PVC Films & Sheetings and Laminated Sheetings unlike other industries. Indian polymer sector was impacted during the last months of FY 2019-20 & beginning of FY 2020-21 due to Covid 19 pandemic. The business & operation were on halt for almost 2 months. Later, the operations were resumed but the pace of business is at a slowdown. The management is hopeful for better results in next year as the business will resume in full swing as the Covid 19 situation will be more controlled.


ALUMINIUM FOIL: The Company has executed orders for Pharmaceutical Industries, Packaging Industries, Automobile Industries etc. The total revenue of the Company from Aluminium Foil during the year under review i.e 2019-20 is Rs. 6681.80 lakhs as against the revenue of Rs. 6375.12 lakhs during the previous year 2018-19. The Company witnesses the increase of 4.81% in revenue from Aluminum foil as compared to the previous year.

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 year 2019-20 is Rs. 356.16 lakhs against the revenue of the previous year 2018-19 which was Rs. 555.77 lakhs lakhs. Being a petroleum product, use of PVC resin, few plastic polymers, D.O.P, the increase in price have together made a heavy impact on cost of our products.


The COVID-19 pandemic is a major black - swan event, which has dragged the economy and the businesses as a result. Amco in essential goods have resumed operations and with normalcy in environment likely to gain the momentum.

The Aluminium Foil has potential to replace many non bio-degradable products like Polyster, LD, HD, etc. Aluminium Foil is mainly used and preferred in packaging particularly in Pharmaceutical Industry. The 52% of total capacity is consumed in this field. This product of company has wide applications in various areas, such as flexible packaging, food, chemical industry and Pharma sector. In Packaging industry, aluminum foil

is gradually replacing polyester and other barrier films because aluminum foil have better berries properties than others.

Due to improvement in industrial environment after new government in country we hopeful for good growth in domestic and international market of drugs & pharma resulting in capacity increase in pharmaceutical products and foil consumption. Further company expect improvement in realization of foil due to close of few foil manufacturing units and costly import due to dollor rate increase.

We have plans to consolidate our position in next fewyears as one of the top few companies, catering to the packaging needs of Pharma Companies. Further, the Company is highly keen in focusing more in the production of the Aluminium foils and coating of Aluminium foil and the management of the Company has decided to take the relevant steps in the said regard.


Amco India Limited manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The Companys risk management framework encompasses internal control in an integrated manner and is tailored to the specific segments of Amco, businesses and functions. It takes into account various factors such as the size and nature of the inherent risks and the regulatory environment of the individual business segment or operating company. The Company has an adequate system of internal controls implemented by the management towards achieving efficiency in operations, optimum utilization of companys resources and effective monitoring thereof and compliance with applicable laws and regulations.

Amco India Limited recognizes that the risks associated with the business need to be managed to protect its customers, employees, shareholders and other stakeholders in the society to achieve its business objectives and enable sustainable growth. As part of its risk management process, Amco India Ltd reviews plan related risks, opportunities and uncertainties. It identifies those as having a high priority for particular oversight by the Board and its various committees. The Audit Committee of the Board of Directors also periodically reviews audit plans, external auditor observations and recommendations, significant risk area assessments and adequacy of internal controls.

The Companys internal control systems are geared towards ensuring adequate internal controls commensurate with the size and needs of the business, with the objective of efficient conduct of operations through adherence to the Companys policies, identifying areas of improvement, evaluating the reliability of Financial Statements, ensuring compliances with applicable laws and regulations and safeguarding of assets from unauthorized use.

A regular Internal Audit System is also in place. The internal audit is carried out by a firm of professional auditors and the audit observations, if any, are acted upon periodically after their review by the Audit Committee. It reviews the internal audit reports and also addresses all aspects of the companys functioning as required under SEBI and Company Law Guidelines.


Amco India Limited is focused on securing liquidity and capital for its businesses. It makes sure that the capital is made available at the optimum risk adjusted cost and is made available at the time when businesses require it. The detailed financial performance of the Aluminium Foil, PVC Films & Sheetings and Non Woven has been highlighted in the Annual report under the head Segmental Reporting.


It is your companys belief that people are at the heart of corporate & constitute the primary source of sustainable competitive advantage. The trust of your companys human resource development efforts therefore is to create a responsive and market driven organization. Your company continues its focus on strengthening competitiveness in all its business.

The Company continues to transform its human resource management. The company has followed a conscious policy of providing training to Management Staff through in-house and external programme, for upgrading personal and technical skills in relevant areas of functional disciplines. The industrial relations remained cordial at all locations during the year.


The Gutkha and Pan Masala Packaging units, which have been hit by the Supreme Courts ban on use of plastic sachets for sale purposes, have found an alternate in paper and aluminum foil pouches. The Gutkha and Pan Masala is main leading product in flexible packaging industry and now Aluminum foil is being used for such product.

The Company has now been supplying Aluminium Foil in the market to big empires for Cigarette Foil Packaging, Milk Powder Packaging and for packaging of medical / surgical equipments.


Amco India Limited aims at delivering superior performance in todays volatile and global environment which requires sound strategy and disciplined execution. Accordingly, the company has launched new initiatives for both its segments namely, Aluminium Foil & PVC Films/Sheetings to enter new markets, to increase production and sales of higher value added products.


The Companys exposure to Business, Assets and Financial Risks is stated as under.

BUSINESS RISKS: In case of all, Aluminium Foil, PVC Films & Sheetings, the business risk includes market conditions, changes in import duties, high cost of raw materials.

ASSETS RISKS: Assets risks includes threat to physical assets through accidents, natural calamities, etc. The company has suitable assets insurance policies so as to ensure maximum indemnity in the event of any loss. In addition, it has a system of continuous evaluation of insurance covers so as to cover conventional risks in an adequate manner as is commercially prudent.


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


MATERIAL: In case of Aluminium Foil there are abundance deposits of bauxite in our country which make raw material to be easily assessed. In case of PVC Films & Sheetings, although the raw material used such as PVC resin, DOP, Stabiliser, filler are easily available, the company has faced difficulty due to unstable price of PVC resin. In the matter of Non Woven there are mainly two raw materials. First if PP Granules and the second is PP Pigment. There is no scarcity of any of these raw materials.

CAPITAL: The company needs more funds to meet its working capital and long term requirements to increase its production and sales.

PVC FILMS & SHEETINGS: Because of multiple uses in different kinds of industries such as Automobile, Stationery, Luggage, Electric Tape etc. and the Fire Retardant Quality, the demand for PVC Films & Sheetings are increasing.


The statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, law and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include global and domestic supply and demand conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and outside the country and other factors such as litigation and industrial relations.

Place: Noida, U.P

For and on behalf of the Board of Directors

Date: 27.08.2020 Sd/- Sd/-
Surender Kumar Gupta Rajeev Gupta
Chairman & MD Whole Time Director
DIN:00026609 DIN: 00025410
Add: C-53-54, Sector 57, Add: C-53-54, Sector 57,
Noida, U.P-201301 Noida, U.P-201301