Containerway International Ltd Management Discussions

A. Industry structure and development:

The aluminium industry continues to play a significant role in Indias industrial and economic development, with applications across infrastructure, construction, electrical and power transmission, automotive, transportation, packaging, renewable energy and various engineering industries. India is the second-largest producer of aluminium globally, and the domestic industry has continued to witness healthy demand during FY 2025-26.

The Indian primary aluminium industry is primarily characterised by three major integrated producers, namely National Aluminium Company Limited (NALCO), Hindalco Industries Limited and Vedanta Limited. These companies operate across various stages of the aluminium value chain, including bauxite mining, alumina refining, aluminium smelting and downstream value-added products. In FY 2024-25, these major producers collectively produced approximately 4.24 million tonnes of aluminium metal. During FY 2025-26, domestic sales and consumption continued to show strong momentum. Up to December 2025, domestic sales of primary aluminium by the major producers increased by approximately 8.03% year-on-year, while domestic primary aluminium consumption increased by approximately 9.8% year-on-year to 2.32 million tonnes.

The broader aluminium market also witnessed robust growth during FY 2025-26. Total aluminium consumption in India, including primary aluminium, imports of primary metal and aluminium scrap, reached approximately 4.62 million tonnes up to December 2025, representing a growth of around 13.43% over the corresponding period of the previous year. Indias per-capita aluminium consumption remains significantly below the global average, indicating substantial potential for further growth in domestic consumption as industrialisation, urbanisation and infrastructure development continue.

The demand for aluminium during FY 2025-26 was supported by continued expenditure on infrastructure, expansion of power and renewable energy projects, growth in construction and manufacturing activities, development of transportation infrastructure and increasing adoption of lightweight materials in automotive and other applications. The growing electric vehicle, renewable energy and electrical equipment sectors are also expected to create additional demand for aluminium owing to its lightweight characteristics, electrical conductivity, corrosion resistance and recyclability.

The downstream aluminium segment is gaining increasing importance, particularly for value-added products such as aluminium sheets, foils, extrusions, alloys, profiles and fabricated components. The increasing focus on domestic manufacturing and import substitution is creating opportunities for manufacturers of specialised and value-added aluminium products. Indias aluminium product exports also recorded strong growth during FY 2025-26, with exports during April-February 2025-26 showing significant year-on-year growth.

Globally, the aluminium industry remained closely influenced by supply-demand conditions, energy costs, geopolitical developments and international commodity prices. Global primary aluminium production for FY 2025-26 was projected at approximately 74.39 million tonnes, compared with projected global consumption of approximately 74.49 million tonnes, resulting in a marginal market deficit of around 0.11 million tonnes. This indicates a relatively balanced global market with continued underlying demand for aluminium.

The Government of India continues to focus on strengthening the domestic aluminium value chain, increasing resource security, promoting recycling and encouraging higher-value downstream manufacturing. The Governments long-term vision for the sector also envisages substantial growth in domestic aluminium consumption, with Indias aluminium demand projected to increase significantly over the coming decades.

Going forward, the outlook for the Indian aluminium industry remains positive, supported by infrastructure development, urbanisation, electrification, renewable energy, electric mobility, transportation, construction and increasing manufacturing activity. At the same time, the industry remains exposed to fluctuations in international aluminium prices, energy and power costs, availability and prices of raw materials, foreign exchange movements, environmental regulations and global geopolitical developments.

Overall, FY 2025-26 witnessed sustained growth in the Indian aluminium market, supported by strong domestic consumption and expanding applications across traditional as well as emerging sectors. The Company expects the long-term structural growth in aluminium demand to provide opportunities for expansion, product diversification and increased participation in value-added segments of the aluminium industry.

B. Outlook:

The India Aluminum Market size was valued at USD 13.54 billion in 2025 and is expected to reach USD 15.63 billion by 2026. Looking ahead, the industry is projected to expand significantly, reaching USD 29.61 billion by 2035, registering a CAGR of 7.36% from 2026 to 2035. In terms of volume, the market recorded 5.40 Million Tons in 2025, with forecasts indicating growth to 6.20 million Tons by 2026 and further to 10.75 million Tons by 2035, reflecting a CAGR of 6.31% over the same period.

C. Opportunities and Threats:

Opportunities

- Growing demand for aluminium from infrastructure, construction, automotive, electrical and renewable energy sectors.

- Increasing use of aluminium in electric vehicles, solar projects and lightweight industrial applications.

- Expansion of domestic manufacturing and infrastructure development creating higher demand for aluminium products.

- Opportunities to expand the customer base through wider geographical reach and digital trading channels.

- Scope for offering value-added aluminium products and customised solutions to industrial customers.

Threats

- Volatility in international aluminium prices and foreign exchange rates may affect margins.

- Intense competition from domestic and international aluminium traders and manufacturers.

- Fluctuations in demand from key end-user industries such as construction and automotive.

- Rising freight, logistics, energy and financing costs may adversely affect profitability.

- Changes in government policies, import duties, trade restrictions and international trade conditions may impact the business.

D. Segment–wise or product-wise performance:

The Company is operating in only one segment i.e. Trading of Alluminium Products. Therefore, there is no requirement of Segment wise reporting.

E. Risks and concerns:

Volatility in aluminium prices may impact revenue and profit margins. Increase in power, fuel and raw material costs may affect operating costs. Strong competition from domestic and imported aluminium products. Supply-chain disruptions may affect availability of raw materials and timely deliveries. Changes in government policies, duties, tariffs and environmental regulations may impact operations. Foreign exchange fluctuations and global economic conditions may affect business performance.

F. Internal control systems and their adequacy:

The Company has in place adequate internal control system commensurate with size and nature of its business. These systems provide reasonable assurance in respect of providing financial and operational information, compliance with applicable statutes and safeguarding the assets of the Company.

G. 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.

H. 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.

Total Number of people employed: 1

I. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including: This Details is forming part of the financial statement.

J. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF: This Details is forming part of the financial statement.

By Order of the Board

For INDUS ALUMINIUM RECYCLERS LIMITED

(Formerly known as CONTAINERWAY INTERNATIONAL LIMITED)

Sanket Sanjay Deora

Chairman & Managing Director

(DIN: 01417446)

Date: 04th September, 2026

Place: Gandhinagar