Jauss Polymers Ltd Management Discussions

I. Global Economy

Global growth is projected at 3.0 percent for 2025 and 3.1 percent in 2026. The forecast for 2025 is 0.2 percentage point higher than that in the reference forecast of the April 2025 World Economic Outlook (WEO) and 0.1 percentage point higher for 2026. This reflects stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective US tariff rates than announced in April; an improvement in financial conditions, including due to a weaker US dollar; and fiscal expansion in some major jurisdictions. Global headline inflation is expected to fall to 4.2 percent in 2025 and 3.6 percent in 2026, a path similar to the one projected in April. The overall picture hides notable cross-country differences, with forecasts predicting inflation will remain above target in the United States and be more subdued in other large economies.

Risks to the outlook are tilted to the downside, as they were in the April 2025 WEO. A rebound in effective tariff rates could lead to weaker growth. Elevated uncertainty could start weighing more heavily on activity, also as deadlines for additional tariffs expire without progress on substantial, permanent agreements. Geopolitical tensions could disrupt global supply chains and push commodity prices up. Larger fiscal deficits or increased risk aversion could raise long-term interest rates and tighten global financial conditions. Combined with fragmentation concerns, this could reignite volatility in financial markets. On the upside, global growth could be lifted if trade negotiations lead to a predictable framework and to a decline in tariffs. Policies need to bring confidence, predictability, and sustainability by calming tensions, preserving price and financial stability, restoring fiscal buffers, and implementing much-needed structural reforms.

India is set to dominate the global economic landscape, maintaining its status as the fastest-growing large economy for the next two fiscal years. The January 2025 edition of the World Banks Global Economic Prospects (GEP) report projects Indias economy to grow at a steady rate of 6.7% in both FY26 and FY27, significantly outpacing global and regional peers. At a time when global growth is expected to remain at 2.7 per cent in 202526, this remarkable performance underscores Indias resilience and its growing significance in shaping the worlds economic trajectory.

The GEP report credits this extraordinary momentum to a thriving services sector and a revitalised manufacturing base, driven by transformative government initiatives. From modernizing infrastructure to simplifying taxes, these measures are fuelling domestic growth and positioning India as a cornerstone of global economic stability. With its closest competitor, China, decelerating to 4 per cent growth next year, Indias rise is more than just a statistic. It is a powerful story of ambition, innovation, and unmatched potential. Complementing the World Bank report, the latest update from the International Monetary Funds (IMF) World Economic Outlook (WEO) also reinforces Indias strong economic trajectory. The IMF forecasts Indias growth to remain robust at 6.5% for both 2025 and 2026, aligning with earlier projections from October. This consistent growth outlook reflects Indias stable economic fundamentals and its ability to maintain momentum despite global uncertainties. The continued strength of Indias economic performance, as projected by both the World Bank and IMF, underscores the countrys resilience and highlights the sustained strength of its economic fundamentals, making India a crucial player in the global economic landscape.

One of the Oldest Pet Bottle and Jar Manufacturers in India. Was Established In 1989 with Its First Plant in Kurali (Dist. Ropar) 25 Km. from Chandigarh .The Second Plant was commissioned at Surajpur, Greater Noida In 1992. Presently all operations are undertaken at its Plant in Malpur, Baddi, Himanchal Pradesh.

Realizing the potential of a food grade and recyclable polymer as versatile as PET (Polyethylene Terephthalate), Jauss Polymers Limited successfully ventured in the field of manufacturing of all types of PET bottles, containers, jars etc using advanced Injection Stretch Blow Molding(ISBM) technology.. One of the oldest PET Bottle and Jar Manufacturers in India. Jauss Polymers Established in 1989 with its first plant in Kurali (Dist. Ropar) 25 Km from Chandigarh.

The Second Plant was started in Surajpur Greater Noida in 1992. We Have 5 ISBM Machines Of ASB Nissie, Japan, ranging From Model ASB 250 to the latest 70 DPH; We Are primarily using all injection Molds Of Nissie and a variety of blow shell molds to manufacture different Neck Sizes like 25mm. 28mm., 60mm., 83mm., 100mm.,And 120mm. and in Various Weight Ranges From 12gm. to 160gm in different Shapes and Sizes. Besides This We

Have Been Pioneers in Undertaking Special Projects Of Weight Reduction in Wide Mouth Containers. For Joyco we experimented successfully in reducing the Weight Of their 1.5 Litre Jar From 52gm. to 35.5gm. The first Mold was developed at Nissie, Japan and has already delivered Over 20 Million Jars to the customer. Since 2001 we re-located Our Noida Plant to Baddi with 5 Machines and Are Fully Dedicated to Supply Joyco (Wrigley) Their Full Requirement of over 2 million PET Jars per Month.

We are One Of The Oldest Pet Bottle And Jar Manufacturers In India The worldwide preference of PET resin in manufacturing containers has opened a plethora of packaging options for almost all industries like pharmaceuticals, beverages, confectionery, personal care, liquor etc. We work with customers in these industries to create functional, attractive and cost-effective packaging to meet their needs We Are Also Involved in Development and Use of PP And PC by Stretch Blow Molding Process on Nissie Machines

• To change the face of plastics packaging in India.

• To exceed our clients expectations with packaging innovation, cutting-edge technology, proximal manufacturing units, operational excellence and passion for quality.

• To exceed our shareholders expectations with sustainable growth in profitability and building the company brand in existing and newer markets.

• To exceed our peoples expectations with an exciting work environment, continuous learning and room for career growth.

Growth of pet industry is key to our success more and more product segments are shifting to pet bottles/jar in spite of all efforts there shall be no replacement of pet bottles/jars as all others like glass etc. are not cost competitive

However more and more players are entering this industry resulting in cut throat competition and substantial depletion in margins

1. Cost competitiveness, low manpower, efficient machinery in terms of power consumption, and judicious use of labor and using automated machines is key to survival

2. To reduce debt burden so as to reduce financial cost. Optimize working capital requirement

3. Reduce non-essential administrative cost

4. Better product mix with focus on customers giving higher value additions

1. Competition resulting in price cutting and consequently reduction of margins.

2. Hike in US $ rate and prices of petroleum products has resulted in upsurge in prices of PET/PP.

Hence PET bottles/Jars companies have to focus on cost reduction strategies/ economic of scale and bring efficacies so that in manufacturer of PET bottles/Jars continues to remain as best option.

Human Resources are considered to be a form of capital and wealth of the Company. The growth of the Company and improvement in the systems has been sustained by the active involvement of the employees with the Management. It has been the focus of the management to improve and expand the contribution of its human resources towards attainment of organizational goals and values. The technical expertise of the Management has been shared with the employees at the works, which keeps them motivated to meet and surpass the set targets.

The Company has an adequate system of internal control relating to purchase of stores, raw materials including components, plant & machinery, equipment and other similar assets and for the sale of goods commensurate with the size of the Company and nature of its business.

The Company also has Internal Control System for speedy compilation of Accounts and Management Information Reports and to comply with applicable laws and regulations.

The Company has an effective Budgetary Control System. The Management reviews the actual performance with reference to budgets periodically. The Company has a well-defined organizational structure, authority levels and internal rules and regulations for conducting business transactions.

The Company has already formed an Audit Committee and has met four times in the year. Audit Committee ensures proper compliance with the provisions of the Listing Agreement with Stock Exchanges, Companies Act, reviews the adequacy and effectiveness of the internal control environment and monitors implementation of internal audit recommendations. Besides the above, Audit Committee is actively engaged in overseeing financial disclosures and in reviewing your Companys risk management policies.

The Company believes that a clean environment in and around the workplace fosters health and prosperity for the individual, the group and the larger community to which they belong.

Environmental protection is an integral part of the planning, design, construction, operation and maintenance of all our projects.

Further, the Company has developed technology for reprocessing mixed plastic waste and converts them into usable products. In addition to this, the Company constantly works to reduce consumption of energy, water and petroleum based products and works with its customers to develop more sustainable and green film and laminate structure.

The overall emphasis is on reducing the carbon footprint and be more environment friendly and sustainable. All the products of the company are eco-friendly.

The Company is an equal opportunity employer offering best in industry career growth prospects and has taken a step ahead to make a positive difference by aligning its vision of offering equal opportunities of skill and career enhancement to underprivileged sections of the society; specifically, the youth.

Macro economic conditions do affect the Companys operations. Low demand, economic slowdown, political instability, higher inflation, natural calamities may affect the business. Business therefore cannot be risk free. What is therefore important is to correctly assess the risk area wise and to take steps to mitigate the risk before it becomes a potential threat. General risk areas are statutory compliances, economy, financial, government regulations and policies, market related, operational, products and technology, intellectual property etc.

With the changing and turbulent business scenario, our basic focus is to upgrade the skill and knowledge level of the existing human assets to the required level by providing appropriate leadership at all levels, motivating them to face the hard facts of business, inculcating the attitude for speed of action and taking responsibilities.

The Company has identified potential risks such as business portfolio risk, financial risk, legal & statutory risk and internal process risk including ERP and IT and has put in place appropriate measures for their mitigation.

The Companys Human Resources philosophy is to establish and build a strong performance and competency driven culture with greater sense of accountability and responsibility. The Company has taken pragmatic steps for strengthening organizational competency through involvement and development of employees as well as installing effective systems for improving the productivity, quality and accountability at functional levels.

Your Company is committed to conducting its operations with due regard to the environment and providing a safe and healthy workplace for employees. The collective endeavor of your Companys employees at all levels is directed towards sustaining and continuously improving standards of environment, occupational health and safety in a bid to attain and exceed international benchmarks.