Aztec Fluids & Machinery Ltd Management Discussions

For the Financial Year 2024–25

1. Opportunities and Outlook

The market outlook for Aztec Fluids and Machinery Limited remains highly promising, supported by several converging growth drivers. Increasingly stringent regulatory compliance requirements across industries such as pharmaceuticals, food and beverages, agrochemicals, and consumer goods are pushing manufacturers to adopt advanced, reliable, and traceable coding and marking solutions. Simultaneously, the ongoing expansion of the manufacturing sector—driven by Make in India, ProductionLinkedIncentive(PLI)schemes,andglobal supply chain diversification—has resulted in rising investments in modern production infrastructure. The rapid growth of e-commerce and organized retail has further amplified the need for product-level identification, customized packaging, and fast, flexible production lines. In this evolving landscape, product traceability and supply chain transparency are no longer optional; they are strategic imperatives and key differentiators for brand trust and market competitiveness. Against this backdrop, Aztec is poised to enter a transformative phase in its growth journey, driven by the introduction of comprehensive automation solutions across multiple industries. While many industrial sectors have made significant strides in modernizing their manufacturing processes, a considerable portion of the market still relies on manual or semi-automated printing systems that require constant operator involvement. Such systems, although functional, are often limited by slower speeds, inconsistent quality, higher labour dependency, and inadequate integration with broader production workflows. These limitations result in operational ineffciencies, increased downtime, and reduced agility in responding to changing market demands.

Aztecs vision is to bridge this gap by delivering automation solutions that seamlessly integrate advanced printing technologies with modern material handling and digital control systems. By combining our proven expertise in CIJ, TIJ, DOD, and Laser printing technologies with smart conveyors, automated product handling units, and precision positioning systems, we aim to create a single, synchronized ecosystem for coding, marking, and packaging operations. These systems will be capable of interfacing directly with ERP (Enterprise Resource Planning), MES (Manufacturing Execution Systems), and track-and-trace platforms, enabling real-time data flow between the production floor and enterprise management systems.

Our automation platforms will be modular and scalable, allowing them to be configured for specific industry requirements while maintaining the flexibility to adapt to evolving production needs. They will support both high-speed, high-volume manufacturing environments and smaller-scale, multi-product lines, thereby serving a wide range of customer profiles—from large multinational corporations to rapidly growing domestic enterprises.

A critical component of this strategy is the integration of Industry 4.0-ready features such as IoT-based performance monitoring, remote diagnostics, and AI-driven predictive maintenance. These capabilities will enable customers to shift from reactive maintenance practices to predictive, data-driven workflows, significantly improving uptime, reducing unplanned stoppages, and optimizing the total cost of ownership. Furthermore, by embedding advanced analytics into these systems, we will empower customers with actionable insights into line performance, consumable usage, and coding quality trends, helping them make faster and better-informed operational decisions.

By positioning Aztec as a technology integrator rather than solely an equipment supplier, we will not only broaden our addressable market but also move higher up the value chain in customer relationships. This approach strengthens long-term engagement, opens opportunities for subscription-based service models, and creates sustainable recurring revenue streams from maintenance contracts, consumables, and software solutions. Ultimately, our automation-led strategy will enable Aztec to set new benchmarks for effciency, compliance, and innovation in the coding and marking industry, both in India and in international markets.

ANNEXURE A TO BOARDS REPORT

(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of section 188 of the Act including certain arms length transactions under the third proviso thereto.