Global Pet Industries Ltd Management Discussions

MACROECONOMIC OVERVIEW

Global Economy

The global bottle blow molding machine market is a significant sector of the plastic processing machinery industry. It is driven by increasing demand for lightweight and sustainable packaging, particularly in the beverages, pharmaceuticals, and personal care sectors. The market is projected to experience substantial growth, with estimates ranging from a CAGR of 3.7% to 5.5% over the next few years.

High-speed, fully electric, and foam blow molding technologies have resulted in more efficient blow molding machines, which are projected to drive the industry forward. The markets growth is projected to be hampered by the processing limitations of blow molding machines and replacements. Furthermore, fully electric blow molding machines provide firms with new business opportunities. The Global PET Stretch Blow Molding Machines Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

China is the largest market, with a share about 40%, followed by North America and Europe, both have a share over 25 percent. In terms of product, Semi-automatic Type is the largest segment, with a share over 55%. And in terms of application, the largest application is Food & Beverage Industry, followed by Water Packaging.

Domestic Market

The Indian bottle molding machine market is growing, driven by increasing demand for plastic bottles across various industries, particularly food and beverage, and sustainable packaging. The market is expected to see a significant rise in value from 2023 to 2030, driven by factors like rapid industrialization, population growth, and the need for efficient and cost-effective packaging solutions.

ABOUT GLOBAL PET INDUSTRIES LIMITED (FORMERLY KNOWN AS GLOBAL PET INDUSTRIES PRIVATE LIMITED)

BUSINESS OVERVIEW

Global Pet Industries Limited was originally incorporated as Global Pet Industries Private Limited on 30^th July, 2013 which operates in only one business segment viz. manufacturing, sale and trading of various Capital Goods. As an established brand, we emphasize exceeding customer expectations and delivering unparalleled satisfaction.

FINANCIAL PERFORMANCE

	(Rs. In Lakhs Except EPS)
Particulars	2024-2025	2023-2024
Revenue from Operations	4,494.29	3,909.90
Other Income	119.31	90.63
Total Income	4,613.60	4,000.53
Total Expenditure	4,065.84	3,750.20
Profit before Exceptional and Extraordinary Items and Tax	547.76	250.33
Exceptional Items	0	33.81
Profit Before Tax	547.76	284.14
Less: Provision for taxation	-	-
Current Tax	(143.30)	(85.42)
Deferred Tax Asset	23.04	7.23
Net Tax Expenses	(120.26)	(78.19)
Profit for the period	427.50	205.95
Earnings Per Share- Basic & Diluted	4.05	2.27

During the year under review, your Companys total revenue from operations increased to Rs. 4,494.29 Lakhs as compared to Rs. 3,909.90 Lakhs in the previous financial year. The Net profit increased to Rs. 427.50 Lakhs as compared to Rs. 205.95 lakhs in the previous financial year.

Key Financial Ratios (Standalone) for the Financial Year ended March 31, 2025 are provided here-below:

Key Ratios	Financial Year 2024- 2025	Financial Year 2023- 2024	Variance (%)
Debtors Turnover	28.22	15.43	82.89
Inventory Turnover	2.17	2.56	(15.46)
Interest Coverage Ratio	0	0	0
Current Ratio	4.80	2.94	63.26
Debt Equity Ratio	0.21	0.41	(49.43)
Operating Profit Margin	0.12	0.06	(90.37)
Net Profit Margin	5.26	5.81	(9.39)
Return on Net Worth	0.11	0.10	6.65

Remarks for Change in Ratios having more than 25% variance: Variance is due to increase in inventory, efficient collection and strong cash flow, improved operational efficiency and effective cost management.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company is engaged in only one segment/product i.e. manufacturing, sale and trading of various Capital Goods. During the financial year 2024-25, the Company has generated revenue from operations of Rs. 4,494.29 Lakhs which has been increased from previous financial year 2023-24 and net profit has also been increased to Rs. 427.50 Lakhs from previous financial year 2023-24.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

? The Company believes that strong internal control system and processes play a critical role in the health of the Company. The Company is having an internal control system including suitable monitoring procedures commensurate with its size of operations;

? The Companys well-defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure efficiency of operations, compliance with internal policies and applicable laws and regulations as well as protection of resources;

? The internal control system is supplemented by extensive internal audits, regular reviews by the management and standard policies and guidelines which ensure reliability of financial and all other records;

? The Companys Internal Auditor performed regular reviews of business processes to assess the effectiveness of internal controls. Internal Audits were carried out to review the adequacy of the internal control systems, compliance with policies and procedures. The Internal Audit reports are periodically reviewed by the Audit Committee.

? Our Internal Auditor, M/s. A M B Jain & Co., Chartered Accountants, has certified that the Company maintains an adequate system of internal financial controls, evaluates and assesses its adequacy and effectiveness in a satisfactory manner which takes care of requirements under the Companies Act, 2013.

OPPORTUNITIES, THREATS AND CHALLENGES

Opportunities:

The PET bottle blowing machine market has been experiencing significant growth in recent years. This can be attributed to the increasing demand for PET bottles in various industries, such as food and beverage, pharmaceuticals, and cosmetics. The market is expected to continue its growth trend in the coming years, driven by the rising consumption of bottled beverages and the growing popularity of single-use plastic bottles. Additionally, technological advancements in PET bottle blowing machines, such as the development of fully automated and energy-efficient machines, are expected to further propel market growth. Overall, the future outlook for the PET bottle blowing machine market looks promising, with lucrative opportunities for both existing and new market players.

Threats and Challenges:

? Like any machinery, blow molding machines require regular maintenance to ensure optimal performance and prevent unplanned downtime. Machine breakdowns can result in significant production losses and increased costs. ? With increasing environmental concerns, the blow molding industry faces the challenge of reducing its environmental footprint. The industry must work towards minimizing plastic waste, optimizing material usage, and adopting sustainable manufacturing practices. ? Energy consumption is a significant challenge in blow molding operations. The heating and cooling processes involved in blow molding require substantial energy inputs.

RISKS AND CONCERNS

Risk is an integral part of the business and almost every business decision requires the management to balance risk and reward. The ability to manage risks across geographies, products, asset classes, customer segments and functional departments is of paramount importance for the hindrance free growth of every organization.

In the business world, the different types of risks have come to mean an impediment towards the achievement of an organizations objectives. Your Company is exposed to specific risks that are particular to its business and the environment in which it operates. Due to rapid changes in the technologies, business dimensions and complexities, regulatory changes and environmental concerns, new and various types of risks have emerged. So, in the era of fast changing global economy, multiplicity of legal compliances, cross border business transactions and to ensure the survival, viability and sustainability of business, the management of various types of risks have gained utmost importance.

QUALITY CULTURE

Our constant efforts to offer superior quality, technologically driven and innovative products enable us to develop and nourish deep customer relationships. With unwavering focus on innovation, brand equity, technology adoption, quality adherence to international standards and investment in R&D, we relentlessly strive to improve the loyalty of both institutional and retail customers. This enables us to gain large scale acceptance in both Indian and overseas markets.

Our investment and focus in R&D have enabled us to give us an edge over competition. In addition, it also helps us to expand customer base and command a premium in the market. We strive to leverage our R&D investments to increase profit and build long-term shareholder value.

FUTURE OUTLOOK

The key priorities as we step into F.Y. 2025-26 will mainly revolve around gaining market access, expanding the network and network monetization, as we continue to look out for export opportunities. All these factors will help us in achieving our targets.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The management had adopted/followed strategic plans which has increased the profits of the organization and also increased revenue from operations as compared to previous financial year 2023-24. The management will make new strategies and plans for the increased production and profitability of the Company in the near future.

HUMAN RESOURCES

We believe that human capital plays a crucial role in business growth. Our talented and dedicated employee base has enabled us to achieve our strategic goals. Our HR policies are employee-friendly, nurturing a safe, conducive and productive work environment. This not only enables sustainable business growth but also ensures high productivity, employee satisfaction and motivation, and superior retention ratio. As on March 31, 2025, your Company had a total head count of 112 employees. The Directors wish to place on record their appreciation and acknowledgment for the efforts and dedication and contributions made by employees at all levels during the year under review.

Your Company has adopted people practices that enable us to attract and retain talent in an increasingly competitive market and to foster a work culture that is always committed to providing the best opportunities to employees to realize their potential. We are committed as an equal opportunity employer and follow non-discrimination in all our practices. All employees, from a new joiner to a tenured one, are provided tailored learning opportunities as per their role, level, and specific focus area.

CAUTIONARY STATEMENT

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may constitute

‘Forward Looking Statements within the meaning of applicable laws and regulations. Our Company undertakes no obligation or liability to update or revise any forward-looking statements publicly, whether as a result of new information, future events or otherwise actual results, performance, or achievements could differ materially from those either expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and read in conjunction with financial statements included herein.

The Company assumes no responsibility in respect of forward-looking statements that may be revised or modified in future on the basis of subsequent developments, information or events. The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014.

The management of the Company has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect a true and fair manner, the state of affairs and profit / loss for the year. The narrative on our financial condition and result of operations should be read together with the notes to the financial statements included in the annual report. Important factors that could make a difference to the Companys operations include changes in Government regulations and tax regime, economic developments within India and abroad, financial markets etc.

MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER CERTIFICATION

This is to certify that:

A. We have reviewed the financial statements and the cash flow statement for the Half Year and

Financial Year ended March 31, 2025 and that to the best of our knowledge and belief:

i. these statements do not contain any materiality untrue statement or omit any material fact or contain statements that might be misleading;

ii. these statements together present a true and fair view of the listed entitys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. To the best of our knowledge and belief, no transactions entered into by the Company during the half year and financial year ended on March 31, 2025 are fraudulent, illegal or in violation of the Companys code of conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal controls systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps have been taken to rectify these deficiencies.

D. We further certify that we have indicated to the Auditors and the Audit Committee that:

i. There have not been any significant changes in internal controls over financial reporting during the year under reference;

ii. There has not been any significant change in accounting policies during the year requiring disclosure in the notes to the financial statements; and

iii. We are not aware of any instance during the year of significant fraud with involvement therein of the management or any employee having a significant role in the

Companys internal control system over financial reporting.

E. We further declare that all the board members and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management for the current year.

For Global Pet Industries Limited
(Formerly known as Global Pet Industries Private Limited)
Bipin Nanubhai Panchal	Achchhe Lal Yadav
Managing Director	Chief Financial Officer
DIN: 00120996
Date: May 30, 2025
Place: Palghar