Manas Polymers & Energies Ltd Management Discussions

OVERVIEW:

The objective of this report is to convey the Managements perspective on the external environment and plastic industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY 2025- 26. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in this Annual Report of the Company for FY 2025-26.

ECONOMIC OVERVIEW

1. GLOBAL OUTLOOK

Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. However, varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential. Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. To manage these risks and preserve growth, the policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers. Global activity and world trade firmed up at the turn of the year, with trade spurred by strong exports from Asia, particularly in the technology sector. Relative to the April 2024 WEO, first quarter growth surprised on the upside in many countries, although downside surprises in Japan and the United States were notable. In the United States, after a sustained period of strong outperformance, a sharper-than-expected slowdown in growth reflected moderating consumption and a negative contribution from net trade. In Japan, the negative growth surprise stemmed from temporary supply disruptions linked to the shutdown of a major automobile plant in the first quarter. In contrast, shoots of economic recovery materialized in Europe, led by an improvement in services activity. In China, resurgent domestic consumption propelled the positive upside in the first quarter, aided by what looked to be a temporary surge in exports belatedly reconnecting with last years rise in global demand. These developments have narrowed the output divergences somewhat across economies, as cyclical factors wane and activity becomes better aligned with its potential.

Future-Proofing the Economy

As output gaps start to close and inflation recedes, policymakers face two tasks: persevering with restoring price stability and addressing the legacies of recent crises, including replenishing lost buffers and durably uplifting growth. In the near term, this will require careful calibration and sequencing of the policy mix. In countries where upside risks to inflation?including those arising through external channels?have materialized, central banks should refrain from easing too early and remain open to further tightening should it become necessary. Where inflation data encouragingly signal a durable return to price stability, monetary policy easing should proceed gradually, which would simultaneously provide room for the required fiscal consolidation to take place. Fiscal slippages over the past year in some countries could require a stance significantly tighter than envisaged. As the space for fiscal maneuver narrows, commitments to achieving fiscal consolidation targets should be earnestly adhered to, aided by sound fiscal frameworks and resource mobilization (see Chapter 1 of the April 2024 Fiscal Monitor).

In emerging market and developing economies, recent policy divergences highlight the need to manage the risks of currency and capital flow volatility. Given that economic fundamentals remain the main factor in dollar appreciation, the appropriate response is to allow the exchange rate to adjust, while using monetary policy to keep inflation close to target. Foreign reserves should be used prudently and preserved to deal with potentially worse outflows in the future, in line with the IMFs Integrated Policy Framework. To the extent possible, macro prudential policies should mitigate vulnerabilities from large exposures to foreign-currency-denominated debt.

Overview of the World Economic Outlook Projections:

Note: Red effective exchange rates are assumed to remain constant at the levels prevailing during April 22-May 20, 2054. Economies are listed on the basis of economic size. The aggregated quarterly data are seasonally adjusted. WEO = World Economic Outlook.

01. Difference based on rounded figures for the current and April 2025 WEO forecasts. Countries for which forecasts have been updated relative to April 2025 WEO forecasts account for approximately 90 percent of world GDP measured at purchasing-power-parity weights.

02. For World Output (Emerging Market and Developing Economies), the quarterly estimates and projections account for approximately 90 percent (80 percent) of annual world (emerging market and developing economies) output at purchasing-power-parity weights.

03. Excludes the Group of Seven (Canada, France, Germany, Italy, Japan, United Kingdom, United States) and euro area countries.

04. For India, data and projections are presented on a fiscal year (FY) basis, with FY 2022/23 (starting in April 2022) shown in the 2022 column. Indias growth projections are 7.3 percent in 2024 and 6.5 percent in 2025 based on calendar year.

05. Indonesia, Malaysia, Philippines, Singapore, Thailand.

06. Simple average of growth rates for export and import volumes (goods and services).

07. Simple average of prices of UK Brent, Dubai Fateh, and West Texas Intermediate crude oil. The average assumed price of oil in US dollars a barrel,based on futures markets (as of May 20, 2024), is $81.26 in 2024 and $76.38 in 2025.

08. Excludes Venezuela.

09. The assumed inflation rate for the euro area is 2.4% in 2024 and 2.1% in 2025, that for Japan is 2.4% in 2024 and 2.0% in 2025, and that for the United States is 3.1 % in 2024 and 2.0% in 2025.

Source: https://www.imf.org/en/Publications/WEO/Issues/2024/07./16/world-economic- outlook-pdate-iulv-2024

INDIAN ECONOMY

Strong economic growth in the first quarter of FY23 helped India overcome the UK to become the fifith-largest economy after it recovered from the COVID-19 pandemic shock. Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at Rs. 295.36 lakh crores (US$ 3.54 trillion), against the First Revised Estimates (FRE) of GDP for the year 2022- 23 of Rs. 269.50 lakh crores (US$ 3.23 trillion). The growth in nominal GDP during

2023- 24 is estimated at 9.6% as compared to 14.2% in 2022-23. Strong domestic demand for consumption and investment, along with Governments continued emphasis on capital expenditure Eire seen as among the key driver of the GDP in the second half of FY24. During the period April-June 2025, Indias exports stood at US$ 109.11 billion, with Engineering Goods (25.35%), Petroleum Products (18.33%) and electronic goods (7.73%) being the top three exported commodity. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months. Future capital spending of the government in the economy is expected to be supported by factors such as tax buoyancy, the streamlined tax system with low rates, a thorough assessment and rationalisation of the tariff structure, and the digitization of tax filing. In the medium run, increased capital spending on infrastructure and asset-building projects is set to increase growth multipliers. The contact-based services sector has demonstrated promise to boost growth by unleashing the pent-up demand. The sectors success is being captured by a number of HFIs (High-Frequency Indicators) that are performing well, indicating the beginnings of a comeback. India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. Indias appeal as a destination for investments has grown stronger and more sustainable because of the current period of global unpredictability and volatility, and the record amounts of money raised by India-focused funds in 2022 are evidence of investor faith in the "Invest in India" narrative.

INDIAS PLASTICS INDUSTRY:

Since its small but promising start in 1957 when Polystyrene production started, Indias plastic industry has gone from strength to strength. The timeline of Indian polymer production can be summed up as followl9s57: - Polystyrene, 1959 - LDPE, 1961 - PVC, 1968 - HDPE, and 1978

? Polypropylene. Plastics can be broadly divided into seven categories:

? PET- Polyethylene terephthalate

? HDPE- High-density polyethylene

? LDPE- Low-density polyethylene

? PVC- Polyvinyl chloride

? PP- Polypropylene

? PS- Polystyrene

? Others

Due to the enormous potential of the Indian market, local businesses have been encouraged to develop their technical skills, meet high- quality requirements, and expand their capabilities across a wide range of sectors of the growing plastics industry.

There have been phenomenal advancements in the petrochemical industry and combined with the progress in the plastic machinery sector, they have helped forward the plastic processing industry immensely. This has made it easier for plastic processors to increase their capacity to serve both the domestic and international markets. Currently the Indian plastic processing industry comprises approximately 30,000 units that use injection molding, blow molding, extrusion, and calendaring to create a wide range of products. Plastic material is becoming increasingly important across various industries, and per capita consumption is rising quickly. Traditional materials are being quickly replaced by plastic technology, processing equipment, expertise, and cost-effective manufacturing. The ability to serve international markets results from the skills developed in most of this industrys areas combined with inherent abilities. The Indian plastics industry has advanced significantly over the past few decades, becoming one of the nations most significant sectors with a considerable base.

The consumption of plastics in India has significant regional variation, with Western India accounting for 47%, Northern India for 23%, and Southern India for 21%. The end-use sectors of automotive, packaging (including bulk packaging), plastics applications, electronic appliances, etc., account for the majority of consumption in Northern India and are located mostly in Uttar Pradesh and Delhi-NCR. However, other regions, including Rajasthan, Punjab, Haryana, Uttarakhand J&K, and Himachal Pradesh, are anticipated to see growth in plastic processing due to increasing feedstock supply and a greater focus on the manufacturing sector.

Plastic materials, which were almost unknown until the 1920s, are now found in almost every facet of contemporary life, from the microchips in computers to the bags used to carry groceries. Plastic is essentially a set of materials, not just one, which is why it seems that it may be utilised almost anywhere. There are a vast variety of plastic material types, and many of them, like polyethylene, PVC, acrylic, etc., have efficient and adaptable qualities.

> Polyethylene Terephthalate (PET):

Often known as polyethylene terephthalate, is the primary material used to make plastics in category one. Because of its vast utility, it is ranked first. Due to its powerful ability to stop oxygen from getting in and tainting the goods within, it is mostly sed for food and beverage packaging.

> High-Density Polyethylene (HDPE):

High-Density Polyethylene is a durable resin used for various products, including shampoo bottles, playground equipment, caps, milk jugs, recycling bins, and shopping bags. It is thicker and more rigid than PET because it is formed of long, unbranched polymer chains. It is also fairly tough, impact-resistant, and resistant to temperatures up to 120? C without any negative effects. Given that HDPE is one of the most easily recycled plastic polymers, most recycling facilities accept it for disposal.

> Low-Density Polyethylene (LDPE):

Unlike HDPE, LDPE is characterized by low-density molecules, giving this resin a thinner and more flexible design. It has the simplest structure of all plastics, making it easy and cheap to produce. Used in plastic bags, six-pack rings, various containers, dispensing bottles, and most famously for plastic wraps, it is not often recycled through curb side programs.

> Polyvinyl Chloride (PVC):

As a synthetic plastic polymer, polyvinyl chloride is the worlds third most extensively manufactured plastic. There are essentially two types of it: stiff and flexible. PVC is frequently used in buildings and construction to create pipes and profiles for doors and windows. It may be softer and more flexible when combined with other materials and used for flooring, wiring, and plumbing insulation. PVC is currently replacing conventional building materials, including wood, metal, concrete, rubber, ceramics, etc., in various applications because of its adaptable qualities, such as lightness, durability, and ease of processing. PVC is still scarcely recyclable despite its many benefits and the plastics industrys attempts to make it more recyclable; as a result, it should be avoided wherever possible.

> Polypropylene (PP):

The market for polypropylene, the second-most frequently manufactured commodity plastic, is anticipated to expand even further during the next years. It is tough and durable, can tolerate extreme temperatures, and is used in disposable diapers, ethical components, thermal vests, yogurt containers, Tupperware, and even clothing. PP is typically utilized for living hinges because of its high resistance to fatigue (the thin piece of plastic that allows a part of a product to fold or bend from lto 180 degrees).

> Polystyrene (PS):

The sixth type of plastic on the list is polystyrene, which comes in solid and foamed forms. Due to its low cost per unit weight and ease of production, this resin is used in a wide variety of products, including disposable tableware, insulation, packaging materials, and drinking cups. Styrofoam, perhaps better known by its brand name, is extremely flammable and hazardous because it can release harmful chemicals, especially when heated. It is considered to be one of the worst kinds of plastic in terms of the environment since it is not biodegradable. Due to its low specific gravity, polystyrene foam floats on water and blows in the wind. It can have catastrophic impacts on the health of birds or marine animals that may ingest it since animals do not identify it as artificial and may mistake it for food. In addition, polystyrene is not separated and recycled when it is permitted, and curbside pickup recycling services do not take it.

> Other Plastics:

Plastic will be included in group number seven if it cannot be distinguished from the six categories described above. The most well-known polymers in this class are polycarbonates (PC), used to create robust, durable products. In order to protect the eyes, polycarbonate is frequently used to make lenses for safety, sports, and sunglasses. However, they may also be found on compact discs (CD) and, more frequently, on smartphones. The usage of these resins has generated debate in recent years because, when they are flushed at high temperatures, they emit bisphenol A (BPA), a chemical that is listed as potentially dangerous to the environment.

Additionally, because BPA does not decompose in landfills, it will remain persistent in the environment and eventually make its way into water bodies, leading to aquatic contamination. These plastics are seldom ever recycled, two industries comes up to almost 46%. Electronics, home goods, and other industrial uses make up the market for plastics remaining applications. The building, furniture, and transportation industries together account for the remaining plastic application.

Important plastic Applications in various industries:

The two main industries where plastic is used in India are the packaging and agricultural industries. The overall application of plastic in India from these two industries comes up to almost 46%. Electronics, home goods, and other industrial uses make up the market for plastics remaining applications. The building, furniture, and transportation industries together account for the remaining plastic application.

> Plastic Applications in Agriculture:

Plasticulture is the practice of using plastic materials in horticulture and agriculture. Awide range of plastic agriculture applications promises to revolutionise Indian agriculture and usher in the "Second Green Revolution." Various approaches can be used to maximize the number and quality of crops and other farm products. The following are some of the main uses of plasticulture:

? Drip Irrigation System

? Sprinkle Irrigation System

? Ponds and Reservoir Linings

? Plastic Mulching

? Greenhouse

? Plastic Tunnel

The use of plasticulture can significantly reduce costs, which can result in increased crop quality and yield. Applications of plasticulture provide advantages in terms of conservation of water, water use efficiency and fertiliser use efficiency. Each application can significantly reduce water use by 30% to 100%. The total loss of water due to seepage may be reduced to zero in the case of agricultural ponds walled with plastic film, which is very advantageous. Additionally, effective fertiliser usage may reduce expenses, which is again beneficial to farmers.

> Plastic Applications in the Food Processing Industry:

Plastics are mostly used in packaging for the processing of food. Plastics are popular because of their qualities and wide range of uses. It is extremely adaptable, lightweight, resistant to corrosion, moisture- roof and mouldable into attractive shapes. Processed foods come in both flexible and rigid packaging. Plastic monolayer or multilayer sheets are the main components of flexible packaging. The most common polymers found in multilayered laminated sheets are PVC, PET, PP, and PE. 62% of the polymers used in the flexible packaging industry are polyethylene and polypropylene. Small and medium-sized enterprises dominate the flexible packaging market, with processed foods being its main use. Additionally, with the introduction of new Indian norms that are closer to international norms, packaging regulations have grown stricter, which is also encouraging the use of plastics in packaging. The food processing industry and the usage of plastics in it are expected to grow rapidly as a result of rising personal income, customer demand for packaged goods, and changing food habits.

> Plastic Applications in Road Infrastructure:

Plastics are known for their durability, and the material has a long life. Mixing of shredded plastics along with asphalt base creates a strong base and improves the overall quality of the public roads.

• Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), the Government of India has been using plastics for road construction. The Asian Development Bank (ADB), in support of PMGSY, has already sanctioned loans worth US$ 2.31 billion to construct over 22,000 km of all-weather roads in Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal. The use of plastics significantly improves the quality of these roads and provides better, durable all- weather roads. As of January 2019, under PMGSY, 46.1% of the roads constructed were using waste plastics.

• The Indian Road congress also formulated guidelines for using waste plastics in the construction of roads. The Ministry of Road Transport & Highways had published regulations requiring the use of waste plastic in the periodic resurfacing of the pavement on National Highways and the paving of service roads within a 50- kilometer radius of urban centers with a population of at least 5 lakh people.

• In October 2022, during Special Campaign 2.0, Border Road Organisation (BRO) used waste plastic materials to resurface roads. In this project, 1.0 km on Roing-Koronu-Paya road under Project Udayak in Arunachal Pradesh, 4.5 km on Phuentsholing-Thimphu Road under Project Dantak in Bhutan, and 2.5 km on Balipara-Charduar-Tawang Road under Project Varta were resurfaced.

• Plastic Applications in Healthcare Industry: In recent years, India has been a major destination for medical tourism. As a result, there is more need for products made of polymers, such as syringes, implants, fluid bottles, disposable wear, and medical equipment. An improvement in living standards has also raised the demand for sanitary products and infant care items, which has led to arise in the need for polymer.

> Plastic Applications in Automobile Industry:

Plastics are frequently used in car claddings to reduce weight and prevent corrosion from salt and water on metal surfaces, which helps to increase fuel efficiency. Although plastics have been used both externally and internally for many years, many vehicle manufacturers have turned to producing bioplastics and polymers instead of depending on plastics made from fossil fuels in an effort to reduce their carbon footprint and advance sustainability. Some of the advanced plastics used in the automotive industry are as follows:

> Poly-Vinyl Chloride

> Polypropylene

> Polyamide

> Polystyrene

> POM (polyoxymethylene)

> Plastic Applications in Electronics:

High-performance thermoplastic and thermosetting polymers are extensively used in the electronics industry. Almost all engineering thermoplastics (ETPs) are used in some form of electronics component, but standard nylons (polyamides) and thermoplastic polyesters (typically polybutylene terephthalate) are by far the two most common polymer families. This is particularly true among connectors, which make up the majority of the market for electronics components.

Market Dynamics:

The plastics industry is currently home to about 50,000 industries, most of which are micro, small, and medium-sized enterprises (MSMEs). These enterprises contribute Rs. 3.5 lakh crore (US$ 42.89 billion) to Indias economy and employ more than 50,000 people. The country recycles plastic at a rate of 60%, which is higher than that of developed nations. The "Make in India," "Skill India," "Swachh Bharat," and "Digital India" initiatives of the government are increasing plastic production, and by 2027, it is expected that the plastics industry will generate Rs. 10 lakh billion (US$ 122.54 billion) annual revenue, with two lakh tonnes of exports.

Given that polymer is a crucial raw ingredient for plastic, the plastic industry in India is closely related to the petrochemicals sector. As a result, both upstream and downstream activities Eire included in the plastic industrys value chain. While the upstream market is dominated by big firms, the downstream market is far more diversified, with many small and mediume-sized businesses engaged in the production of plastic goods. Strong polymer production capabilities support the Indian plastic processing industry, ensuring the supply of raw materials. The majority of the essential raw materials, such as PVC, high-density polyethylene, low-density polyethylene, and polypropylene, are produced domestically.

Upstream:

Petrochemical companies in India are primarily responsible for this section, which involves the production of polymers.

Downstream:

Plastic processing companies are responsible for this process, which involves turning polymers into plastic goods. Industries, including automotive, construction, electronics, healthcare, textiles, and fast-moving consumer goods (FMCG), among thers, are the primary customers of plastic products. The downstream producers serve the needs of numerous industries throughout the nation.

Category-wise exports scenario:

The Plastics Export Promotion Council (PLEXCONCIL), established by the Ministry of Commerce & Industry, Department of Commerce, Government of India, is one of severed Export Promotion Councils (EPCs) launched by the Government to promote Indias image abroad as a reliable supplier of high-quality products in order to increase the countrys exports. PLEXCONCIL is an apex body of the plastics industry in India and represents more than 2,500 exporters who manufacture and trade various plasticsrelated products, from raw materials to semi-finished and finished goods.

According to the export data from PLEXONCIL, growth in FY 2021-22 was favorable at 35.40%, with exports of US$ 13.35 billion. The main category, plastic raw materials, made up 31.70% of all PLEXCONCIL product exports and experienced positive growth of 26.55% in FY 2021-22. Plastic films and sheets were the second largest category, comprising 15.2% of the total exports, and grew 32.7% over the previous year.

During September 2022, India exported plastic products worth US$ 945 million, and the cumulative value of plastic exports from April-September 2022 stood at US$ 6,687 million. The exports of the number of product panels, including writing instruments, stationery, medical plastics, flexible and rigid packaging, plastic pipes and fittings, and miscellaneous products, increased in September 2022.

Country-wise exports scenario:

The export trajectory of PLEXCONCIL products, as shown, suggests that exports during FY 2021-22 were very robust, particularly to nations like the US, China, the UAE, the UK, Italy,

Netherlands, Spain, and Belgium, among others. Europe was the most significant region in terms of regionally, followed by the NAFTA and WANA nations. The total value of exports to the US, the largest consumer of the Indian plastic industry, stood at US$ 2,430.8 million in FY 2021-22, an increase of 63.6% YoY. China is the second largest consumer of plastic export products from India, and the total value of exports stood at US$ 883.49 million in FY 2021-22. The US, China, the UAE, the UK and Italy together constituted 36.92% of the total plastic exports in FY 2021- 22.

In order to gauge the market potential for Indian plastic exports with the European market, PLEXCONCIL engaged with Switzerland Global Enterprise, Advantage Austria, Aussenwirtschaft Austria, and VDMA Plastics and Rubber Machinery, Germany, among others, to further strengthen the partnership with the European region, which is the second largest export destination for the Indian plastics industry.

Major Indian Players in the Plastics Industry:

Indian businesses are primarily in charge of the countrys plastic processing industry. Almost 85% of the market is dominated by small and medium-sized enterprises. An important portion of players in this sector are unorganised. However, in the organised sector, a few key businesses dominate their respective categories and command a sizeable portion of the market. Some of the leading domestic plastic processing companies in India that manufacture finished goods are mentioned below:

Sr. No.	Company	Key Product
1.	Supreme Industries Ltd	Plastic Drainage Pipes and Moulded Furniture
2.	Astral Poly Technik Ltd	CP VC Piping, Piping for agriculture applications and Conduit Pipes
3.	VIP Industries Limited Ltd	Plastic Luggage, bags, vanity cases
4.	Responsive Industries Ltd	PVC Flooring, Artificial Leather
5.	Nilkamal Ltd.	Plastic molded furniture
6.	Wim Plast Limited	Plastic Furniture, Material Handling products, Plastic ball pen, thermoware products
7.	Peacock Industries Ltd.	Industrial Plastic Products, Healthcare plastic items

Polymer is one of the primary goods produced by the petrochemical industry. Since polymers are lighter and more flexible, they are used to make plastic products, including HDPE, LLDPE/LDPE, polypropylene, PVC pipes and fittings, and polystyrene. With an 18% growth rate, one of the industrial sectors that is helping to drive the Indian economy is polymer production. More than 4 million people work in the polymer manufacturing business.

Some of the major polymer manufacturers in India are as follows:

Sr. No.	Company	Key Product
1.	Finolex Industries Limited	PVC, Methanol, Ethylene Dichloride
2.	Haldia Petrochemicals Limited	Polypropylene and Polyethylene
3.	Reliance Industries Limited	Mono Ethylene Glycol, Polypropylene and Paraxylene
4.	Indian Oil Corporation Ltd.	Paraxylene/Purified Terephthalic Acid
5.	ONGC Petro Additions Ltd.	Ethylene, Propylene, LLDPE/HDPE, and Polypropylene.
6.	Chemplast Sanmar Limited (Sanmar Group)	PVC resins
7.	DCW Ltd.	PVC resins, Polyethylene, and Recycled Polymers.

Government Initiatives:

The government has deregulated the petrochemical sector and allowed 100% FDI under the automatic route to promote fresh investments in the plastic industry. Some of the governments other initiatives to support the plastic industry have been mentioned below.

• The Central Institute of Petrochemicals Engineering & Technology (CIPET) is a premier national institution under the Ministry of Chemicals and Fertilizers, Government of India. The main goal of CIPET is to support the expansion of the plastics sector through a coordinated programme of education and research. The Institute has developed and progressed over time, forging deeper relationships with various businesses in an effort to produce resource-saving and commercially viable plastic-based innovations.

• The Central Institute of Petrochemicals Engineering & Technology (CIPET) has established a Center for Skilling and Technical Support (CSTS) in Vijayawada, Andhra Pradesh, to offer diploma and postgraduate diploma programmes, as well as skill development training programmes in the area of plastics engineering & technology. The Center offers technical/consulting services to the plastics industry in the areas of testing, manufacturing, and designing composites and molds for plastics.

• A program to establish "Centres of Excellence (CoEs)" has also been put into action to enhance Indias current petrochemical technology and research environment and encourage the creation of new uses for polymers and plastics. Under this scheme, the Department of Chemicals and Petrochemicals has approved eight Centres of Excellence across various reputed Government Institutions in the country since 2015.

Plastic Parks Scheme:

The Department of Chemicals & Petrochemicals under the Government of India proposed a scheme to establish plastic parks with cutting-edge infrastructure using a cluster development model. The objectives of this plan were:

• To make the domestic downstream plastic processing industry more competitive, capable of absorbing more polymers, and increase value-addition by implementing cutting-edge, R&D- driven strategies.

• Invite more investments in the sector to assure value addition and higher exports by expanding capacity and production, building quality infrastructure, and other means.

• Obtain environmentally sustainable growth by utilising modem waste management techniques, recycling, etc.

• Adopt a cluster development strategy to accomplish the aforementioned goals due to the advantages of resource optimisation and economies of scale.

Up to 50% of the project cost may be covered by grants from the Central Government, subject to a cap of Rs. 40 crore (US$ 4.9 million) per project. The State Government, beneficiary industries, and loans from financial organisations will cover the projects remaining costs. The funding will cover the following:

• Infrastructure, including water supply, roads, drainage, effluent treatment plant, electricity, incinerator, etc.

• Buildings for administration, hostels, canteens, labour facilities, training, incubation, plastic recycling, warehousing, research & development, etc. Support for administrative and other management functions and the CEOs compensation during the projects execution.

• In order to ensure that the ability of the beneficiary and member firms is appropriately improved in order to absorb, implement, and sustain the proposed initiatives, the plan shall also support initiatives that are soft in nature. These might include surveys, studies, reusing awareness and generating sensitization, skill-building and training at various levels, exposure trips, etc.

On the back of this scheme, the Department of Chemicals and Petrochemicals has authorised the construction of ten plastic parks across the country, six of which are in the states of Assam, Madhya Pradesh (two parks), Odisha, Tamil Nadu, and Jharkhand. The implementation of these six plastic parks is in varying phases. The Detailed Project Reports (DPRs) for the establishment of plastic parks in the States of Uttarakhand and Chhattisgarh are being evaluated for the establishment of the remaining four parks, and a proposal for the establishment of two more parks is in the works.

Startup Initiatives:

The number of plastic-related startups has seen a boost in India over the past few years. These startups are based on plastic recycling and provide a green alternative solution to using plastics. Some of these startups are:

S Bambrew offers Plant-based Packaging

Mr. Vaibhav Anant is the creator of the Bangalore-based Bambrew, established in 2018. In India, Bambrew is a one-stop shop

for creative packaging solutions. It provides a variety of 100% handcrafted, reusable goods and the ideal natural replacement for single-use plastics in the B2B market to eliminate plastic consumption in the packaging business. The firm carefully selects every item created from bamboo, sugarcane, and seaweed. The business targets top globed players in the E-commerce, retail, FMCG,

F&B, Pharmaceutical, and other industries that significantly contribute to the production of plastic trash.

? Chuk

A fantastic replacement for plastic dinnerware, CHUK is a 100% compostable and biodegradable tableware brand that employs agri-residue to create toxin-free items. The business seeks to positively alter the catering and food ecology by putting it down the "greenway" with its unbleached, environmentally friendly, carcinogen-free, and sanitary variety of products. Each of the companys FDA-approved products features a robust and stylish appearance in addition to being microwaveable, ovenable, and freezable. This dynamic flexibility is what gives CHUK and its goods their widespread recognition. The catering and food ecosystem participants are among the significant target population.

•S Pappco Greenware

The Mumbai-based startup offers seven distinct product lines totaling more than 150 items, including plates, glasses, and bowls made from sugarcane, wheat straw, bamboo, and other materials. These items may be microwaved for up to one hundred degrees Celsius. Additionally, it uses bioplastics made from plants, algae, or microbes.

•S Beco

Beco (Be Eco), a consumer product company, was established in 2017 by Mr. Aditya Ruia, Mr. Anuj Ruia, Mr. Punit Batra, and Mr. Akshay Varma. The startup is renowned for producing environmentally friendly substitutes for single-use plastic items, including kitchen towels, toilet paper, and tissues.

Most of Becos products are entirely environmentally friendly because they are made from com starch and bamboo pulp. It has been utilising a particular variety of bamboo known as Moso, which is found primarily in China, Maharashtra, and some areas of northeastern India.

Conclusion:

Indias plastic industry will play a significant role as India sprints towards becoming a global manufacturing hub. Currently, with a renewed focus towards preserving the environment, numerous industries are modifying their plastic to make it more environmentally friendly. This is a complicated task, as there are multiple distinct plastic grades, and each one requires a separate recycling procedure; some forms of weak plastic cannot be recycled in a way that is profitable for business. In order to handle this, corporations are engaging in a variety of CSR initiatives by allocating funds and resources to solve these problems, and protect the environment from plastic waste pollution. The god is to utilise plastic as effectively as possible without affecting or endangering the nature around us.

According to India Plastics Pacts (IPP) Roadmap to 2030, the target is to eliminate all unnecessary plastic waste and items, and make 100% of plastic packaging reusable, recyclable or compostable by the year 2030. The starting point is to establish a list of plastic packaging products that are unneeded or troublesome, and take action to solve them through redesign and innovation. New technology and higher-quality plastic will also help India progress towards this goal.

INDIAS SOLAR POWER REVOLUTION:

India is leading the renewable energy revolution, with a strategic emphasis on solar power to meet its growing electricity needs. The 14th National Electricity Plan (NEP14), introduced in May 2023, aims to double the countrys electricity generation capacity by 2032, with solar energy poised to play a pivotal role. This blog provides an insightful overview of Indias energy landscape, highlighting the significant growth of the solar sector, underscored by government initiatives and the potential for future development. It outlines solar energys environmental and economic benefits, the governments strategies to boost solar adoption, and the anticipated impact on the global clean energy market.

Indias coal-to-clean energy transition led by solar:

India has undergone a notable transformation in its power landscape since 2017, when solar energy constituted merely 1% of its power mix. Envisaging a substantial departure from the coal-dominated trajectory of the past decade, the NEP14 outlines ambitious targets for India. If successfully realised, the plan anticipates a surge in solar powers share from 5% to 25% between 2022 and 2032, marking a pivotal period of expansion. India plans to more than double its electricity generation capacity from 399.5 GW in 2022 to approximately 849 GW by 2032. The NEP14 emphasizes a robust focus on renewable energy, particularly solar power, which is projected to grow from 66.78 GW in 2023 to 366 GW by 2032, constituting half of the total growth. Indias solar capacity is expected to increase at a CAGR of 22.7% through 2023-27 to achieve its initial target of installed capacity of 185.6 GW until 2027, which is further expected to increase to 364.6 GW by 2032, as per NEP14.

The graph shows a big shift to cleaner energy, with solar capacity jumping 24 times in the last nine years, hitting 66.7 GW in May 2023, thus contributing 16% to the overall installed capacity. The government has set a target to elevate this share to 43% of the total installed capacity, as illustrated in the graph above. This is the opposite of what has been seen in the past decade. Until 2022, coal was driving Indias power growth. Total power generation, including imports, shot up by 564 TWh between FY2012 and FY2022 (928 TWh to 1,492 TWh). Notably, 83% of this growth (467 TWh) came from more coal power.

Multi-faceted benefits of solar energy:

Solar energy offers varied benefits, making it an important player in the pursuit of sustainable and efficient power sources.

7 Clean and green energy:

Unlike traditional energy sources that contribute to environmental pollution, solar energy is clean and green. It generates electricity without emitting harmful pollutants, safeguarding the environment.

S Independence from other energy sources:

The advent of solar energy has alleviated the burden on traditional energy sources. Its increasing use has reduced pressure on other forms of energy, promoting a more sustainable and balanced energy ecosystem.

Low maintenance:

Solar power systems require minimal maintenance. Occasional cleaning, typically twice a year, and replacing inverters every 5-10 years are the primary upkeep requirements. This translates to low maintenance costs in addition to the initial investment.

Enhanced safety:

Solar power is inherently safer than conventional energy sources, both in terms of usage and maintenance. The lower risk associated with solar power contributes to a secure and reliable energy solution.

Electricity bill reduction:

Harnessing solar energy for electricity needs significantly reduces electricity bills. The extent of savings depends on individual energy requirements, relieving consumers from escalating electricity costs.

Versatile applications:

Solar energy finds application in diverse sectors. It can generate electricity and heat through solar thermal technology, provide power to off-grid areas, support industrial processes, ensure clean water supply, and even serve household needs.

Technological advancements:

The widespread adoption of solar energy has driven technological innovation and industrial growth. Ongoing advancements in solar technology are expected to propel industrial development further, promising a bright future for this sustainable energy source.

The utilisation of solar panels not only facilitates electricity savings but also contributes to environmental preservation and technological progress, marking a significant shift towards a sustainable energy future.

Government initiatives to navigate the challenging landscape:

The expansion of solar power in India necessitates considerable growth in domestic solar module manufacturing and the production of upstream raw materials, currently reliant on imports from Europe or China. To address this issue, the government has launched schemes such as the Production Linked Incentive (PLI) and the Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS) to stimulate local manufacturing. Additionally, Indias grid infrastructure needs an overhaul to handle the variable nature of renewable energy. To this end, the government has announced a US$ 35 billion (Rs. 2.8 lakh crores) package to enhance the inter-state transmission network for renewable energy evacuation. Financing is as another critical determinant of NEP14s success. In order to tackle this, the Reserve Bank of India (RBI) has prioritised financing for the renewable energy sector by including it in the priority lending sector.

The government is actively promoting the transition to solar power as a key strategy for addressing environmental concerns and meeting the countrys growing energy needs. This proactive approach reflects Indias dedication to reducing its carbon footprint and embracing cleaner, more environmentally friendly alternatives to conventional energy sources. Some of the initiatives are mentioned below:

Foreign Direct Investment:

The government has allowed foreign direct investment of up to 100% under the automatic route.

Production Linked Incentive (PLI) Scheme:

The primary objective of the scheme is to boost domestic module manufacturing and reduce dependence on imports. With a substantial outlay of US$ 2.9 billion (Rs. 240 billion), the scheme aims to achieve GW-scale manufacturing capacity in high-efficiency solar photovoltaic (PV) modules.

An integrated capacity of 8,737 MW has been added under the PLI (Tranche I). The Indian government has approved a substantial expansion in domestic solar PV module manufacturing, allocating a capacity of 39,600 MW across 11 companies under the PLI Scheme for High-Efficiency Solar PV Modules (Tranche II). With an investment of US$ 1,686.2 million (Rs. 14,007 crores), this initiative is set to unfold in phases: 7,400 MW by October 2024, 16,800 MW by April 2025 and the final 15,400 MW by April 2026. This move, expected to attract US$ 11,200.3 million (Rs. 93,041 crores) in investment, would significantly boost the sector, creating over 101,487 jobs, including 35,010 direct and 66,477 indirect roles, and marking a pivotal step towards Indias sustainable energy future.

Proposed solar cities and parks:

In this scheme, the government has authorized 50 solar parks across 12 states, aiming for a total capacity of 37,990 MW. To date, 11 solar parks with a capacity of 8,521 MW have been fully completed, while 7 parks are partially completed, adding 3,985 MW to the total. Within these parks, solar projects amounting to 10,237 MW have been successfully developed.

Waiver of Inter-State Transmission System (ISTS):

The Ministry of Power has issued a waiver of ISTS charges for inter-state sale of wind and solar power for projects to be commissioned by 30th June 2025.

Setting up of Project Development Cell for attracting and facilitating investments.

Providing standard bidding guidelines for the tariff-based competitive bidding process for procurement of power from grid-connected solar PV and wind projects.

Launch of Green Term Ahead Market (GTAM):

This market was launched to facilitate the sale of renewable energy power, including solar power, through exchanges.

PM-KUSUM Scheme:

The scheme aims to add 30.8 GW of solar power by March 2026, focusing on the agricultural sector. This includes establishing decentralised solar plants, converting diesel pumps to solar-powered ones and solarising grid-connected agriculture pumps. The initiative mandates using locally produced solar modules, cells, motor pump sets, controllers and related systems.

S Pradhan Mantri Suryodaya Yojana:

Launched in January 2024, the scheme will provide rooftop solar installations to 10 million households.

Indias bold vision for solar energy leadership:

India possesses a significant solar energy potential, with an annual incidence of approximately 5,000 trillion kWh across its landmass, where most regions receive 4-7 kWh per square meter daily. Recognising this, the National Institute of Solar Energy has evaluated the countrys solar potential of about 748 GW, assuming 3% of the wasteland area will be covered by solar PV modules.

During its G20 presidency, India unveiled the ‘Roadmap of Solar Energy for Universal Energy Access, highlighting solar energys critical role in ensuring widespread access to electricity and driving socio-economic progress. The Interim Union Budget for 2024-25 further underscores this commitment by considerably increasing funding for green infrastructure. Specifically, the budget for the central sector scheme on grid-connected solar power has seen a substantial increase to US$ 1,204 million (Rs. 10,000 crores) in 2024-25, up from the revised estimate of US$ 572.6 million (Rs. 4,757 crores) in 2023-24, demonstrating the governments strong support for solar energy development.

The Indian government has ambitious goals for 2030, targeting 500 GW of non- fossil-fuel-based capacity, which includes 280 GW of solar and 140 GW of wind power. To achieve these targets, the government plans to auction approximately 50 GW of renewable energy capacity annually over the next five years, with central renewable energy agencies such as Solar Energy Corporation of India Limited (SECI), National Hydroelectric Power Corporation (NHPC), and Satluj Jal Vidyut Nigam Limited (SJVN) playing key roles in this initiative. The solar energy sector is expected to be a key driver of this green transition, supported by favourable policies, robust manufacturing capabilities and a skilled workforce. India aims to position itself as a global leader in clean technology manufacturing, with projected investments of US$ 350-400 billion annually by 2030, as reported by KPMG, highlighting significant investment opportunities for global investors in the Indian solar energy market.

In pursuit of its 2030 objectives, India is not only focused on expanding its solar energy capacity but also on ensuring that 50% of its total energy needs are met through renewable sources. This ambitious strategy aligns with global climate objectives and establishes India as a key player in the global effort to combat climate change. The growth of the solar power sector in India is seen not just as a pathway to energy security but also as a driver of economic growth and job creation, with the potential to generate 5-6 million jobs by 2030 and possibly 9- 10 million by 2047, thereby boosting the national economy.

Conclusion:

Indias commitment to enhancing its solar energy capacity is a key component of its sustainable development and energy independence strategy. India is well positioned to execute its plans to leverage solar power to meet a substantial portion of its energy needs by 2032, backed by government initiatives and investment in technology. As India advances towards meeting its renewable energy goals, the solar sector is expected to drive not only environmental benefits but also economic growth and job creation, underscoring Indias role in the global transition to renewable energy.

CAUTIONARY STATEMENT

Management Discussion and Analysis detailing the Companys objectives, outlook andexpectations have “forward looking statement” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied depending upon global and Indian demand supply conditions, changes in Government regulations, taxregimes and economic developments within India and overseas.

By Order of the Board

For Manas Polymers and Energies Limited

Vineet Bhadauria

Managing Director

DIN: 01145562

Date: 05th September 2026.

Place: Gwalior.