Milton Industries Ltd Management Discussions

1. Industry Structure and Developments

The Indian laminates industry forms a vital part of the decorative surface materials market, catering to residential, commercial, institutional, and industrial segments. Over the years, the sector has witnessed consistent growth driven by rising urbanization, increasing disposable incomes, lifestyle changes, and demand for modem interiors.

With real estate and infrastructure development gaining momentum, the laminates sector is evolving towards innovation-led growth. Key developments include:

• Introduction of high-pressure laminates (HPL) with enhanced durability.

• Focus on eco-friendly and recyclable laminates due to environmental concerns.

• Increasing adoption of digital printing technologies for design variety.

• Growing export potential, especially to Asia-Pacific, Middle East, and Europe.

• Growing housing demand under government initiatives like PradhanMantriAwas Yojana.

• Rising demand for modular furniture and modem office interiors.

• Expanding export opportunities for premium laminates.

• Shift towards green building materials and sustainable products.

• Volatility in raw material prices such as paper, resins, and chemicals.

• Intense competition from both organized and unorganized players.

• Fluctuations in global trade policies and currency exchange.

• Substitutes such as paints, coatings, and other decorative materials.

The Company operates primarily in the laminates segment, offering decorative laminates, industrial laminates, and compact laminates. Demand was driven by both domestic retail consumers and institutional buyers. The Company has also diversified into exports, contributing significantly to overall revenue.

The outlook for the laminates industry remains positive, with the sector expected to grow at a CAGR of 810% over the next 5 years. Government spending on smart cities, commercial spaces, and housing, along with growing consumer preference for stylish and durable interiors, will further fuel demand. The Company is committed to introducing innovative, value-added products while enhancing its distribution network in domestic and overseas markets.

• Sustainability Efforts: We are committed to reducing our carbon footprint and have implemented [specific initiatives, e.g., energy-efficient production processes, waste reduction programs].

The Company is exposed to risks related to raw material price volatility, global economic slowdown, and increasing competition. However, strategic sourcing, hedging practices, and continuous product innovation are being implementedto mitigate these risks.

The Company has established robust internal control systems aligned with its size and operations. These systems ensure proper recording of financial transactions, compliance with statutory requirements, safeguarding of assets, and adherence to company policies. Regular audits are conducted by the internal auditors and findings are reviewed by the Audit Committee.

During the year under review, the Company achieved steady revenue growth supported by strong domestic demand and improved export performance. Operational efficiency, prudent cost management, and focus on premium product categories contributed to profitability.

The Company considers human resources as its most valuable asset. Regular training, skill upgradation programs, and employee welfare initiatives are undertaken. Industrial relations during the year remained cordial.

Statements in this report relating to objectives, projections, estimates, and expectations 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 economic, political, and industry-specific factors.

For and on behalf of the Board

Chairman cum Managing Director

(DIN:00343712)