Bulkcorp International Ltd

Bulkcorp International Ltd Management Discussions

NSEBSE

₹75

(4.17%)

Aug 25, 2025|12:00:00 AM

Bulkcorp International Ltd Share Price Management Discussions

1. Global Economy and Outlook:

Global growth continues to show signs of deceleration, with several major advanced economies experiencing slower growth or contractions in the third quarter of F.Y. 202425. Japans GDP contracted sharply by 2.1% annualized, while the eurozone also faced a minor contraction of 0.2%. Similarly, the United Kingdoms economy showed a marked slowdown, with GDP growth stalling at 0% in the third quarter, compared to 0.2% in the previous quarter. In contrast, the United States remained a strong performer, with real GDP growth accelerating to 4.9% annualized, up from 2.1% in the prior quarter. This strong growth in the US was driven by robust consumer spending, higher business investments, and resilient labor markets.

In October 2024, the official National Bureau of Statistics Manufacturing PMI declined to 48.7 (compared to 50.2 the previous month), marking the sixth time in the last seven months it has fallen below the threshold of 50. This reflects ongoing challenges within the manufacturing sector, as output and new orders remain subdued. Meanwhile, the NonManufacturing PMI also saw a slight dip in October, dropping to 51.4 from 52.1 in the previous month. Despite this decline, it remained above the neutral 50 mark, signaling continued expansion in the services sector, driven by growth in sectors like retail and business services.

2. Indian Economy and Outlook:

The ongoing slowdown in global economic growth, exacerbated by persistent inflationary pressures and the protracted RussiaUkraine conflict, continues to impact Indias economic performance. The country posted a subdued growth rate of 4.2% in Quarter four of 2024, down from 5.8% in Quarter three of 2024, largely due to weakened private consumption and export demand, which remain sluggish amid global uncertainties. Indias real GDP growth for the fiscal year 202425 is projected to be around 6.2%, a significant decline from the 7.2% growth recorded in the previous fiscal year. However, certain sectors continue to show resilience. Record sales in passenger vehicles (surpassing 40 Lakhs units in 2024), robust demand in the agricultural machinery sector, and an uptick in domestic air travel point to a more resilient consumer market, offering some hope for the broader economy.

Despite a mild deceleration midyear, India remains a major growth beacon. For F.Y. 202425, real GDP rose by 6.5%, with a strong 7.4% bounce in Q4, while nominal GDP expanded 9.8%. Private consumption grew by 7.2% and gross fixed capital formation by 7.1%, accelerating to 9.4% in the final quarter. The FY 202526 Union Budget boosted capital expenditure by 37%, allocating 11.11 lakh crore (3.4% of GDP), and introduced full tax rebates up to 12.75 lakh enhancing disposable incomes and discretionary spending. Regulatory reforms under Jan Vishwas, Shram Suvidha and Samadhan, alongside expanded safe harbour rules, have streamlined over 39,000 compliance items and decriminalised 3,400 provisions, fostering ease of doing business. With bank credit up 9.5% in Q1 and cooling inflation prompting potential rate cuts, the financial landscape remains conducive to continued investment, job creation and sustainable growth.

Despite recent policy support, unemployment remains a concern, at 5.6% in June 2025 (urban 7.1%, rural 4.9%), with youth joblessness persistently high. Inflation has eased sharply from a spike over RBIs tolerance band to just 2.1% in June with core inflation holding near 4.3%. Reflecting this disinflation, the RBI cut its repo rate from 6.5% to 5.5% between February and June and trimmed its

CRR, signaling a neutral, growthsupportive stance. While easing food and commodity prices have helped tame headline inflation, cost pressures in services and global uncertainties remain potential risks. Overall, robust domestic demand, favorable policy initiatives, and accommodative monetary policy are expected to keep India among the fastestgrowing major economies, though global slowdown and monetary tightening abroad could dampen the outlook.

3. Industry structure and development:

Our manufacturing facility boasts a stateoftheart inhouse testing laboratory to ensure that all finished products adhere to the stringent quality standards set by our customers. All our FIBC (Flexible Intermediate Bulk Container) bags are manufactured in strict compliance with ISO 21898:2023, and have undergone rigorous quality testing at wellregarded, accredited laboratories. We primarily source our raw materials from Gujarat, leveraging the regions robust industrial base and proximity to key suppliers. Located strategically along the National Highway and in a developed industrial zone, our manufacturing unit benefits from significant operational advantages, including streamlined transportation, reduced lead times, and optimized logistics, which enhance overall efficiency and costeffectiveness. These logistical advantages ensure that we can deliver highquality products to our customers in a timely manner.

As per the Indian Flexible Intermediate Bulk Container Association, the FIBC (Flexible Intermediate Bulk Container) market in India has witnessed a substantial expansion growing by nearly 38% over the past decade. In FY 2024 25, Indias FIBC production is estimated to have exceeded 340,000 metric tonnes, reflecting steady demand across agriculture, chemicals, and food processing sectors. Foodgrade FIBC bags continue to gain strong momentum, now representing close to 30% of total FIBC production, driven by heightened hygiene standards, regulatory compliance, and increased export demand from food and pharma sectors.

4. Opportunities and Threats: Opportunities:

Growing demand for FIBC Bags;

Export Potential;

Government support for Manufacturing sector;

Strategic location advantage; and

Technological advancements in Packaging.

Threats:

Volatility in Raw Materials price;

Intense Industry Competition;

Regulatory and Compliance Risks;

Dependence on a Single Geography for Raw Materials; and

Foreign Exchange Fluctuations (for Exports).

5. Future Outlook:

To expand our business, we intend to rapidly develop our reach in the domestic markets by expanding our sales network. We intend to grow our business swiftly by adding new customers. We generate major domestic sales from state of Gujarat. With the continuous growth in industries such as the agriculture, chemical, construction, food products, pharmaceutical and others, opportunities for growth in packaging industry has increased and thus, we aim to tap these markets for further marketing and supply.

6. Risks and concerns:

While the Company remains focused on growth and operational excellence, it is mindful of the potential risks and challenges that may impact its business performance. The key risks and concerns are outlined below:

Raw Material Price Volatility; Supply Chain Dependency; Intense Market Competition; Regulatory and Compliance Risks; Export and Currency Risks; Operational Risks; Technology Obsolescene; and Environmental and Sustainability Concerns.

7. Internal control systems and their adequacy:

The Companys internal control framework focuses on strong governance, a vigilant finance function, and independent internal reviews. Risk assessment exercises prioritise the businesss key risks, guiding the formulation of strategies. The Audit Committee regularly reviews and takes appropriate action based on any deviations, observations, or recommendations from internal auditors. The Company is committed to upholding best practices in corporate governance, supported by welldocumented policies and procedures to ensure compliance with all relevant regulations. Robust IT systems are in place to protect sensitive data and streamline the audit process. Accounting standards are strictly adhered to when recording transactions. Alongside robust Management Information Systems (MIS), the Company employs various strategies for realtime expense reporting to maintain control. Any deviations from budget allocations are promptly identified and corrected to ensure strict compliance.

8. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 202425 is described in the report of Board of Directors of the Company.

9. Segmentwise or Productwise performance:

The Company operates in single Segment i.e. Manufacturing of FIBC Bags.

10. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employeremployee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

11. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector specific financial ratios. In this regard, the Company has no significant changes in any key sector specific financial ratios to report.

12. Caution Statement:

Certain statements in the MDA section concerning future prospects may be forwardlooking statements which involve a number of underlying identified/nonidentified risks and uncertainties that could cause actual results to differ materially. The results of these assumptions made, relying on available internal and external information, are the basis for determining certain facts and figures stated in the report. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also subject to change accordingly. These forwardlooking statements represent only Company current intentions, beliefs or expectations, and any forwardlooking statement speaks only as of the date on which it was made. Company assumes no obligation to revise or update any forwardlooking statements, arising due to new information, future events, or otherwise.

Registered Office: By the order of the Board of,

309, Safal Prelude, Corporate Road, Bulkcorp International Limited Off Prahalad Nagar Auda, Garden, Ahmedabad, Gujarat, India 380 015

Sd/ Sd/ Punit Gopalka Anup Gopalka Place: Ahmedabad Managing Director Wholetime Director Date: 6^th August, 2025 DIN: 02892589 DIN: 01114195

Bulkcorp International Ltd Management Discussions

Bulkcorp International Ltd Share Price Management Discussions

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