B&B Triplewall Management Discussions

Annexure- C


Global economy

Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards. The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward.

Region Wise Growth Projections is provided in the exhibit below for your perusal:

Indian Economy

This year began with the anticipation that runaway inflation, aggressive policy rate hikes, and high commodity prices might topple a few major economies into recession in 2023. We are halfway past 2023 and, while the world is still in the woods, the probability of a recession this year has trimmed. Labor markets in several advanced countries remain tight, while the largest economy, the United States, is seeing a rebound in consumer confidence and spending. Risk spreads are declining on both sides of the Atlantic after the recent banking crisis in the United States.

India, meanwhile, enjoys a Goldilocks moment as it sees its economic activity gaining momentum amid continuing global uncertainties. The last quarters GDP data was pleasantly surprising but not completely unexpected. The GDP growth in the fourth quarter has pushed up the full-year GDP growth of FY2022-23 to 7.2%, 200 basis points (bps) higher than the earlier estimate. The recently released Annual Economic Review for the month of May 2023 highlighted that the postpandemic quarterly trajectories of consumption and investment have crossed prepandemic levels.

Evidently, economists and analysts are bullish about the Indian economy. Our growth forecasts for FY2023-24 remain similar to our April forecast, although higher-than- expected growth in FY2022-23 has raised our base for comparison. That said, we have raised our lower limit of the range given the buoyancy of the economy. We expect India to grow between 6% and 6.3% in FY2023-24 and have a stronger outlook thereafter. In fact, if global uncertainties recede, we expect growth to surpass 7% over the next two years.

There are multiple downside risks to our forecasts, but we find the uncertainties around the actions of the central banks of major economies and the oil price movements this past quarter particularly interesting. In this edition, we highlight the significance of these developments and their future implications for India.

Economic Outlook

After real GDP contracted in FY 2020-21 due to the COVID-19 pandemic, growth bounced back strongly in FY 2021-22, supported by accommodative monetary and fiscal policies and wide vaccine coverage. Consequently, in 2022, India emerged as one of the fastest growing economies in the world, despite significant challenges in the global environment - including renewed disruptions of supply lines following the rise in geopolitical tensions, the synchronized tightening of global monetary policies, and inflationary pressures.

In FY 2022-23, Indias real GDP expanded at an estimated 6.9 percent. Growth was underpinned by robust domestic demand, strong investment activity bolstered by the governments push for investment in infrastructure, and buoyant private consumption, particularly among higher income earners. The composition of domestic demand also changed, with government consumption being lower due to fiscal consolidation.

Since Q3 FY 2022-23, however, there have been signs of moderation, although the overall growth momentum remains robust. The persisting headwinds - rising borrowing costs, tightening financial conditions and ongoing inflationary pressures - are expected to weigh on Indias growth in FY 2023-24. Real GDP growth is likely to moderate to 6.3 percent in FY 2023-24 from the estimated 6.9 percent in FY 2022-23.

Both the general government fiscal deficit and public debt to GDP ratio increased sharply in FY 2020-21 and have been declining gradually since then, with the fiscal deficit falling from over 13 percent in FY 2020-21 to an estimated 9.4 percent in FY 2022-23. Public debt has fallen from over 87 percent of GDP to around 83 percent over the same period. The consolidation has largely been driven by an increase in revenues and a gradual withdrawal of pandemic-related stimulus measures. At the same time, the government has remained committed to increasing capital spending, particularly on infrastructure, to boost growth and competitiveness.

Global Packaging Industry Overview

The Global Packaging Market size is expected to grow from USD 1.10 trillion in 2023 to USD 1.33 trillion by 2028, at a CAGR of 3.94% during the forecast period (2023-2028).

The global packaging business has experienced consistent growth over the last decade due to substrate choice changes, expansion of new markets, and changing ownership dynamics. Traditional packaging may continue to be replaced by flexible packaging, high- barrier films, and stand-up retort pouches may challenge rigid pack formats like metal tins and glass jars for a wide range of food products.

With the rising consumption of sweets and confectionery, several flexible plastic packaging providers are offering packaging solutions, specifically catering to this demand, and are further driving their sales and revenues. For instance, according to the US Census Bureau, confectionery manufacturing industry revenue in the United States is expected to reach USD 10.89 billion by FY 2023.

According to the Flexible Packaging Association, flexible packaging is mainly used for food, which accounts for more than 60% of the total market. Since it could incorporate new solutions for various packaging issues, the flexible packaging industry is experiencing robust growth. In addition, the Indian food and grocery market is the worlds sixth-largest, according to IBEF, with retail accounting for 70% of sales. The Indian food processing industry, which contributes to 32% of the countrys overall food market, ranks fifth in production, consumption, and export and is one of the countrys most important industries.

The sustainability trends, including recycling and using bio-degradable forms of PET, are expected to rise over the forecast period. In some regards, it will always face sustainability issues due to the nature of its production. However, the recycling streams and development will help neutralize such sustainability issues. For instance, the Coca-Cola European partners pledged to collect 100% of the packaging and use 50% recycled plastic in plastic PET bottles in Western Europe by 2025. PepsiCo aims to use 50% of recycled plastic in its bottles across the European region by 2030, with an interim target of around 45% by 2025. Also, various large food manufacturers are under pressure from campaigners and consumers and are currently on a mission to rethink their plastic packaging and move towards a circular economy. For instance, Nestle and Mondelez recently signed the European Plastics Pact. This initiative is committed to making 100% of packaging recyclable or reusable and reducing virgin plastic usage by 2025.

Indian Packaging Industry Overview

The India Packaging Market size is estimated at USD 71.90 billion in 2023, and is expected to reach USD 130.14 billion by 2028, growing at a CAGR of 12.60% during the forecast period (2023-2028).

The demand for packaging in India has expanded drastically, spurred by the rapid growth in consumer markets, especially in processed food, personal care, and pharmaceutical end-user industries. Packaging is Indias one of the fastest growing sectors. Over the last few years, the industry has been a key driver of technology and innovation, contributing to various manufacturing sectors, including agriculture and the fast-moving consumer goods (FMCG) sectors. The packaging industry is driven by the factors such as rising population, increasing income levels, and changing lifestyles are anticipated to drive consumption across various industries leading to higher demand for packaging product solutions. Moreover, demand from the rural sector for packaged products is fueled by the growing media penetration through the internet and television.

On 11 November 2021, the government announced the production-linked incentive (PLI scheme) to incentivize firms in 10 sectors to drive local manufacturing and improve exports to control the disruption in the supply chain scenario. In addition, there is Atmanirbhar and the structural reforms, which should boost growth prospects for packaging in India. Furthermore, according to Western India Corrugated Box Manufacturers Association, the market for corrugated boxes in India needs to hike prices by 35% to offset kraft paper and conversion cost hikes to survive the current situation.

According to the Indian Institute of Packaging (IIP), packaging consumption in India is increased by nearly 200% in the last decade, from 4.3 kilograms per person per annum (pppa) in 2010 to 8.6 kilograms pppa in 2020. Despite the sharp growth over the last decade, this industry remains a large space for growth compared to other developed countries worldwide. Furthermore, India is emerging as an organized retail destination globally. The presence of e-commerce is increasing rapidly and is bringing around a revolution in the retail sector, driving the need for packaging. Retailers are now leveraging digital retail channels, thus enabling wider reach out to customers with fewer amounts of money spent on real estate. Thus, organized retail services and the boom in e- commerce offer enormous potential for the future growth of retailing in India, which in turn is promoting the growth of the packaging sector.

Global Corrugated Boxes Overview

he global corrugated boxes market size reached US$ 198.8 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 229.9 Billion by 2028, exhibiting a growth rate (CAGR) of 2.38% during 2023-2028. The significant expansion in the e- commerce industry, the rising demand for sustainable packaging solutions, and the increasing utilization of corrugated boxes for customization and branding applications in several industries are some of the major factors propelling the market.

The increasing awareness and importance of environmental sustainability have led to a growing demand for eco-friendly packaging options leading to the widespread adoption of corrugated boxes. Moreover, corrugated boxes are made from renewable and recyclable materials, primarily paperboard derived from trees. As consumers and businesses become more conscious of their ecological footprint, they are seeking packaging solutions that minimize environmental impact. Besides this, corrugated boxes can be easily recycled after use, which helps conserve resources, reduce waste sent to landfills, and promote a more sustainable economy. Furthermore, the lightweight nature of corrugated boxes contributes to energy efficiency during transportation, requires less fuel, and generates fewer carbon emissions during shipping, which is also contributing to market growth.

Indian Corrugated Boxes Overview

The India corrugated boxes market size reached US$ 6.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 12.3 Billion by 2028, exhibiting a growth rate (CAGR) of 10.8% during 2023-2028. The growing usage in the food and beverage (F&B) industry for improving safety, thriving e-commerce industry, and favorable government initiatives represent some of the key factors driving the market.

India Corrugated Boxes Market Trends:

Presently, the rising demand for corrugated boxes in the food and beverage (F&B) industry, as they offer improved safety, resistance to bacterial infection, and keep the food fresh for a long period of time, represents one of the key factors driving the market in India. In addition, the growing demand for corrugated boxes due to the rising preference of consumers toward online shopping is positively influencing the market in the country. Besides this, the increasing consumer preferences for lightweight and innovative packaging materials is contributing to the growth of the market in India. Additionally, the rising demand for corrugated boxes due to the restrictions of utilizing wooden packaging in exports is impelling the growth of the market. Apart from this, the increasing demand for corrugated boxes, as they efficiently deliver products without any damage or deterioration in a sustainable manner, is offering lucrative growth opportunities to industry investors. In line with this, the rising awareness among consumers about the harmful impact of using non-biodegradable packaging materials is strengthening the growth of the market. Moreover, the Government of India is encouraging the adoption of corrugated boxes and focusing on recycling and waste reduction, which is offering a positive market outlook. Furthermore, key players are introducing graphic designed customized corrugated boxes to increase product sales and offer greater flexibility to consumers. These innovations are projected to fuel the marker growth in India.


We are the company in India to have an installed capacity of 5000 tonnes/month, within a single facility, and a combined installed capacity of 9300 tonnes/month from all our facilities. The latest technology employed in manufacturing the corrugated boxes is a pointer to the high professionalism. We endeavour to maintain safety in our premises by adhering to key safety norms. We ensure timely delivery of our products and easy logistics.

The manufacturing facilities are fully automated and the entire manufacturing process is managed through fully automatic machines including corrugation machine, printing, converting machines. The company has setup a neat and clean structure, invested heavily in technology and modern facility which will make it attractive to MNCs to collaborate for their India footprints. This will help the company attract investment and thus make its growth plans a reality. Companys qualitative approach has helped Company to obtain status of recognized vendors with large corporate houses and MNCs. Moreover, Company is also in process to setting-up Kraft paper unit which fulfil the need of the basic need of raw material for the production of corrugated boxes which simultaneously increase in the market share of company in the packing industries.


The Company is one of the largest manufacturers of corrugated boxes in the country. It is equipped with state-of-the-art machinery. With industry experience scanning decades, healthy business relationships with existing customers and constant additions of new customers to the portfolio, the Company is consistently growing year on year.

Along with onboarding prospective customers, the Company also sees an opportunity to add value to customers packaging needs by using high graphics while printing corrugated boxes, since these arts and graphics act as a medium of advertising for end consumers.

An alternative for corrugated packing would serve as a threat to the company and the industry as a whole. However, keeping in mind the initiatives undertaken by countries around the world, corrugated packaging is seen as a bio-degradable, recyclable and sustainable packing medium that in turn has the potential to replace non-sustainable packaging materials.

SWOT Analysis

> Opportunities:

1. Indian FMCG industry is growing at a faster rate

2. Shift towards sustainable packaging

3. Surge in the e-commerce sector

> Strength:

1. Experienced and efficient management team

2. Technically advanced and large capacity plants

3. Diverse customer portfolio

4. Satisfied customers

5. Company reducing Debt

6. Company with Zero Promoter Pledge

> Weaknesses:

1. Extremely competitive market

> Threats:

1. Easily replaceable as a supplier of generic product

2. Highly flammable products

The company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers. Automation of activities brought consistency of quality and has enabled the company to scale up and scale down based on the demand conditions in the market. Successful track record of developing new products - product innovation. B&B has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Over the years B&B has built a reliable distribution network that can reach majority of its potential market. B&B is successful in installing the board line BHS (Germany), flexo folder & gluer BOBST from France.

We are easily replaceable as a supplier of a generic product, but to counter this we have setup a technically advanced facility and we provide unparalleled service to the satisfaction of the dynamic requirements of the customers.

Progress in Craft paper manufacturing unit.

During Financial year 2020-21, Our company had planned to Set-up of Craft paper manufacturing unit in SIPCOT Industrial Park at Bargur, Tamil Nadu. Setting-up of unit will ensure the timely supply of raw material and make the company to focus to increase the client based. Capacity planned for kraft paper unit is 7500MT per month.

During Financial Year 2021-22, Our Company had placed the order with vender for following Machinery:

• Pulping Machine

• Paper waste cutting Machine

• Waste Management Machine

Apart of ordering Machinery, Our Company start Construction of Compound wall, Office Building, Parking, Security Room and other Construction work need in project During Financial Year 2022-23, the main building construction has almost been completed. Other structures like the boiler area, security & office area, ETP, Raw material area are also halfway to completion. Most the major machineries are arriving and the installation of machineries have started. We expect the trials to commence by Oct-2023.


Our Company has operated in single segment and total revenue have generate from sale of Corrugated boxes. During the Financial Year 2022-23, revenue generated was Rs. 33,684.36 Lakhs.


Continuing with the system of benchmarking the manufacturing processes against industry best practices, upgradation of real time quality assurance systems and induction of state-of-the-art technology for its products and achieved higher levels of productivity and product excellence.

The Company implemented several initiatives encompassing cost management, supply chain optimization, smart procurement, long term coal linkages and productivity improvement through automation which helped in absorbing escalation in input costs, product development etc.

The state-of-the-art manufacturing facilities along with market leadership in value added corrugated boxes, world class product quality, established supply chain system strategically positions your company to further enhance its leadership status in the Indian corrugated boxes in coming years.


In todays challenging business environment, companies operating in a global market are faced by uncountable numbers of risks. An increase in the prices of our basic raw material, i.e., Kraft Paper and Glue could rise our manufacturing costs and could adversely affect our profitability is one of the major risks in our industry. Any significant decline in the demand of our products, introduction of alternative technology or consumer habits or slowdown of the industry in which we operate may adversely affect our profitability and business prospects. We generate our major portion of sales from our operations in certain geographical regions especially Karnataka, Telangana, Andhra Pradesh and Tamil Nadu. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations. Our company is mainly engaged in manufacturing of corrugated board and boxes from corrugated paper sheets which are highly flammable. This may result to catch fire quickly which may adversely affect our business. Although the company has taken the necessary precaution as required for Fire Safety as per the Tamil Nadu Fire Service Act 1985 and adequate insurance has been taken. Change in the government policies can pose a challenge for the company.

Risks Mitigation
Impact of pandemic may continue for an extended period of time and this could materially affect revenue growth and profitability • Expand presence in segments that are relatively unaffected by the pandemic
• Diversified revenue mix covering different segments and geographies
• limiting the exposure to a single customer to 10%
Inability to innovate and develop new services and solutions to keep up with customer expectations and Inability to co-op with new technologies which could result in lower growth traction • Focus on innovation and development of solutions and accelerators to reduce time- to-market for customers
• Continuous competency and capability building in leading edge technologies supported by investments in state-of-the- art machines and production equipments.
Loss of market due to emergence of more competitors and clients going towards a more cost-efficient solution • Increase in the level of automation around the whole production process
• Deployment of additional work force towards market penetration
• Deploying more efficient machines to mitigate the rising cost of inputs and deployment of funds in other factors.
Reduction of top line and bottom line and insufficiency to generate enough margins • Constantly focusing on large corporates to improve top line. Targeting mid-size corporates to improve bottom line
• Increasing the production capacity as to cater to more number of customers and achieve higher level of efficiencies

Impact on supply chain by any external factor in the area around existing manufacturing facilities

• Development of new facilities in different location

• Further developing warehousing facilities at various location and capturing larger geographies.


Your Company has an adequate and effective Internal Control Mechanism in place to ensure efficient conduct of its operations, security of assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records and the timely preparation of reliable financial information as per its Management Information System (MIS). These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations and protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

Apart from strong internal control, your Company has also appointed Internal Auditor for periodical checking and monitoring the Internal Control Measures.

Internal Auditors are present at the Audit Committee Meetings where Internal Audit Reports are discussed alongside of management comments and the findings and observation of the Internal Auditors. The Terms of Reference of the Audit Committee inter alia includes reviewing the adequacy of the internal control environment, monitoring implementation of the action plans emerging out of Internal Audit findings including those relating to strengthening Companys Risk Management Systems and discharge of statutory mandates.

Your Company has a Comprehensive Budgetary Control System in operation and its Key Performance Indicators (KPI) are set for all important operational parameters. These are monitored and reviewed regularly by the management in Management Meetings, in which heads all departmental participated and necessary corrective and preventive actions are being initiated.


The Financial Statement of the Company have been prepared in accordance with the Indian Accounting Standard (IND-AS) Specified under Section 133 of the Companies Act, 2013 and the applicable Rules, as amended from time to time and other provision of applicable laws. The Company continues to see marginal growth in its overall performance in the financial year 2022-23 driven by the performance of the segment in which the Company operates. The total income of the Company increased to Rs. 33,684.36 Lakhs as against Rs. 31,260.18 Lakhs in the previous year.


There were no significant changes as compared to the immediately previous Financial Year in key financial ratios pertaining to the Company.

Particular Ratio as on 31 March 2023 Ratio as on 31 March 2022 % Change Explanations
Debtors Turnover 6.21 7.01 -11.41% -
Inventory Turnover 4.54 5.13 -11.5% -
Interest Coverage Ratio 6.31 9.63 -34.48 Increase in Interest cost
Current Ratio 1.49 1.66 -10.24% -
Debt Equity Ratio 1.17 0.66 -77.27% Increase in Debt
Operating EBITDA Margin (%) 11.71 14.51 -19.24 Decrease in Turnover and Profit
Operating Profit Margin i%! 9.04 11.93 -24.22 Decrease in Turnover and Profit
Net Profit Margin (%) 5.37 7.82 -31.24 Decrease in Turnover and Profit


Details of change in Return on Net Worth as compared to the immediately previous Financial Year as follows:

Particular Ratio as on 31 March 2022 Ratio as on 31 March 2021 % Change Explanations
Return on Net Worth 0.17:1 0.28:1 -39.29 Decrease in Net Profit


Highly capable and skilled human resources with strong motivation and dedication is the backbone of your companys success and growth. From its foundation, companys employment philosophy and practices have been based on the recognition that its people are the primary source of its competitiveness.

Your Company consistently abides by human resources policy that is found on a set of following principles: equality of opportunity, continuing personal development, fairness, mutual trust and teamwork. The company takes several measures for suitable appointment, skill development and retention of human resources including but not limited to effective appointment system, employee training (on duty as well as structured trainings), goal setting, performance based appraisal, retention by creation of a nice work place, employee engagement activities and leadership development.

Your Companys employees have collectively envisioned the future with commitment to realise your Companys vision of creating enduring value for the company as well as for the society at large.

The total permanent staff strength of the Company as on March 31, 2023 was 396.

The Company does not engage in any form of child labour/forced labour/involuntary labour and does not adopt any discriminatory employment practices.


Statement in this report on Management Discussion and Analysis describing the company objectives, projections, estimates, exceptions or predictions may be forward looking statement and are based on certain assumption and exception of future events. Actual result could however differ materially from those express or implied. Important factors that could make a difference to the Companys operation including global and domestic demand- supply condition, finished goods process, raw material cost and availability, change in government regulations and tax structure, economic development within India and the countries with which the company has business contract and other factors such as litigation and industrial relation.

The company assumes no responsibility in respect of forward-looking statement herein which may undergo changes in future on the basis of subsequent development information and event.