B J Duplex Boards Ltd Management Discussions

As per Regulation 34(2) (e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report is as follows:

A. INDUSTRY STRUCTURE & DEVELOPMENT

• GLOBAL PAPER INDUSTRY:

The global paper products market has experienced robust growth in recent years and is set to continue this trend. In 2023, the market size reached $1,059.15 billion and is projected to grow to $1,134.94 billion in 2024, representing a compound annual growth rate (CAGR) of 7.2%. This growth can be attributed to the rising demand for packaging paper from retail companies and increasing awareness of sustainable practices.

Looking ahead, the market size is expected to expand further, reaching $1,474.93 billion by 2028 at a CAGR of 6.8%. The forecasted growth is driven by rapid technological advancements and escalating demand from the e-commerce sector. Key trends anticipated during this period include the adoption of 3D printing, the integration of artificial intelligence, a surge in acquisition activities, the utilization of recycled materials to create recyclable products, and a heightened focus on sustainability.

Opportunities and Growth Drivers

• E-commerce Expansion: Rapid growth in online retail has boosted demand for corrugated boxes and protective packaging.

• Plastic Substitution: Increasing restrictions on single-use plastics are shifting consumer and corporate preference toward paper-based packaging.

• Food & Beverages Sector: Rising consumption of ready-to-eat and packaged food has enhanced demand for food-grade paper and board.

• Education and Print: Though digitization poses challenges, rural literacy programs and educational initiatives continue to support demand.

• Export Opportunities: Indias competitive cost structure and abundance of raw materials provide strong export potential.

? INDIAN PAPER INDUSTRY OVERVIEW:

Indian Paper Industry Overview

The Indian paper industry is one of the fastest growing among global markets, driven by packaging demand, rising literacy, and sustainability trends. Currently, India is the fifth-largest producer of paper in the world, with an estimated production capacity of over 25 million tonnes per annum, projected to reach 30 million tonnes by 2030.

Key highlights:

• Packaging Paper & Board is the largest segment, accounting for nearly 60% of demand, fueled by e-commerce, FMCG, pharmaceuticals, and food services.

• Writing & Printing Paper constitutes about 25%, supported by the education sector, though partly impacted by digitization.

• Newsprint has seen a structural decline due to digital media consumption.

• Specialty Papers (cup stock, decor, tissue, food-grade) are witnessing rapid growth due to bans on s ingle-use plastics and rising consumer awareness.

B. OPPORTUNITIES AND THREATS ANALYSIS OF THE INDIAN PAPER INDUSTRY: THREATS:

• Raw Material Volatility - Heavy dependence on imported wood pulp and wastepaper makes the industry vulnerable to global price fluctuations.Rising Costs - High energy, transportation, and compliance costs reduce profit margins.

• Digital Disruption - Increasing digital adoption is structurally reducing demand for newsprint and traditional writing paper.

• Environmental Regulations - Stringent norms for effluent treatment, emissions, and waste disposal require significant capital expenditure.

• Competition from Substitutes - Despite plastic bans, low-cost alternatives like reusable packaging, jute, or bioplastics pose challenges.

• Global Economic Uncertainty - Export growth may be affected by currency fluctuations, recessionary trends, and trade barriers.

• Fragmented Industry Structure - Presence of a large number of small and unorganized players limits economies of scale and impacts pricing discipline.

OPPORTUNITIES:

• Packaging Boom - Rising e-commerce, FMCG, pharmaceuticals, and QSR demand is driving strong growth in packaging paper and board.

• Plastic Substitution - Government ban on single-use plastics and growing environmental awareness are creating huge opportunities for paper-based alternatives.

• Rising Literacy and Education - Government schemes, rural education programs, and increasing literacy rates support demand for writing and printing paper, particularly in semiurban and rural markets.

• Export Potential - Indias cost competitiveness, large domestic fiber base, and expanding capacity open avenues for exports, especially to Asia and Africa.

• Specialty Paper Growth - Tissue paper, decor paper, food-grade paper, and cup stock are expected to witness strong demand due to hygiene consciousness and lifestyle changes.

• Technological Upgradation - Adoption of energy-efficient processes, recycling technologies, and automation will improve productivity and cost competitiveness.

• Government Support - Initiatives like “Make in India,” Swachh Bharat Abhiyan, and extended producer responsibility (EPR) policies encourage sustainable paper production.

C. SEGMENT-WISE PERFORMANCE:

The Company operated in only one business segment i.e. Paper/ Paper board (including Duplex Board) at New Delhi. Moreover, at present the Company is not operative and thus and have any active business engagements.

D. OUTLOOK:

The global economy is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025 will be offset by a modest slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. The forecast for global growth five years from now at 3.1 percent is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. Core inflation is generally projected to decline more gradually.

E. RISKS AND CONCERNS:

• Risks and Concerns

• Raw Material Volatility: Prices of wood pulp, recycled fiber, and chemicals remain highly volatile, impacting margins.

• Environmental Regulations: The industry is subject to stringent norms on effluents, emissions, and waste management.

• Digital Disruption: Growing digital adoption has reduced demand for printing and writing paper.

• Logistics and Energy Costs: High transportation and power tariffs affect competitiveness.

• Global Economic Slowdown: Fluctuations in international trade may impact export demand.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate internal control system for business processes, with regard to efficiency of operations, financial reporting and controls, compliance with applicable laws and regulations etc., clearly defined roles and responsibilities for all managerial positions have also been institutionalized. All operating parameters are monitored and controlled. Regular internal audits and checks ensure that responsibilities are executed effectively. The Audit Committee of the Board of Directors periodically reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening these.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

This has been dealt with in the Directors Report.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Since, there were no material developments in human resources / industrial relations front, including number of people employed during the year under review therefore, this provision is not applicable to the Company.

I. DETAILS OF SIGNIFICANT CHANGES (I.E., CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS

No significant changes took place in the key financial ratios of the Company; therefore, this provision is not applicable to the Company.

J. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF.

The Company has been facing financial challenges from past few fiscal years, reporting losses in such financial years. Due to no good/profitable track record in the Company, therefore there were

no/negative returns on the Net Worth of the Company and no change in return on net worth compared to the immediately previous financial year.

K. ACCOUNTING TREATMENT

There has been no change in the accounting policies during the period under review. Further, no treatment different from that prescribed in the applicable Accounting Standards has been followed in the preparation of the financial statements. Accordingly, the disclosure requirements under Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 do not arise.

However, it is noted that with effect from April 1, 2019, the provisions relating to Indian Accounting Standards (Ind AS) became applicable to the Company, and the financial statements have since been prepared in compliance with the same.

CAUTIONARY STATEMENT

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.