I. Corporate Overview
In this document, the terms ‘Company, ‘Polyplex and ‘Group refer to the consolidated operations of Polyplex Corporation Ltd.
Polyplex is a leading producer of Biaxially Oriented Polyethylene Terephthalate (BOPET) film with a global footprint in an attractive Industry. It offers a wide range of polymeric films across various substrates including BOPET (thin & thick), Biaxially Oriented Polypropylene Film (BOPP), Cast Polypropylene (CPP) and Blown Polypropylene/Polyethylene (Blown PP/PE). Its portfolio of specialty, innovative and differentiated products are used across packaging, electrical & electronic and other industrial applications. The Company has a unique value proposition of on-shoring, off-shoring and near-shoring for a global customer base, while maintaining cost leadership. Polyplex has the second largest global capacity ex-China in its core business of thin BOPET films.
Polyplex is the only global player with resin plants at all manufacturing locations. Backward integration enables it to develop resins required for specialty products, apart from enhancing cost competitiveness and ensuring supply security. Forward integration provides an ability to undertake one or more downstream processes on the base film in a cost-efficient manner leading to higher innovation, value addition and reduced volatility. Downstream businesses like metallizing, silicone coating, extrusion coating, holography, Transfer
Metallized Paper (TMP/)/ Direct Metallized Paper (DMP) and offline chemical coating (including films for digital print media) have enabled the Company to offer products for a variety of applications.
The Company believes that its differentiated positioning in combination with its other strengths like integrated manufacturing operations, global sales & distribution network, customer access & intimacy and wide offering of specialty products shall continue to be the key enablers for superior performance and earning stability.
BOPET film, also known as polyester film, was invented in the mid-1950s. It is a flexible, clear or translucent material produced from PET polymer, a linear, thermoplastic polyester resin. BOPET film is a high- performance film with a unique combination of qualities like high tensile strength, durability, high heat resistance, excellent gas-barrier properties, dimensional stability, chemical inertness, clarity and recyclability. BOPET film is known for its versatility with a wide and growing range of applications. These diverse applications and intrinsic product characteristics lead to a constant pipeline of new product variations and applications thus reducing dependence on any one application or product.
BOPET film is available commercially in varying thicknesses, widths and specifications depending upon the needs of end users. It can be produced as a single layer (mono) or can be coextruded with other copolymers into a multilayer film with various functional
properties encompassing the desired characteristics of each material.
The polymeric films business is quite different from a pure play commodity business like its precursor inputs - PTA, MEG, PP/PET resins, due to a combination of several factors:
a) The product is almost always "made to order" as contrasted with "made to stock"
b) Multiplicity of Stock Keeping Units (SKUs) (based on unique combinations of length, width, thickness, surface treatment during process as well as downstream treatments and Core ID)
c) Fragmented customer base
d) Quality and customer service considerations
e) Differing buyer behavior across markets
Pricing is influenced by a host of factors as listed above besides import parity i.e. Logistics cost differentials and varying customs duties - both normal, trade defense measures like anti-dumping, countervailing and safeguard duties as well as special / reciprocal tariffs.
This can create significant differentials in regional price levels as well as between standard products and value added / specialty products.
There is increasing concern among all stakeholders & environmental groups on sustainability aspects with the focus being primarily on reusability and recyclability of plastics. Flexible packaging is mostly multilayered plastic (MLP) laminate which offers several sustainability benefits when compared with rigid forms of packaging. These include resource efficiency, reduced material to landfill, high product to package ratio, cost competitiveness, lower carbon footprint throughout the life cycle of packaging etc. Given its myriad benefits, there is no ban on MLP in any country/region, unlike several other single use plastic (SUP) items. The Company continuously strives to work on providing sustainable solutions (products and processes) as a commitment towards the environment. The recycling operations in Thailand provides sustainable solutions for film-based process waste as well as post-consumer plastic waste. Regulatory measures across the world are focused on increasing recycled content which promotes the growth of the recycled PET (rPET) market.
BOPET film is made from Polyester resin (chips), which in turn is produced from Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG). The Company produces its own film grade PET resin.
II. Global Operations
Polyplex was the first Indian producer to set up manufacturing facilities in multiple countries . It currently has market share of ~9% (ex. China) in thin BOPET Films globally. The Company has a global manufacturing footprint across 8 locations in five countries - India, Thailand, Indonesia, Turkey, and the US supplemented with an extensive sales & distribution network in key demand centers. The Company also has additional warehouses in Poland, Germany & Netherlands and liaison offices in South Korea & Japan to enhance its sales capability. This ensures a reliable supply chain and helps capitalize on the increasing preference of customers to source locally. Polyplex can supply customers with its global supply network, offering a built-in resilience to any disruption including geo-political events.
Global Sales Force
Polyplex has a direct presence in all the key regional markets, primarily through its own sales team (many of local nationality) complemented by an extensive global agent network, which helps develop strong customer relationship. Within each key market, presence in multiple locations maximizes customer coverage efforts. Relationships with most key customers are deep-rooted and span over 15+ years.
| Particulars | India1 | Other Asia | Europe2 | North America |
| Sales and Marketing Team Size | 50 | 23 | 28 | 12 |
| # of Locations | 15 | 8 | 9 | 6 |
including the sales and marketing team of Polyplex DigiPrint Private Limited (PDPL), formerly known as Technova Printrite Products Private Limited (TPPPL)
including major distributor
Global Customer Base
The Company has a well-diversified customer base with an even distribution of sales globally across Americas, Europe, India and Other Asia. The Company is a Tier I supplier to leading global and regional converters who cater to the top Consumer Product Group Companies (CPGs)/ Original Equipment Manufacturers (OEMs) operating both at the country / regional level as well as across multiple continents.
Integrated Manufacturing Capacities across Geographies
| Resin | Base Films | Value Added Films | |||||||||
| Location | PET Film Resin (MT) | Mechanically Recycled Resin (MT) | BOPET Thin (MT) | BOPET Thick (MT) | BOPP (MT) | CPP (MT) | Blown PP/ PE (MT) | Metallized (MT) | Holography (MT) | Coated (Mn Sqm) | TMP (Mn Sqm) |
| India | 77,600 | - | 107,400 | - | 35,000 | - | - | 49,500 | 5,040 | 407 | 152 |
| Thailand | 1,06,050 | 59,700 | 42,000 | 28,800 | - | 10,000 | 17,245 | 21,700 | 480 | 985 | - |
| Turkey | 75,850 | - | 58,000 | - | - | - | 4,392 | 20,700 | - | 478 | - |
| USA | 86,000 | - | 81,000 | - | - | - | - | 9,250 | - | 120 | - |
| Indonesia | 90,000 | - | 48,000 | - | 60,000 | - | - | 18,000 | - | - | - |
| Polyplex Group | 4,35,500 | 59,700 | 3,36,400 | 28,800 | 95,000 | 10,000 | 21,637 | 1,19,150 | 5,520 | 1,990 | 152 |
Notes:
a) The capacity of all product lines is in MT per annum except Coated Films and Transfer Metallized Paper where the capacity is in million SQM per annum.
b) Include projects under implementation viz new BOPET Film Line and Two Metallizers in India, new Offline Coater in Turkey.
c) Coated capacity also includes the coater capacity of Polyplex DigiPrint Private Limited (PDPL), formerly known as Technova Printrite Products Private Limited (TPPPL).
III. BOPET Film Industry Overview
BOPET film is an attractive and vibrant industry, growing at ~ 2x of global GDP growth rates since the turn of the millennium. The traditional segmentation of BOPET films has been thin and thick films based on distinct applications and lack of supply side substitutability. Thick films generally refer to films with a range oRs. 50-350 microns whereas films below 50 microns are characterized as thin films. In recent years, several intermediate thickness lines (with thickness ranging between 8-150 micron) have also been installed. The BOPET film industry has seen various structural changes over the last seven decades with an inexorable move from West to the East with Asia accounting for ~81% of demand and ~87% of capacity. Film producers from Asia (mostly headquartered in India) have become major global players. There has also been a dispersion of technology with progressive orientation towards higher productivity assets for standard films.
BOPET film growth has been driven by the continued shift from rigid to flexible, loose to packaged and increasing demand for enhanced packaging solutions that preserve foods products and support the growing consumption of retail-ready convenience foods by an increasingly affluent global consumer base. Further, growth and developments in electrical and electronic applications continue to sustain demand. Some of the distinctive functional strengths of BOPET film are:
• Light weight, low-cost, high-performance material
• Significant application in food packaging - a "recession proof" demand base
• Suitable for use on high-speed packaging lines
• Very good heat resistance
• Excellent performance with a variety of barrier options, coatings and printing
• Extensively used across a broad range of technical applications
• rPET is the most widely available recycled plastic and can be incorporated into BOPET films with up to 100% content
Polyplex has traditionally operated predominately in thin BOPET films, which accounts for ~81% of the overall global PET film demand. Flexible packaging remains the largest end use segment, especially in Asia. Non-packaging demand includes applications in the construction industry, stamping foil, tapes, window films, release liners for labels, Multi-Layer Ceramic Capacitors (MLCC) & Optical Clear Adhesives (OCA), flat panel displays, backsheets for photovoltaic panels, manufacturing process of lithium-ion batteries for electric vehicles and storage which are potentially high growth sectors.
Thin BOPET Film market
The largest application of Thin BOPET films is flexible packaging, which accounts for 76% of the total thin films used. Flexible packaging plays a key role in source reduction based on the principle of ‘use less packaging material in the first place.
Advantages of flexible packaging versus conventional alternatives are overwhelming, including:
- Lowest carbon footprint
- Low resource intensity
- Consumer convenience
- Highest product to package ratio
- Cost competitiveness, ease of transportation, storage and use
- Design, structure flexibility, customization and shelf appeal
- Safety and product protection (freshness and extended shelf life)
- Prevention of food waste and contamination
This has resulted in higher-than-GDP growth in the global flexible packaging industry. BOPET film, being a higher-end preferred substrate within packaging, has grown more rapidly than other substrates, averaging around 4-5% per annum. Packaging demand is resilient as it is driven by the consumption of food products and consumer staples, usage of which in general is non-discretionary in nature. This packaging segment characteristic along with its attributes of safety, hygiene and integrity has resulted in steady demand growth over the years. There was a short-term impact on demand in 2023 due to recessionary/inflationary conditions across the globe resulting in lower apparent demand, especially due to the cumulative impact of destocking post-Covid across the value chain. However, the Global market rebounded in 2024 with most major markets returning to normalized demand levels. This recovery trend has continued into 2025, with improved demand visibility across key end-use segments.
An increase in purchasing power in developing countries has been accompanied by a rise in per capita packaging material consumption. However, when compared with mature markets, per capita packaging material consumption in developing countries is still low.
Asia is the largest market for thin BOPET films, accounting for about three-fourths of global consumption. Faster growing Asian demand is the main driving force in the global markets. Within Asia, India leads with robust growth of ~10% driven by FMCG expansion, while Southeast Asia demonstrates moderate demand growth. China maintains its global dominant position and is forecast to grow at 6% p.a. despite having an underwhelming 2025.
A similar trend is also evident on the supply-side with most of the new capacities being installed in low-cost developing countries (mainly in China & India). The Chinese governments 14th Five-Year plan announced in 2021 incentivized investment in petrochemicals and downstream chemical markets. This investment supercycle has created a vastly oversupplied global market. However, the Chinese producers have borne the brunt of this with low domestic operating rates. Chinese players primarily cater to the domestic market with limited presence in Southeast Asia. Their presence in the US and Europe is negligible on account of factors like limited presence of front-end / post sales or technical service teams, narrow product range, trade barriers, lesser ability to offer credit, language and cultural differences etc.
A large proportion of the new capacity emphasizes on productivity and cost management. This had an impact on traditional producers of PET film operating with high- cost structures, who have chosen to concentrate on niche technology-oriented segments like films for optical applications, high end release liners, and specific applications within packaging and industrial segments. The high speed and productivity of the latest 10 meter+ wide lines same as our Indonesia line, latest US investment and upcoming Bazpur line of Polyplex will bring more cost competitiveness and may result in closure of some old and inefficient lines. While trade defense measures like anti-dumping and countervailing duties were invoked in the past, they were unable to address the problems of inefficient assets in developed countries producing standard films.
Global thin BOPET film growth is expected at about 5% for the next few years, with demand in India expected to continue growing at ~10%. Companies with a global footprint, consistent quality products, diversified product portfolio, access to international customers and stronger supply chains stand a better chance of participating in market growth and delivering margins above the industry average.
Since 2019, the global Thin BOPET film industry has witnessed capacity additions exceeding 4.5 MMT, predominantly in Asia. China has accounted for approximately 73% of these additions, followed by India at around 14%, resulting in industry-wide oversupply. Per industry sources, even though many more additional lines are on order in China, it is expected that some of these may be cancelled or postponed due to the prevailing oversupply situation. With limited absorption in export markets, older and less efficient production lines are increasingly at risk of temporary shutdowns or permanent closures.
Excluding China, the planned capacity additions are limited. This is reflected in the CUF chart below which is for Ex-China.
While in the short to medium term, the oversupply situation is expected to continue, with the expected pause in capacity additions ex-China, closure of older inefficient lines and increase in demand, the CUF is expected to improve gradually.
Based on experience, CUF levels between 80-85% can be considered high and close to the full producible capacity for the industry. In practice, some producers produce lower than the nameplate capacity as the assets are older and inefficient while some produce with capacity utilization even higher than 100% using new and modern machinery based on their expertise and experience.
Thick BOPET Film market
Thick BOPET films demand is expected to demonstrate a steady CAGR of ~4-5% going forward. The Electrical & Electronics sector is expected to support healthy growth, primarily concentrated in South Korea and China. Key drivers include MLCC films, OLED displays, AI-related applications, and autonomous vehicle electronics, which command premium pricing and better margins. However, photovoltaic film demand has slowed as solar manufacturers shift to glass panels for efficiency gains, eliminating what was previously a robust renewable energy growth avenue for BOPET films.
Like in thin BOPET film business, the capacity addition for thick BOPET film has also been primarily in China with a CAGR oRs. 17% in the last 5 years and aggregating to 69% of current global capacity. Producers in Europe and America constitute only around 5% of world capacity in 2025.
Due to high quality standards required by optical thick film customers, manufacturers targeting this sector face higher levels of wastage due to defects, and therefore the saleable output of thick film lines is often poor relative to thin film lines. As a result, optimal utilization level for thick film lines is often at ~ 70%.
The Thick Film line in Thailand has enabled Polyplex to straddle the entire spectrum of end-uses for BOPET films by accessing the traditional industrial and electrical applications for thick films, along with significant progress in catering to several new applications including sophisticated release liners for electronics and other industrial segments. The first film line in India which was revamped in 2011 and further upgraded in 2014 to produce intermediate thicknesses/ specialties, also contributes to the Companys growth/ margins.
IV. BOPP Film Industry Overview
The global demand for BOPP is ~10.8 MMT in 2025 and is expected to grow at more than 4%. Food applications accounted for ~59% of total demand, with the remaining 41% attributed to non-food segments. Despite a difficult year in 2023 due to falling global sales and de-stocking, underlying demand growth remains positive. The nature of its main applications - food packaging, which is largely recession proof, labels and tape base film, which have benefitted from the growing e-commerce ecosystem continues to drive demand. International trade in BOPP is much lower than BOPET, as BOPP capacity is dispersed geographically. Regional demand-supply dynamics play a more important role in this industry than global demand supply balance.
Feedstock of BOPP film is polypropylene (PP) resin a downstream product from crude oil and/or gas and is widely traded across the globe. BOPP may be preferred over BOPET in certain applications due to its high moisture resistance feature, sealing and other properties. Though BOPET and BOPP are sometimes considered as substitutes the two films have distinct individual features & are more often complimentary in a typical laminate structure.
The industry does not run on 100% utilization on account of product mix and CUF between 75-80% is typically described as optimal.
Just like BOPET film, there have been capacity additions in BOPP film too with China accounting for ~60% of the incremental capacity, followed by significant additions in India. However, the percentage of incremental capacity at global level has been almost equivalent to the incremental demand, keeping the CUF of BOPP Film less volatile across the period.
In India, several new BOPP lines were commissioned during FY 25-26, with an additional 8-10 lines expected over the next 1-2 years. This is likely to impact the demand-supply balance, putting pressure on industry margins. However, the impact has been partially offset by the temporary shutdown of certain capacities following a fire incident at a major competitors facility in May 2025.
The BOPP line in Indonesia has helped diversify the product offering and derive cost economies. The Company is well positioned due to the highly fragmented nature of the local market, consisting of several players with small and inefficient lines besides significant duty protection on imports. Growth in demand, commonality of customers with BOPET films in flexible packaging, low cost of operations due to co-location and benefits of a high productivity line besides a global sales and distribution network provides further substance.
V. CPP and Blown PP/PE Films Business
1. CPP Films (Cast Polypropylene Films)
CPP films are transparent/white/ matt/color multilayer cast polypropylene films made from Homo Polymer and Co-polymer grades of PP (polypropylene) resin. They are specifically engineered to offer:
• Excellent optical clarity
• High sealing performance
• Medium barrier after metallization
• Easy convertibility for lamination, printing processes and pouching
Applications:
CPP films serve a wide range of applications across various industries, primarily in flexible packaging:
• Food packaging for snacks, bakery products, confectionery, frozen foods, fresh produce, and retortable products
• Lamination structures combined with BOPP, PET, nylon, aluminum foil, and other substrates for high-performance flexible packaging
• Metallized films used in moisture-sensitive and shelf-life-critical packaging applications (confectionaries and snacks)
• Healthcare and pharmaceutical packaging require consistent sealing performance, stem sterilization and product protection
• Industrial and specialty applications including labels, release liners, protective outer packaging and carrier film for the flexible circuit board
• Textile, stationery, and consumer goods packaging
The CPP film industry continues to evolve toward higher performance and more sustainable packaging solutions. Growing demand for convenience foods, e-commerce packaging, and recyclable mono-material structures are creating opportunities for innovation in CPP film products. Manufacturers are increasingly focusing on specialty grades, downgauging, improved process efficiency, and sustainable packaging solutions to meet changing customer requirements and regulatory expectations.
The Companys strategy remains focused on delivering high-quality CPP film products, expanding value-added specialty grades, improving operational efficiency, and strengthening customer relationships to enhance competitiveness and support long-term sustainable growth.
2. Blown PP and PE Films
Blown films are manufactured by extruding molten polymer into a tubular shape and then inflating it to form films. The Companys blown film business has steadily expanded over the years to support growing customer demand and strengthen its presence in domestic and international markets. PTL had forayed into this segment with its first Blown PP line in October 2013. These films enable participation in several specialty segments, as a base for offline coatings which are used in many value-added applications.
Growth & Capacity Expansion:
a) 2nd Line (Thailand, 2018): Introduced PE- based blown films targeting merchant markets
b) 3rd Line (Thailand, 2021): Enabled catering to new applications such as:
- Agricultural films (e.g. mulch films)
- Labels and liners
- Airbag safety film substrates
- Sealing layers for flexible laminates
c) 4th Line (Turkey, March 2022): Further diversified the product portfolio and targeted high-value specialty film markets
d) 5th Line (Thailand, February 2026): Targeted to meet the increasing demand for specialty film applications
Key Features and Advantages:
Blown film offers several performance advantages across a wide range of packaging and industrial applications:
• Excellent mechanical strength, puncture resistance and thermal resistance
• Superior toughness and durability for demanding applications
• Good sealability and processability across various packaging systems
• Capability to produce mono-material recyclable packaging structures
• Multi-layer technology enabling customized performance characteristics
• High flexibility in film design for industrial, consumer, and specialty applications
• Cost-effective packaging solution with efficient material utilization
Applications:
The Companys blown film products are used across a diverse range of industries and applications, including:
• Food and consumer goods packaging
• Industrial packaging and protective films
• Shrink films and bundling applications
• Agricultural films and specialty applications
• Hygiene and healthcare packaging
• Heavy-duty sacks, liners, and industrial bags
• Lamination, and conversion-grade films
Increasing emphasis on recyclable packaging, downgauging, and material efficiency is driving demand for advanced multi-layer blown film solutions. With its diversified manufacturing base, continuous investment in modern equipment,
and focus on value-added products, the Company is well positioned to address evolving market requirements and support sustainable long-term growth.
Sustainability Focus:
Blown PE and Low SIT CPP films are gaining traction in monolayer packaging solutions, aligning with the sustainability goals of increasing recyclability and reducing multi-material waste.
VI. Polyplex Performance
*Reduction in Polyplex Capacity utilization in FY 25-26 is due to the slow ramp-up of new film line in USA. Excluding new line in the US, CUF is 94% Base Film constitutes PET (Thin + Thick), BOPP, Blown PP/PE & CPP Films CUF - Capacity Utilization Factor
Even while industry wide overcapacity prevails, Polyplex has consistently displayed an industry leading capacity utilization due to superior market access and higher productivity. During FY 25-26, capacity utilization witnessed a marginal decline, primarily due to the gradual ramp-up of the newly commissioned Thin BOPET film line in the United States. Excluding the impact of the new line, the Company achieved a capacity utilization level of approximately 94%. Key drivers for strong capacity utilization are:
- Deep customer access and higher market penetration in key demand centers due to multi-location manufacturing
- Higher and increasing proportion of specialty films
- Extensive sales and distribution network complemented with local warehousing
- Ability to move material between different regions depending on local market conditions, thus withstanding the regional imbalances and industry volatility
- Consistent improvement in productivity and cost competitiveness
Higher productivity is usually a function of ability to run at higher average / peak speeds, optimal downtime and better deckle (width) utilization besides other factors.
VII. Industry Outlook for BOPET Film
Global thin film growth has been resilient and expected to grow at about 5%. Packaging remains the largest end- use segment with different regions showing diverging performance .
Industrial applications (MLCC, OLED, AI-related electronics, automotive) and other similar niche markets show superior growth prospects, providing potential margin protection and competitive differentiation strategies
The drive for sustainable packaging and evolving regulatory mandates may create additional opportunities as well as raise concerns on usage of certain substrates of plastics in flexible packaging.
Majority of new capacity yet to come is in China, thus extending the current oversupply status in the industry. However, market conditions and overcapacity could incentivize much of this to be postponed or cancelled. The impact of overcapacity may be significant in China with moderate influence in other regions, as Chinese players have typically focused only on the domestic market and select SEA markets due to variety of reasons. Among other reasons, trade barriers, special / reciprocal tariffs in USA, limited product portfolios, and an uneven quality of certain imported material are major barriers to Chinese export growth. The Ex-China CUF is expected to improve as demand growth continues to be robust and new capacity additions are expected to be minimal.
The Company believes that its well-distributed manufacturing operations, diversified and increasing value-added product portfolio, quality consistency, international customer base, customer relationships, efficient supply chain and a conservative Balance Sheet will allow it to grow profitably and withstand industry volatilities much better.
VIII. Indian Flexible Packaging Market Thin BOPET Market
The BOPET film industry in India is characterized by the presence of multiple players, with no single participant holding a dominant market share. Several entrants post 2010 from allied/converting business have backward integrated into BOPET films. The domestic market is competitive and volatile in nature with limited differentiation around standard films.
Size of India market is more than total combined demand of North America and Europe. Demand for BOPET film in India in the FY 26-27 is estimated to be around 8,93,000 tons per annum. The industry has been growing at >10% CAGR over the last decade and is expected to continue to do so in the foreseeable future. Double digit demand growth is driven by demographics, urbanization, continuing movement from loose and rigid forms to flexibles, increasing income levels & consumerism and accelerating export of laminates.
Over the past 3-4 years, thirteen new BOPET lines have been commissioned by existing as well as new players, thus impacting the CUF and margins. However, going forward, the demand supply balance is expected to improve. Last year, the Company announced a new brownfield BOPET line in Bazpur, India to regain market share, support value added business and achieve cost economies. The new line is expected to start in Q4 of FY 26-27.
The total installed capacity for thin BOPET films in India by end of FY 26-27 is expected to be about 13,00,000 tons per annum with a significant portion of the surplus being exported. On the trade front, preliminary antidumping duties have been determined on imports of thin PET film (8-100 microns) from China, Thailand,
and Bangladesh. The imposition of final duties is subject to final determination by the Directorate General of Trade Remedies (DGTR) and subsequent approval and notification by the Ministry of Finance.
BOPP market
The BOPP industry in India also comprises of many players and has grown at ~10% CAGR over the last decade aided by a unique application in textile bags and is expected to continue to grow at historical rates. Industry CUF has been 85%+ over the past 5 years - which represents close to full utilization given the product mix. This has resulted in the announcement of several new lines by existing as well as new players. During FY 25-26, four new BOPP lines were commissioned, with an additional 8-10 lines expected to be added over the next 1-2 years. These capacity additions are likely to impact the demand-supply balance in the near term and may exert pressure on industry margins.
The Indian BOPP market in the FY 26-27 is estimated at about 9,50,000 tons per annum and the capacity is expected to be about 11,17,000 tons by end of FY 26-27 with the majority of surplus being exported. Demand is expected to continue growing at around 10% annually.
IX. Other Businesses
Silicone coating and extrusion coating businesses
The silicone coating business produces release liner, which is used for, among other applications, carrying adhesive labels until these are removed from the release liner and are applied to the final surface. Other applications of siliconized films include release liner for adhesive tapes, cast polymer materials, electronic applications, medical, hygiene products, roofing and other industrial uses. The Company has three offline siliconized coating lines - one in India and two in Thailand. Another line is under implementation in Turkey which is expected to be operational by Q2 FY 26-27. Polyplex also produces in-line coated silicone release liner during film extrusion process at its Thailand, Turkey and USA plants.
The extrusion coating business involves a combination of PET/BOPP/Nylon film with an extruded adhesive layer to produce thermal lamination films. Thermal lamination film is used for laminating offset/digital printed documents on one/both sides to improve durability and aesthetics of the printed documents. The principal uses comprise teaching aids, maps, certificates, posters, menu cards, ID security cards, book covers, carton board boxes, food packaging and reflective insulation. There is a shift in the global markets from offset print to
digital print lamination using special films for enhancing products appearance. Carton box packing segments are also growing due to the change in food eating habits of customers. Overall, thermal films are estimated to grow at a rate oRs. 3-5%, mainly in BOPP and its specialty thermal films segments. The extrusion coating products have significant level of complementariness with the Saraprint offline coating products
Offline coating business
Polyplex has successfully commercialized various specialty offline coated products for both packaging and industrial segments. These include specialties like transparent barrier films, lidding films, digital print media (under Saraprint brand), matte coated films, heat transfer films, transfer metallized film/paper, UV printable metallized film, Hot stamping foil, color films, soft touch films etc.
Digitization is rapidly growing in various application segments like photo book, labels, shrink sleeves, flexible packaging, graphics, promotional & customized digital printing, commercial printing etc. Polyplex has developed various digital print media film products to provide solutions for graphics, display, label and packaging segments.
The Company has several offline coating lines across India, Thailand, Turkey & USA to meet market demand and broaden the product portfolio. A new offline coater was commissioned in India in H2 FY25-26 to service increased demand and increase the share of specialty sales.
With the acquisition oRs. 51% stake in Polyplex Digiprint Private Limited (formerly known as Technova Printrite Products Private Limited), the Company will accelerate the development of new, high performance, high- quality Digital Print Media solutions to meet the evolving market needs.
Metallized paper business
Polyplex has a laminating machine which was commissioned in FY 19-20 to facilitate Transfer Metallized Paper (TMP) business. In H2 FY 25-26, Polyplex installed an additional laminator to cater the increasing market demand. TMP is Metallic Paper where the metal is deposited on it by transfer from release coated metallized PET films.
Polyplex also has the capability of Direct Metallized Paper (DMP) wherein a very thin layer of aluminum is vacuum deposited onto a varnish lacquer coated paper and further print receptive lacquering is done on metal surface.
Metallized Paper is bio-degradable, has a brand appeal and is perceived to be recyclable. Major segments for metallized paper are:
1) Label face stock 2) Wet glue label 3) Gift Wrap 4) Cigarette wrap 5) Flexible packaging 6) Carton packing 7) Barrier Paper 8) Metallized Board 9) Holographic Paper 10) Holographic Board
The market potential for Transfer Metallized Paper in India is approximately 10k-11k tons.
Holography business
Holography is the process of making holograms which are usually intended for displaying three dimensional images, security text, and other unique features. It is a physical structure embossed on polymeric film that diffracts light into an image, text or patterns.
Holography is widely used in various flexible packaging applications that provide better aesthetics, protection from counterfeiting, fraud and brand protection besides hot stamping foil, security label, holography transfer paper and other packaging applications.
Holography is produced on a thin flexible polymeric film (PET, BOPP, CPP or Nylon) as well as Paper which has been micro-embossed with patterns or even images. Patterns or images are created by way of an embossing process which can provide a 3D effect and/or spectral (rainbow) coloring. To enhance holography effect & its
suitability in packaging application, embossed film is metallized on the holographic side.
The market potential for Holographic Film in India is approximately 12,000 tons and is expected to grow at around 6%
Polyplex has installed both seamless and shim line Holo technology to cater to a wider segment of market applications.
Recycling of plastic waste
The Company through its subsidiary in Thailand, Ecoblue Limited (Ecoblue), which started operations in 2013, provides sustainable solutions for film-based process waste as well as post-consumer plastic waste for varied applications. Over the years, EcoBlue has been working with different post-consumer and industrial wastes (both PET and Polyolefin based) to develop and produce high quality recycled materials which can replace virgin resin in high end applications like Bottles, PET Film, Filament Yarn etc. The rPET, rPP and rHDPE range are FDA approved, EFSA approved and Global Recycled Standard (GRS) and RecyClass certified. A major expansion in 2022 with a new state of the art recycling facility for post-consumer waste, for these applications demonstrates the Companys commitment towards sustainability. Ecoblue is also working with the Ocean bound plastics marketplace platform and developing supply chain for ocean bound plastics. In 2024, the Company obtained OBP (Ocean Bound plastic) certification. Ecoblue is now positioned amongst the leading recycling companies in the region.
X. Demand Drivers for Polymeric Films
Population growth: The demand growth for polymeric films is expected to be linear and directly proportional to population growth. The worlds population has tripled since the mid-20th century. It is estimated to reach 8.30 billion in 2026. Rising life expectancy is expected to lead to an ageing of the population, especially in high income countries, that will increase demand for healthcare and pharmaceutical products.
Improved quality of life: With growing life expectancy and quest for quality, consumers are expected to move towards packaged product consumption. As people adopt healthier lifestyles and consume more convenience foods, the demand for these items will continue to increase.
Increasing environmental awareness: Owing to increasing global environmental awareness, polymeric films are gaining popularity owing to lower environmental impact (lower resource intensity, emitting lower greenhouse gases and lighter in weight). Flexible packaging offers several sustainability benefits throughout the entire cycle of the package when compared to other packaging options, especially rigids.
Urbanization: Urbanization continues to be a key structural growth driver. Currently, around 56-57% of the global population, representing approximately 4.6-4.7 billion people, resides in urban areas. This share is expected to increase to nearly 68-70% by 2050, with the urban population rising to approximately 6.5-7 billion. Urbanization is associated with higher disposable incomes, evolving consumption patterns, and increased demand for packaged goods. With over 80% of global GDP generated in cities, urban centers remain critical to consumption growth, innovation, and productivity.
Increasing consumerism: Rising income levels and expanding middle-class populations are fueling global consumer spending, thereby supporting demand for polymeric films. Technological advancements are also contributing to increased usage in electrical, electronics, and industrial applications. Emerging segments such as Lithium- Ion Batteries (Li B) for electric vehicles are expected to create additional demand. The Asia-Pacific region, led by China and India, is anticipated to witness the fastest growth, driven by favorable demographics, increasing disposable incomes, and expansion across key end-use sectors such as food and beverages, pharmaceuticals, pet food, and personal care.
E-Commerce: The rapid expansion of e-commerce is a significant growth driver for the packaging industry. Increasing reliance on online shopping has heightened the importance of packaging for product protection, durability, and visual appeal. In the era of digital and social media-driven marketing, companies are increasingly adopting innovative and premium packaging formats. The Asia-Pacific region is expected to dominate this segment, supported by strong growth in e-commerce.
Retail Formats: The expansion of modern retail formats has created significant opportunities for the packaging industry. Organized retail drives demand for retail-ready packaging solutions that are space-efficient and optimize supply chain costs. Additionally, modern trade formats encourage impulse buying through visual merchandising, in-store promotions, and enhanced customer engagement, further supporting demand for attractive and functional packaging solutions.
XI. Key Differentiating Factors for Polyplex
• Onshore presence through integrated manufacturing and distribution in all major demand centers except China
• Inherent flexibility embedded in a range of upstream & downstream assets and organizational focus ensuring expeditious as well as economical product and application development
• An appropriate combination of integrated operations, contemporary assets, repurposed older lines, consistent improvement in productivity and cost structure securing long-term cost competitiveness on a delivered basis
• Focused downstream and side-stream investments to meet customized needs of packaging and industrial markets
• Continuous investment in assets and capabilities to meet future requirements aligned to emerging trends
• Ahead of the industry in recycling initiatives and the only Company to offer mechanically and chemically recycled rPET films at scale
• A comprehensive suite of products for flexible packaging industry
• Tier 1 supplier for BOPET films to global converters across both standard and specialty films
• Collaborative product and application development with customers
• An expanding portfolio of Thin and Thick Industrial BOPETfilms
• A proven management team with 20+ years at Polyplex and an in-depth understanding of the business
• A common value system across the organization, "SCORE" (Seamlessness, Care, Ownership & Responsibility and Excellence) secures the global mindset of a committed and empowered work force sensitive to all stakeholders
XII. Strategy & Positioning
Polyplex seeks to maximize long-term returns following a differentiated approach that responds proactively to business and environmental changes. As it seeks sustained and profitable growth i.e. a judicious balance between revenue enhancement and a benchmark return on capital employed, Polyplex has often been an industry trend setter with respect to the strategy choices made in the past. The key elements of this strategy are as under:
Global and Integrated Manufacturing Set-up
• Globally seen by Customers as a "Local Manufacturer" - Eight state-of-the-art manufacturing facilities across the globe help focus on their respective domestic and regional markets
• Integrated manufacturing capacities across geographies enable the Company to provide a comprehensive suite of products in each manufacturing location. It also ensures supply chain efficiency, cost optimization & lower time to access and market new products and applications
• Backward integration into PET resin at all our film manufacturing locations is unique to Polyplex among the large global producers as others either do not have any captive resin facility or even if they do have, it may be at one location only and may not cover their entire requirement.
Diversified and Differentiated Product Portfolio
• The Company has the widest product portfolio in the industry across several polymeric film substrates; further enhanced due to multifarious downstream processing capabilities
• There is an increasing composition of innovative, highly customised and unique products to meet wide ranging requirements of customers
• Unique value proposition of differentiated products, applications and customers (D-PAC) has led to healthy growth in specialty portfolio. It is a competitive advantage developed over time
• Polyplex has created a portfolio of value added and D-PAC sales to act as a twin-layer moat for preserving profitability
• The acquisition of a 51% stake in Polyplex Digiprint Private Limited (formerly known as Technova Printrite Products Private Limited) represents a strategic step towards further strengthening the Companys differentiated product portfolio, enhancing its capabilities in value-added segments, and deepening its presence in specialty applications
International Sales & Distribution Network
Polyplex offers
• Seamless and reliable supply chain through a judicious mix of onshore, nearshore manufacturing and imports
• Customer specific stocking programs - make-and- hold, consignment and local warehousing
• Direct sales presence through employees of local origin in key geographies in Asia, Europe and North America
- Local presence in Japan, Korea, Vietnam, Philippines, Singapore besides Thailand and Indonesia
- Physical presence of European sales team in 9 countries of the EU, Turkey & UK
- North America sales team physically located in different US cities
- Customers in African and South American markets are catered directly or through a wide agent network
• Intricate knowledge of customer requirements and global trends - local language, cultural affinity and physical presence play an important role in developing strong customer relationships
• Strong and real time feedback loop established through the salesforce leading to prompt onshore technical support
• Comprehensive product portfolio including high value differentiated products in different lot sizes
Cost efficient operations & assets
• Investment in vertical integration (both backward and forward) complemented with versatile and high productivity assets would continue to protect cost competitiveness, drive innovation & value addition
• Continuous improvements in productivity and cost optimization to maintain global cost leadership
• To increase the sales of specialty films and enable economic usage of the older & less productive film lines, Polyplex has been consistently repurposing its older assets to meet the growing space and demand for D-PAC products in a cost- effective manner
• The recent expansion in USA has helped reach an optimum combination of two BOPET lines along with matching PET Resin captive capacity besides downstream metalizing and offline coating assets leading to optimum cost structure.
• Other technological improvements like direct melt casting lines, upgrades and debottlenecking have helped Polyplex to remain cost competitive
• Efficient logistics cost due to proximity of manufacturing to customers and mostly local raw material sources have contributed towards operational efficiency
R&D capability
• Focus on innovation and collaborative application development helps the Company become a preferred supplier/partner with several large multinational customers and ensures sustained differentiation
• A well-staffed R&D centre in India supported by satellite onshore teams ensure multiple levels of customer engagement for product and application development
• Better technical services and new products are being facilitated by leveraging in-house R&D capabilities and experience
• Collaborative Research with Government labs and educational institutions to drive innovation and new sustainability positive products
• Systems have been created and strengthened to enhance cross-learning and sharing best practices/ benchmarking across various units and businesses of the Group.
• The Company has developed many products in the last few years and for relevant markets has filed patent applications. Currently, it has 40 patents across various products/ processes/ countries and has filed application for 6 more patents. Further, the Company also has registered 43 trademarks including Polyplex Digiprint Private Limited.
Sustainability focus
• The Company continually strives to develop sustainable products & processes and deliver more sustainable solutions for customers. There is a commitment towards sustainability with minimal environmental impact.
• Developed and optimized "chemical recycling" process for manufacturing Sarafil rPET Polyester film with Post-Consumer Recycled content up-to 100%.
• Increasing presence in high potential sustainability related applications (Solar PV, Lithium-Ion Batteries, Transfer Metallized film/paper)
• Promoted use of bio-based renewable raw materials for the manufacture of polyester films and energy sources.
• The Company has been following the best practices relating to the environment and health & safety of its employees and society
• Large facility in Thailand for recycling in-house and sourced polymeric waste further adds impetus to the sustainability agenda
• Working in close collaboration with industry associations, brand owners, converters, recyclers and research organizations on recycling of postconsumer flexible packaging waste
Strong Financial profile
• A liquid and strong Balance Sheet enhances flexibility to address growth opportunities
• Strong Cashflow generation with prudent capital structure:
XIII. Business Process Excellence
Driving Sustainable Value Through Continuous Improvement
At Polyplex, continuous improvement is not viewed as a standalone initiative but as an integral part of the way we operate. As our businesses continue to grow across geographies, product segments, and customer markets, we remain focused on enhancing competitiveness through disciplined execution, operational excellence, innovation, and responsible cost management.
To further strengthen this philosophy, the Company continued to drive its Group-wide Profit Improvement Plan (PIP) initiative during FY 25-26. The program provides a structured framework for identifying, prioritizing, and implementing improvement opportunities across all businesses and functions, while encouraging active participation from employees at every level of the organization.
The initiative is built on the belief that meaningful and sustainable improvement is achieved when operational teams, functional experts, and business leaders work together toward common objectives. Through regular engagement and collaborative review mechanisms,
best practices and successful initiatives are increasingly being shared across locations, enabling the organization to benefit from collective learning and experience.
Cost Competitiveness and Operational Excellence
A significant focus of the program continues to be on strengthening cost competitiveness through systematic improvement initiatives across the value chain. Key areas of emphasis include:
• Improving productivity and production efficiency
• Reduction of process waste and enhancement of material reusability
• Energy optimization across electrical, thermal, and renewable energy sources
• Strategic sourcing and development of alternative suppliers
• Product recipe optimization and process improvements
• Reduction in freight, packaging, inventory, and supply chain costs
• Localization and indigenization of critical spares and consumables
• Improving asset reliability and operational effectiveness
While individual initiatives may vary across locations, the common objective remains the same: creating a more efficient, agile, and resilient organization capable of delivering superior value to customers and stakeholders.
Enhancing Margins Through Innovation and Market Development
In addition to cost improvement initiatives, considerable efforts continue to be directed toward enhancing business profitability through product innovation, application development, and market expansion.
Teams across the Group are actively engaged in:
• Development of new products and applications
• Expansion into new customer segments and markets
• Increasing value-added product offerings
• Enhancing customer-centric process improvements
• Improving product mix and differentiation
Several of these initiatives are supported through selective capital investments aimed at strengthening long-term competitiveness, supporting innovation, and creating sustainable growth opportunities.
Organizational Engagement
A key strength of the PIP framework is the high level of organizational engagement it has generated across the Group. Improvement initiatives are reviewed regularly at unit and Group levels, ensuring sustained focus, accountability, and timely decision-making.
Monthly reviews at operating locations are complemented by periodic Group-level assessments, enabling leadership teams to track progress, remove barriers, and facilitate cross-functional collaboration. The outcomes of these initiatives are also integrated into the performance management framework, reinforcing ownership and alignment with organizational objectives.
Beyond the financial benefits generated, the program has played an important role in strengthening a culture of accountability, innovation, and continuous improvement across the organization.
Building a Culture of Continuous Improvement
Over time, the PIP has evolved beyond a structured improvement program into a platform that encourages broader participation in value creation. Employees across functions and locations are increasingly contributing ideas, identifying opportunities, and taking ownership of improvement initiatives within their respective areas of responsibility.
This collective approach has helped strengthen collaboration across businesses, accelerate knowledge sharing, and create greater alignment around common organizational priorities.
As Polyplex continues to expand globally, we remain committed to fostering a culture where continuous improvement, innovation, operational excellence, and prudent resource utilization remain central to the way we create value. Through these efforts, we aim to build a more agile, efficient, and future-ready organization that is well positioned to meet the evolving needs of customers, shareholders, employees, and other stakeholders.
XIV. Projects under Implementation
The Projects currently under implementation are as below:
| Capital Cost | Likely Start Up | ||
| Projects | Location | (In USD million) | |
| New BOPET Film Line | India | 56 | Q4 FY 26-27 |
| Metallizers | India | 7 | Q4 FY 26-27 |
| Coater | Overseas | 10 | Q2 FY 26-27 |
| Total | 73 | ||
Brownfield BOPET Film line at Polyplex India
The investment in a Thin BOPET film line is under implementation in India, co-located with our existing facility in Bazpur on the available surplus land.
Project Details
1. Total Capital investment is about 56 million USD with the annual capacity oRs. 52400 TPA (12 micron)
2. Project start up expected in Q4 of FY 26-27
Funding of the Project through Bank borrowings and internal accruals (2:1 debt equity)
Project Rationale:
1. BOPET Film Demand in India is expected to grow at 10%+, making it the fastest-growing market in the world
2. As the new line is co-located to our existing facility, it will lead to cost structure optimization
Rationale for Other Projects:
• Expansion of product portfolio
• Increasing the share of Speciality films
• Growing focus on industrial applications
XV. Performance during the year
All discussion here is in the context of the consolidated performance of the Company.
Sales and Operations
The Company has a large international presence with active sales in all major regional markets/countries (supplies to more than 85 countries) with an extensive base of about 2,925 customers and low customer
concentration. The customer base is fragmented consisting of both small players and large corporates across geographies, with top 10 customers contributing about 26% of revenues in FY 25-26. Majority of the customers have an average offtake <10TPM and prefer local manufacturer / distributor for ease of business, even if the domestic pricing is at a premium. With
a diverse product portfolio, Polyplex can cross-sell different products to the same customers.
Polyplex has established long-term relationships ~ 20 years average with key customers globally. The Company has been able to maintain strong customer loyalty with a high rate of repeat customers over the years.
Financial performance
A snapshot of the Income Statement for the last two years is given below:
| FY 25-26 | FY 24-25 | ||||||
| Particulars | (INR in Lakh) | % of Total Expenses | (INR in Lakh) | % of Total Expenses | Change (YoY) | ||
| Sales & Other Income | 7,17,343 | 100% | 6,98,056 | 100% | 3% | ||
| Manufacturing Expenses | 5,25,963 | 73% | 72% | 5,06,722 | 73% | 78% | |
| Operating and other Expenses | 1,47,688 | 21% | 20% | 1,12,194 | 16% | 17% | |
| EBITDA | 43,692 | 6% | 79,140 | 11% | -45% | ||
| Foreign exchange fluctuation loss / (gain) | 13,849 | 2% | 2% | (3,959) | -1% | -1% | |
| Normalized EBITDA * | 57,541 | 8% | 75,181 | 11% | -23% | ||
| Interest & Finance Charges | 5,331 | 1% | 1% | 4,608 | 1% | 1% | |
| Depreciation and Amortization | 36,322 | 5% | 5% | 29,998 | 4% | 5% | |
| Income Before Income Tax | 2,039 | 0% | 44,534 | 6% | -95% | ||
| Exceptional Gain / (Loss) | - | 0% | - | 0% | |||
| Provision for Income Tax | (2,054) | 0% | 8,762 | 1% | |||
| Net Income (Before Minority Interest) | 4,093 | 1% | 35,772 | 5% | -89% | ||
| Minority Interest | (402) | 0% | 14,851 | 2% | |||
| Net Income (After Minority Interest) | 4,495 | 1% | 20,921 | 3% | -79% | ||
During the year under review, volumes grew by 8%, primarily led by the commissioning of the new Thin PET film line in the United States. However, revenue increased by only 3% due to a decline in selling prices. The operating environment remained challenging with the introduction of reciprocal tariffs in the U.S., impact of geopolitical tensions and persistent industry overcapacity which continued to exert pressure on realizations and margins.
The decline in EBITDA is mainly attributable to:
• A reduction in per unit Value Addition (VA) driven by industry-wide oversupply conditions
• The impact of reciprocal tariffs, which adversely affected the U.S. distribution business and led to margin compression
• Higher fixed costs arising from the expanded scale of U.S. operations, including increased manpower expenses, elevated consumption of stores and spares due to certain unplanned maintenance activities, higher administrative overheads, and the general inflationary pressures
In FY 25-26, there is an unrealized FX loss of INR 13,849 Lakh as against unrealized FX gain of INR 3,959 Lakh in FY 2425 on account of restatement of foreign currency long term loans. The above factors have resulted in lower Normalized EBITDA during the year under review.
Sales and other income
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Sales | 7,07,580 | 6,86,930 | 3% |
| Other Income* | 9,763 | 11,126 | (12%) |
| Total | 7,17,343 | 6,98,056 | 3% |
*Other income includes operating Income
The increase in topline oRs. 3% during the year under review was mainly due to increase in sales volume due to start-up of a new production line in the USA. This is partially set off by decrease in selling prices due to softer market conditions on account of industry-wide oversupply conditions.
Other incomes during the current year were lower due to following reasons:
a) The previous year recorded a foreign exchange fluctuation gain of INR 3,261 Lakh, compared to a loss (reported in other expenses) in the current year.
b) Lower export incentive of INR 1,006 Lakh received during the current year as compared to INR 1,588 Lakh in the previous year
c) No significant changes in interest income
d) Above factors partially offset by:
(i) Higher Insurance claims of INR 1,795 Lakh during the current year as compared to INR 934 Lakh in the previous year
(ii) Higher other non-operative income of INR 2,973 Lakh during the current year as compared to INR 1,365 Lakh in the previous year
Manufacturing Expenses
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Raw Materials Consumed (Incl. Stock Accretion/ Decretion) | 4,16,800 | 4,07,728 | 2% |
| Power & Fuel | 47,778 | 44,332 | 8% |
| Packing Material Consumed | 28,637 | 26,410 | 8% |
| Stores & Spares Consumed | 21,535 | 19,180 | 12% |
| Repairs and Maintenance | 11,213 | 9,071 | 24% |
| Total Manufacturing Expenses | 5,25,963 | 5,06,722 | 4% |
| as a % of Sales and Other Income | 73% | 73% |
The increase in raw material expense by 2% in absolute terms is attributed to higher raw material prices in
BOPET films and increased sales volumes which are partially set off by marginal lower raw materially prices in BOPP films. Power and fuel costs and packing costs have increased due to higher volume in BOPET and BOPP film segments. Further, store & spares cost and repair and maintenance costs have increased due to stabilization costs in the new film line in the US and other increased maintenance activities. This has resulted in an overall increase in manufacturing expenses by 4 % in absolute terms.
Operating and Other Expenses
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Personnel Expenses | 76,264 | 61,566 | 24% |
| Administrative Expenses | 25,780 | 20,457 | 26% |
| Selling Expenses | 29,854 | 27,887 | 7% |
| Other Expenses | 15,790 | 2,284 | 591% |
| Total Operating and other Expenses | 1,47,688 | 1,12,194 | 32% |
| as a % of Sales and Other Income | 21% | 16% |
During the year, operating and other expenses in absolute terms have increased by 32%. An important factor contributing to this is increase in personnel expenses, administrative expenses and selling expenses mainly due to expanded scale of operations in the U.S. and the impact of inflation. Further, other expenses are higher mainly due to the foreign exchange fluctuation loss of INR 15,202 Lakh in current year as compared to a FX gain in previous year.
Interest and finance charges
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Interest Expense | 4,995 | 4,327 | 15% |
| Bank & Other Financial Charges | 336 | 281 | 19% |
| Total Interest and Finance Charges | 5,331 | 4,608 | 16% |
| as a % of Sales and Other Income | 0.7% | 0.7% |
Financial expenses are higher mainly due to Interest on term debt charged to profit & loss account on account of start-up of a new production line in the USA and additional borrowing in India for ongoing projects.
Interest and finance charges are after capitalization of interest under work in progress
Tax Expenses
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Current Tax | 5,564 | 7,736 | (28%) |
| Deferred Tax | (7,398) | 967 | (865%) |
| Earlier year Tax | (220) | 59 | (472%) |
| Total | (2,054) | 8,762 | (123%) |
The current tax expense has decreased during the year driven by lower profits. Further deferred tax asset is created during the year under review due to brought forward losses and reported loss in the current year as compared to deferred tax liability created during the last year.
Liquidity and capital resources
The Company ensures access to sufficient funding at acceptable costs to meet its business needs and financial obligations through business cycles. The Company relies on cash from operations and short-term/long-term debt for meeting its requirements. It continues to maintain adequate liquidity for its operations with a close watch on the debt service and leveraging ratios. Cash and equivalents together with undrawn credit lines (excluding project financing) and liquid investments aggregated to around INR 2,48,076 Lakh (including unutilized working capital limits of INR 1,30,821 Lakh) as at the end of the reporting period.
| Particulars | FY 21-22 | FY 22-23 | FY 23-24 | FY 24-25 | FY 25-26 |
| (INR in Lakh) | (INR in Lakh) | (INR in Lakh) | (INR in Lakh) | (INR in Lakh) | |
| Net Cash flow from Operating activities | 56,002 | 80,150 | 45,522 | 43,803 | 53,685 |
| Net Cash flow from Investing activities | 106 | (11,493) | (79,638) | (47,306) | (50,897) |
| Net Cash flow from Financing activities | (23,223) | (65,696) | (15,221) | (3,754) | (13,272) |
| Exchange Difference on translation of Foreign Operation | 3,970 | 13,055 | (788) | 870 | 2,864 |
| Total Cash & Cash and Cash Equivalents | 80,438 | 96,455 | 46,330 | 39,942 | 32,322 |
| Total Cash & Bank Balance Including Investment | 1,22,782 | 1,25,563 | 1,08,055 | 1,07,353 | 1,24,839 |
| Particulars | As at March 31, 2026 | As at March 31, 2025 |
| (INR in Lakh) | (INR in Lakh) | |
| Cash & Bank Balances | 22,922 | 12,045 |
| Fixed Deposit with Banks (less than 3 Months) | 9,400 | 28,034 |
| Book Overdraft | - | (136) |
| Cash & Cash Equivalent net of Book Overdraft (A) | 32,322 | 39,942 |
| Fixed Deposit with Banks (3 to 12 Months) | 49,703 | 32,339 |
| Other Balances with Bank | 468 | 595 |
| Bank Balances other then Cash & Cash Equivalent (B) | 50,170 | 32,934 |
| Fixed Deposit with Banks (More than 12 Months) | 7,584 | 448 |
| Investment in Bonds | 30,705 | 30,523 |
| Liquid Investment | 4,058 | 3,505 |
| Other Cash & Bank Balances (C) | 42,347 | 34,477 |
| Total Cash & Bank Balance Including investment (A + B + C) | 1,24,839 | 1,07,353 |
Cash flow from operating activities
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Profit Before Tax | 2,039 | 44,534 | (95%) |
| Adjusted for:- | |||
| Depreciation and Amortisation | 36,322 | 29,998 | 21% |
| Finance Cost | 5,331 | 4,608 | 16% |
| Interest Income | (3,989) | (3,978) | 0% |
| Unrealised Exchange Difference Loss / (Gain) | 13,507 | (2,259) | (698%) |
| Others | 1,037 | 1,750 | (41%) |
| Operating Profit before Working Capital Changes | 54,247 | 74,653 | (27%) |
| Change in Working Capital Adjustments | 4,480 | (26,709) | (117%) |
| Income Taxes Paid | (5,042) | (4,141) | 22% |
| Net Cash Flow From Operating Activities | 53,685 | 43,803 | 23% |
For the year under review, cash flow from operating activities (before change in working capital) decreased by 27% to IN R 54,247 Lakh, as compared to INR 74,653 Lakh in the previous year mainly due to lower margin resulting from competitive market conditions as discussed above. During the year, there was a release of working capital from the business, resulting in a cash inflow of INR 4,480 Lakh, as against significant working capital deployment in the previous year. Consequently, net cash flow from operating activities (after changes in working capital and income taxes paid) stood at INR 53,685 Lakh for the year
Cash flow from investing activities
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Sale/ (Purchase) of Property, Plant & Equipment | (38,675) | (48,492) | (20%) |
| Deposits with Bank other than Cash & Cash equivalent | (19,280) | (7,816) | 147% |
| Sale / (Purchase) of non-current Investments | 3,462 | 1,074 | 222% |
| Sale / (Purchase) of short term Investments | (262) | 4,015 | (107%) |
| Interest received | 3,858 | 3,913 | (1%) |
| Net Cash Flow From Investing Activities | (50,897) | (47,306) | 8% |
Major factors impacting cash flows from investing activities are:
• The cash generated was used in investment in fixed assets to the tune of INR 38,675 Lakh in FY 25-26 (INR 48,492 Lakh in FY 24-25), mainly towards new PET film line project in India and capital advance payments towards ongoing downstream projects.
• During the year, investment in bank term deposits with more than 3-month maturity has been INR 19,280 Lakh (net of redemption) (FY 24-25 net investment of INR 7,816 Lakh).
• INR 3,462 Lakh is realized (net of investment) through redemption of long-term bonds during FY 25-26. Further there has been purchase (net of sales) of short-term investment to the extent of INR 262 Lakh.
• Interest income received during the year is INR 3,858 Lakh (INR 3,913 Lakh in FY 24-25).
Cash flows from Financing Activities
| FY 25-26 | FY 24-25 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Proceeds/ (Repayment) from Non-Current Borrowings | (21,559) | 5 | (431280%) |
| Net Proceeds/ (Repayment) from Short Term Borrowings | 19,061 | 9,920 | 92% |
| Interest paid | (5,349) | (5,675) | (6%) |
| Dividends paid | (4,581) | (7,601) | (40%) |
| Principal and Interest payment of Lease Liabilities | (844) | (403) | 109% |
| Net Cash Flow From Financing Activities | (13,272) | (3,754) | 254% |
Major factors impacting cash flow are:
• There was a net decrease in total debt (short term + long term) by INR 2,498 Lakh. This includes a decrease in net term debt by INR 21,559 Lakh mainly due to prepayment of existing loan in Polyplex USA partially offset by drawdown of term loan in Polyplex India for the on-going project besides higher working capital borrowings in various locations.
• Interest paid during the year is INR 5,349 Lakh (INR 5,675 Lakh in FY 24-25) marginally lower due to repayment / prepayment of long-term debt.
• The Company paid dividend of INR 4,581 Lakh in FY 25-26 (INR 7,601 Lakh in FY 24-25)
Exchange Difference on translation of foreign operations
This is the exchange rate difference arising out of the translation of assets & liabilities of overseas subsidiaries which are denominated in different currencies into INR on consolidation.
XVI. Sustainability
There is concern from all stakeholders and environmental groups about the usage of plastics.
Adverse perceptions on plastics usage at a macro level are driven by images of plastic litter in oceans, impact on marine life and prevalence of microplastics in the food chain, etc. This is exacerbated by usage of certain Single Use Plastic (SUP) items which contribute to the increasing amount of plastic waste reaching the landfills in absence of a comprehensive recycling ecosystem. To put into perspective, out of a global plastics consumption of more than 500 million tons, consumer flexible packaging accounts for ~10% and BOPET films are under 1% of the total tonnage. Due to its superior performance, economics as well as benefits on the sustainability front, flexible plastic packaging has been gradually replacing rigid forms of packaging over the last several decades. The myriad benefits over rigid include lower environmental impact and carbon footprint, resource efficiency in terms of high product to package ratio, lower energy usage, water, transport costs and landfill requirements, better performance - barrier, retort and other features besides flexibility and versatility to cater to various needs and convenience requirements. As a result, regulators and governments across the world have not come up with any regulatory measures to restrict the usage of Multi-Layer Plastics (MLPs) in packaging, in recognition of its intrinsic benefits and the lack of viable alternatives in terms of environmental impact and cost.
The Ellen MacArthur Foundation (EMF) in collaboration with the UN Environment has come up with a New Plastics Economy Global Commitment vision document wherein one of six key pillars is that all plastic packaging is 100% reusable, recyclable, or compostable. Various national and regional plastic pacts have been constituted under the plastic pacts network of EMF. Plastic pacts bring together Governments and frontrunners from across the whole value chain to accelerate the transition towards circular plastics economy. Signatories include national governments, packaging manufactures, waste management businesses, plastic manufacturers, brand owners and retailers
Governments are becoming an active participant in setting out the expectations and defining rules. Industry is focusing on developing viable models for collection, sorting and reuse/ recycling of post-consumer plastic waste. The urgency and sensitivity on the sustainability agenda varies significantly across regions with Europe taking the lead. India has introduced a comprehensive legislation for managing plastic waste and regulation to use rPET for food contact packaging application. Other regions are at varying levels of regulation. Regulatory
measures / guidance across the world have focused on banning the usage of certain SUPs like plastic cutlery, plates, straws and balloon sticks etc., mandating design changes to ensure recyclability, incorporation of recycled content, imposing taxes and promoting collection and waste management through EPR obligations.
Recent significant regulatory developments are as below:
1. Europe
Plastic Tax
The European Union implemented a plastic tax €800/ton levy on non-recycled plastic waste in Jan 2021. This is being collected by the European Union from the member states. Effective April 2022, UK implemented a ?200/ton tax rate for packaging with less than 30% recycled plastic imposed on producers introducing packaging onto the market.
Similarly, effective January 2023, Spain has imposed a tax of €450/ton on non-recyclable plastic packaging. Italys proposal with a similar fee on non-recyclable plastic packaging has been postponed to 2027.
Packaging & Packaging Waste Regulation (PPWR)
The Packaging and Packaging Waste Regulation (PPWR), a key EU initiative for a circular economy, entered into force on February 11, 2025 and its key provisions will become applicable from August 12, 2026. The PPWR aims to reduce packaging waste, promote recycling, use recycled content and encourage reuse, ultimately aiming to have a fully circular economy
PPWR regulation requires all packaging to be recyclable by design, recycled at scale and incorporate recycled content over a given timeline. All packaging to be Designed for recycling (2030) and recycled at scale (2035)
a. Recyclable by design
Recyclability Grades
| 2030 | 2035 | 2038 |
| A>95% | RaS>55% | |
| B>80% | Banned: RaS | |
| C>70% | <55% | C-Banned |
| Banned: <70% |
Design for recycling guidelines and recyclability performance grades will be defined by the European Commission in so- called delegated acts by January 01, 2028.
b. Recycled at Scale (RaS)
From January 01, 2035 packaging will also have to be recycled at scale, in line with conditions to be detailed in implementing acts by January 01, 2030. Packaging waste recycled at scale means packaging waste which is collected separately, sorted and recycled in installed infrastructure, using established processes proven in an operational environment which ensure, at the Union level, an annual quantity of recycled material under each packaging category greater than 55 %
c. Minimum Recycled content requirements
Recycling Content
| Type of Packaging | 2030 | 2040 |
| Contact sensitive (Non-PET/Non Bottles) | 10% | 25% |
| Other (plastic) packaging | 35% | 65% |
| Contact Sensitive PET | 30% | 50% |
| Single use beverage Bottles | 30% | 65% |
d. Mandatory Deposit Return Scheme (DRS) for plastic containers
e. Mandatory EPR and modulating EPR fee based on recyclability performance
f. Limitations on substances that negatively affect recycling
Secondary legislation and detailed criteria are awaited before the impact of these regulations can be assessed in detail as the same are expected to present a complex set of challenges as well as opportunities for various market participants including substrate suppliers like us
2. USA
Recycling-based legislation is issued at the state and local level. Four states have already passed, and 11 states have introduced EPR bills
3. India
The Indian flexible packaging industry (like the global industry) is also exposed to certain environmental and sustainability related risks. The Plastic Waste Management Rules (PWMR), 2016 and Solid Waste Management Rules, 2016 issued under the Environment (Protection) Act, 1986 define responsibilities and actions required by municipal authorities, manufacturers, producers,
importers and brand owners. Amendments to these Rules made in March 2018 have relaxed the regulations on usage of MLPs, factoring in lack of alternatives. While further amendments made in 2021 specify ban on certain SUPs these are not applicable to MLPs for flexible packaging. The regulation is amended from time to time to address evolving requirements and regulatory developments. Real emphasis has come out on effective collection, recycling and sustainable waste management systems.
The current legislative framework has clarified that every producer, importer or brand owner (PIBO) will have primary responsibility for plastic waste and will have to register themselves with concerned authorities like SPCB/CPCB. They need to establish a system for collecting back the plastic waste generated due to their products and this plan of collection must be submitted to CPCB while applying for Consent to Establish or Operate or Renewal. It is important to note here that Polyplex is categorized as a producer where the "producer" is defined as ‘a person engaged in manufacture or import of carry bags or multilayered packaging or plastic sheets or like and includes industries or individuals using plastic sheets or like or covers made of plastic sheets or multilayered packaging for packaging or wrapping the commodity. The registration as a Producer, an Importer and a Recycler has already been received.
The Ministry of Environment, Forest & Climate Change (MOEFCC) has also come up with Guidelines for a uniform framework for EPR implementation as per which, the primary responsibility for collection of post- consumer waste and creating a recycling ecosystem is with PIBOs. Recently, guidelines have been issued in India mandating Extended Producer Responsibility (EPR) obligations, recycling, and use of recycled content with a defined timeline (these guidelines are covered in the Sustainability Section).
In Jan 2022, Food Safety and Standards Authority of India (FSSAI), issued a directive permitting use of rPET for food contact applications in both flexible and rigid packaging application. These changes will accelerate the usage of PET films with rPET content in flexible packaging.
PWMR mandates EPR obligations, recycling, and use of recycled content with a defined timeline. As per PWMR, Flexible plastic packaging of single layer or multilayer has been identified as "Category II" item.
Obligations for Different Categories under PWMR:
A. EPR Obligation - It is applicable for all the Categories
| Year | EPR Target | |
| I | 2021-22 | 25% |
| II | 2022-23 | 70% |
| III | 2023-24 | 100% |
B. Recycling - Plastic to Plastic recycling obligations*
| Plastic Packaging Category | FY 24-25 | FY 25-26 | FY 26-27 | FY 27-28 and Onwards |
| Category I (Rigid Packaging) | 50 | 60 | 70 | 80 |
| Category II (Flexible Packaging) | 30 | 40 | 50 | 60 |
| Category III (Multi Layer packaging) | 30 | 40 | 50 | 60 |
| Category IV (Compostable packaging)** | 50 | 60 | 70 | 80 |
*Remaining EPR obligation can be met based on alternate use, energy etc.
**Category IV: Compostable packaging obligation implies processing plastic packaging waste for composting through industrial composting. EPR certificates are required from industrial composters.
C. Recycled content
| Plastic Category | FY 25-26 | FY 26-27 | FY 27-28 | FY 28-29 onwards |
| Category I (Rigid Packaging) | 30% | 40% | 50% | 60% |
| Category II (Flexible Packaging) | 10% | 10% | 20% | 20% |
| Category III (Multi Layer packaging) | 5% | 5% | 10% | 10% |
Recycled Content Obligation is not applicable for Category IV (Compostable Plastic) and Category V (Biodegradable Plastic)
These regulatory actions provide an opportunity for companies to differentiate by addressing sustainability concerns. Accordingly, industry leaders across sectors have announced clear strategies to show their commitment to the environment - mostly by focusing on a higher share of recycled content, design change to make packaging more sustainable and reduce consumption of packaging material. Global consumer product companies have come out with their sustainability pledges which regarding plastics, are centered around making their packaging recyclable, reusable or compostable, usage of recycled content, reduction in usage of unnecessary plastics and drive projects around circularity besides other objectives like reduction in water / fossil fuel-based energy usage, etc.
PPWR and PWMR aim to reinforce the essential requirements for packaging to ensure its reuse and recycling, boost the uptake of recycled content, and will promote growth of the RPET market as drop in solutions.
Considering the above, each industry participant is challenged with both threats as well as opportunities. The Company strives to partner with all stakeholders in the value chain on sustainability developments. It represents the PET film industry at various national and International Industry Associations, the details of which are as below:
| Industry Associations | Objective |
| PETCORE - Europe | PET Sustainability & Recycling |
| CEFLEX - Europe | Flexible packaging circular economy |
| BOPET FILM - Europe | PET film |
| PET Europe - Flake Injection Consortium | PCR PET Circularity |
| Federation of Indian Export Organization (‘FIEO- India) | Export promotion, international trade & market access |
| Plastics Export Promotion Council of India (‘PLEXCONCIL-India) | Plastics exports promotion & global market development |
| All India Plastic Industry Manufacturers Association ("AIPMA") | Plastics manufacturing, sustainability & industry development |
There is an ongoing debate as to whether mono polyolefin structures could be a solution to the need for recycling. MLP Laminates (mono material or multi material) can be down-cycled into low end products like pots, pans, chairs etc. besides some end-of-life applications such as usage in road construction and waste to energy (cement kiln and incineration). Focus is now on full circularity through chemical recycling/ pyrolysis of MLP waste. Even if mono materials are used in flexible packaging, issues will largely remain the same with only very limited incremental applications as well as issues of collection, segregation/sorting, etc.
There is no existing stream to collect, sort and recycle mono-olefin MLP laminates for flexible packaging. Existing streams are only for rigid PE/PP and single layer unprinted PE / PP films for agriculture and secondary packaging applications such as shrink wrap. Unlike Olefins, where mechanical recycling leads to deterioration of properties and degraded components making it unsuitable for food grade flexible packaging and pharma applications, PET resin produced through mechanical recycling process can be used to produce BOPET films for such applications.
Given the inherent limitations of mechanical recycling, industry and governments are increasingly acknowledging the necessity of chemical recycling to achieve true circularity. Further, LCA studies have established that chemical recycling has a significantly lower carbon footprint in comparison with fossil fuel-based polymer production for polymer like PET.
In conclusion, the entire issue of Sustainability w.r.t. flexible packaging can be encapsulated as under:
| Rigid vs Flexible Packaging | The compelling benefits of flexible packaging would discourage the conversion back to rigids (glass/tin/foil/cardboard) in any material manner. |
| The ongoing shift from rigids to flexibles is expected to continue, particularly in the developing world | |
| PCR Content | BOPET films made from Post Consumer Recycled (PCR) PET Resin is the readily commercially viable solution at present |
| There is increasing visible momentum in the last few years for usage of rPET films | |
| This will also improve recovery rates for post-consumer PET bottles and likely initiate recycling of APET trays | |
| Chemical Recycling | Chemical recycling is integral to any sustainable solution for post-consumer flexible packaging waste to ensure true circularity. |
| Mono Structure | Within the limitations on functionality, costs and likelihood of increased material usage, some formats may be shifted to Olefin based structure and some to PET based |
| However, there is no established collection, sorting and recycling streams for flexible packaging laminates | |
| Given contaminations of inks and adhesives only down cycling is possible with limited end use. However upcoming chemical recycling/pyrolysis can ensure full recyclability | |
| Other Considerations | An effective collection and sorting infrastructure coupled with chemical-based recycling to recover feedstocks / monomer from MLP would provide a true "Circular" solution |
| Pledges by brand owners, technological developments and government actions would be an important consideration |
Sustainable Products & Solutions
Polyplex has successfully adopted the 5R (reduce, reuse, recycle, remove and renewable) concept while coming up with new-age packaging substrate solutions. It has taken various initiatives to recycle waste, use renewable energy & save energy and use clean technology to reassert its environmental commitment . It continually strives to manufacture sustainable products which can gain global acceptance.
Polyplex is aligning with the U Ns Sustainable Development Goals (SDGs) to better understand global challenges that need to be solved. We set a goal to align our innovation programs to meaningfully advance the UN SDGs and create value for our customers with minimal environmental impact and providing the highest standards of health and safety to the workforce.
As an organisation, the Company seeks to develop sustainable products and deliver more sustainable solutions to our customers. Polyplex has undertaken the following decisive initiatives in the realm of environmental conservation:
• Developed and optimized "chemical recycling" process for manufacturing Sarafil rPET Polyester film with post-consumer recyclate content of up to 100% for packaging applications. The film has been made available commercially using post-consumer PET bottle flakes as input material. The rPET resin has properties same as that of virgin PET resin and the resultant PET film is compliant with regulatory requirements.
Product Compliance Certification: rPET (Chemical Glycolysis)
| f. Location No. | ISCC Plus Certification | Recycled Content Verification (RCV) rPET Films | APR PCR -Recycled Content Certification | US FDA (NOL) | EFSA Europe rPET Resin & Films | FSSAI India | RCS (Recycled Claim Stand.) | GRS (Global Recycled Stand.) |
| 1 PTL (Thailand) | Y |
Y |
-- | Y |
* | -- | -- | Y |
| 2 PE (Turkey) | Y |
Y |
-- | Y |
* | -- | Y |
-- |
| 3 PU (USA) | Y |
-- | * | Y |
-- | -- | -- | -- |
| 4 PCL (India) | * * | Y |
-- | Y |
* | * | -- | -- |
* Project under progress ** To be certified as per business requirement -- Not Applicable The required certifications to be sought in PFI (Indonesia), if required
• Developed Monomeric PET film with high sealability for use in mono and multilayer packaging and other industrial applications. These monomeric range of PET films are recyclable and conform to the definition of circularity
• Development of BOPLA Films (Bio Compostable Film)
• Developed various biodegradable films (PET, Blown PE, CPP) which meet the requirements of anaerobic biodegradation either in accelerated landfill or high solids anaerobic conditions complying with ASTM D5511 & D5526 standards.
• Sustainable Packaging with Metallized Paper Solutions
- Offers transfer metallized films & paper and direct metallized paper tailored for plastic- free cartons that are 100% recyclable. Paper, being biodegradable and easily recyclable, is a more environmentally responsible substrate for a wide range of packaging applications.
- Our metallized paper provides significant environmental benefits over traditional foils and metallic inks by reducing the carbon footprint and maintaining recyclability alongside standard paper or board. As a mono-material, it aligns with eco-conscious packaging goals and is a more sustainable choice compared to composite substrates.
- We produce transfer metallized and specialty paper products from FSC? certified base paper reinforcing our commitment to responsible sourcing and environmental stewardship
• Increasing focus on high potential sustainability related applications including Solar PV, liner for Lithium-Ion Batteries etc.
• Thermoformable Films as a safer and environment friendly solution for replacement of PVC films
• Polyplex has promoted the use of bio-based renewable raw materials for the manufacture of polyester films
• Antimony free (heavy metal free) films
• High barrier metallized film for aluminum foil replacements
• Chlorine free transparent barrier PET film for see through and convenience packages
• Recycling of Silicone Liners, a step towards true circularity
• Dedicated recycling unit in Thailand which provides sustainable solutions (mechanical recycling) for both post-industrial film waste (difficult to recycle materials like silicone coated, printed, metallized etc.) and postconsumer waste polyester fiber waste, bottles as well as olefinic waste. EcoBlue rPET film is in compliant with US FDA 21 CFR, Regulation (EU) 10/2011, EU REACH Regulation (EC) No 1907/2006 Article 33 (1), RoHS Annex II oRs. 2011/65/EU and meet the requirements of Japan Regulations (JHOSPA) and GRS
• Digital printing offers high-quality graphics without the usage of solvents unlike conventional printing techniques such as Flexo and Rotogravure. With a lot of technologies available for digital printing itself, Polyplex has been able to develop products for most segments suitable for different digital technologies such as inkjet, dry toner, liquid electro-photography, etc.
• Conversion of general packaging laminate structures from 3 layers to 2 layers, which basically contributes to both source reduction as well as CO2 footprint reduction. With this idea in mind, Company now has a high barrier PE which is successfully being used in shampoo and detergent packaging where it is essentially converted a 3-layer structure to 2 layers
• Down-gauging of PET film has resulted in immediate environmental benefits through reduction of packaging weight
Sustainable Processes
• Operationalized latest technologies like Direct Melt Extrusion, Twin screw extrusion systems etc. to save power across plant locations which resulted in substantial improvements in terms of energy efficiency
• Reduced greenhouse gas generation by using husk-fired heaters at its Indian facilities
• Switched to LED lighting across plants
• Improve production and operational efficiencies to ensure optimal consumption of resources like electricity, water and raw materials
• Usage of solar power for renewable energy and cost optimization at its plant in -Thailand, India, Turkey and Indonesia
• Limiting the impact on the environment by reducing emission levels, industrial waste and effluents coupled with measures for waste treatment and water conservation
• Improve safety and health standards by continuously improving working conditions, minimizing workplace hazards and raising awareness through involvement, participation and continuous training of the shop floor workforce
• Engaged with stakeholders to promote sustainable business practices
• Measure & monitor carbon footprint through LCA studies
The Company has been following the best practices relating to the environment, health and safety and has been diligently following the guidelines that have been set out as per the following certifications:
| Management System International Standards | Abbreviation | India (Khatima) | India (Bazpur) | Thailand | Turkey | USA | Indonesia |
| Quality Management System | QMS | Certified since 1996 | Certified since 2010 | Certified since 2003 | Certified since 2006 | Certified since 2018 | Certified since 2020 |
| Environment Management system | EMS | Certified since 2002 | Certified since 2010 | Certified since 2004 | Certified since 2009 | Certified since 2018 | Certified since 2020 |
| Occupational health & safety management system | OHSMS | Certified since 2004 | Certified since 2012 | Certified since 2008 | Certified since 2009 | Certified since 2020 | |
| Food Safety | FSMS | Certified since 2008 | Certified since 2012 | Certified since 2009 | Certified since 2006 | Certified since 2021 | Certified since 2021 |
| Management System | |||||||
| Energy Management System | EnMS | Certified since 2013 | Certified since 2013 | Certified since 2023 | Certified since 2014 | Certified since 2021 |
The Companys Sustainability report for the year 2023-25 as per the Global Reporting Initiative (GRI) standards is available on Companys website. The objective of the Sustainability Report is to disclose its Environmental, Social and Governance (ESG) performance to the stakeholders and to set benchmarks for each sustainability indicator with improvement and intervention areas.
In recognition of its efforts, Polyplex has been awarded for the following awards:
• Received the Best Public Company - Industrial Group Award at the Money & Banking Awards for two consecutive years (2020, 2021)
• Honoured with the Green Innovation Award at the ACES Awards (2021)
• Conferred the Prime Ministers Award for Innovation for Chemical Recycling in Thailand (2021)
• Won the Prime Ministers Industry Award for Quality Management (2022)
• Recognized for Excellence in Corporate Social Responsibility by the Department of Industrial Works, Thailand (2023)
• Garnered the Zero Accident Award and Safety Committee Award from the Ministry of Manpower, Indonesia (2025)
• Secured the PROPER Blue Rating for Environmental Management by the Ministry of Environment, Indonesia (2025)
• Achieved recognition for Occupational Safety Excellence through the P2K3 Award from the Governor of Banten, Indonesia (2026)
Additionally, our all locations in Turkey, Thailand, USA, Indonesia and India are awarded Eco Vadis CSR Awards for environment, labour & human rights, ethics and sustainable procurement.
XVII. Corporate Social Responsibility (CSR)
Corporate social responsibility has been an important part of the mission of the Company. The Company has been undertaking various initiatives to help communities in areas adjoining to its plants and improve the quality of life of its employees.
The Company across all its locations make monetary as well as contributions in kind to Educational Institutes, NGOs, Hospitals and Government relief funds to support the society at large. Blood Donation Camps have been organized to support local blood banks and hospitals and to raise awareness about the importance of voluntary blood donation.
The Company has been running a school at its Khatima plant for the past almost three decades. The school provides more than 2,000 students with best-in-class educational facilities. Under a PPP model at Bazpur and Khatima, Polyplex has adopted two local schools and provides them with the necessary infrastructure.
Polyplex also offers a slew of sports and educational sponsorships as well as full scholarships to the school-going children of deceased employees and have made contributions to various other schools/ educational institutes to promote education and help contributing to a better society. Polyplex promotes religious harmony through its even-handed support to local religious activities and celebrations. Polyplex has also contributed to the Rekhta Foundation, which is a non-profit organisation established to promote and disseminate literature and culture. In line with the requirements of Companies Act, 2013, the Company has also constituted a CSR Committee with a keen emphasis on delivering a positive impact across social, economic and environmental parameters. A detailed report on CSR expenditure is provided in the Directors Report section.
XVIII. Innovation
Polyplex leverages the concept of co-creation while working on various innovation and sustainability programs along with its stakeholders - converters and brand owners from the value chain.
The Company owns 40 granted Patents spread across various products, processes and countries and an additional 6 applications have been filed. Further, 43 trademarks have been registered.
Consumers have become highly demanding and are looking for more ‘convenience features in packaging formats. "Reclosability", "Easy to tear", "Ready to Eat", "See through" and "Higher shelf life" have become regular concepts in the packaging market.
Innovative Products:
| S. .. Products No. | Applications | Substrate |
| Packaging | ||
| 1 Holographic films | Brand protection, aesthetics, security and tamper evident | PET Film |
| 2 Specialty coated | Wet wipes (aesthetically pleasing packaging structures, natural and paper-like look ) | PET Film |
| 3 High barrier metallized | Aluminium foil replacement for coffee, milk powder packaging | PET Film |
| 4 Susceptor film | Microwave food application | PET Film |
| 5 High barrier AlOx | See through, transparent barrier for enhanced shelf life | PET Film |
| 6 High performance thermo-formable | Thermo-formable lid for shallow draw lidding ,Kinder Joy | PET Film |
| 7 Monomeric range with high heat seal strength | Monomeric laminate structure (Mono PET Recyclable) | PET Film |
| 8 Cold formable film | Pharma blister | PET Film |
| 9 Bio-degradable film | Food packaging | PET Film |
| 10 Coated Matt PET | Premium food packaging, wet wipes | PET Film |
| 11 Peelable Sealable Film | Lidding applications | PET Film |
| 12 rPET range (90% PCR) | Food contact packaging | rPET Film |
| 13 Straight & Easy Tear Film | Food Packaging - Zipper Pouches | PET Film |
| 14 Anti-Fog heat sealable | Food packaging overwrap | BOPP Film |
| 15 Ultra-High barrier metallized | Replacement for Barrier PET & aluminium foil | BOPP Film |
| 16 Matte finish | Snack packaging (natural paper look) | BOPP Film |
| 17 Specialized Overwrap | Cigarette pack overwraps | BOPP Film |
| 18 Pearlized white (Low Density) | Ice-cream packaging | BOPP Film |
| 19 High performance blown retort | Ready to eat and ready to cook foods | Blown PP Film |
| 20 Specialized papers like Holographic and silver metallized paper | Tobacco packaging | Paper |
| 21 Heat sealable barrier paper | Plastic free bio-degradable for food packaging | Paper |
| 22 Bio based fully Compostable Film | Food Packaging, Pan Masala, Overwrapping Film | BOPLA Film |
| S. .. Products No. | Applications | Substrate |
| Industrial | ||
| 1 Inline siliconized | Release liner for label, electronics, EV applications | PET Film |
| 2 Film for Lithium Ion Battery (LIB) | Pouch Cell for Lithium Ion Battery (LIB) in EV applications | PET Film |
| 3 Specialized back-sheet films | Back Sheet for Solar Panel | PET Film |
| 4 Low Metallized | Electronic component packaging | PET Film |
| 5 Anti-fog | Face Shield applications | PET Film |
| 6 Eco Friendly (Heavy Metal Free) | Battery labels | PET Film |
| 7 VIF/TIF embossed PE films | Agriculture Mulch Film | Blown PE Film |
| 8 CPP Films for medical applications | Surgical tools packaging | CPP Film |
| Label | ||
| 1 Label face film | Durable label face film for transport, automobile, pharma, appliances, lawn fertilizer, medicals etc | PET Film |
| 2 High Shrink | Shrink Sleeve labels for bottles and jars | PET Film |
| 3 Pearlized white (Low density) | Wrap around labels | BOPP Film |
| 4 Label face film (White opaque, transparent, silver) | Cosmetics, pharma, food containers made with HDPE & PP bottles | Blown PE Film |
| 5 Specialized papers like Holographic and silver metallized paper | Labels for Liquor, ketchup, pharma etc | Paper |
| Digital | ||
| 1 Digital printable films | Various printing applications | PET Film |
| 2 Digital films (HP Indigo, Laser, Inkjet, UV) | Photo albums, tags, certificates, promotional leaflet, banners, backlit etc. | PET Film |
| 3 Backlit Films | Signage, light box advertising display etc. | PET/BOPP Film |
| Thermal | ||
| 1 Specialty-coated thermal films | Documents & certificates lamination, carton lamination | PET/BOPP Film |
XIX.Human Resources
Human Capital: Enabling Growth Through People
Our people are at the core of our sustained success. With a global workforce of over 2,850 employees, our Human Resources strategy continues to focus on building a high-performance culture, strengthening leadership capability, fostering employee engagement, and creating a workplace that is inclusive, caring, and purpose driven. Significant progress has been in strengthening organizational capability, talent readiness, leadership continuity, and employee engagement across the Group.
Key Strategic Initiatives Undertaken During the Year
1. Culture Reinforcement Through OrganizationWide Values Survey
As part of our commitment to sustaining and strengthening the Polyplex culture, an organization-wide Values Survey was conducted across all businesses and geographies to assess employee alignment with Polyplexs core values of SCORE - Seamlessness, Care, Ownership & Responsibility, and Excellence.
More than 1,700 employees across the Group (over 60% participation) participated in the survey. The findings were highly encouraging and reaffirmed strong alignment with organizational values, reflecting a high level of ownership, collaboration, engagement, and commitment across the workforce.
2. Employee Climate & Engagement Assessment
To independently assess employee engagement and workplace climate, a Group-wide Climate/ Pulse Survey was conducted through an external third-party agency. The survey findings reflected a positive engagement environment and reinforced the effectiveness of the Companys people practices and employee-centric initiatives. The exercise also provided valuable insights for further enhancing employee experience and organizational effectiveness.
3. Internal Growth & Leadership Development
Our expanding business footprint continues to create new opportunities for talent growth. We remain committed to promoting from within and providing capable employees opportunities to
assume larger responsibilities. Particular emphasis was placed during the year on preparing internal talent for future leadership roles and supporting growth opportunities arising from business expansion projects.
4. Leadership Retention, Succession Planning & Talent Continuity
The leadership retention framework has been further strengthened with increased focus on succession planning for critical positions across the Group. A structured Succession Pool Tracker has been developed to provide visibility on successor readiness, development requirements, and availability of talent for key positions. This initiative enhances organizational resilience and ensures continuity of leadership through proactive development of future talent.
5. Strengthening Performance Management & Feedback Culture
During the year, the performance management framework was further enhanced with greater emphasis on performance feedback, role clarity, and objective evaluation. Managers were encouraged to have more meaningful developmental discussions with employees to improve understanding of role expectations and performance outcomes.
The Company also continued to strengthen enterprise-wide performance parameters around quality, safety, and operational excellence, ensuring stronger alignment between individual performance and organizational priorities.
6. Talent Readiness for New PET Line at Bazpur
In preparation for commissioning the new PET line at Bazpur, significant focus was placed on workforce planning and capability development. Consistent with the Companys philosophy of creating growth opportunities for existing employees, internal talent was identified and prepared for higher responsibilities. Simultaneously, fresh talent was recruited in advance and provided structured development and on-the-job exposure to ensure operational readiness prior to plant commissioning, thereby maximizing synergies with the existing manufacturing infrastructure.
7. Supporting Stabilization of USA Operations
Following the successful commissioning of Line 14 in the USA during the fourth quarter of FY 25-26, substantial efforts were made to support stabilization of operations through deployment of experienced technical and functional experts from across the Group. This collaborative global approach facilitated knowledge transfer,
accelerated capability building, and strengthened operational performance during the critical startup phase.
8. Localization & Talent Empowerment
Focused efforts continued toward identifying, developing, and empowering local talent across global operations. These initiatives have strengthened ownership, improved decisionmaking capabilities at the local level, and enhanced participation in continuous improvement programs. Managerial attrition across the Group continues to remain among the lowest in the industry.
9. Holistic Employee Engagement & Well-being
Employee well-being remains a key priority. More than fifty structured employee engagement, welfare, and development initiatives were undertaken in India covering physical, emotional, mental, social, and financial well-being. These programs have contributed to stronger employee bonding and organizational alignment.
Similar such engagement initiatives are there, customized to local culture.
10. Diversity, Inclusion & Culture of Care
Polyplex continues to nurture a culture that values diversity, inclusiveness, respect, and equal opportunity. Care remains one of our core organizational values, and sustained efforts have been made to create an environment that promotes belonging, psychological safety, personal growth, and employee development.
11. Comprehensive Employee Protection Framework
The Company continues to provide comprehensive medical, accidental, and life insurance coverage to employees and their families. These initiatives remain an integral part of our commitment to employee welfare and financial security.
12. Industrial Relations Excellence
Our collaborative and transparent industrial relations philosophy continues to deliver exceptional results. Through regular employee dialogue, participative forums, and proactive engagement mechanisms, the Company has maintained an enviable record of industrial harmony and uninterrupted operations since inception.
13. Strategic Talent Development & Capability Building
To support long-term business growth and future leadership requirements, the Company continued to invest in a multi-dimensional talent development framework comprising:
• Development of high-potential employees through enhanced responsibilities
• Strategic lateral hiring for specialized expertise
• Campus recruitment from premier educational institutions
• Leadership potential assessments and development planning
• Structured role rotations and crossfunctional exposure
• Cross-location mobility opportunities
• Hiring and capability development for emerging business segments
These initiatives continue to strengthen organizational capability, leadership depth, and long-term business agility.
14. Learning & Development
Through the People Development Cell and other capability-building platforms, focused technical, behavioral, leadership, and functional training programs continue to be delivered through classroom, digital, and on-the-job learning interventions aligned to business priorities.
15. Long-Service Recognition & Employee Loyalty
As part of our continued commitment to recognizing long-serving employees, initiatives such as employment opportunities for eligible family members and elevation of deserving frontline employees to positions of greater responsibility were continued during the year. These efforts reinforce a culture of loyalty, appreciation, and long-term organizational commitment.
Human capital continues to be a strategic enabler of sustainable growth at Polyplex. As the Company expands globally and enters new phases of growth, we remain committed to building an agile, capable, engaged, and future-ready workforce that can successfully support our long-term aspirations.
XX. Information Technology
During the year under review, the Company continued to implement IT enablement initiatives for improving and optimizing business processes. The new application platform already in use in three locations, has been deployed in another location effective April 01, 2026.
The Company is working on improvement programs in the IT applications and communication infrastructure supporting business operations. The Company continues to invest in upgrading older networks and infrastructure components to contemporary standards with secure infrastructure. The Company is also exploring possible use cases of AI enabled solutions in operations and supply chain.
XXI. Risk Management
Risk management is a central part of the Companys strategic management. It involves identifying, assessing, and managing risks associated with its operations, with the objective of delivering sustainable value across all business activities. An effective risk management approach enhances operational efficiency, supports informed decision-making, and ensures business continuity while safeguarding stakeholder interests.
The Company has a Board approved "Risk Management Policy" in compliance with Regulation 21 and Schedule II of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Listing Regulations") and provisions of the Companies Act, 2013 ("the Act"), which requires the Company to lay down procedures about risk assessment and risk minimization.
Objective of the Policy
• Enable visibility and oversight of the Board on risk management system and material risk exposures of the Company
• Promote an effective risk management system aligned with the Companys growth strategy and business objectives
• Integrate risk management in the culture and strategic decision making across the Company
• Establish a structured and consistent risk management methodology
• Enhance decision making, planning & prioritization through comprehensive understanding of risks faced by the Company
The Companys risk management program comprises of a series of processes, structures and guidelines which assist the Company to identify, assess, monitor and manage its business risk, including any material changes to its risk profile. To achieve this, the Company has clearly defined the responsibility and authority of the Companys Risk Management Committee, to oversee and manage the risk management program, while conferring responsibility and authority on the Companys Chief Risk Officer and senior management/ business managers to develop and maintain the risk management program in light of the day-to-day needs of the Company. Regular communication and review of risk management practices provide the Company with important checks and balances to ensure the efficacy of its risk management program and to promote a strong risk culture. The risk management program is regularly reviewed by the Committee and their recommendations are incorporated by the Company.
The Company has recently appointed third party consultant to review the risk management policy,
principles and framework. The initial assessment for one of the units has been completed and the Company plans to extend the programme to other units.
Competition and business cycle risk
The industry margins in standard thin PET films hinge on Value Addition "VA" i.e. the difference between PET film prices and raw material (PTA and MEG) prices. Whenever the demand-supply balance favors the suppliers, VA usually widens and thereby encourages manufacturers to increase production by expanding their capacities. On the contrary, if PET film supply exceeds market demand, prices drop, thereby narrowing the gap. This inevitably affects every producers revenue and profit, though the impact varies considerably depending upon the product mix, market positioning and other factors. Similar factors are at play for the BOPP and CPP films business also.
Risk mitigation
Polyplex is well placed to counter the adverse effect of any exposure we may have to business volatility risk due to our inherent strengths:
• Capability to diversify the risk given its fragmented and well-spread customer base, diversified product portfolio and applications, evenly distributed sales mix and fully integrated operations •
• Downstream businesses like Saralam, Saracote, OLC, Holography, Saraprint, TMP etc. usually help in stabilizing the overall margins as for many products, the end pricing remains largely stable
• Another key point is the significant and consistently higher material margins in Europe and North America markets as compared to Asia for the standard product, which the operations in Turkey and USA can leverage upon. The European and North American markets have high dependency on imports and logistics / duty differentials play a large role in the pricing differences besides premium for local players, faster deliveries, smaller delivery lots, etc. The European market has become more balanced now given new capacities added to the region. In the US, there was a contraction in demand in the previous year for some of the downstream businesses such as Silicone Coated products and also for some of the industrial applications, due to the reciprocal tariffs and inflationary pressures. With the US Supreme Court decision rendering the reciprocal tariffs invalid, we have started to see gradual recovery of demand in the US market.
• Judicious mix of raw material linked and market linked pricing helps in generating stable margins
• Strengthening of D-PAC (Differentiated Product, Application and Customer) portfolio drives Polyplexs rights to win in a competitive Industry. It helps the Company de-risk earnings with focus on constant addition of new products to the differentiated portfolio, effectively "replacing" older and standard products
The below graph demonstrates the superior and relatively more stable VA of Polyplex on a consistent basis, as compared with the industry benchmark margin (China) for standard Thin BOPET films.
It may also be observed that the variability in VA across
quarters is much greater than the yearly averages due
to many other factors like:
a) Seasonality impact (Chinese New Year holidays for Asia, July/Aug due to vacation period for European operations, Christmas / New Year for US operations etc.)
b) Sharp Raw material price movements whereby selling prices for standard products take between 1-3 months to adjust
c) Impact of raw material price change and conversion cost on increase / decrease of self-produced inventory as well as provisions towards NRV / obsolescence
d) Start-up of new capacity can impact the regional pricing for the first couple of quarters before stabilizing
e) Sharp movement in FX rates and/or freight rates can also impact the short-term VA given the existing order book and lag in pricing adjustments.
f) Any significant tariff changes could significantly impact on the landed cost of materials which could affect the margins and the cost competitiveness
Price volatility risk
The basic raw material for production of PET film is PET resin, which in turn is produced from PTA and MEG. Being components of the petrochemical chain, the prices of PTA & MEG are impacted by Global crude oil prices, apart from demand-supply within its own industry.
The cost of resin is the single-largest component of the total production costs. Hence, any adverse fluctuations in the cost of PET resin can impact the Companys operating margins depending upon the Companys ability to pass on cost increases to its customers. As selling prices are usually negotiated on a monthly/ quarterly basis, in a balanced demand supply situation, the Company is able to adjust the selling prices following any changes in PET resin costs and other operating costs, although this happens usually with a time lag varying between one to three months depending on the region and prevailing demand supply conditions. The margins on the D-PAC products tend to be more stable and even counter-cyclical.
As can be seen above, crude oil prices have an important bearing on PTA & MEG melt cost and is directly proportional. Raw material movements tend to be ‘pass through in film prices. However, the value addition of the PET film industry (12-micron standard film) is more influenced by the industry demand-supply scenario rather than the crude or melt cost. As can be seen from the chart above, the impact of capacity additions is significant in China, as Chinese players have typically focused only on the domestic market and select SEA markets with standard products only.
The Companys geographical and product diversification helps in sustaining pricing / margins much better than other participants. The prices of downstream products like silicone-coating, extrusion-coating, holography and other specialty / D-PAC films are less susceptible to changes in raw material prices and thus reduce the Companys vulnerability in the face of volatile resin costs.
Further, Asia is a dominant player in PTA as well as MEG thus affecting prices of these key raw materials globally. Having raw material prices aligned to Asia is important from two reasons - 1) these affect raw material prices (including resin) for players in different regions and 2) raw material cost of Asian film producers would be linked to Asian indices. Polyplex has followed a strategy whereby the raw material sourced by different units have some sort of linkage to Asian prices to be aligned to other competitors. The Company monitors global and local input price trends carefully and determines its procurement plans accordingly.
The ongoing Middle East conflict led to a diversion of crude oil towards fuel and gas consumption, limiting its availability for petrochemical production and impacting the supply of certain key raw materials. Additionally, disruptions and temporary stoppages of cargo from
the region have affected the timely arrival of some materials. The Company has been closely monitoring the situation and has taken proactive measures to maintain adequate inventory levels of critical raw materials across all manufacturing locations to ensure continuity of operations. While raw material prices have exhibited volatility due to these developments, such fluctuations impact all industry participants similarly and do not place the Company at any significant competitive disadvantage.
Trade defense risk
Trade defense measures (Anti-dumping duties, countervailing duties, safeguard measures etc.) are imposed to protect local producers against unfairly traded or subsidized imports. Anti-dumping duties are imposed on imports if the ex-factory prices of such imported products are proved to be lower than the local selling prices of similar products in the respective exporting country or if the product is being sold below cost. Countervailing duties are tariffs levied on imported products to offset the impact of subsidies applicable for exporters in those nations. A safeguard duty is a temporary tariff or import restriction imposed by a country to protect its domestic industries from a sudden and significant increase in imports that could cause or threaten to cause serious harm. Such tariff measures increase the prices of imported products, usually rendering exporters uncompetitive and thus protecting the domestic industry.
PET Film: International trade in PET film has been subject to trade defense measures for more than three decades through the imposition of anti-dumping duties and countervailing duties. The key markets currently enforcing such measure are the US, Korea, Indonesia and Turkey. Since the occurrence of Covid 19, Turkey
has imposed additional custom duty (40% till December 31, 2020 and thereafter 10%) on all countries with the following exceptions:
• Not applicable to countries with FTAs and Custom Union
• UAE - 8.2%
• Pakistan - Nil
Additionally, in Turkey there is a minimum import price for all custom duties (Basic, Additional & CVD) & VAT which is USD 2.5 / kg and there is no credit for differential VAT, thus leading to effectively much higher duty rates.
Risk mitigation
Polyplex has an advantage in key target markets. Owing to its global manufacturing presence, it can minimize duty incidence because of its flexibility to supply from multiple locations thereby achieving the most competitive delivered cost for customers. Additionally, the Polyplex team has extensive monitoring programs in place and experience in handling trade investigations
Polyplexs Relative Advantage in Key Markets for Select BOPET Films
| Importing Country | Lower Duty Countries (0%-5%) | Medium Duty Countries (5%-10%) | Higher Duty Countries (10%+) | Polyplex Advantage |
| Indonesia | Thailand/ 1 supplier of China | Rest of China, India | - Local Producer | |
| South Korea | Indonesia, Thailand, Vietnam | Pakistan, 1 supplier of China | India, Other producers in China, UAE | - No duty from Indonesia - Lowest duty from Thailand |
| Turkey | Egypt, Poland, Hungary, Pakistan | India, Bahrain, Peru, China | - Local Producer | |
| USA | Section 122 Traiffs effective 24th Feb26 - 10% (150 days timeline). Normal duty - 4.2% Trade Defense Measures - India, China, Taiwan, UAE | - Onshore - AD/CVD rates for PCL amongst the lowest | ||
| EU | 0% - Turkey, Pakistan, Egypt, GSP (3%) - Indonesia, Nigeria | China, Thailand, Colombia, India** | Duty free access from Turkey, GSP from Indonesia | |
| Thailand | Indonesia, China | India, UAE | - Local producer - No duty from Indonesia | |
| India# | Indonesia | China, Thailand, Bagladesh, Pakistan | Local Producer | |
| Japan* | Indonesia, Thailand, India, Pakistan | China, Korea | - Multiple Locations with zero duty - Incumbent supplier position |
* Categorization has been done considering relative duty rates
** Suspension of GSP concessions for India covering Chapter 39 products entirely (PET, BOPP and PET Resins) effective 01st Jan 2023
# Provisional AD duties determined against Thailand, China & Bangladesh, subject to notification by Ministry of Finance ## Excluding the Impact of Reference Price
The Company undertakes required steps to insulate itself against risks arising out of any such anti-dumping actions and other trade barriers imposed by importing countries. A well-diversified manufacturing presence and an end-to-end product portfolio also helps mitigate fallout from such actions. As a local producer in many countries, it is also evaluating actions for protection against unfairly traded or subsidized imports from other countries.
BOPP Film: The key markets imposing trade defense measures on imports of BOPP films are Indonesia, Thailand, Turkey and Korea. Our existing operations in India for BOPP film are not subject to these trade defense measures. The brownfield expansion in Indonesia for BOPP film which was started in FY 21-22 is subject to Anti-Dumping duties on exports to Korea & Thailand. On the other hand, the Indonesian market is protected against imports from other key exporting countries like China, Malaysia, Thailand & Vietnam. In Turkey, safeguard measures are in place on imports from Iran till July, 2026 and anti-dumping measures are in place against imports from China, Egypt and Russia.
| Country of Import | Countries on whom AD/CVD/Safeguard applicable | Duty Rates (AD+CVD) |
| (Min-Max) | ||
| Korea | China | 2.5% - 25.04% |
| Indonesia | 3.19% - 5.98% | |
| Thailand | 3.49% - 10.55% | |
| Indonesia | Thailand | 0% - 28.4% |
| Vietnam | 3.9% | |
| Malaysia | 6.36% - 18.60% | |
| China | 5.76% - 29.95% | |
| Thailand | Indonesia | 0% - 15.32% |
| China | 0% - 32.8% | |
| Malaysia | 0% - 32.84% | |
| Turkey | Quantitative restriction (quota) on Iran | |
| Iran | 2.7.2025 - 1.7.2026 - 1642 Tons | |
| China | 16.76% - 62.94% | |
| Egypt | 12.85% - 42.62% | |
| Russia | 47.14% |
PET Film Resin: Historically, there have been limited trade defense measures imposed globally on PET film resin. However, in recent years, several countries have initiated or implemented such measures, indicating a shift towards increased protectionism.
• Mexico has imposed anti-dumping duties on imports of PET resin originating from China
• Canada has implemented anti-dumping duties on imports from China and Pakistan
• Turkey has safeguard duties on imports of PET resin from all countries
• Thailand has recently initiated an anti-dumping investigation against imports from China, and the outcome is currently awaited
These developments reflect a growing trend of trade defense actions in the PET film resin market across multiple jurisdictions
PTA: Recently, provisional AD duties have been imposed by EU on imports from Mexico and South Korea
MEG: Effective June 2021, anti-dumping duties have been imposed on USA and Saudi Arabia origin MEG by the EU for five years.
U.S. Tariff Developments and Resulting Uncertainties
During FY 25-26, U.S. trade policy witnessed multiple shifts, contributing to heightened uncertainty in global markets. The U.S. Administration imposed reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA), introducing country- specific measures across a range of imports. These developments led to increased volatility in global trade, with several countries initiating bilateral negotiations with the United States. The tariff measures were also subject to legal challenges, further adding to uncertainty regarding their continuity and enforceability, including the subsequent decision the U.S. Supreme Court to reserve IEEPA- based reciprocal tariff.
In this evolving context, the U.S. Administration introduced a 10% global tariff under Section 122 of the U.S. Trade Act oRs. 1974 effective February 24, 2026. However, uncertainty persists regarding the duration of such measures, potential extensions, and the likelihood of further policy changes Additionally, the U.S. has initiated investigations under Section 301 of the Trade Act oRs. 1974 into certain trade practices. These investigations broadly examine whether foreign policies are unreasonable or discriminatory and may lead to the imposition of retaliatory tariffs. Recent actions focus on enforcement gaps relating to forced labour imports across many trading partners, with proposals indicating additional duties in the range oRs. 10%-12.5%, thereby adding another layer of uncertainty to global trade dynamics.
The dynamic and evolving tariff environment continues to impact global trade flows, pricing, and overall business sentiment.
The Company has a well-established local manufacturing presence in the United States and further strengthened its position with the commissioning of a new BOPET film line in March 2025. Though, the reciprocal tariffs could have some negative impact on the trading and distribution business in USA, the Company believes it remains well-positioned to mitigate these risks due to the following factors
• Large Local manufacturing base in the USA including downstream assets
• Established long-term relationships with the customers, enabling partial /full pass through of the impact of duties, especially given market dependent on imports
• Speciality product offering leading to better negotiation capability
• These factors collectively provide resilience against tariff-related uncertainties and support the Companys competitive positioning in the U.S. market
Internal Control Systems and their Adequacy
Strong internal controls are required to provide assurance regarding the accurate recording of all transactions, safeguarding of assets, effective and efficient use of the Companys resources, and compliance with applicable laws and regulations.
^Risk mitigation^
The Company has established a robust Internal Financial Control (IFC) system, which is in line with the requirement of the Companies Act 2013. Risk and Control Matrix (RCM) has been prepared for the key processes and business transactions. The design and operating effectiveness of control matrix is tested by Corporate Internal Audit Team every year to ensure compliance with the IFC framework of the Company.
The Company places great importance on designing and maintaining a strong internal control system comprising various levels of authorization, supervision, checks and balances through standard operating procedures (SOPs), delegation of authority (DOA) matrix, policy guidelines, and manuals. The internal controls system is commensurate with the size of its business, geographical presence, and business nature and designed to provide assurance regarding the accurate recording of all transactions, safeguarding of assets, effective and efficient use of the Companys resources and compliance with applicable laws and regulations.
The Company has a dedicated Internal Audit department that operates independently. To further strengthen the Internal Audit function, the Company has engaged external firms to conduct comprehensive reviews alongside the internal audit team of the Company. The Internal audit team develops a comprehensive risk- based annual audit programme which is approved by the Audit Committee. The Audit Committee also reviews compliance with the said plan.
Internal Audit function prepares a report for each audit undertaken and submits it to the management for discussion. The Corporate Internal Audit team ensures regular follow-up with the process owners concerned to ensure the timely implementation of agreed-upon action plans and further strengthening of controls. Significant audit observations along with the recommended corrective actions are presented to Audit Committee on a quarterly basis together with the implementation status of action plans addressing previously control gaps.
The Company has a robust ERP system with in-built IT controls for all major business processes. The transactions are carried out through ERP setups to ensure
reliable and timely financial reporting. IT controls are also tested by internal and external audit teams during audits. The Company regularly updates its ERP system.
The Company remains committed to ensuring an effective internal control environment that provides assurance to the Board of Directors, Audit Committee, Management and protects the interest of all stakeholders.
Cyber Risk
Cyber risk refers to the losses related to phishing attacks, malware, social engineering, data breach, cyber extortion, ransomware, business interruption resulting from cyber events etc. As Polyplex has operations in multiple countries with global customer base, there is a need to contain the impact of potential cyber-security events & losses through criminal activities. Also, with increasing dependence on digitization, the probability of cyber/crime events increases.
The Company has a comprehensive Corporate IT policy and supporting procedures in place which are continuously updated. IT Reviews are generally done with the help of external agency. There is a shift in the focus towards proactive security monitoring from reactive monitoring. The Company has deployed contemporary cyber security solutions and best practices including Firewalls, VPN, the Managed Detection and Response (MDR) system, Multi-Factor Authentication and Access Controls. These solutions and practices are updated regularly based on Cyber Security Review with help of external cyber security agencies empaneled with CERT- In, the national nodal agency for Cyber Security under Ministry of Information and Technology. We ensure that firewalls of contemporary standards are upgraded at all external connectivity points with additional security components. Repeat communications, one-on-one user awareness sessions, global / focused password reset exercises are held in response to security advisories.
In case of Data Privacy matters, the policies and procedures are updated in line with respective regulations. We continue to monitor regulatory changes and comply with the requirements. We also have Cyber & Crime Insurance in place to take care of any extreme losses.
Liquidity and solvency risk
Liquidity implies the ability to meet debt obligations and finance future investments. Generally, if the cost of debt is lower than the return on investments, by increasing the financial leverage, a corporation can enhance return on equity. However, since there is an obligation to make fixed interest and principal repayments, volatile
cash flows could strain the liquidity of a corporate. Also, higher debts could limit the ability to finance further investments.
^Risk mitigation^
The Company has sufficient cash reserves significantly exceeding the level of debt. Cash and equivalents together with undrawn credit lines (excluding project financing) and liquid investments (current and noncurrent) aggregated to more than INR 2,48,076 Lakh. The Company has been able to maintain healthy cash balances inspite of regular dividend payments and large Capex. Strong free cash flow generation, supported by substantial unutilized credit lines, is expected to adequately fund ongoing expansions and address unforeseen contingencies. The Companys low gearing and robust cash flow profile position it well to support sustainable and self-funded growth.
Exchange rate and interest rate risk
FX risks arise on account of unanticipated changes in exchange rates. As the Company deals in multiple currencies due to its operations across different locations, the Company is exposed to risks on account of currency mismatches. Interest rate risk is the risk borne by interest bearing debt and investments due to variability in interest rates. In case of financing done at floating rates, as the interest rates change, the cost of borrowing also changes, thus impacting cash flows. The year under review has seen fall in interest rates globally leading to decline in cost of borrowings as well as the Investment income.
^Risk mitigation^
Since the currency markets are highly volatile, the Company minimizes such risks by adopting a consistent hedging strategy. A natural hedge is created by choosing the right currencies for taking loans. Thus, the Company fixes the currency of the liability to match with the currency of operational surplus. The remaining mismatched exposures are optimized by the Company by carefully identifying, measuring, monitoring and hedging the net exposures by using simple instruments like forwards with a 3-month rolling time horizon. This ensures that the maximum potential loss remains within defined limits. As there is a natural hedge available for most of the long-term borrowings, the Company does not cover the exchange rate risk on these liabilities. Therefore, the foreign exchange translation gain/ loss on these liabilities, as reported in the financial statements, may not have a corresponding impact on the cash flow
of the Company as the payments for these loans are met via future receivables in the same currency. The forex risk is managed on a standalone basis as cash flows are not freely transferable between Group entities.
The currencies used for external borrowing by the Company are US Dollar, INR & THB. Depending on the net FX surplus on a standalone basis, the currency for external borrowings is chosen. As of March 31, 2026, majority of the long-term external borrowings were in Polyplex Indonesia & Polyplex India which were in USD and INR respectively. Apart from this, there are related party borrowings in Thailand, Indonesia and the US which are in Euros. Any spike in EUR & USD value against the local currency has a negative impact on loan liabilities. But, as the impact of USD & EUR is generally offsetting in nature, the net MTM impact is minimal. Also, as most of the Companys exports are denominated in USD and EUR, the impact on the Companys cash flow is minimized.
The structural currency for the business is USD, even where the billing is done in local currencies (EUR, THB, INR, IDR). Given USD forms the basis for raw material costs (the key cost component) as well as sales, cash flows are not exposed to any significant currency risk.
During the year, Turkish Lira (YTL) has seen its value losing significantly against USD and EUR. However, as the exposure of Polyplex Turkey in YTL is minimal, the impact of currency depreciation is low.
There are various reasons for interest rate changes like economic growth, inflation expectations and unemployment, among others. All these factors are external and uncontrollable. To have a more balanced loan portfolio, the Company continuously evaluates shifting some of its floating rate debt to fixed rate considering the cost benefit analysis. Moreover, as the Company is net cash positive, the impact of any significant interest rate movement is minimal.
Credit risk
Credit risk refers to the risk of non-payment by debtors. This risk increases in the case of unsecured or open payment terms. As the Company caters to customers globally spanning across ~85 countries, managing the credit risk becomes essential. The risk is further accentuated in the current environment due to geopolitical uncertainties and economic disruptions in certain regions.
^Risk mitigation^
The Company has a well-defined and robust internal credit management system to monitor unsecured sales. The Company also has a global credit insurance cover to secure non-payment risks of customers. During FY 25-
26, the Company had 2,925 customers (including the customers serviced by a large distributor) and 26% of the total revenues were contributed by the top 10 customers. A strong internal credit risk management framework and credit insurance policy has enabled Polyplex to manage credit risk prudently. The average credit period during FY 25-26 stood at 58 days as compared to 54 days in FY 24-25, primarily influenced by changes in the product and regional mix.
Credit exposures are continuously monitored through periodic reviews of customer credit limits, ageing analysis, and early warning indicators such as delays in payments or adverse developments in customer financials or country risk profiles.
The Company follows a prudent provisioning policy to account for expected credit losses. Further, credit terms are dynamically calibrated based on market conditions and risk assessments, particularly in geographies experiencing economic or geopolitical stress. A disciplined credit evaluation process, supported by insurance coverage and long-standing customer relationships, has enabled the Company to effectively manage default risks arising from financial stress, insolvency, or geopolitical factors. The Company remains confident in its ability to prudently manage credit risk going forward
Project implementation risk
Any delay in implementation, cost overrun, inability to stabilize production from the new investment and failure to meet the target investment objectives may significantly affect future profitability. Although the Company takes into consideration various regulatory aspects at the project feasibility stage, subsequent changes during the implementation phase may lead to project delays.
^Risk mitigation^
The risks are mitigated by forming a dedicated project management team, corporate management oversight, management commitment and suitable protection clauses in contractual arrangements and appropriate insurance products. The Company remains confident of the successful implementation of new projects on time and within budgeted costs except for unforeseen circumstances.
The new BOPET film line in India which was announced in January, 2025 is expected to start much before the initial scheduled start up of H1 2027-28. In addition, the Company currently has few smaller projects at India and Turkey, which are more focused on enhancing the specialty product portfolio and are largely in line with the scheduled start-up.
Geopolitical risk
The Company operates in a global environment and is exposed to geopolitical risks across multiple regions. Ongoing conflicts, trade tensions, and political instability in certain parts of the world can disrupt supply chains, impact demand, and increase volatility in raw material and logistics costs.
The ongoing tensions in the Middle East has further heightened these risks, particularly due to its impact on global energy prices and key shipping routes. Any disruption in critical maritime channels leads to increased freight costs, extended transit times, and supply chain inefficiencies. Additionally, geopolitical developments may also influence currency volatility and customer demand in affected regions.
While the Companys diversified manufacturing footprint and global customer base provide a degree of resilience against region-specific disruptions, the evolving geopolitical landscape continues to pose uncertainties that could impact operations, trade flows, and overall business sentiment.
^Risk mitigation^
The Company has established strong and long-standing relationships with key suppliers, which support continuity of raw material availability even during periods of disruption. This enables the Company to ensure uninterrupted supplies and maintain stability in procurement.
Further, the Companys diversified sourcing strategy and proactive supply chain management help mitigate the risk. As a result, manufacturing operations have remained largely insulated from geopolitical disruptions, with no significant impact on operations due to shortages of raw materials.
These measures, along with continuous monitoring of geopolitical developments, enable the Company to effectively manage risks and maintain operational continuity
Supply Chain Disruption
The Company relies on a global supply chain for sourcing raw materials and distribution of finished goods across key markets. Disruptions in international shipping routes, port operations, or logistics infrastructure can impact the timely availability of raw materials and delivery of products. Recent developments including the Red Sea and the Strait of Hormuz, have heightened supply chain risks. Any disruption or rerouting of vessels through these critical routes can lead to increased transit times, elevated freight costs, and challenges in container availability. Such disruptions may also result in volatility in global freight rates and impact overall supply
^Risk mitigation^
Our geographically diversified manufacturing presence and business model has helped us mitigate the supply chain risks and navigate relatively smoothly through the challenge. Leveraging on our local presence in all the key demand centers, we have been able to establish ourselves as a dependable partner to all our key customers, even in the time of uncertainty. Based on a clear shift in customer preference to local supplies over imports, we have been able to demonstrate the effectiveness of our strategy. The Company shall continue to reap the benefit of a seamless and reliable supply chain through a judicious mix of onshore, nearshore manufacturing and imports.
Additionally, the Company maintains strong relationships with suppliers and sources a significant portion of its raw materials locally, which has limited the impact of global supply chain disruptions. These measures, combined with proactive logistics planning and supply chain monitoring, have ensured continuity of operations without any major disruptions.
Regulatory risk
Regulatory compliance is a key consideration for the BOPET industry. To ensure the safety of food that is packaged and consumed, extensive regulations have been put in place by various regulatory bodies like the USFDA, the EC, among others.
^Risk mitigation^
The Company maintains strict compliance with applicable regulations across all jurisdictions governing food packaging materials. It has established robust internal processes to ensure adherence to all relevant standards across its manufacturing operations.
Further, the Company has systems in place to continuously monitor regulatory developments across geographies. This enables timely assessment of potential impacts and implementation of necessary changes to remain compliant. Through proactive compliance management and strong quality assurance practices, the Company ensures minimal regulatory risk to its operations.
Environmental and sustainability risk (please see section on Sustainability)
Governments around the globe are playing a more active role in setting out expectations and targets on the sustainability front. Government policies are being designed to better manage waste through several mechanisms including Extended Producer Responsibility (EPR) guidelines and imposition of various taxes.
Flexible packaging is environmentally friendly compared to traditional rigid forms of packaging owing to its lower carbon footprint, light weight and lower requirement of landfill. The amendment to the PWMR in India has significantly diluted the threat to MLP as it provides for an exemption for material which is recyclable or provides for energy recovery or an alternative use. Also, FSSAI published the Guidelines for acceptance of recycled Polyethylene terephthalate (PET) as Food Contact Material (FCM-rPET). The government and regulatory bodies provide an opportunity for companies to differentiate by addressing sustainability concerns and will promote the growth of the rPET films.
There is increasing recognition among policy makers and other stakeholders that the functional properties of flexible packaging are unmatched, and alternative options are not suitable. Governments and Industry are focusing on developing economic models for collection, sorting and reuse/ recycling of post-consumer plastic waste. There is an increasing trend towards identifying EPR measures to fund such initiatives and more emphasis is on alternate use of multilayer packaging waste
The industry is also working on multiple fronts to provide sustainable solutions such as:
• Higher rPET content in packaging
• Single substrate packaging solutions
• Bio Compostable Packaging solutions
• Several alternative usages of plastic waste are being pursued like conversion to fuel oil, incineration, road construction etc.
Health & Safety Risk
The Companys manufacturing operations are exposed to a range of health, safety, and security risks, including fire incidents, workplace accidents, equipment failures, and unauthorized access to facilities. These risks may arise from operational deficiencies, human error, inadequate adherence to safety protocols, equipment malfunction, improper handling of hazardous materials, or gaps in security and surveillance systems. If such risks materialize, they may lead to injury or loss of life, damage to property and assets, operational disruptions, financial losses, and reputational harm to the Company.
The Company has implemented a comprehensive and integrated Health & Safety framework covering prevention, monitoring, and response mechanisms across all operations:
Fire & Emergency Management
• Installation of fire protection systems including extinguishers, hydrants, pumps, and sprinkler systems in critical areas, supported by periodic inspection, testing, and maintenance
• Regular fire mock drills and emergency response preparedness programs
• Controlled storage and handling of flammable and hazardous materials in designated licensed areas
• Comprehensive insurance coverage is maintained to mitigate financial exposure arising from property damage and business interruption
• Independent safety audits are carried out periodically to evaluate fire risk preparedness and identify improvement areas
Workplace Safety Management
• Enforcement of Permit-to-Work (PTW) systems for high-risk activities, supported by inspections, safety patrols, and compliance monitoring
• Structured safety training programs for employees and contractors, focusing on SOP adherence and safe work practices
• Preventive and time-based maintenance of machinery and equipment to minimize operational failures
• Mandatory use of Personal Protective Equipment (PPE) through a defined PPE matrix and monitoring mechanisms
• Controls over internal traffic and material handling, including restricted access zones, surveillance systems, and regulated vehicle movement
• Continuous monitoring of housekeeping and workplace conditions, with action tracking through safety committee reviews
Legal and Compliance Risk
The Company operates in a dynamic regulatory and legal environment and is exposed to risks arising from
non-compliance with applicable laws, regulations, and contractual obligations. These risks may stem from evolving regulatory requirements, complex compliance frameworks, or gaps in legal oversight. Failure to effectively manage these risks may result in regulatory penalties, legal disputes, contractual liabilities, financial losses, and reputational damage.
^Risk mitigation^
The Company has established structured mechanisms to manage legal and compliance risks through continuous monitoring of regulatory developments by the Secretarial and Compliance teams using regulatory platforms, professional forums, and industry interactions. Compliance requirements and timelines are clearly defined and tracked to ensure timely and accurate filings, supported by internal review processes and experienced personnel. Key contractual relationships with vendors and customers are governed through formal agreements with defined
terms, with legal vetting undertaken for strategic and high-value contracts. Overall governance is reinforced through established policies, internal oversight, and periodic reviews, ensuring effective mitigation of legal and compliance risks
Cautionary statement
This report contains forward-looking statements which may be identified by their use of words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘intends, ‘projects, ‘estimates or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the Companys strategy for growth, market position, expenditures and financial results are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized.
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