Magnum Ventures Ltd Management Discussions

GLOBAL ECONOMY

The global economy in 2024 registered moderate growth of 3.3% in 2024, navigating through elevated inflation, restrictive monetary policies, and continued geopolitical uncertainties. As per the IMFs April 2025 World Economic Outlook, global GDP is projected to expand by 2.8% in 2025, with the World Bank forecast growth to stabilise at 2.7%. While headline inflation has shown signs of easing, it remains above pre-pandemic norms, averaging around 4.5% globally. The softening of commodity and energy prices has offered some relief; however, persistent inflation in services and rising wage costs continue to weigh on key economic indicators, particularly in advanced and emerging economies.

Advanced economies are expected to post modest growth, with the United States projected to expand by 1.8% in 2025.

This outlook reflects the impact of shifting trade dynamics and the re-emergence of tariff-related tensions. In comparison,

Chinas growth is anticipated to ease to 4.0%, constrained by export dependency and continued challenges in the real estate sector.

India, meanwhile, continues to outpace its global peers, maintaining its position as a key driver of global growth. The Indian economy is forecast to grow by 6.5%, underpinned by resilient domestic consumption and sustained investments in infrastructure?€”both of which are catalysing momentum across the industrial and construction sectors.

The 2025 outlook indicates that central banks are likely to maintain a calibrated approach to monetary policy, aiming to manage interest rates and support investment flows. However, elevated global uncertainty and tighter financial conditions may continue to weigh on short-term economic activity. Sustained global growth and long-term economic resilience will hinge on the gradual removal of trade barriers and the establishment of strategic trade partnerships.

INDIAN ECONOMY

In FY 2024?€“25, the Indian economy remained resilient despite global headwinds. According to projections by the National Statistical Office (NSO), GDP growth is estimated at 6.5%, propelled by strong domestic consumption, increased infrastructure spending, and a recovery in rural demand. Key sectors such as construction,trade,andfinancialservices played a significant role in supporting this growth momentum.

This growth trajectory is supported by robust domestic demand, targeted government-led infrastructure initiatives, and a stable macroeconomic environment. Flagship programmes such as the National Infrastructure Pipeline (NIP) and the National Monetisation Pipeline (NMP) are poised to unlock private sector investment, addressing the growing demand for large-scale infrastructure development. Furthermore, the PM Gati Shakti initiative?€”which integrates key modes of transport including aviation, railways, roads, and waterways marks a significant step toward strengthening multimodal connectivity and driving infrastructure-led economic expansion.

Inflationary pressures moderated significantly, with the Consumer Price Index (CPI) falling to 3.16% in April 2025 its lowest level since July 2019 and below the Reserve Bank of Indias (RBI) medium-term target of 4%. This decline was largely driven by a sharp reduction in food inflation, which eased to 2.69%, supported by falling prices of vegetables and pulses. Notably, vegetable prices entered deflation territory, registering a year-on-year decline of 7.04%. Additionally, inflation in the fuel and light category stood at a modest 1.48% in March 2025. This broad-based easing in price pressures has enhanced the RBIs flexibility to consider further monetary easing to support economic growth.

Reflecting this macroeconomic backdrop, the RBI, in its June 2025 policy meeting, implemented a larger-than-expected 50 basis point cut in the repo rate, lowering it to 5.50%, and reduced the Cash Reserve Ratio (CRR) by 100 basis points to 3%.

This bold policy move was aimed at reviving credit growth, stimulating consumption, and supporting economic recovery.

The rate cut is expected to lower borrowing costs across key segments such as retail lending, housing finance, credit, with several leading banks already passing on the benefit through reduced lending rates. This has translated into lower EMIs, improved affordability, and growing momentum in credit uptake. With inflation contained and macroeconomic stability intact, the RBIs action signals a shift towards a pro-growth monetary stance aimed at catalysing sustained economic expansion in FY 2025?€“26.

Infrastructure development continues to be a central pillar of Indias economic strategy. In the Union Budget FY 2024?€“25, the government allocated 11.11 Lakhs crore towards capital expenditure?€”an increase of 11.1% over the previous year?€”representing 3.4% of the national GDP. Notably, around 47% of this outlay is earmarked for transport infrastructure, encompassing roads, railways, and ports, with the objective of strengthening connectivity and fostering sustained economic growth.

Indias industrial sector is expected to grow by 6.2% in FY 2024?€“25, driven by strong performance across construction, electricity, gas, water supply, and other utility services. The manufacturing segment is poised for accelerated expansion, with its contribution to Gross Value Added (GVA) projected to increase from 14% in FY 2024 25 to 21% by 2032 highlighting its pivotal role in Indias long-term economic trajectory.

The services sector remains a key pillar of the economy. Driving overall growth, services exports touched a new peak of USD387.5 billion in FY 2024-25, registering a 13.6% increase over USD341.1 billion achieved in the preceding year.

India inflation falls further in April

Retail inflation in April is lowest since July 2019, food inflation is at its lowest since October 2021

Budget Highlights 2024-25

The Union Budget FY 2024-25 focused on balancing growth with fiscal discipline, outlining a total expenditure of 48.21 Lakhs Crores and projecting a fiscal deficit of 4.9% of GDP, with a commitment to reduce it below 4.5% in the following year.

A key emphasis was placed on job creation and youth development, with 22,00,000 Crores earmarked over five years to skill 4.1 crore young Indians. Capital expenditure received a strong boost with an allocation of 11.11 Lakhs Crores, aimed at accelerating infrastructure development. In agriculture, the government introduced 109 new climate-resilient crop varieties, promoted natural farming for one crore farmers, and announced the establishment of 10,000 bio-input resource centres. The budget also reinforced its support for MSMEs, middle-class empowerment, and rural welfare, allocating 4.57

Lakhs crore towards subsidies for employment, food, and fertilisers. Inflation was seen to be moderating, providing room for continued monetary easing. Additionally, personal tax relief measures were extended to salaried individuals through higher exemptions and revised deductions. Overall, the budget maintained a forward-looking stance with a strong focus on inclusive, sustainable, and infrastructure-led growth.

INDUSTRY OVERVIEW

GLOBAL PAPER INDUSTRY

In 2024, the global paper industry continued to demonstrate stable growth across key segments, supported by sustained demand from e-commerce, FMCG, food & beverage, and personal care industries. The global pulp and paper market was valued at approximately USD 344.7 billion in 2024, with estimates projecting a rise to USD 351.7 billion in 2025 and further reaching USD 416.6 billion by 2035, reflecting a steady CAGR of 1.7%. The paper and paperboard packaging market was valued at USD 381.4 billion in 2024, and is anticipated to grow to USD 620.6 billion by 2034, registering a CAGR of 5.1%. The broader paper packaging market expanded to over USD 377.2 billion in 2024, and is projected to touch USD 390.5 billion in 2025, with a sustained CAGR of over 4.4% through 2037.

Asia-Pacific is emerging as a key growth driver, with the regional market expected to contribute approximately USD

290.47 billion by 2037. This expansion is being propelled by increased paper manufacturing capacities, policy support for environmental protection, and rising adoption of sustainable packaging solutions. The growing preference for renewable, recyclable, and biodegradable paper packaging is reshaping procurement decisions as both businesses and consumers actively pursue eco-conscious alternatives.

Notably, the global paper and paperboard packaging market is forecast to reach USD 417.3 billion in 2025, with an anticipated increase to USD 524.5 billion by 2030, representing a CAGR of 4.7%. In regional terms, North Americas paper packaging market stood at approximately USD 72.4 billion in 2024, and is expected to rise to USD 75.6 billion by 2025, growing at a 4.3% CAGR through 2030. Chinas paper packaging industry also demonstrated strong momentum, generating USD 69.7 billion in 2024, with projections indicating a 6.3% CAGR to reach USD 100.3 billion by 2030.

The global paper industry remains firmly on a path toward innovation and regulatory momentum, and a shift in consumer behaviour toward environmentally responsible products.

Market Size (2030)	USD 524.53 Billion
Growth Rate (2025-2030)	4.68% CAGR
Fastest Growing Market	Asia
Largest Market	Americas
Market Concentration	Low

INDIAN PAPER INDUSTRY

The Indian paper and paperboard packaging industry continues to evolve, supported by shifting consumer preferences, technological innovation, and a growing emphasis on sustainable solutions. Valued at USD 13.72 billion in FY 2025, the market is projected to expand at a CAGR of 6.63%, reaching USD 18.92 billion by 2030. This growth is part of a broader trend within Indias packaging industry, which was estimated at over USD 70 billion in 2023, with paper-based solutions gaining increasing prominence across sectors such as FMCG, e-commerce, food and beverage, and pharmaceuticals.

Despite the expanding market, Indias per capita paper consumption remains relatively low at 15 kg, compared to the global average of 57 kg highlighting significant untapped potential in the domestic landscape. The industry is structurally fragmented, with around 600 paper mills, though a dozen major players command a dominant share of the market.

Among packaging formats, folding cartons are expected to grow at a CAGR of ~7% between FY 2024 and FY 2029, driven by rising consumption of packaged foods and beverages, along with advances in production technologies and the growing demand for eco-friendly packaging alternatives. Additionally, corrugated boxes continue to lead the Indian paper and paperboard packaging segment, accounting for nearly 55% of the market share in FY 2024. This dominance is underpinned by the rapid expansion of the e-commerce sector, where corrugated solutions fulfil nearly 80% of packaging demand, further boosted by advancements in digital printing capabilities.

India Paper & Paperboard Packaging Market: Market Share by Product Type Segment (2024)

On the production front, the Indian paper and pulp sector experienced operational challenges in FY 2024?€“25. Domestic paper production declined by approximately 5.1% in FY 2023?€“24, with a further drop of 1?€“2% anticipated by the end of FY 2024?€“25, largely due to rising imports?€”up 4?€“5% during the same period. These headwinds impacted industry performance, with domestic paper manufacturers expected to record a 3 4% decline in revenue for the fiscal year.

While near-term challenges persist, the structural drivers of demand, including sustainable packaging trends, the rise in organised retail, and policy support such as bans on single-use plastics, are expected to position the industry on a steady growth path over the medium term.

Indias paper and paperboard imports witnessed a significant surge in FY 2024 25, reaching an tonnes, nearly doubling from 1.08 million tonnes in FY 2020?€“21. This sharp rise in imports underscores increasing external dependence for specific grades of paper and heightened competitive pressure on domestic manufacturers. Notably, imports from China grew by 33%, making up 27% of Indias total paper imports, while the ASEAN bloc accounted for around 20%, reflectinga growing regional sourcing trend. In value terms, the import bill touched nearly 15,000 crore, highlighting the impact on trade balance and the urgent need for strengthening domestic manufacturing capabilities. These developments reinforce the importance of promoting import-substitute paper grades, improving product quality, and enhancing cost competitiveness within the Indian paper industry.

GLOBAL HOSPITALITY & TOURISM INDUSTRY OVERVIEW

The global hospitality and tourism sector experienced a strong resurgence in 2024 driven by resilient travel demand, accelerated digital transformation, and evolving consumer preferences. The global hospitality market reached an estimated

USD 3.98 trillion in 2024, up from USD 3.44 trillion in 2023, reflecting a robust CAGR of 15.5%. The hotel, resort, and cruise segment contributed significantly to this growth, expanding from USD 603.4 billion in 2023 to USD 701.1 billion in 2024 and is projected to surpass USD 1.25 trillion by 2028, growing at a 16.2% CAGR.

Broader travel and tourism activity contributed a record USD 11.1 trillion to global GDP in 2024, accounting for 10% of total global economic output. The sector supported approximately 1.1 billion international travellers between January and September 2024, an 11% increase over the previous year. Looking ahead, travel and tourism are expected to grow at a CAGR of 5.8% between 2022 and 2032, outpacing global GDP growth rates.

The global hospitality market is projected to reach USD 5.72 trillion in 2025, with further expansion to USD 7.24 trillion by 2029, supported by increasing demand for leisure, wellness, and experiential travel. Similarly, the travel and tourism industry is forecast to grow from USD 9.24 trillion in 2024 to USD 14.63 trillion by 2034, representing a healthy CAGR of 4.7%.

This sustained momentum underscores the sectors importance as a key pillar of global economic activity, driven by innovation, pent-up demand, and the growing convergence of travel, lifestyle and technology.

INDIAN HOSPITALITY AND TOURISM INDUSTRY OVERVIEW

Indias travel and hospitality industry witnessed significant growth in FY 2024 25, reaffirming its role as a key contributor to national economic recovery and employment. According to the World Travel & Tourism Council (WTTC), the sector contributed approximately 22 Lakhs Crores (~USD 270 billion) to the Indian economy in FY 2024, accounting for nearly 9% of the countrys GDP, and supported over 48 million jobs. This performance underscores the sectors strategic importance in driving socio-economic development.

The Indian hospitality market is estimated to be valued at USD 281.83 billion in FY 2025, and is projected to grow to USD

541.70 billion by FY 2030, registering a robust CAGR of 13.96% over the forecast period. Indias rising profile as a global destination for both leisure and business travel continues to strengthen the sectors performance. This is further supported by geopolitical stability, improvements in infrastructure, and a strong focus on hosting global events and exhibitions. A surge in hotel developments across the country contributed to improved performance indicators. Industry-wide occupancy rates increased to 60 67%, while Average Room Rates (ARR) saw a sharp recovery rising 37 39% year-over-year. As a result, Revenue per Available Room (RevPAR) experienced a remarkable 89 91% growth compared to the previous year, reflecting a full revival in operational metrics.

The broader travel and tourism market in India was valued at USD 22.47 billion in FY 2024 and is forecast to expand at a CAGR of 6.1% through FY 2033, driven by rising domestic travel, higher inbound tourism, and favourable policy support. The online travel segment alone reached USD 19.05 billion in FY 2025, with projections indicating growth to USD 31.38 billion by FY 2030, growing at a CAGR of 10.5%.

Indias tourism sector, celebrated for its rich cultural heritage and natural diversity, is increasingly emerging as a key pillar of the countrys economic transformation. In recognition of its long-term potential, the Union Budget FY 2025-26 allocated 2,541.06 Crores toward tourism infrastructure, skill development, and travel facilitation. Strategic initiatives such as Swadesh Darshan 2.0, Dekho Apna Desh, and Udan continue to support sustainable tourism, regional connectivity, and enhanced visitor experiences.

Looking ahead, Indias travel and hospitality industry remains on a resilient growth trajectory. Key structural drivers?€”such as digital transformation, rising middle-class consumption, experience-led travel preferences, and sustainability?€”are expected to further strengthen Indias position as a global tourism hub. As the sector continues to evolve, it is well-positioned to play a pivotal role in Indias journey toward becoming a developed nation by FY 2047.

COMPANY OVERVIEW

Magnum Ventures Limited, incorporated in 1980 and listed since 2007, operates in both the paper and hospitality sectors. With over three decades of experience in paper manufacturing, Magnum is recognised as one of the largest producers of newsprint, duplex board, and other paper products in Northern India. The Companys manufacturing facility in Sahibabad, Uttar Pradesh, spans 3,00,000 sq. ft. and has an annual production capacity of 85,000 MT, utilising 100% wastepaper as its primary raw material.

In the hospitality segment, Magnum owns and operates the Country Inn & Suites by Radisson in Sahibabad, a five-star, all-vegetarian hotel featuring 216 rooms and 9 banquet halls. The hotel is strategically located near major landmarks and transport hubs in the Delhi-NCR region, catering to both business and leisure travellers. It is distinguished as the first all-vegetarian hotel to receive formal five-star certification from the Ministry of Tourism (HRACC), and is affiliated with the renowned Radisson Hotel Group.

Led by a seasoned management team with extensive industry experience, Magnum Ventures continues to focus on operational excellence, customer-centric services, and sustainable growth across its core business divisions.

HOTEL INDUSTRY

Opportunities

1) Hotels adopting energy-efficient operations, renewable energy, water conservation, and zero-waste initiatives can attract environmentally conscious guests and reduce costs

2) Implementation of smart hotel technologies, contactless check-ins, AI-driven services, and digital marketing enhance guest experience and operational efficiency

3) Growth in branded hotels, rising disposable incomes, government support for tourism, and increased business and leisure travel drives industry expansion

4) Leveraging data analytics for hyper-personalisation and loyalty programmes fosters guest loyalty and repeat business

Threats

1) Both domestic and international hotel chains, as well as substitutes like short-term rentals, increase market competition

2) Lack of skilled labor and trained professionals can impact service quality

3) Changing government policies, taxation and safety regulations may impact operations and profitability

PAPER INDUSTRY

Opportunity

1) Use of 100% wastepaper and adoption of renewable energy (solar, bio-diesel) aligns with global sustainability trends and can improve cost efficiency

2) Expanding into higher GSM papers and speciality products can tap into new market segments

3) Urbanisation, increased literacy, and packaging needs drive demand for paper products

4) Policy support for recycling and sustainable manufacturing can enhance competitiveness

Threats

1) Water and energy resource constraints, as well as extreme weather events, can disrupt production

2) Stricter compliance requirements may increase operational costs

3) Dependence on consistent supply of raw materials poses operational risks

FINANCIAL PERFORMANCE

During FY 2024?€“25, Magnum Ventures Limited reported total consolidated income of 39,725.55 Lakhs, compared to 46,234.79 Lakhs in FY 2023-24. The decline was primarily attributed to a decrease in revenue from the paper division, although the hotel segment continued to maintain operational stability. Revenue from operations stood at 39,575.06 Lakhs, while other income amounted to 150.49 Lakhs. The Company reported a ProfitBefore Tax of (11.53) Lakhs, including an exceptional item gain of 68.18 Lakhs. After accounting for deferred tax credit of 961.11 Lakhs, the Profit for the Year stood at 949.58 Lakhs, compared to 2,470.26 Lakhs in the previous year.

The Company maintained a healthy capital structure, with total equity increasing to 6,641.13 Lakhs as compared to 5,888.63 Lakhs in FY 2023?€“24. Total capital employed stood at 106,567 Lakhs, reflecting the Companys continued focus on long-term asset creation and value generation. The Companys debt-to-equity ratio remained comfortable at 0.25, highlighting its strong balance sheet and disciplined leverage management.

KEY RATIOS & NUMBERS

PARTICULARS	FY 24-25	FY 23-24	REASONS
EBITDA Turnover	20%	12%	Due to decrease in cost of material consumed & other expenses
Debtors Turnover	6.39	8.79	Due to the increase in average debtors and decrease in sale during the year under consideration
Inventory Turnover	7.48	9.34	Due to increase in average inventory and decrease in sale during the year
Interest Coverage Ratio	0.99	5.33	Due to increase in interest cost
Debt Equity Ratio	0.25	0.23	Due to increase in long term & Short Term debt
Current Ratio	2.33	2.51	Due to increase in current liability
Operating Profit Margin (%)	(0.24)	0.72	Due to decrease in net sales
Net Profit Margin (%)	2.40	5.36	Due to decrease in net sales
Book Value Per Share ()	104.71	115.64	Due to issue of 75,25,000 fresh shares in FY 2024-25
Earnings Per Share	1.45	5.04	Due to decrease in profit after tax & increase in number of shares
Return on Networth (%)	1.37	3.63	Due to decrease in net sales

RISK MANAGEMENT

Magnum Ventures Limited adopts a proactive and structured approach to risk management, recognising it as a critical component of sustainable growth and valuecreation.TheCompanycontinuouslyidentifies,assesses, and mitigates risks across its business operations to safeguard stakeholder interests and support long-term strategic objectives. In FY 2024?€“25, the risk management framework was further strengthened to address emerging challenges arising from market volatility, regulatory changes, environmental concerns, and operational complexities. The Board, supported by the Audit Committee and internal control mechanisms,ensuresthatrisksareeffectivelymonitored and managed through robust governance practices and timely interventions.

Hotel Industry

Category	Description	Mitigation
Cyber vulnerabilities	There are risks related to hacking and the potential exposure of guests\u2019 personal and sensitive data.	The business regularly assesses cyber risks, implements corrective measures, and conducts cybersecurity training and awareness programmes
Abuse of social media and other media by guests/staff/stakeholders	Due to frequent direct guest interactions, the hotel industry is particularly susceptible to the influence of social media.	The Company actively monitors social media and responds promptly to comments
Employee and customer well-being	Neglecting hotel hygiene and cleanliness standards can affect the well-being of both staff and guests.	The Company provides clients with guidance, clear communication, and attentive care
Data governance	Failure to ensure the accessibility and accuracy of data analytics	Collected data is managed to support efficient data warehousing and analytics.
Impact of climate change on organisation	The hotel industry faces risks due to the impacts of climate change and associated challenges.	The Company continually evaluates its environmental impact and explores the use of alternative or renewable energy sources
Data privacy	Failure to safeguard data owners\u2019 privacy could pose a risk to the Company\u2019s business.	Internal audits, continuous monitoring, data processor/controller agreements with vendors, and necessary procedural and policy adjustments are conducted.

HUMAN RESOURCES

The Company recognises that its employees are the foundation of its sustained performance and strategic growth. During FY 2024?€“25, its human resource initiatives remained focused on attracting, developing, and retaining a capable and motivated workforce. Emphasis was placed on enhancing employee competencies through structured training programmes, skill development workshops, and on-the-job learning opportunities. These efforts were aimed at strengthening individual capabilities while aligning team performance with the Companys long-term objectives.

The Company builds a positive and inclusive workplace culture through employee engagement activities, transparent communication, and recognition of performance. Digitalisation of key HR functions, including payroll, appraisal systems, and employee self-service platforms, contributed to operational efficiencyand improved to fairness, safety, and equal opportunity continues to guide the Companys workforce policies as it builds a high-performance organisation anchored in accountability, agility, and collaboration.

INTERNAL CONTROL SYSTEM

The Company has implemented in place a strong internal control framework that helps to protect the shareholders assets owned by the Company and investment. Effective and efficient operations, adherence to legal requirements are enabled by a strong internal control system. The Companys audit committee monitors the effectiveness of the internal control system and reports to the Board. Additionally, the Company has assigned an internal auditor to carry out an internal audit of the operations and report to the Board on their efforts. The above-mentioned control mechanisms ensure the effective use, preservation, and observance of policies, processes, and standards.

The Company undertakes the required improvements to maintain the hotels quality and provide better value in terms of excellent ambience and comfort while keeping the needs of customers at the core of these changes. The Company continues to improve the Food Safety Management System by training and optimising the capacities of its human resources, processes, and technologies as a continuous endeavour. To enhance the rigour for food safety, hygiene audits were carried out by an external audit partner, ensuring the implementation of FSSAI standards and guidelines.

CAUTIONARY STATEMENT

Managements Discussion and Analysis Report contains forward-looking statements based on certain assumptions and expectations of future events and the Company cannot assure that these assumptions and expectations are accurate and cannot derive a particular conclusion. Although the Management has considered future risks as part of the discussions, future uncertainties are not limited to the Management perceptions. The report contains the risks and uncertainties arising to the Company but it cannot be figured out exactly due to the fluctuations in earnings, ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India (SEBI), the Shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The changing economic and business conditions and rapid technological innovations are creating an increasing impact on industry. The Company does not undertake to make any announcement in case any of these forward-looking Statements become materially incorrect in future or any update made thereon.