Kkalpana Plastick Ltd Management Discussions

World Economic Overview:

Plastic has become an integral part of our daily lives, from the packaging of products we consume to the materials used in construction, automobiles and electronics. The global plastic manufacturing industry has witnessed a significant growth in recent years, driven by factors such as the increasing demand for plastic products, technological advancements in plastic manufacturing and the adoption of sustainable practices. To address environmental concerns related to plastic waste, the industry is exploring sustainable practices such as recycling, the use of bioplastics made from renewable resources and the adoption of circular economy models. Digitalization and Industry technologies are also expected to play a significant role in improving efficiency and reducing costs in the industry. Overall, the plastic manufacturing industry is expected to continue growing, driven by increasing demand from emerging economies and the adoption of sustainable practices. Companies in the industry must stay up-to-date with the latest trends and regulations and adopt sustainable practices to succeed in the long term. However, the industry also faces challenges such as environmental concerns related to plastic waste, regulations on plastic usage and fluctuations in raw material prices. To navigate these challenges and tap into the opportunities presented by the industry, businesses need to keep a pulse on the latest trends and forecasts.

Indian Economic Overview:

Indias plastic industry is expected to grow in the coming years as the demand for plastic products in packaging, automotive and construction, consumer goods and other sectors continues to grow. Technological developments and a growing emphasis on sustainability through the development of environmentally friendly plastics are also contributing to the industrys growth. Government initiatives promoting manufacturing and a growing middle class are further contributing to the growth of plastic consumption in India. The Indian plastics industry produces a wide range of products, such as plastic and linoleum, houseware products, cordage, fishnets and floor coverings. It also creates medical items, packaging items, plastic films, pipes and raw materials, among others. The country mainly exports plastic raw materials, films, sheets, woven sacks, fabrics, tarpaulin etc. The Government of India intends to take the plastic industry from a current level of Rs. 3,00,000 crore (US$ 37.8 Billion) of economic activity to Rs. 10,00,000 crore (US$ 126 Billion) in four-five years.

Industry Overview:

The Indian plastic industry is one of the leading sectors in the countrys economy. The history of the plastic industry in India dates to 1957 with the production of polystyrene. Since then, the industry has made substantial progress and has grown rapidly. The industry is present across the country and has more than 2,500 exporters. It employs more than 4 million people in the country and constitutes 30,000 processing units; among these, 85-90% belong to small and medium enterprises. India manufactures various products such as plastics and linoleum, houseware products, cordage, fishnets, floor coverings, medical items, packaging items, plastic films, pipes, raw materials etc. The country majorly exports plastic raw materials, films, sheets, woven sacks, fabrics and tarpaulin.

Companys Financial Performance:

(Rs. In Thousand)

Particulars	2024-2025	2023-2024
total Revenue	5038.94	4387.37
Profit/ (Loss) before Depreciation, Interest & Tax	894.45	(315.50)
Profit/ (Loss) before Tax	894.45	(323.80)
Profit/ (Loss) after Tax	873.99	(368.99)

However, at present the Company does not have any revenue from operation and that the revenue mainly comprises of other income.

Segment wise or Product wise Performance:

The Company operates in single business segment of Plastic Compounds. However, the company has not undertaken any operation during the Financial Year 2024-2025.

Important Ratios in respect of the Financial Year ended March 31, 2025 are as below:

a) Debt Equity Ratio: 0.00% in Financial Year 2024-2025 (it was 0.00% in Financial Year 2023-2024)

b) Current Ratio: 87.99% in Financial Year 2024-2025 (it was 111.91% in Financial Year 2023-2024)

c) Interest Coverage Ratio: 0.00% in Financial Year 2024-2025 (it was 0.00% in Financial Year 2023-2024)

d) Debt Service Coverage Ratio: 0.00% in Financial Year 2024-2025 (it was 0.00% in Financial Year 20232024)

e) Stock Turnover Ratio: 0.00% in Financial Year 2024-2025 (it was 0.00% in Financial Year 2023-2024)

f) Return on Equity (ROE): 1.39% in Financial Year 2024-2025 (it was (0.59%) in Financial Year 2023-2024) Future Outlook:

The plastic compounding market is valued at USD 82.0 Billion in 2025 and is expected to reach USD 182.0 Billion by 2035, advancing at an 8.3% Compound Annual Growth Rate ("CAGR") throughout the forecast period. Within the plastic compounding market, the United States remains the most lucrative country in 2025 thanks to entrenched automotive and packaging clusters. Meanwhile, China is poised to be the fastest-growing national market from 2025 to 2035 as EV assembly plants; appliance production and infrastructure spending keep resin demand surging. Across industries, regulatory pushes for vehicle lightweighting, single-use-plastic curbs and net-zero commitments are reshaping the plastic compounding market. Feed-stock volatility and the steep capex of advanced recycling restrain smaller converters but automation and AI-driven inline quality controls are lifting yields and compressing scrap rates. Key trends steering the plastic compounding market include graphene-enhanced conductivity packs and regionalised toll-compounding hubs that slash logistics emissions. Looking ahead, the plastic compounding market is set to pivot toward mass-customised, circular-ready polymers. By 2030, chemical-recycling inputs are forecast to cover 15% of global compound tonnage, while digital product passports will trace every pellets carbon intensity. Compounding firms that embed closed-loop take-back, deploy green-hydrogen-fed extrusion lines and co-develop drop-in resins with 3D-printing bureaus will capture outsized share through 2035. Indias wires and cables market has also expanded significantly from Rs 859 Billion in Financial Year 2019 to Rs 1,702 Billion in Financial Year 2024, registering a CAGR of 14.7% during this period. Furthermore, the sector is projected to grow at a CAGR of 11-13% between Financial Year 2024 and Financial Year 2029. The significant share of power transmission cables can be attributed to favourable government initiatives in the power sector, such as railway electrification projects and rural electrification schemes. Additionally, rising expenditures in the construction sector and the expansion of the Fast-Moving Electrical Goods industry are driving the demand for building wires.

Challenges in the Plastic Industry:

The plastic industry faces several challenges that require attention and strategic planning to ensure sustainable growth and mitigate potential risks. Two significant challenges include environmental impact and pollution as well as health and safety concerns.

> Environmental Impact and Pollution: The production and use of plastics have a significant impact on the environment. The plastic industry heavily relies on fossil fuels and the continued growth of

the industry is projected to increase plastic production by 40% over the next decade, as reported by the Center for Biological Diversity. This increase in plastic production can lead to environmental pollution, particularly in neighborhoods and waterways.

> Health and Safety Concerns: The plastic industry also faces health and safety concerns, both for workers in the industry and the communities surrounding plastic production facilities. The emissions from plastic production facilities, as mentioned earlier, can contribute to various health issues such as asthma, lung cancer and cardiovascular diseases in neighboring communities as reported by Center for Biological Diversity.

Opportunity and Threats:

Opportunity:

> The use of plastic made products has gained considerable response from the customers. In number of items of Retail and Industrial consumption, it is found that the use of plastic made products has replaced many other products as the best substitute products. The increase in the use of plastic products will open new areas for the plastic Industries.

> Polymers are the foundation of plastic and are used in a wide variety of applications, including packaging, automotive, construction, electronics, medical etc.

> Plastics exhibit a number of useful characteristics ideal for wire insulation, including ductility, electrical resistance, UV resistance and fire resistance and therefore find use in cable and wire industry.

> Plastics used in Automative Industries are required to be lightweight, so as to reduce fuel consumption.

> The use of 3D printing technology in plastic manufacturing is on the rise, allowing manufacturers to produce complex plastic parts with greater precision and customization. This technology is expected to revolutionize the manufacturing industry and create new opportunities for plastic manufacturers.

> The circular economy is an emerging concept that aims to minimize waste and promote sustainability by reusing and recycling materials. Plastic manufacturers are increasingly adopting this concept, with many companies investing in recycling facilities and producing more sustainable plastic products.

> Government of India has launched many initiatives like Make in India, Atmanirbhar Bharat Abhiyaan for making the country and its citizens independent and self-reliant in all senses. This will have a positive effect on the growth of many industries.

Threat:

> One of the major factors that are expected to restrain the growth of the plastic compounding market is the fluctuating raw material prices. Therefore, this is expected to hinder the growth of the plastics compounding market.

> There has been the imposition of various stringent regulations on the use of plastic with rising environmental concerns related to the toxicity issues and this will pose a major challenge to the growth of the global plastic compounding market.

> Possible restraints for the plastic compounding market include increasing concerns about environment pollution and the need for sustainable solutions. Stringent regulations on single-use plastics, recycling challenges and a shift towards biodegradable alternatives may limit the growth of traditional plastic compounds.

> The fluctuating raw material prices and supply chain disruptions could impact the industrys profitability. The rise of alternative materials like bio-based polymers and the growing preference for recycled plastics might pose a competitive challenge. Furthermore, global economic uncertainties and geopolitical factors could influence investment decisions and hinder market expansion for plastic compounding.

Risks and Concerns:

At Kkalpana Plastick Limited, management ensures that risks are adequately measured, estimated and mitigated. Based on operations of the Company, new risks, if any, are identified and steps are taken to mitigate the same.

> Risk identification is a set of activities that detect, describe and catalog all potential risks to assets and processes that could negatively impact business outcomes in terms of performance, quality, damage, loss or reputation. It acts as input for actual risk analysis of the relevant risks to an organization.

> Risk Mitigation is the process of planning for disasters and having a way to lessen negative impacts. It mainly focuses on the inevitability of some disasters and is used for those situations where a threat cannot be avoided entirely.

> Follow Up: In case of risk which the company has identified, regular follow-up is required. There is a procedural check in order to ensure that the risk, whose mitigation plan is there, does not reoccur. However, if it reoccurs, there should be a suitable mitigation plan ready for it.

Internal Control System:

The Company has a well-established internal control systems and procedures covering all functional areas. It provides, among others, a reasonable assurance that transactions are executed with management authorization and ensures preparation of financial statements in conformity with established accounting principles and that the assets of the Company are adequately safeguarded against significant misuse or losses.

The Audit Committee of the Board periodically reviews the terms of reference and the adequacy of internal control system, significant observations and their disposals and remedies if any.

Human Resources and Industrial Relations:

The Company appreciates performance of the employees for the year and anticipate the much more for the years to come. Your Company believes in employee empowerment across the entire organization in order to achieve organizational effectiveness. The Industrial relations of the Company was cordial and there were no instances of employee disputes arising during the year.

Cautionary Statement:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, estimates and expectations and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, natural calamities and so on over which the company does not have any direct control.

	For and on behalf of the Board
Date: May 20, 2025
Place: Kolkata	Sajjan Kumar Sharma	Rashi Nagori Mehta
	(DIN: 02162166)	(DIN: 09057989)
	Whole-Time Director	Director