AMD Industries Ltd Management Discussions

Industry Structure & Developments Packaging:

In 2025, the global plastic packaging industry continues to demonstrate steady growth, with market size estimates ranging between USD 410 billion to USD 493 billion, driven by rising demand for lightweight, durable, and cost-effective packaging solutions. Flexible packaging remains the dominant format globally, while rigid packaging segments?€”particularly in food, beverage, and healthcare?€”are witnessing strong regional growth, especially in emerging markets. In India, the plastic packaging market is estimated to reach USD 22.4 billion, supported by rapid urbanization, e-commerce expansion, and increased consumption of packaged goods. However, the industry also faces evolving regulatory pressures, particularly related to sustainability and circular economy mandates. As a result, companies are increasingly investing in recyclable materials, rPET infrastructure, and mono-material innovations to align with environmental standards and consumer expectations. Despite raw material cost volatility and compliance challenges, the industry outlook remains positive, underpinned by technological advancements and a growing emphasis on sustainable packaging solutions.

PET plastic:

Polyethylene Terephthalate (PET) continues to play a pivotal role in the plastic packaging industry in 2025, owing to its excellent strength-to-weight ratio, clarity, and recyclability. Widely used in beverage bottles, food containers, and personal care packaging, PET remains the material of choice for rigid packaging applications. With growing regulatory focus on sustainability and circular economy practices, the demand for recycled PET (rPET) has significantly increased. In response, the industry is witnessing large-scale investments in rPET infrastructure, closed-loop systems, and advanced sorting technologies. In India, government mandates promoting the use of recycled content have further accelerated the shift toward sustainable PET solutions. While raw material price fluctuations and supply chain constraints present ongoing challenges, PETs versatility, consumer safety profile, and compatibility with recycling systems position it as a key enabler of long-term sustainability in the packaging sector.

Extended Producer Responsibility (EPR) Compliance and Impact (2025)

In 2025, Extended Producer Responsibility (EPR) continues to be a critical regulatory driver shaping the plastic packaging landscape. Under EPR frameworks, producers are mandated to take full accountability for the post-consumer lifecycle of plastic packaging, including collection, recycling, and environmentally sound disposal. In India, the Ministry of Environment, Forest and Climate Change (MoEFCC) has strengthened EPR rules, setting specific targets for recycled content usage and annual recovery obligations. As a result, companies across the packaging value chain are increasingly investing in traceable waste collection systems, partnerships with PROs (Producer Responsibility Organizations), and adoption of recyclable and mono-material packaging. Compliance with EPR not only ensures regulatory alignment but also enhances brand credibility and stakeholder trust. While implementation costs and logistical complexities remain, proactive engagement with EPR mandates is seen as a strategic imperative to drive circularity and long-term sustainability in the plastic packaging industry.

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 2024-25, 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 (polyethylene terephthalate) packaging industry is experiencing steady global growth, projected to reach over USD 100 billion by 2028-2029, driven by increasing demand for lightweight, durable, and recyclable materials across food, beverage, pet care, and pharmaceutical sectors. Major opportunities lie in the rising shift toward sustainable packaging, bio-based and recycled PET innovations, the boom in e-commerce and direct-to-consumer markets, and growing applications in emerging economies. However, the industry faces notable threats and risks, including regulatory pressures against single-use plastics, environmental concerns due to low recycling rates, raw material price volatility, and competition from alternative materials like paper, glass, and biodegradable plastics. Public perception challenges and technical limitations in recycling infrastructure also pose significant concerns. To thrive, PET packaging players must invest in circular economy practices, embrace smart packaging technologies, and adapt to stricter environmental standards while capitalizing on consumer demand for eco-conscious, high-performance packaging solutions.

Financial Performance

During the year under review your Company registered total revenue of Rs. 27,646.47 lakhs as compared to previous years revenue of Rs. 2774.05 lakhs which is slightly lower than previous year.

There is a Profit of Rs 101.31 Lakhs in the year 2024-25 as compared to Net Loss of Rs. 168.30 Lakhs compared to Last Year i.e. 2023-24.

Internal Audit and Internal Control

Internal audit and internal control are integral components of effective corporate governance and risk management. Internal control refers to the processes and procedures implemented by an organization to ensure the reliability of financial reporting, compliance with laws and regulations, and the efficient and effective operation of its activities. It includes measures such as authorizations, reconciliations, and segregation of duties. Internal audit, on the other hand, is an independent and objective assurance activity that evaluates the adequacy and effectiveness of these internal controls. By systematically reviewing operations, internal auditors help identify weaknesses, ensure compliance, and recommend improvements, ultimately enhancing organizational integrity and performance.

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 261 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:

Cautionary Statement

Statement in the Management Discussion & Analysis, describing the Companys objectives, projections and estimates are forward looking statements and progressive within the meaning of applicable laws and regulations.

Actual results may vary from those expressed or implied, depending upon the economic conditions, Government policies and other incidental factors.