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 Biaxially Oriented Polyethylene Terephthalate Film (BOPET) film producer 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. The downstream businesses like metallizing, silicone coating, extrusion coating, holography, TMP/ 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 earnings 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 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 also form important differentiators. e) Differing buyer behavior across markets.
f) 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.
The above factors can create significant differentials in regional price levels as well as between standard products and value-added/specialty products.
There is an increasing concern by all stakeholders & environmental groups on sustainability with the focus being primarily on reusability and recyclability of plastics. Flexible packaging is mostly multi-layered 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 a sustainable 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 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 with market share of ~9% (ex. China) in thin BOPET Films globally. The Company has a global manufacturing footprint across 7 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 from its global supply network, offering a built-in resilience to any disruption including, geo-political events.
Polyplex Group Structure (as on March 31, 2025)
Note – From July 18th, 2024 onwards, Polyplex Corporation Limited holds a 26% equity stake in its associate company, BECIS Solar 1 Private Limited (a Captive Power Company). Investment in captive power companies are held by the company as a consumer in accordance with the requirements of the Electricity Act, 2005. However, Company does not exercise significant influence over BECIS Solar 1 Private Limited as defined under Ind AS, and therefore, the financial statements of the associate are not consolidated with the financial statement of the Company.
Global Sales Force
Polyplex has a direct presence primarily through its own sales team (many of local nationality) in all the key regional markets complemented by an extensive global agent network, which helps develop strong customer relationships. Within each key market, presence in multiple locations maximizes customer coverage efforts. Relationships with most key customers is deep-rooted and spanning over 10+ years.
| Particulars | India | Other Asia | Europe2 | North America |
| Sales and Marketing Team Size | 29 | 21 | 30 | 13 |
| #of Locations | 4 | 8 | 9 | 7 |
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) | Recycled Resin (MT) | PET Thin (MT) | PET Thick (MT) | BOPP (MT) | CPP (MT) | Blown PP (MT) | Metallizer (MT) | Holography (MT) | Coating (Mn Sqm) | TMP (Mn Sqm) |
| India | 77,600 | - | 1,07,400 | - | 35,000 | - | - | 32,500 | 5,040 | 383 | 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 | 4,35,500 | 59,700 | 3,36,400 | 28,800 | 95,000 | 10,000 | 21,637 | 1,02,150 | 5,520 | 1,966 | 152 |
| Group | |||||||||||
Notes:
1. 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.
2. Include projects under implementation viz new BOPET Film Line and Offline Coater & Laminator in India, new Offline Coater in Turkey and a new Blown Film Line in Thailand.
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 of 50-350 microns whereas films below 50 microns are characterized as thin film. 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 shift away from rigid packaging formats (e.g., stand-up and retort pouches for cans and blow molded bottles), as well as the drive for additional packaging to preserve food products and provide retail packaged convenience foods to an ever more affluent global consumer base. Some of its distinctive functional strengths 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 sector especially in Asia. Non-packaging demand includes applications supporting Energy Transition, photovoltaic cells and lithium-ion batteries for electric vehicles which are potentially high growth sectors.
Thin BOPET Film Market
The largest application of Thin BOPET films is flexible packaging, which accounts for 77% of the total thin film 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 flexible global 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 growth.
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 more than three-fourths of global consumption. Faster growing Asian demand is the main driving force in the global markets. Within Asia, India and China are the largest and fastest-growing consumers.
Global Thin PET Film Demand by End Use
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 who have borne the brunt of this with domestic operating rates plunging. 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 has emphasis on productivity and cost management. This had an impact on traditional large 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, solar panels and specific applications within packaging and industrial segments. The high speed and productivity of the latest 10 meter+ wide lines (same as Indonesia line & new US investment 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.
Source: Updated Company estimates
Global thin BOPET film growth is expected at more than 5% for the next few years, with demand in India expected to continue growing at ~10%. Demand growth is expected to remain resilient on account of factors including de-globalization and preference for shorter supply chains, acceleration of move from loose to packaged sales of a range of products, importance of hygiene, higher home consumption, etc. 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, more than 3.5 MMT of additional capacities of Thin BOPET film have been added especially in Asia with China accounting for ~68% and India ~16% of total additions thus leading to an oversupply situation. Per industry sources, even though many additional lines are on order, mostly in China, it is expected that some of these may be cancelled or postponed due to the prevailing oversupply situation.
In India, due to a fire incident in May 2025 at one of the major competitors facilities several BOPET lines are not operational. The impact of the same has been considered in the global capacity utilization charts.
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, but with the expected pause in capacity additions ex-China, closure of older inefficient lines and increase in demand especially, the CUF is expected to improve gradually.
Based on past experience CUF levels between 80-85% can be considered high and close to the full producible capacity for the industry as a whole. 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. Optical film in backlit units for flat panel displays and touch screens continue to be a growth application for thick BOPET film. In terms of the Energy Transition, BOPET film usage for photovoltaic (PV) backsheets has been and will continue to be a growth area. As the transport industry looks to transition away from the internal combustion engine drivetrain to electric vehicles (EVs), thick BOPET film usage for battery pouches is well positioned to benefit from this trend. China has emerged as the largest market for thick BOPET films with a market share of 55%; Japan, Korea and Taiwan contribute to another 25% of global demand.
Like in thin BOPET film business, the capacity addition for thick BOPET film has also been primarily in China with a CAGR of 13.6% in the last 5 years and aggregating to 65% of current global capacity. China is the leader in the manufacture of PV modules accounting for roughly three-quarters of all global PV module manufacturing and remains a key supplier of other electrical and electronics products. Producers in Europe and the US constitute only around 6% of world capacity in 2024.
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 ~10.3 MMT and is expected to grow at more than 4%. Food application accounted for ~59% and non-food for balance 41% of the total BOPP demand in 2024. Despite a difficult year in 2023 due to falling global sales and de-stocking, underlying demand growth remains positive as evidenced by the rebound in 2024. 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 and 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 ‘full.
Just like BOPET film, there have been capacity additions in BOPP film too with China accounting for 60% addition and India 13%. 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, many new BOPP lines are expected to be commissioned within 2025-26 and for the next 2-3 years. The impact of these new lines is expected to be largely offset in the short-term by the non-operation of several existing BOPP lines due to a fire incident in one of the major competitors facilities in May 2025. The impact of the same has been considered in the global capacity utilization chart.
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 markets, 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: Sealant layer for snack foods (e.g., chips, biscuits), bakery items and confectioneries.
• Retort Applications: CPP is commonly used in retort laminates for ready-to-eat meals due to its thermal stability.
• Medical Packaging: Used in sterilizable pouches for surgical instruments and other medical devices.
• General Packaging: Offers versatility in design, sealing and durability.
• Industrial Application: Carrier for flexible circuit boards, transfer of matte texture to the thermosetting laminates, non-tear textile bags, stationery, in mold labels, etc.
Market Insight: Given the relatively modest investment required to set up CPP film production lines, the market is often driven by regional/country demand-supply dynamics, enabling quicker scale-up in local markets.
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. 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 several 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: o Agricultural films (e.g. mulch films) o Labels and liners o Airbag safety film substrates o 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, tentative start up by Q4 FY 25-26): Targeted to meet the increasing demand for specialty film applications.
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
Even while industry-wide overcapacity prevails, Polyplex has displayed an industry leading capacity utilization record as depicted above due to superior market access and higher productivity. Key drivers for strong capacity utilization are:
• Deep customer access and higher market penetration in key demand centers due to multilocation 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 more than 5%. This can be sustained with growth in energy transition end-uses, such as solar panel backsheet, battery for electric vehicle and MLCC applications. 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 capacity is expected 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 canceled. 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 industry in India comprises of many players with no one having 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. Highly competitive nature of the India industry limits the likelihood of imports from China except sporadically depending upon domestic market conditions. Size of India market is more than total combined demand of North America and Europe. Demand for BOPET film in India is currently estimated to be around 8,12,000 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.
During the last 3 financial 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. The Company has also recently 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 H2 of FY 26-27.
Due to a fire incident at one of the competitors facilities in India in May 2025, several lines of PET are non-operational. As a result, the total installed capacity for thin BOPET films in India by end of FY 25-26 is expected to be about 12,04,000 tons per annum with a significant portion of the surplus being exported.
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 new application in textile bags and is expected to continue to grow at historical rates. Industry CUF has been 84%+ 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. Many of these lines are expected to be commissioned within FY 25-26. A significant proportion of BOPP is exported, primarily to Asia, North America, Europe and Africa.
The Indian BOPP market is currently estimated at about 8,65,000 tons per annum and the capacity post the adjustment of Competitors facility after the fire incident is expected to be about 10,28,000 tons by end of FY 25-26 with the surplus being exported. Demand is expected to grow at around 10% annually.
Even with large capacity additions expected in BOPP, the demand supply balance is expected to improve in BOPP films in the near to medium term due to the fire incident at one of the competitors facilities in India in May 2025 which has resulted in a several lines of BOPP becoming non-operational.
IX. Other Businesses
Silicone Coating and Extrusion Coating Businesses
The silicone coating business produces release liner, which is used for 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 at Turkey which is expected to be operational by Q4 2025-26. 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 of 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, 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 and USA to meet market demand and broaden the product portfolio. A new offline coater and laminator are under implementation in India to service domestic demand and increase the share of specialty sales.
Metallized Paper Business
Polyplex has a laminating machine which was commissioned in FY 19-20 to facilitate Transfer Metallized Paper (TMP) business. 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
The market potential for Transfer Metallized Paper in India is approximately 10,200 tons with some of the SKUs of carton packing removed by the Brand Owners.
Holography Business
Holography is the process of making holograms which are usually intended for displaying three-dimensional images, security text, different unique features and images. 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 and its suitability in packaging application, embossed film is metallized on the holographic side.
The market potential for Holographic Film in India is approximately 10,500 tons and is expected to grow at around 8%-10%.
Few of the Holography lines in overseas locations have been shifted to India to serve domestic demand in flexible packaging applications, gift wrap, label face stock and carton lamination. Polyplex has installed both seamless and shim line Holo technology to cater to a wider segment of market applications. Polyplex is evaluating expanding its product portfolio in UV holography, hot and cold stamping for high end security 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 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 demonstrate 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 has reached 8.23 billion in 2025. 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.
Urbanization: Growth in the urban population is driven by overall population increase and by the upward shift in the percentage living in urban areas. Today, around 57% of the worlds population – 4.7 billion inhabitants – live in cities. This trend is expected to continue, and the urban population more than doubling its current size by 2050, at which point nearly 70% will live in cities. This translates into increased disposal income and an aspiration among a burgeoning middle class to adopt global brands and modern shopping habits. With more than 80% of global GDP generated in cities, urbanization can contribute to sustainable growth through increased productivity and innovation.
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 a number of sustainability benefits throughout the entire cycle of the package when compared to other packaging options, especially rigids. Increasing Consumerism: Income growth has led to an increase in global consumer spends, influencing in turn the Polymeric film industry. Technological developments are leading to accelerated demand in electrical, electronics and other industrial applications, along with new applications like Lithium-Ion Batteries (LiB) for EVs, which is expected to further increase demand. The Asia Pacific region is expected to witness the fastest growth because of the presence of two highly populated countries, i.e., China and India. In these two countries, the increase in disposable income will supplement the growth of industries such as food and beverages, pharmaceuticals, pet food, and cosmetics, which will help the polymeric film market to flourish. E-commerce: The global e-commerce packaging market share is projected to grow from USD 53.35 billion in 2024 to USD 104.19 billion by 2032, exhibiting a CAGR of 8.7% during the 2024-2032 period. An increasing number of people depend on online shopping. Packaging plays an important role in the case of e-commerce from aesthetics perspective as well as to ensure durability and quality of the product. In the era of social media marketing, many FMCG players are moving towards specialized, innovative and sophisticated packaging. Asia Pacific is likely to hold the dominant e-commerce packaging market share in the coming years owing to the expansion of the e-commerce industry in the region. As per IBEF Report, the Indian e-commerce industry valued at USD 125 billion in 2024 reflecting a CAGR of 15% and is projected to reach USD 345 billion by 2030.
Retail Formats: Modern Trade has created a plethora of opportunities for the packaging sector as it increases the demand for retail ready packaging solutions, which is space efficient and helps in reducing supply chain cost. These formats lead to impulsive buying behavior through their visual merchandising strategies, efficient sales personnel, in-store sampling and promotions with discount offers.
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 economic 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 BOPET films.
• 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 and 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" - Seven 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 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 customized 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.
International Sales and 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 China, Japan, Korea, Vietnam, Philippines, Singapore besides Thailand and Indonesia.
- Physical presence of European sales team in 9 countries of the EU, Turkey and UK.
- North America sales team physically located in different US cities.
- Customers in African and South American markets are catered directly or through agents/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
• New product development and innovation.
• Built-in resilience to any disruption - Polyplex can supply customers from its global supply network.
Cost-efficient Operations and Assets
• Investment in vertical integration (both backward and forward) complemented with versatile and high productivity assets would continue to protect cost competitiveness, drive innovation and value addition.
• Continuous improvements in productivity and cost optimization to maintain global cost leadership.
• To increase the sales of specialty film and enable economic usage of the older and 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 metallizing 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 to enhance efficiency and synergy.
• The Company has developed many products in the last few years and for relevant markets has filed patent applications. Currently, it has 32 patents across various products/processes/ countries and has filed application for 6 more patents. Further, the Company also has registered fourteen trademarks.
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 and energy sources for the manufacture of polyester films.
• 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 post-consumer 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:
Note:
* Polyplex (Asia) Pte. Ltd. (Singapore) is 100% owned by Polyplex Corporation Limited.
# Including non current Investment in FDs and Bonds.
* Current tax adjusted for:
- Tax on intercompany dividend and interest as the corresponding income gets eliminated at Consolidated level.
- One-time special Tax in Turkey @10% on the manufacturing income of FY 22-23 to help address damage caused by earthquakes.
This strategy has resulted in continuous growth (CAGR of 7% in capacity addition).
Note: i. Capacities for Coater and Transfer Paper Metallized has been converted into MT based on current product mix. ii. Figures include the investments which are under implementation - new BOPET Film Line and Offline Coater & Laminator in India, new Offline Coater in Turkey and a new Blown Film Line in Thailand. iii. Figures have been restated & revised, wherever necessary for previous years.
Despite the challenging environment, the Company continues to identify further growth avenues and is poised to enhance long-term shareholder value.
XIII. Business Process Excellence
Business Process Excellence: Driving Value through the "Profit Improvement Plan (PIP)"
In line with our commitment to operational excellence and sustainable value creation, Polyplex launched a Group-wide strategic initiative titled the "Profit Improvement Plan (PIP)" in April 2024. This initiative represents a pivotal step in aligning organizational focus towards structured and measurable performance improvement, encompassing both cost optimization and margin enhancement.
Under the Cost Improvement track, the initiative targets a comprehensive set of levers, including:
• Productivity and production efficiency enhancement
• Waste reduction and reusability measures
• Energy efficiency (solar, electrical and thermal)
• Alternate vendor and raw material sourcing
• Product recipe and design optimization
• Input cost reduction across freight, packaging, and inventory management
• Indigenization of critical spares, identification of alternative vendors The overarching aim is to bring down the cost of production while improving agility and resource utilization across functions.
On the Margin Improvement front, the focus is on:
• New product and application development
• Entry into new customer segments
• Value-added innovations
Several of these initiatives involve selective capital investments to strengthen our long-term competitiveness and differentiation.
The PIP program is monitored rigorously— performance is reviewed monthly with consolidated reviews conducted quarterly at both the unit and Group levels. PIP outcomes are embedded into the annual performance assessment of our leadership teams, reinforcing ownership and strategic alignment across the organization.
Since its inception, PIP has shown encouraging results, significantly contributing to operational efficiency and profitability. More importantly, it has galvanized the organization towards a common goal of continuous improvement, fostering cross-functional collaboration and a culture of proactive performance enhancement. At Polyplex, business process excellence is not a one-time activity— it is a core philosophy that guides actions and investments. Through initiatives like PIP, we continue to build a more agile, efficient, and innovation-driven organization, better positioned to serve our stakeholders and lead in a competitive global landscape.
XIV. Projects under Implementation
The brownfield expansion of a new BOPET Film line & Offline Coater in USA was completed in March 2025. This new line is the worlds highest output PET film line and will significantly enhance overall cost competitiveness as compared to other domestic suppliers as well as offshore suppliers. With this expansion, Polyplex is now the largest and most cost competitive producer of Thin BOPET films in the US.
The projects announced during the year under review and the likely start up dates are as below:
| Projects | Location | Capital Cost (In USD million) | Likely Start Up |
| New BOPET Film Line | India | 58 | H2 FY 26-27 |
| Other Projects | India | 4.5 | Up to Q3 FY 25-26 |
| Other Projects | Overseas | 14 | Up to Q4 FY 25-26 |
| Total | 76.5 |
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 58 million USD with the annual capacity of 52400 TPA (12 micron)
2. Project start up expected by H2 of FY 26-27 Funding of the Project proposed 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 specialty 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 86 countries) with an extensive base of about 2,735 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 29% of revenues in FY 24-25. Majority of the customers have an average off-take <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 (15-20 years on 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.
The break-up of the Companys revenues from various regions, operating companies, business segments and applications are given below:
Notes:
• Other sales in the graph above comprise scrap sales and trading sales of third party non-manufactured products.
• Certain sales have been reclassified into Industrial applications based on further review.
Financial Performance
A snapshot of the Income Statement for the last two years is given below:
| FY25 | FY24 | ||||||
| Particulars | (INR in Lakh) | % of Total Expenses | (INR in Lakh) | % of Total Expenses | Change (YoY) | ||
| Sales & Other Income | 6,98,056 | 100% | - | 6,36,713 | 100% | - | 10% |
| Manufacturing Expenses | 5,06,722 | 73% | 78% | 4,82,965 | 76% | 76% | - |
| Operating and other Expenses | 1,13,326 | 16% | 17% | 1,11,206 | 17% | 17% | - |
| EBITDA | 78,008 | 11% | - | 42,542 | 7% | - | 83% |
| Foreign exchange fluctuation | (3,959) | (1%) | (1%) | 7,922 | 1% | 1% | - |
| loss / (gain)# | |||||||
| Normalized EBITDA* | 74,049 | 11% | - | 50,464 | 8% | - | 47% |
| Interest & Finance Charges | 4,608 | 1% | 1% | 4,238 | 1% | 1% | - |
| Depreciation and Amortization | 29,998 | 4% | 5% | 30,713 | 5% | 5% | - |
| Income Before Income Tax | 43,402 | 6% | - | 7,591 | 1% | - | 472% |
| Exceptional Gain / (Loss) | - | 0% | - | - | 0% | - | - |
| Provision for Income Tax | 8,762 | 1% | - | (1,047) | 0% | - | - |
| Net Income | 34,640 | 5% | - | 8,638 | 1% | - | 301% |
| (Before Minority Interest) | |||||||
| Minority Interest | 14,851 | 2% | - | 4,855 | 1% | - | - |
| Net Income | 19,789 | 3% | - | 3,783 | 1% | - | 423% |
| (After Minority Interest) |
# Unrealized portion of foreign exchange loss / (gain) on foreign currency long-term loan.
* Normalized EBITDA excludes impact of unrealized FX (gain)/ loss on long-term loans.
During the year under review, the sales and other income has increased by 10% mainly due to higher Specialty film sales. The average sales price of BOPET film was higher due to increased raw material prices and better sales mix. Higher EBITDA is on account of increase in the sales of specialty film and normalization in market conditions partially offset by the rise in fixed costs - mainly due to higher stores & spares consumption due to some unplanned maintenance activities, higher bad debt provisioning and increase in other administrative overheads and manpower costs reflecting largely the impact of inflation. In FY 24-25, there is an unrealized FX gain of INR 3,959 Lakh as against unrealized FX loss of INR 7,922 Lakh in FY 23-24 on account of restatement of foreign currency long-term loans. The above factors have resulted in a higher Normalized EBITDA of 49% during the year under review.
Current tax is higher during the year under review due to better profitability. Further deferred tax liability is created during the year under review due to reversal of deferred tax assets which was created last year due to brought forward losses and other deferred tax adjustments.
Sales and Other Income
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Sales | 6,86,930 | 6,29,439 | 9% |
| Other Income | 11,126 | 7,274 | 53% |
| Total | 6,98,056 | 6,36,713 | 10% |
The increase in sales of 9% during the year under review is mainly due to higher selling price due to better sales mix and an increase in sales volumes resulting from normalization of market conditions and higher raw material cost in BOPET films. Other income includes other operating income. Other income during the current year is higher mainly on account of the following reasons: a) The current year recorded a foreign exchange fluctuation gain of INR_3,261 Lakh, compared to a loss in the previous year which was reported in Other expenses. b) Higher Insurance claims – Insurance claims receipts of INR 934 Lakh during the current year as compared to
INR 587 Lakh in the previous year.
Manufacturing Expenses
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Raw Materials Consumed (Incl. Stock Accretion/Decretion) | 4,07,728 | 3,88,832 | 5% |
| Power & Fuel | 44,332 | 44,333 | 0% |
| Packing Material Consumed | 26,410 | 25,663 | 3% |
| Stores & Spares Consumed | 19,180 | 17,082 | 12% |
| Repairs and Maintenance | 9,071 | 7,055 | 29% |
| Total Manufacturing Expenses | 5,06,722 | 4,82,965 | 5% |
| as a % of Sales and Other Income | 73% | 76% | - |
The increase in raw material expenses by 5% in absolute term is attributed to higher raw material prices in BOPET films and increased sales volumes which is partially set off by marginal lower raw material prices in BOPP films. Packing costs have increased due to higher volume in BOPET and BOPP film segments. Further, store & spares cost and repair and maintenance cost has increased due to frequent chain maintenance activities, debottlenecking of chips plant in US for a new film line and other increased maintenance activities. This has resulted in an overall increase in manufacturing expenses by 5% in absolute terms though there is a reduction in manufacturing costs as a proportion to total revenue by about 4%.
Operating and Other Expenses
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Personnel Expenses | 61,566 | 58,590 | 5% |
| Administrative Expenses | 21,589 | 18,876 | 14% |
| Selling Expenses | 27,887 | 23,981 | 16% |
| Other Expenses | 2,284 | 9,760 | (77%) |
| Total Operating and other Expenses | 1,13,326 | 1,11,206 | 2% |
| as a % of Sales and Other Income | 16% | 17% | - |
During the year, operating and other expenses in absolute terms have increased by 2%. An important factor contributing to this is higher selling expenses due to higher freight costs resulting from a change in regional sales mix and higher sales volume. Administrative costs are also higher mainly due to one-time bad debt provisioning and reflecting the impact of inflation. Further, other expenses are lower mainly due to the exchange fluctuation loss of INR 8,212 Lakh in the previous year as compared to a gain in current year.
Interest and Finance Charges
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Interest Expense | 4,327 | 3,922 | 10% |
| Bank & Other Financial Charges | 281 | 316 | (11%) |
| Total Interest and Finance Charges | 4,608 | 4,238 | 9% |
| as a % of Sales and Other Income | 0.7% | 0.7% | - |
Financial expenses are higher mainly due to the higher working capital utilization and higher term debt during the year due to increased borrowings in US for the new expansion and additional borrowing in India for the smaller projects. The impact is partially set off by lower interest rates (lower USD Libor and Euro Libor) globally resulting from monetary easing. Interest and financial charges are after capitalization of interest under work in progress.
Tax Expenses
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Current Tax | 7,736 | 4,091 | 89% |
| Deferred Tax | 967 | (5,116) | (119%) |
| Earlier year Tax | 59 | (22) | (368%) |
| Total | 8,762 | (1,047) | - |
The current tax is higher during the year under review due to better profitability. Further deferred tax liability is created during the year under review due to reversal of deferred tax assets which was created last year due to brought forward losses and other deferred tax adjustments.
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 2,43,219 Lakh (including unutilized working capital limits of INR 1,36,161 Lakh) as at the end of the reporting period.
Cash Flows for the Last Five Financial Years
| FY21 | FY22 | FY23 | FY24 | FY25 | |
| Net Cash flow from Operating activities | 1,08,455 | 56,002 | 80,150 | 45,522 | 43,803 |
| Net Cash flow from Investing activities | (43,231) | 106 | (11,493) | (79,638) | (47,306) |
| Net Cash flow from Financing activities | (65,885) | (23,223) | (65,696) | (15,221) | (3,754) |
| *Exchange Difference on translation of Foreign Operation | (144) | 3,970 | 13,055 | (788) | 870 |
| Total Cash & Cash and Cash Equivalents | 43,583 | 80,438 | 96,455 | 46,330 | 39,942 |
| Total Cash & Bank Balance including Investment | 1,24,215 | 1,22,782 | 1,25,563 | 1,08,055 | 1,07,489 |
| Particulars | As at March 31, 2025 | As at March 31, 2024 |
| Cash & Bank Balances | 12,045 | 15,897 |
| Fixed Deposit with Banks (less than 3 Months) | 28,034 | 30,433 |
| Book Overdraft | (136 ) | - |
| Cash & Cash Equivalent net of Book Overdraft (A) | 39,942 | 46,330 |
| Fixed Deposit with Banks (3 to 12 Months) | 32,338 | 23,695 |
| Other Balances with Bank | 596 | 595 |
| Bank Balances other then Cash & Cash Equivalent (B) | 32,934 | 24,291 |
| Fixed Deposit with Banks (More than 12 Months) | 448 | 9 |
| Investment in Bonds | 30,523 | 37,225 |
| Liquid Investment | 3,505 | 200 |
| Other Cash & Bank Balances (C) | 34,477 | 37,434 |
| Total Cash & Bank Balance Including investment (A + B + C) | 1,07,489 | 1,08,055 |
Cash Flow from Operating Activities
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Profit Before Tax | 44,534 | 7,591 | 487% |
| Adjusted for:- | |||
| Depreciation and Amortization | 29,998 | 30,713 | (2%) |
| Finance Cost | 4,608 | 4,238 | 9% |
| Interest Income | (3,978) | (3,896) | 2% |
| Unrealized Exchange Difference Loss / (Gain) | 2,259 | 6,859 | (67%) |
| Net Loss / (Gain) on Sale of Investments | (64) | (96) | (33%) |
| Others | (2,704) | 392 | (790%) |
| Operating Profit before Working Capital Changes | 74,653 | 45,800 | 63% |
| Change in Working Capital Adjustments | (26,709) | 6,490 | (512%) |
| Income Taxes Paid | (4,141) | (6,767) | (39%) |
| Net Cash Flow From Operating Activities | 43,803 | 45,522 | (4%) |
For the year under review, cash-flow from operating activities (before change in working capital) has increased by 63% at INR 74,653 Lakh as compared to INR 45,800 Lakh in the previous year mainly due to higher margin resulting from Specialty mix and better market conditions as discussed above. This is partially offset by increase in net working capital by INR 26,709 Lakh mainly due to higher inventory resulting from increased raw material costs, higher inventory for new line start-up in US, and increase in volumes. The above factors have resulted in net cash-flow from operating activities (after change in working capital) to be INR 43,803 Lakh.
Cash Flow from Investing Activities
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Sale/ (Purchase) of Property, Plant & Equipment | (48,492) | (51,117) | (5%) |
| Deposits with Bank other than Cash & Cash equivalent | (7,816) | (22,736) | (66%) |
| Sale / (Purchase) of non-current Investments | 1,074 | (14,499) | (107%) |
| Sale / (Purchase) of short-term Investments | 4,016 | 5,089 | (21%) |
| Interest received | 3,913 | 3,624 | 8% |
| Net Cash Flow From Investing Activities | (47,306) | (79,639) | (41%) |
Major factors impacting cash flows from investing activities are:
• The cash generated was used in investment in fixed assets to the tune of INR 48,492 Lakh in FY 24-25 (INR 51,117 Lakh in FY 23-24), mainly towards new PET film line project in USA, capital advance payments towards ongoing downstream projects and for new PET Film line in India.
• During the year, investment in bank term deposits with more than 3-month maturity has been INR 7,816 Lakh (net of redemption) (FY 23-24 net investment of INR 22,736 Lakh).
• INR_5,090 Lakh is realized (net of investment) through redemption of bonds and mutual funds during the FY 24-25.
• Interest income received during the year is INR 3,913 Lakh (INR 3,624 Lakh in FY 23-24).
Cash Flow from Financing Activities
| FY25 | FY24 | Change | |
| (INR in Lakh) | (INR in Lakh) | (YoY) | |
| Proceeds/ (Repayment) from Non-Current Borrowings | 5 | (5,543) | (100%) |
| Net Proceeds/ (Repayment) from Short-Term Borrowings | 9,921 | 1,427 | 595% |
| Interest paid | (5,675) | (4,591) | 24% |
| Dividends paid (including Tax) | (7,601) | (5,753) | 32% |
| Principal and Interest payment of Lease Liabilities | (403) | (760) | (47%) |
| Net Cash Flow From Financing Activities | (3,754) | (15,221) | (75%) |
• There was a net increase in total debt (short-term + long-term) by INR 9,926 Lakh. This is mainly due to higher working capital borrowings.
• Interest paid during the year is INR 5,675 Lakh (INR 4,591 Lakh in FY 23-24) mainly due to higher working capital utilization. It is partially set off by lower interest rates globally.
• The Company paid dividend of INR 7,601 Lakh in FY 24-25 (INR 5,753 Lakh in FY 23-24).
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 a concern from all stakeholders and environmental groups on 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 460 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 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, recyclable packaging/ plastic, 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 2026.
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. Its general application will follow after an 18-month transition period. 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
| FY30 | FY35 | FY38 |
| A=95% | R@S>55% | |
| B=80% | Banned: RaS <55% | |
| C=70% | Banned: <70% | C-Banned |
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
| Type of Packaging | FY30 | FY40 |
| Contact sensitive | 10% | 25% |
| (Non-PET/Non Bottles) | ||
| 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 is 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 most recent amendments to the regulation were made in January 2024. 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 has to 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 out 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 January 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 | FY22 | 25% |
| II | FY23 | 70% |
| III | FY24 | 100% |
B. Recycling - Plastic to Plastic Recycling Obligations*
| Plastic Packaging Category | FY25 | FY26 | FY27 | FY28 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
| Packaging Category | 2025-26 | 2026-27 | 2027-28 | 2028-29 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 to 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. In light of 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 |
| IFCA - India | Flexible packaging and folding carton |
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 increasing 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 radially 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 and continually strive to manufacture sustainable products which can gain global acceptance.
Polyplex is aligning with the UNs 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 organization, the Company continually strives 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 recycle 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)
| Sr. No. Location | ISCC Plus certification | Recycled Content Verification (RCV) | US FDA (NOL) | EFSA (Europe) | RCS (Recycled Claim Stand) | GRS (Global Claim Stand) | FSSAI (India) |
| 1 PTL (Thailand) | * | - | - | ||||
| 2 PE (Turkey) | * | - | - | ||||
| 3 PU (USA) | * | * | - | - | - | - | |
| 4 PCL (India) | * | * | - | - | * |
* Project under progress - Not Applicable
• 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.
• 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 to ASTM D5511 & D5526 standards.
• Sustainable Packaging with Metallized Paper Solutions
> PCL India 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 post-consumer waste polyester fiber waste, bottles as well as olefinic waste. EcoBlue rPET film is in compliant with US FDA 21 CFR,
62
Regulation (EU) 10/2011, EU REACH Regulation (EC) No 1907/2006 Article 33 (1), RoHS Annex II of 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 Management System | FSMS | Certified since 2008 | Certified since 2012 | Certified since 2009 | Certified since 2006 | Certified since 2021 | Certified since 2021 |
| Energy Management System | EnMS | Certified since 2013 | Certified since 2013 | Certified since 2023 | Certified since 2014 | - | Certified since 2021 |
| Greenhouse Gas Emissions | GHG emissions | - | - | Certified since 2021 | - | - | - |
The Companys Sustainability report for the year 2021-2023 as per the Global Reporting Initiative (GRI) standards is available on Companys website. The report for the year 2023-25 is under preparation and shall be available soon. 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 Thailand has been awarded for the following awards:
• Esteemed title of "Green Innovation Award" at the prestigious Asia Corporate Excellence & Sustainability Awards 2021
• Prime Ministers Award for Innovation – Chemical Recycling in Thailand
• Best Public Company of 2021 – Industrial Group at Money & Banking Awards
• Thailand Greenhouse Gas Management Organization for complying with the standard requirements of GHG emissions
• Green Industry Level 3 (Green System) for systematic environment management with continuous monitoring respectively Additionally, our all locations in Turkey, Thailand, USA, Indonesia and India are awarded Eco Vadis CSR Awards for environment, labor & 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 2,100 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 organization 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 30 granted Patents spread across various products, processes and countries and an additional 8 applications have been filed. Further, ten trademarks have been registered.
Consumers have become highly demanding and are looking for more and 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:
| Sr. No. Products | Applications Packaging | Substrate |
| 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 | Aluminum 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 Anti-Fog heat sealable | Food packaging overwrap | BOPP Film |
| 14 Ultra-High barrier metallized | Replacement for Barrier PET & aluminum foil | BOPP Film |
| 15 Matte finish | Snack packaging (natural paper look) | BOPP Film |
| 16 Specialized Overwrap | Cigarette pack overwraps | BOPP Film |
| 17 Pearlized white (Low Density) | Ice-cream packaging | BOPP Film |
| 18 High performance blown retort | Ready to eat and ready to cook foods | Blown PP Film |
| 19 Specialized papers like Holographic and silver metallized paper | Tobacco packaging | Paper |
| 20 Heat sealable barrier paper | Plastic free bio-degradable for food packaging | Paper |
| Sr. No. Products | Applications Industrial | Substrate |
| 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, | PET Film |
| pharma, appliances, lawn fertilizer, medicals, etc | ||
| 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
We believe that our people are at the core of our sustained success. With a global workforce of over 2,850 employees, our Human Resources strategy is anchored in creating a high-performance culture, enabling talent, and fostering a workplace that is inclusive, caring, and purpose driven. The focus remains on developing a strong leadership pipeline, retaining key talent, and institutionalizing robust people practices across all geographies.
Key strategic initiatives undertaken during the year include:
1. Internal Growth & Leadership Development
Our expanding business footprint across geographies and product segments continues to create new opportunities for talent. We remain committed to promoting from within, enabling capable individuals to grow into strategic and leadership roles.
2. Leadership Retention & Stability
The leadership retention framework has been broadened to include a wider pool of future leaders. This has ensured minimal attrition at the leadership level, supporting consistent execution of business strategy and operational continuity.
3. Localization & Talent Empowerment
Focused efforts have been made to identify, develop, and elevate local talent across our global units. These initiatives have strengthened ownership at the local level and enhanced engagement in continuous improvement programs. Managerial attrition levels across units remain among the lowest in the industry.
4. Per formance Management System Enhancements
In FY 24-25, we further enhanced our performance management system by introducing parameters that reflect enterprise-wide priorities such as product quality and safety. Key metrics now include:
• Dispatch (MT) per customer complaint
• Severity rate (Safety)
• Accident rate (Safety)
These have been institutionalized as part of performance evaluation for leadership roles.
5. Holistic Employee Engagement & Well-being
We have embedded more than 50 structured engagement and welfare programs tailored to local cultures and employee needs, addressing not just physical but also mental, emotional, and spiritual well-being. This holistic approach has further deepened employee bonding and organizational alignment.
6. Diversity & Inclusion
We are consciously nurturing a culture that values diversity and promotes inclusivity through participative practices, equitable opportunities, and a deep respect for individuality.
7. Comprehensive Insurance & Protection Framework
Medical, accidental, and life insurance coverage is provided to employees and their families. These schemes have offered vital support in unforeseen circumstances and are integral to our care-first philosophy.
8. Industrial Relations (IR)
Our collaborative and transparent approach to industrial relations has resulted in a zero- disruption record since inception. Employee welfare committees facilitate regular dialogue and participative decision-making, reinforcing mutual trust and stability.
9. Strategic Talent Development & Leadership Pipeline
To future-proof our organization and support business growth, Polyplex has deployed a multidimensional talent development strategy, blending internal capability building with strategic external hiring. The key pillars include:
• Anchor High-Potential Resources:
Empowering internal high-performers with strategic and leadership roles.
• Lateral Hiring for Expertise Infusion: Bringing in experienced professionals to strengthen organizational capability.
• Campus Recruitment from Premier Institutes: Hiring high-potential graduates and offering them accelerated leadership tracks.
• Leadership Potential Assessments:
Regular evaluation to identify and nurture emerging leaders.
• Focused Grooming of Identified Talent:
Creating tailored development plans to accelerate readiness.
• Structured Role Rotation: Enabling diverse exposure across functions and business units.
• Inter-Unit Mobility for Proven Talent:
Encouraging cross-location experiences to build organizational agility.
• Hiring for New Business Lines: Attracting domain experts to drive innovation and growth in emerging segments.
This integrated approach is strengthening our leadership pipeline, enhancing retention, and positioning us for long-term organizational agility.
10. System & Process Institutionalization
Our people processes are institutionalized and fully digitized through our HR Information System (HRIS), ensuring transparent access and governance across the employee lifecycle.
11. Capability Building & Training
Through the People Development Cell, skill-specific focused training programs are delivered via classroom and on-the-job formats. These are aligned with operational priorities, ensuring skill relevance and career advancement.
12. Culture of Care
‘Care is a core organizational value at Polyplex. We strive to create an environment that promotes personal growth, psychological safety, and belonging—thereby attracting, developing, and retaining the best talent in the industry.
13. Long Service Recognition
As part of our continued commitment to honoring long-serving employees, the following initiatives were rolled out:
• Employment opportunities for eligible family members of long-serving employees.
• Elevation of frontline plant employees to higher responsibility roles.
These efforts reinforce a culture of loyalty, appreciation, and intergenerational connection. Human capital is a strategic enabler of value at Polyplex. As we continue to grow and evolve in a dynamic global environment, we remain deeply invested in building an agile, future-ready, and purpose-led workforce.
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 has been successfully running in three locations. The rollout is in progress at another unit, and it is planned to be deployed from the start of next financial year.
The Company is working on improvement programs in the IT applications and communication infrastructure supporting the business operations. The Company continues to invest in upgrading older networks and infrastructure components to contemporary standards with secure infrastructure. The Managed Detection and Response (MDR) system has also been deployed to strengthen cyber security practices.
XXI. Risk Management
Risk management is a central part of the Companys strategic management. It is the process whereby the Company addresses the risks attached to its activities with the goal of achieving sustained benefit within each activity and across the portfolio of all activities. The focus of good risk management is the identification and treatment of these risks and to add maximum sustainable value to all the activities of the organization, thus optimizing operational efficiency. Effective risk management ensures continuity of the Companys operations and protection of the interests of its stakeholders.
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
• To enable visibility and oversight of the Board on risk management system and material risk exposure of the Company.
• To define and document the risk management methodology.
• To improve decision-making, planning & prioritization by comprehensive and structured 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 provides 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.
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 are able to 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. With the additional reciprocal tariffs imposed in the US, the preference for local supplies is likely to result in higher premium for local players and this would benefit the ramp up of Polyplexs new BOPET thin film line in US which started in end of March 2025. The European market has become more balanced now given new capacities added to the region.
• Judicious share of raw material linked sales 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 is on constant addition of new products to the differentiated portfolio, effectively "replacing" older and standard products.
Increasing Contribution of D-PAC sales over the period:
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.
Risk Mitigation
The following graph illustrates the influence of crude oil prices on the raw material costs and consequently the selling prices of BOPET film and also establishes the low co-relation between Crude Oil and Industry benchmark (China) value additions.
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. Moreover, unpredictable price movements of raw materials affect all industry participants and thus does not put Polyplex in a materially advantageous or disadvantageous position vis-?-vis its competitors.
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 important markets adopting this measure are the EU, the US, Korea, Indonesia, Turkey and Brazil. Since the occurrence of Covid 19, Turkey has imposed additional custom duty (40% till 31st Dec 2020 and thereafter 10%) on all countries with the following exceptions:
• Not applicable on those 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 3.0 / 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 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 | Lower Duty Countries | Medium Duty Countries | Higher Duty Countries | Polyplex Advantage |
| Country | (0%-5%) | (5%-10%) | (10%+) | |
| Indonesia | Thailand/ 1 supplier of China | Rest of China, India | - Local Producer | |
| South Korea | Indonesia, Thailand, China (few suppliers) | Pakistan | 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 | Canada, Mexico | Universal Reciprocal Tariffs effective 9th April 2025 - 10% Normal duty - 4.2% Trade Defense Measures - India, China, Taiwan, UAE | - Onshore - AD/CVD rates for PCL amongst the lowest | |
| Brazil* | Peru, Columbia | Thailand, Indonesia, Pakistan, Turkey, UAE, Bahrain | India, China, Egypt | Thailand, Turkey and Indonesia with no ADD |
| EU | 0% - Turkey, Pakistan, Egypt, GSP (3%) - Indonesia | China, Thailand, Columbia, India** | Duty free access from Turkey, GSP from Indonesia | |
| Thailand | Indonesia, China | India, UAE | - Local producer | |
| - No duty from Indonesia | ||||
| 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
The Company undertakes the 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, Vietnam, 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 and anti-dumping duties have recently been imposed against imports from China, Egypt and Russia.
PET Film Resin:
In case of PET film resin, there are not many trade defense measures across the globe. Recently, Mexico has imposed Anti-dumping duties on imports of PET Resin from China and Canada has imposed provisional Anti-dumping duties on imports of PET Resin from China & Pakistan. Also, in Turkey there are safeguard duties imposed on imports of PET Resin from all the countries.
PTA:
Earlier there were AD duties on imports of PTA in India from countries like Thailand, Korea, China, Indonesia, Malaysia, Taiwan & Iran but effective Feb20, these duties have been revoked as PTA has been designated as a critical input for textile fibers & yarn.
MEG:
Effective June 2021, anti-dumping duties have been imposed on USA and Saudi Arabia origin MEG by the EU for five years.
Risk from US Reciprocal Tariff Measures
On April 02, 2025, the Trump Administration imposed reciprocal tariffs on various countries and products under the International Economic Emergency Powers Act (IEEPA). It was asserted that the U.S. trade deficit, cross-border drug trade and trade measures by other countries constitute economic emergency and warrant tariffs. On April 09, 2025, the US announced a 90-day pause on reciprocal ‘Liberation Day tariff for most countries leaving a baseline universal tariffs of 10% for most countries with a few exceptions. This has resulted in many countries initiating negotiations of bilateral trade agreements with the US. The uncertainty is expected to continue as bilateral negotiations evolve and reshape US trade policies.
Risk Mitigation
The Company has local production in the USA and has recently expanded its manufacturing operations with the start-up 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 has a competitive edge on account of:
• Large Local manufacturing base in the USA including downstream assets
• Long-term relationships with the customers which may help in passing through some of the price increases, especially given market dependent on imports
• Specialty product offering leading to better negotiation capability
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 which is commensurate with the size of its business 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 program 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.
Risk Mitigation
The Company has a comprehensive Corporate IT policy and procedures in place which are continuously updated. IT Reviews are generally done with the help of an 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. The 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 the case of Data Privacy matters, the policies and procedures have been updated in line with respective regulations. Regulatory changes are monitored to ensure compliance. 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 corporate 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 non-current) aggregated to more than INR 2,43,219 Lakh.
The Company has been able to maintain healthy cash balances inspite of dividend payments and Capex. Free cash flows along with large unutilized credit lines available at Polyplexs disposal are expected to be quite adequate to manage various ongoing expansions and to deal with any unforeseen contingencies. Accelerating cashflow generation with low gearing showcases potential for exponential self-sustaining 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 the 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 flows 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, Euro, INR & THB. Depending on the net FX surplus on a standalone basis, the currency for external borrowings is chosen. As of March 31, 2025, majority of the long-term external borrowings were in Polyplex Indonesia & Polyplex USA which is in USD. 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 the majority 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 invoicing 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 (more than 50%), 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 and considering the cost benefit analysis, the Company continuously evaluates shifting some of its floating rate debt to fixed rate. 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 ~86 countries, managing the credit risk becomes essential. In the current scenario whereby, many countries are facing geo-political crisis, the risk of defaults is high.
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 24-25, the Company had 2,735 customers (including the customers serviced by a large distributor) and 29% 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 24-25 stood at 54 days as compared to 56 days in FY 23-24. With a strong credit risk management system and strong relationship with customers, the Company has been able to mitigate the risk of default either due to cashflow issue/insolvency/ political risk and is confident of doing so in the future as well.
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. There had been some minor delays in the startup of some of the smaller projects in the past due to a variety of factors including Covid related. The New Thin BOPET Film line at the USA subsidiary was started in March 2025. Due to the inflationary pressures, there was an increase in the project cost and significant delays in the startup, primarily due to unexpected deferment in delivery of key equipment coupled with longer construction duration. However, on account of its strong financial profile, the Company can retain the cost increase/time delays with minimal impact on project feasibility.
The new BOPET film line in India which was announced in Jan2025 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, Thailand and Turkey, which are more focused on enhancing the specialty product portfolio and are in line with the scheduled start-up.
Geopolitical Risk
Geopolitical risk is about relations between nations – at the political, economic, military, and cultural/ideological level. Risk conventionally occurs when status quo is threatened. Recently, in May2025 geopolitical tension intensified due to India Pakistan Conflict which was later stopped leading to suspension of all trade, travels, visa cancellations, expulsions, closure of airspace, etc. The Iran Israel war which continued for around 12 days could have much larger implications on global supply chain, oil prices, trade, etc. had it not been stopped. Russias invasion of Ukraine and Israel Gaza war are continuing, thus impacting the businesses with these countries.
Risk Mitigation
India Pakistan Conflict - At India level, there is no business with Pakistan, thus exposure is nil. However, as a collateral impact, relations with Turkey have been under strain. As the Company has a manufacturing presence in Turkey through its Thai listed subsidiary, the potential risk on the Turkey investment is perceived to be minimal on account of following factors:
• The operations are in Free Trade zone which is located on the European side and not in mainland Turkey.
• The Company is one of the major contributors of the export earnings for Turkey as 84% of our sales are exported, mainly to Europe.
• Local Employment generation (~300 persons)
Other Geo-political events - Sanctions have been imposed by various countries on Russia and Belarus but the commercial import/export activities of Polyplex with Russia and Belarus is not within the scope of the prohibited transactions. Though Polyplex has stopped all sales to Russia since the start of the war, the impact on our overall sales is marginal as most of the sales are to multinational companies who have developed alternate sourcing options. In case of Ukraine, risk is minimized through sales on advance basis. In case of Israel, our exposure is minimal and is covered under insurance. There is no exposure in Iran.
The installed capacity of base films as well as downstream units is quite evenly spread out among the five manufacturing country locations of India, Thailand, Turkey, Indonesia and the US. Though some political and economic problems have been faced in Thailand and Turkey from time to time, there has not been any significant effect on business activities.
Supply Chain Disruption
During the period under review, the global ocean freight industry experienced a robust trade activity, fluctuating freight rates and notable geopolitical challenges. Disruptions such as Red Sea vessel attacks significantly impacted trade flows, prompting rerouted shipping lanes and operational shifts. Freight rates saw sharp mid-year increases driven by front-loading and supply chain uncertainty, then began to ease in early 2025. Amid these changes, the industry now contends with looming overcapacity concerns due to earlier fleet expansions. The volatility is expected to continue with increasing geo-political risks and due to uncertainties in US reciprocal tariffs.
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.
RM is mostly procured from local suppliers and there has been no major impact of the supply chain disruption.
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 stringently conforms to the relevant USFDA and EC directives for food packaging applications.
Environmental and Sustainability Risk (please see section on Sustainability also)
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.
Risk Mitigation
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 actions 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
• Higher Bio content or Bio sourced solutions
• Several alternative usages of plastic waste are being pursued like conversion to fuel oil, incineration, road construction, etc.
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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