Industry Structure & Developments Packaging
The global plastic packaging market size was valued at USD 369.21
billion in 2022 and is expected to progress at a compound annual growth rate (CAGR) of
3.6% from 2023 to 2030. Expanding the size of key application industries, including
personal and household care, pharmaceuticals, food & beverages, and the growing
penetration of e-retail across the globe are primarily fueling the growth of plastic
packaging. Plastic offers both rigid & flexible, lightweight, and transparent forms of
packaging, on account of which the key industries such as food and beverage, household
& personal care, and industrial primarily prefer it as a substitute over its
counterparts such as glass or metal. Furthermore, engineered plastic can endure extreme
environmental conditions and not degrade in extreme temperatures, thereby preserving the
integrity of products such as cosmetics and food & beverages. Moreover, the low cost
and excellent printability associated with plastic make it a lucrative packaging material.
Compared to other packaging products, consumers have shown an
increasing inclination toward plastic packaging, as plastic packages are lightweight and
easier to handle. Similarly, even the big manufacturers prefer plastic packaging solutions
because of their lower cost of production
Real Estate Market
The Real Estate Industry In India is estimated at USD 265.18 billion in
2023, and is expected to reach USD 828.75 billion by 2028, growing at a CAGR of 25.60%
during the forecast period (2023-2028). The country?s real estate market was affected
by the COVID-19 pandemic.
Among the most well-known industries in the world is the real estate
industry. The four subsectors of this industry are housing, retail, hospitality, and
business. With the rise of the corporate environment, the demand for office space and
urban and semi-urban accommodation has increased, assisting the growth of this business.
Among the 14 major industries, the construction industry ranks third, covering direct,
indirect, and induced sectors of the economy.
The real estate sector creates the second most number of jobs in India,
after agriculture. This industry is also likely to attract more excellent non-resident
Indian (NRI) investments in the short and long term
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 2022-23, overall volume wise
performance of the company was good in comparison to last two years which were impacted by
the Covid very badly. Sales of Crown perform and closures are also risen accordingly.
These results were due to good sales volumes in different segments but majorly in sale of
Closures which rose by 47%, pet preform by 61% and Crown by 68%. Other products are also
accordingly performed well. Your company is trying to keep it up and will try to reach at
its next level in the current financial year (2023-24).
Outlook, Opportunities & Threats, Risk and Concerns
Outlook
Plastic has become an integral part of our daily lives, from the
packaging of products we consume to the materials used in construction, automobiles, and
electronics. The global plastic manufacturing industry has witnessed a significant growth
in recent years, driven by factors such as the increasing demand for plastic products,
technological advancements in plastic manufacturing, and the adoption of sustainable
practices.
However, the industry also faces challenges such as environmental
concerns related to plastic waste, regulations on plastic usage, and fluctuations in raw
material prices. To navigate these challenges and tap into the opportunities presented by
the industry, businesses need to keep a pulse on the latest trends and forecasts.
Challenges and Threats Facing the Industry
The plastic manufacturing industry faces several challenges and
threats, which could impact its growth and sustainability in the long run. Here are some
of the significant challenges and threats facing the industry:
Environmental Concerns: One of the most significant challenges facing
the plastic manufacturing industry is the growing concern over plastic waste and its
impact on the environment. Governments and consumers are increasingly pushing for more
sustainable practices and materials, which could lead to a decline in demand for
traditional plastics.
Regulatory Pressure: Governments worldwide are implementing stricter
regulations and policies aimed at reducing plastic waste, increasing recycling rates, and
promoting sustainable materials. These regulations could increase the industry?s
compliance costs and impact profitability.
Volumes of Major Products have increased by 47%, 61% and 68% in case of
"Closures", "Pet Perform" and "Crown" respectively.
Volatility of Raw Material Prices: The plastic manufacturing industry
is heavily dependent on the price and availability of raw materials such as crude oil and
natural gas. Any fluctuations in these prices can impact the industry?s profitability
and sustainability.
Geopolitical Risks: The plastic manufacturing industry?s global
nature exposes it to geopolitical risks such as trade tensions, political instability, and
supply chain disruptions.
Plastic manufacturing industry faces several challenges and threats,
ranging from environmental concerns to regulatory pressure and competition from other
materials.
Companies in the industry must adapt to changing consumer preferences
and emerging technologies to remain competitive and sustainable in the long run.
Opportunities
The introduction of innovative solutions, such as active packaging,
modified atmosphere, edible and bioplastic packaging extend profitable opportunities to
the market players in the forecast period of 2022 to 2029. Additionally, the awareness
regarding waterborne diseases will further expand the future growth of the plastic
packaging market.
Financial Performance
During the year under review your Company registered total revenue from
Operation of Rs. 35000.18 lakhs as compared to previous year?s revenue of Rs.20963.66
lakhs which shows rise by 67% approx. over the previous year. There is a Net Profit of Rs
1911.85 Lakhs in the year 2022-23 as compared to Net Profit after Tax of Rs. 826.41 Lakhs
from the last year 2021-22.
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 Company?s 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 Chartered Accountants as
Internal Auditor & M/s K. N. Gutgutia & Co. Chartered Accountants 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.
AMD offers a continuously evolving learning environment for its talent
pool. Various training and coaching programmes continue to be implemented to refresh and
enrich its existing talent pool.
The Company leverages diversity of knowledge, qualification, skill,
professional experience, culture, geography and sectoral understanding to enhance its
competitiveness. The Company believes in creating an inclusive environment, where diverse
perspectives can enrich strategic perspectives. To enhance inclusiveness at work, its
gender sensitivity? workshops sensitize the environment in strengthening its conduct
towards women employees.
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 300 numbers of on Roll employees 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:
| S. No. |
Particulars |
As on 31.03.2023 |
As on 31.03.2022 |
Reason of change |
| A. |
Debt Service Coverage Ratio (in times) |
3.70 |
1.98 |
Due to increase in net profit |
| B. |
Return on Equity Ratio (in %) |
12.12% |
6.08% |
Due to increase in net profit |
| C. |
Net profit ratio (in %) |
5.59% |
3.98% |
Due to increase in net profit |
| D. |
Return on Capital employed (in %) |
22.53% |
12.84% |
Due to increase in net profit |
Cautionary Statement
Statement in the Management Discussion & Analysis, describing the
Company?s 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.
|
For AGG & ASSOCIATES |
|
(Company Secretaries) |
|
Sd/- |
|
AMAR GOPAL GAMBHIR |
|
(Proprietor) M.No:3668 |
|
CP No: 3653 |
| Place: New Delhi |
UDIN:F003668E000884559 |
| 40th Annual Report 2022-2023 // 10 |
|
+91-9892691696
