Bulkcorp International Ltd Management Discussions

1. Global Economy and Outlook:

Global growth is projected at 3.3 percent for 2026 and 3.2 per cent for 2027, revised slightly up since the October 2025 World Economic Outlook. Technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offset trade policy shifts.

Global inflation is expected to fall, but US inflation will return to target more gradually. Key downside risks are re-evaluation of technology expectations and escalation of geopolitical tensions. Since the October 2025 WEO, trade tensions have continued to abate but remain subject to occasional flare-ups. A dispute between China and the United States involving controls on exports of semiconductors and rare earth minerals was quickly followed by a truce that reduced bilateral tariffs until November 2026 and introduced a pause on export controls.

There is scope for further favourable surprises, but numerous adverse risks pull the distribution of outcomes in the opposite direction. Prominent risks and uncertainties surrounding the outlook.

2. Indian Economy and Outlook:

The year 2025 marked an inflection point: Policy overhauls across Western economies—particularly in trade, investment, and industrial policy—triggered spillover effects across all major global markets. India was not immune to these shifts. Intricately connected to global value chains, India, the worlds fourth-largest economy and a major global trading partner, faced external shocks and acute effects from these global policy changes, including tariff escalations and volatile capital flows. As India enters 2026, several themes will shape the next phase of growth and demand the same level of pragmatism. Growth is expected to stand between 7.5% and 7.8% in fiscal 2025 to 2026, and then between 6.6% and 6.9% in fiscal 2026 to 2027, buoyed by the rollout of new goods and services tax (GST) rules and slowing inflation. India is expanding its reach across Africa, Latin America, and West Asia, and recent BRICS and G20 engagements have focused on collaboration in energy, critical minerals, and digital infrastructure.

Three of the biggest global risks for India in 2026 will come from:

• US tariff policies and the conclusion of the India-US trade deal, which remains unpredictable.
• Chinas slow recovery and its dominance in critical minerals, which India must monitor as it recalibrates its relationship with Beijing.

Domestically, the three biggest risks that need to be monitored are:

(List not provided in source)

Yet, despite headwinds, demand resilience, a reset in trade and investment outlook, and policy reforms stood out. India focused squarely on its biggest strength, domestic demand, to keep growth buoyant as inflation levels stayed low at 1.8% on average through the fiscal year. With slowing global demand, rising trade frictions, and a delicate domestic consumption environment, India deployed a carefully sequenced set of fiscal, monetary, and trade reforms that not only cushioned the economy but also laid the foundation for future growth.

3. Industry structure and development:

The Flexible Intermediate Bulk Container (FIBC) industry is an important segment of the packaging industry, catering to the bulk packaging and transportation requirements of a wide range of industries including chemicals, petrochemicals, pharmaceuticals, food grains, agriculture, minerals, construction materials and other industrial products. FIBCs, commonly known as bulk bags or jumbo bags, offer advantages such as ease of handling, efficient storage, reduced packaging and transportation costs, and recyclability, making them a preferred packaging solution for bulk materials.

The industry is predominantly based on woven polypropylene (PP), with product specifications varying according to the nature of the material being packed and the requirements of customers. Manufacturers offer different types of FIBCs, including standard bags, coated/uncoated bags, food-grade bags, conductive/anti-static bags and other customised solutions. Product quality, technical specifications, consistency, delivery capabilities and compliance with applicable standards remain important factors influencing competitiveness in the industry.

The FIBC industry continues to be influenced by developments in global trade, industrial production, chemical and pharmaceutical manufacturing, agriculture, construction and other sectors that use bulk packaging solutions. Increasing emphasis on efficient logistics, safe handling of bulk materials and sustainable packaging solutions is supporting demand for FIBCs in both domestic and international markets.

The industry is also exposed to fluctuations in the prices of polypropylene and other input materials, foreign exchange movements, freight costs, energy prices and changes in international trade conditions. Accordingly, efficient procurement, manufacturing productivity, quality control, product innovation and prudent cost management remain key considerations for manufacturers operating in this sector.

4. Opportunities and Threats:

Opportunities:

• Growing demand for FIBC Bags
• Export Potential
• Government support for Manufacturing sector
• Strategic location advantage
• 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
• 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 committed to pursuing sustainable growth, strengthening operational efficiency and enhancing its market position, its business and financial performance may be influenced by various internal and external factors. The Company continuously monitors these risks and undertakes appropriate measures, wherever practicable, to mitigate their potential impact. The key risks and concerns identified by the Company are as follows:

Raw Material Price Volatility: Fluctuations in the prices and availability of key raw materials may impact the Companys manufacturing costs, margins and overall profitability.

Demand and Market Competition: Changes in customer demand, market conditions, industry dynamics and increasing competition may affect the Companys sales volumes, pricing and market share.

Export and Foreign Exchange Risk: As the Company is exposed to international markets, changes in global trade conditions, foreign exchange rates, export regulations and related market dynamics may have an impact on its revenues, costs and profitability.

Regulatory and Compliance Risks: Changes in applicable laws, regulations, statutory requirements and industry standards may increase compliance obligations and associated costs and may require timely adaptation of business processes.

Energy and Manufacturing Costs: Variations in energy costs, manufacturing expenses, logistics costs and other operating inputs may affect the Companys cost structure and operating margins.

Geopolitical and Economic Risks: Global and domestic economic conditions, geopolitical developments, trade restrictions, supply-chain disruptions, inflationary pressures and other macroeconomic factors may adversely affect business operations and market demand.

Technology Obsolescence: Rapid technological developments and evolving industry practices may require the Company to continuously invest in modernisation, process improvements and technology upgrades to remain competitive and efficient.

The Company remains vigilant in identifying and assessing these risks and seeks to address them through appropriate business strategies, operational controls, monitoring mechanisms and risk-mitigation measures. However, the actual impact of these risks may vary depending on the nature, severity and duration of the underlying events and market conditions.

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 priorities 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 well-documented 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 real-time 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 2025-26 is described in the report of Board of Directors of the Company.

9. Segment-wise or Product-wise 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 employer-employee 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 Companys significant changes in key sector specific financial ratios are described in the Financial Statements.

12. Caution Statement:

Certain statements in the MDA section concerning future prospects may be forward-looking statements which involve a number of underlying identified/non-identified 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 forward-looking statements represent only Company current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. Company assumes no obligation to revise or update any forward-looking statements, arising due to new information, future events, or otherwise.

Registered Office:
309, Safal Prelude, Corporate Road, Off Prahalad Nagar Auda, Garden, Ahmedabad, Gujarat, India - 380 015

By the order of the Board of,

Bulkcorp International Limited

Place: Ahmedabad

Date: 31st August, 2026

Sd/-

Punit Mahendra Gopalka

Managing Director

DIN: 02892589

Sd/-

Anup Gopalka

Whole-time Director

DIN: 01114195