AMD Industries Ltd Management Discussions

Industry Structure & Developments

Packaging

Within the domain of food and beverage, plastic packaging holds a crucial position in maintaining freshness, averting contamination, and extending shelf life. Plastic containers, known for their lightweight, durability, and transparency, serve as an optimal platform to exhibit and safeguard both perishable and nonperishable items. Ranging from convenient pouches to resilient PET bottles, plastic packaging guarantees the secure transportation of food products, ensuring their integrity from the manufacturer to the end consumer. Plastic packaging plays a crucial role in the medical industry by preserving the sterility and integrity of medical devices, pharmaceuticals, and diagnostic equipment. Packaging formats like blister packs, vials, and pouches serve as protective layers for sensitive medical products, enhancing the convenience of handling and administering these essential items. Plastics are indispensable in ensuring the safety and efficacy of various medical interventions. Plastics, with their shock-absorbing properties and ability to insulate against environmental factors, are the material of choice for electronic packaging. Whether its the casing of smart phones, the protective layers for circuit boards or the secure packaging of delicate electronic components, plastics contribute to the reliability and longevity of electronic devices. Furthermore, plastic packaging serves as a cost-effective method for protecting goods in transit and on store shelves, thereby contributing to the overall efficiency of the supply chain. This is important for environmental reasons due to the fact that HDPE is a non-biodegradable material.

Real Estate Market

The residential segment saw a strong performance and sustained momentum during the last year despite several ups & downs. The offices segment saw resiliency and has started to witness slow yet impactful recovery resulting in improvement in occupancy level. The retail segment delivered robust growth as a result of increase in consumption and footfalls by Customers.

Segment-wise or product-wise performance

Your Company manufactures Crown Caps, CSD Closures, Pet Preforms, Jars, and Bottles etc for various edible items packed in glass & Plastic bottles e.g. Carbonated Soft Drinks, Fruit Juices, Milk products, Beer etc.

In the reporting financial year 2023-24, overall performance of the company was satisfactory. Sales of Crown perform and closures are also improving accordingly. These results were due to dipped sales volumes in different segments but majorly in sale of Closures.

Outlook, Opportunities & Threats, Risk and Concerns

The PET packaging market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and profitability.

Global fossil fuel-based plastics production is dominated by large petrochemical companies, including some major oil and gas producers. However, some of these companies are becoming more integrated players in plastic production, providing waste processing solutions and supplying raw materials.

The containers and packaging sector, as well as related sectors such as food and beverage and consumer goods, face reputational and regulatory pressures to use alternative materials and recycled content at scale. This is creating opportunities for companies to collaborate and find solutions with different players across the value chain

Financial Performance

During the year under review your Company registered total revenue of Rs. 27774.05 lakhs as compared to previous years revenue of Rs. 35000.18 lakhs which is lower than previous year.

There is a Loss of Rs 168.3 Lakhs in the year 2023-24 as compared to Net Profit of Rs. 1911.85 Lakhs compared to Last Year i.e. 2022-23.

Internal Audit and Internal Control

The Company has well-equipped and effective internal control systems in place that match the scale of its sector and the complexity of the market it works in such stringent and detailed controls ensure the effective and productive use of resources to the degree that the Companys assets and interests are safeguarded, transactions are approved, registered, and properly reported and checks and balances guarantee reliability and consistency of accounting data. The Audit Committee is undertaking a comprehensive system of internal audits and periodic assessments to ensure compliance with best practices. The Company has employed M/s Gupta & Gupta & Co., Accountants as Internal Auditor and M/s K.N. Gutgutia & Co., and Chartered Accountants as Statutory Auditors of the Company to report on the financial controls of the Company.

Material Development in Terms of Human Resources / Industrial Relations front, including number of people employed.

The growth of the Company and improvement in the systems has been sustained by the active involvement of the employees with the Management. Along with every other component of its business strategy, the Company acknowledges the need for talent management within the Company and its criticality for its potential development and success. Training workers, growing their skill levels and encouraging sustained employee participation have always been very important for the Company. Through skill-building initiatives and career development programs at all levels and across functions, AMD arranges in-house training. The company employed 233 employees on its Roll during the year.

Details of Changes in key financial ratio and in Return on Net Worth as compared to the immediately previous financial year:

Significant changes in the key Financial Ratio 25% & above with reasons in detail: