Kunststoffe Industries Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian pipes and fittings industry continues to witness robust growth, supported by increasing investments in infrastructure, irrigation, urban development, housing, sanitation, and industrial projects. Government initiatives such as Jal Jeevan Mission, Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), AMRUT, Smart Cities Mission, and affordable housing schemes continue to create sustained demand for quality piping solutions.

The shift from conventional piping systems to technologically advanced polymer-based pipes has accelerated due to their durability, corrosion resistance, ease of installation, and cost-effectiveness. Growing awareness regarding water conservation, efficient irrigation systems, and wastewater management is expected to further support long-term industry growth.

Despite volatility in raw material prices and global economic uncertainties, the long-term outlook for the Indian pipe manufacturing industry remains positive, driven by increasing urbanization, industrialization, and government-led infrastructure

2. BUSINESS OVERVIEW

M/s Kunststoffe Industries Limited is a leading manufacturer of high-quality pipes catering to diversified sectors including agriculture, plumbing, sewage, industrial fluid transport, and construction. The Company operates an integrated manufacturing facility located in Daman, equipped with modern manufacturing technology and stringent quality control systems.

The Company manufactures a comprehensive range of PVC, HDPE, GI, MS, and PPR pipes that conform to applicable national and international quality standards. With a strong emphasis on product quality, operational efficiency, innovation, and customer satisfaction, the Company continues to strengthen its presence across various markets while maintaining long-term relationships with customers and channel partners.

OPPORTUNITIES AND THREATS :

Opportunities

• Continued growth in government infrastructure and water management projects.

• Rising demand for quality piping systems in agriculture and irrigation.

• Increasing urbanization and expansion of residential and commercial construction.

Growing industrial investments requiring specialized fluid transportation systems.

• Expansion into new domestic and export markets.

• Increasing adoption of environmentally sustainable and technologically advanced piping solutions.

Threats

• Volatility in raw material prices, particularly polymer and steel products.

• Intense competition from organized and unorganized manufacturers.

• Changes in government regulations and environmental compliance requirements.

• Supply chain disruptions and logistics challenges.pressures affecting manufacturing and operating costs.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company manufactures and markets a diversified portfolio comprising PVC, HDPE, GI, MS, and PPR pipes serving multiple end-user industries. This diversified product mix enables the Company to cater to varying customer requirements and reduce dependence on any single product category.

The Companys products continue to receive positive market acceptance owing to consistent quality, timely deliveries, competitive pricing, and adherence to industry standards.

OUTLOOK

The management remains optimistic regarding the Companys future growth prospects. Increasing investments in infrastructure, agriculture, housing, sanitation, and industrial development are expected to sustain demand for piping solutions.

The Company will continue to focus on:

Enhancing manufacturing efficiencies.

• Strengthening its distribution network.

• Expanding market reach.

• Developing innovative and value-added products.

• Maintaining superior quality standards.

• Improving customer service and operational excellence.

The Company is also exploring opportunities to improve productivity through process optimization and technological advancements while maintaining financial discipline.

RISK MANAGEMENT

Key risks include:

Raw Material Price Volatility: Price in polymers and metals can impact margins.

Regulatory Risks: BIS standards, environmental laws, and trade policies.

Currency Fluctuation: Exposure to import/export-related forex changes.

Competition Risk: Increased competition from unorganized players and imports.

Mitigation strategies include long-term contracts with suppliers, forex hedging policies, and product differentiation.

SEGMENT REPORTING UNDER ACCOUNTING STANDARDS 17:

Your Companys main business is Polymer Processing and all other activities of the company revolve around this main business. As such there are no separate reportable segments within the Company and hence, the segment wise reporting as defined in Ind AS 108-Operating Segments (Accounting Standards 17) is not applicable to the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal control systems commensurate with the size, scale, and nature of its operations. These systems ensure:

• Protection of assets.

Accuracy and reliability of financial reporting.

• Compliance with applicable laws and regulations.

Efficient utilization of resources.

• Prevention and detection of fraud and errors.

The Company s Internal Auditors periodically review the adequacy and effectiveness of internal controls, and their observations are reviewed by the Audit Committee. Appropriate corrective actions are implemented wherever necessary.

HUMAN / INDUSTRIAL RELATIONS :

The Company is well managed by Managing Director of the Company assisted by highly technical professionals. Since the very inception of the company, the industrial relation aspect of the company has been very cordial at all locations of the company. The Company believes that manpower is the most valuable primary resource for the growth of the organization. Therefore the company has recruited competent managerial personnel and taken steps for strengthening their efficiency and competency, through their involvement in the company s development and by installation of effective system for improving productivity.

The Number of permanent employees on the rolls of the Company as on 31st March, 2026 was 28 Nos. as against 26 Nos. on 31st March, 2025.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year under review, the Company continued to focus on improving operational efficiencies, optimizing costs, enhancing product quality, and strengthening customer relationships.

The financial performance reflects the Company s continued commitment towards operational excellence despite challenges arising from fluctuations in raw material prices and changing market conditions. Management remains focused on improving profitability through efficient resource utilization, prudent cost management, and expansion of its product portfolio.

(The detailed financial performance and analysis should be read in conjunction with the Audited Financial Statements forming part of this Annual Report.)

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company firmly believes that its employees are its most valuable assets. It continues to invest in employee development through training, skill enhancement, safety awareness, and performance management initiatives.

Industrial relations remained cordial throughout the year. The Company maintains a healthy work environment based on mutual trust, transparency, teamwork, and employee engagement.

As on the date of this report, the Company continues to maintain harmonious industrial relations across all levels of the organization.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, government policies, taxation, raw material prices, market demand, competition, technological developments, and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments.

On behalf of the Board

Place: Mumbai	Soniya P. Sheth
Date: 14th August, 2026	Managing Director
Registered Office:	DIN: 02658794
Air Port Road, Kadaiya, Nani Daman Daman (U.T.) 396 210
CIN: L65910DD1985PLC010032
E-mail: kunststoffe@kunststoffeindia.com
Website: www.kunststoffeindia.com