Ashish Polyplast Ltd Management Discussions

MANAGEMENT DISCUSSIONS & ANALYSIS A INDIAS PLASTIC PIPE INDUSTRY

Indias plastic pipe industry experienced significant, double digit growth during 2023-24, driven by infrastructural development projects and a high demand for modern sanitation systems. The adoption of plastic pipes surged across residential, commercial, and industrial sectors due to their cost-effectiveness, durability, and ease of installation compared to traditional materials like metal and concrete. Government initiatives promoting clean water access and sanitation further fueled the market expansion. However, the industry faced challenges also such as environmental concerns surrounding plastic waste and fluctuating raw material prices

B INDUSTRY STRUCTURE AND DEVELOPMENTS:

The plastic pipe industry in India comprises various players catering to various sectors such as agriculture, construction, infrastructure, and utilities. Market is growing due to government initiatives in infrastructure projects and the industry is shaping well due to Regulations on quality and in recent years. In recent years, the demand is steadily increasing due government schemes like Pradhanmatri Aavas Yojna and plans for piped water for every household

C OPPORTUNITIES AND THREATS:

The Governments various welfare schemes in irrigation, drinking water, affordable housing and Smart City projects will give an excellent opportunity to increase the business of your company in the coming years. Replacement of metal plumbing pipes with plastic pipes is already taking place in India. However due to small size of the facilities, company is not able to increase its business. Significant risks and threats to your company are related to threat of competition from small players, geo political disturbances, volatile plastic raw material prices, uncertain import transit time to India. The situation of economic downturn, if it comes, may affect building and construction, farming and industrial sectors; and these may affect the demand of your companys products

D BUSINESS, OPERATIONAL AND FINANCIAL RISKS:

The major risks and concerns which may have an impact on the Companys business are as follows:

1 Indian Economy and International Economic trends

2 Interest rate fluctuations and high rates on inflation

3 Unforeseen circumstances like natural calamities- floods, earthquakes, closure due to violence, pandemic

4 Delay in government spending on infrastructure and welfare schemes

5 Plastic Pipes manufacturing industry is a competitive industry. It reflects with demand-supply chain, trusted quality, and customer confidence is directly linked with economic factors like consumer reliance, technology and its up-gradation etc.

E INTERNAL CONTROL SYSTEMS:

The Company has built adequate systems of internal controls towards achieving efficiency and effectiveness in operation, optimum utilization of resources, and effective monitoring thereof as well as compliance with all applicable laws. The internal control mechanism comprises of well-defined organization structure, documented policy guidelines, pre-determined authority levels and processes commensurate with the level of responsibility.

F FINANCIAL PERFORMANCE:

The highlight of financial performance is discussed in the Directors Report. The Audit Committee also reviews the financial performance of the Company from time to time.

G HUMAN RESOURCES MANAGEMENT:

The Companys ongoing objective is to create an inspirational work climate where talented employees engage in creating sustained value for the stakeholders. The Company has developed an environment of harmonious and cordial relations with its employees.

H CAUTION STATEMENT:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, estimates etc. may be "forward-looking statements" within the applicable laws and regulations. Actual results may vary from those expressed or implied; several factors that may affect Companys operations include Dependency on telecommunication and information technology system, Government policy and several other factors. The Company takes no responsibility for any consequences of the decisions made, based on such statement and holds no obligation to update these in future

I DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO

By Order of the Board For Ashish Polyplast Limited