GSM Foils Ltd Management Discussions

Global Economy

The global aluminum foil market size was valued at USD 23.1 billion in 2020 and is expected to reach USD 30.4 billion by 2027, growing at a CAGR of 3.8% during the forecast period.

Market share of Indian Aluminum Foil Packaing Market in 2023-2024, followed by Europe and North America. Emerging economies such as India and China are predicted to observed considerable demand for aluminum foil packaging due to the growing food & beverages industry, packaging, pharmaceuticals & healthcare industry. According to the world bank, Asia pacific is the fastest-growing region, in the terms of both economic and population growth. According to world economics, the region held for 44% of the global GDP, and 64% of the total GDP growth during the past 10 years.

Indian Economy

India Aluminum Market – Industry Trends & Forecast Report, 2030

India Aluminum Market size by value was estimated at USD 13.79 billion in 2023. During the forecast period between 2024 and 2030, India Aluminum Market size is expected to expand at a CAGR of 6.70% reaching a value of USD 21.46 billion by 2030. India Aluminum Market is driven by infrastructure development, booming construction sector, the growing automotive industry, and increased demand for renewable energy systems. The governments focus on modernizing infrastructure and developing smart cities also contributes significantly to the markets growth.

Indias real GDP grew by 8.2% in FY24, posting growth of over 7% for a third consecutive year, driven by stable consumption demand and steadily improving investment demand. Gross value added (GVA) at 2011-12 prices grew by 7.2% in FY24, with growth remaining broad-based.

Rising Urbanization and Infrastructure Development

The rising urbanization and infrastructure development significantly drive India Aluminum Market. As cities expand and new infrastructure projects emerge, the demand for aluminum soars due to its durability, lightweight, and versatility. The governments focus on modernizing infrastructure and developing smart cities further amplifies this demand, making aluminum a key material in construction, transportation, and renewable energy projects.

Industry Structure and Developments:

Manufacturing is emerging as an integral pillar in the countrys economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables. Chemicals, pharmaceuticals, electronics, automotive, industrial machinery, and textiles (among others) are expected to propel manufacturing exports to reach US$ 1 trillion by FY28.

India has the capacity to export goods worth US$ 1 trillion by 2030 and is on the road to becoming a major global manufacturing hub. Indias manufacturing sector is poised to reach US$ 1 trillion by 2025-26, led by Gujarat, Maharashtra, and Tamil Nadu.

Indias overall exports during the April-March period of 2023-24 are US$ 776.68 billion, reflecting a marginal positive growth of 0.04% over the April-March period of 2022-23. In March 2024 alone, exports stood at US$ 70.21 billion.

Indias manufacturing industry witnessed its fastest expansion in 16 years in March, with the HSBC final India Manufacturing Purchasing Managers Index (PMI) soaring to 59.1, the highest since February 2008. This surge was fueled by increased demand, resulting in notable improvements in new orders, output, input stocks, and job creation, as reported by S&P Global.

The market growth of aluminum foils is expected to be fueled by the expansion of the global packaging industry, as aluminum foils are extensively used for packaging various products such as food, beverages, cosmetics, and pharmaceuticals. The pharmaceutical industry, in particular, is experiencing a surge in demand for aluminum foils, leading to increased manufacturing activities.

Aluminum plays a major role in the modern world through its innumerable forms of applications- from kitchen ware to electric conductors and from railway wagon to Appollo spacecraft. Because of its intrinsic and versatile properties of lightness, strength to weight ratio, corrosion resistance, electrical and thermal conductivity, non toxicity etc., a wide range of uses has opened up for this metal. Aluminum as a packaging material is unmatched owing to its light weight, hygienic and non-contamination which eventually results in longer shelf-life of end products.

Aluminum foil is a thin sheet of metal. As such it can be an absolute barrier to moisture, gases, odors, bacteria and molds. The high reflectivity of aluminum ensures good protection against radiant heat, whilst its opacity is important in preventing deterioration of a very large range of foods and drinks which are affected by light. It is used for packaging and non-packaging uses. The growth of this industry has been in the recent past, owing to the growing application of foil in a variety of products.

(Disclaimer: The Information were taken from secondary source, there might be some mistakes were there)

Company Overview

Operational performance

During FY 2024–25, the Company recorded a Revenue Turnover of Rs. 13_379.99___/DNKV as compared to Rs.4083.39 /DNKV_in previous year and Gross Turnover of Rs._15926_56___/DNKV,_ thus company reflecting consistent operational efficiency and a strong commitment to high-quality manufacturing practices.

Financial Performance

Since its inception, the Company has demonstrated resilience and growth, achieving an impressive turnover of 13_379.99 lakhs in this year of operations. This growth was delivered despite challenges such as volatile raw material prices, global market fluctuations, and intense competition. The performance underscores the Companys sound business fundamentals, strategic foresight, and ability to sustain profitability in a dynamic environment.

Future outlook

The Company enters the future on a strong foundation of operational efficiency, prudent financial management, and market credibility. With robust support from Bank of India, access to competitive working capital facilities, and sufficient cash flows to extinguish all debts within two years, the Company remains financially resilient.

Industry prospects are encouraging. While aluminum supply currently exceeds demand, Indias low per capita consumption is projected to drive demand growth of 6%–8% annually. Ongoing consolidation in the aluminum sector is expected to reduce competitive pressures and improve value addition, thereby enhancing pricing stability.

With wide product acceptance among major pharmaceutical companies in India, Bangladesh, and other export markets, the Company is well-positioned to scale up production, expand turnover, and capture a greater market share. Backed by disciplined execution, innovation, and consistent product quality, the Company is confident of delivering sustained growth and long-term shareholder value.

Resources & Liquidity

The Company continues to maintain a conservative financial profile. It banks with DBS Bank India Limited for its working capital needs and enjoys concessional interest rates on sanctioned limits. Presently, the Company has availed cash credit and term loan facilities, supported by cash flows that are sufficient to repay its entire debt within less than two years.

Opportunities x Growing acceptance of the Companys products by leading pharmaceutical companies in India, Bangladesh, and other export destinations. x Expansion of aluminum consumption in India at an expected growth rate of 6%–8% annually.

x Ability to leverage financial strength and scalability to increase production capacity and sales turnover.

Threats

x Decline in metal and granule prices may lead customers to demand price reductions.

x The imposition of Anti-Dumping Duty on Foil Stock imports from China could increase raw material costs, impacting margins.

Risk and Concerns

The Company has an established Risk Management Framework that proactively identifies emerging risks, evaluates them, and develops mitigation strategies. Risks monitored include:

x Economic Risks: Fluctuating raw material prices and demand uncertainties. x Competitive Risks: Pressure from domestic manufacturers and cheaper imports from China. x Regulatory Risks: Changes in trade and taxation policies. x Operational Risks: Technology upgrades and production challenges.

The Company regularly reviews these risks to ensure effective mitigation and minimal impact on business continuity.

Segment–Wise Performance:

The Company has identified its business segment as Primary Reportable Segment. There are no other Primary Reportable Segment and the Companys Operations fall under a single segment "Aluminum Foils". Hence, Segment reporting is not applicable as per Accounting Standard (AS) - 17 - Segment Reporting.

Disclosure of Accounting Treatment

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

Internal Control Systems and Its Adequacy

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. The internal controls cover operations, financial reporting, compliance with applicable laws and regulations, safeguarding assets from unauthorized use and ensure compliance of corporate policies. The Audit Committee of the Board of Directors also periodically reviews audit plans, external auditor observations and recommendations, significant risk area assessments and adequacy of internal controls.

Human Resources/Industrial Relations Front

The Company believes that people are its strongest asset and a primary source of competitive advantage. Its HR strategy is aligned with long-term business goals and emphasizes:

x Attracting and retaining the best talent. x Providing growth opportunities, training, and skill development. x Fostering a culture of performance, work-life balance, and employee well-being.

Management staff are provided with in-house and external training programs to strengthen both technical and managerial competencies. The Company continues to enjoy cordial industrial relations and looks to the future with confidence

Key Growth Drivers

x Strong Market Acceptance – Products trusted by leading pharmaceutical companies in India, Bangladesh, and other export markets, ensuring steady and repeat demand. x Expanding Industry Demand – Aluminum consumption in India projected to grow 6%–8% annually, driven by low per capita usage and industrial expansion. x Financial Strength – Conservative financial profile with competitive working capital facilities from Bank of India and cash flows sufficient to repay all debts in under two years. x Competitive Advantage – Ability to deliver consistent quality, competitive pricing, and timely delivery, strengthening customer loyalty. x Favorable Industry Trends – Ongoing consolidation in the aluminum sector reducing competitive pressure and improving pricing stability. x Scalable Operations – Capacity and capability to increase production and sales turnover without compromising quality or delivery timelines.

For and on Behalf of Board of Directors
GSM FOILS LIMITED
Sagar Bhanushali	Mohansingh Parmar
Chairman &	Managing Director
Whole Time Director
DIN: 09126902	DIN: 08413828
Date: 02.09.2025
Place: Vasai, Mumbai