Raaj Medisafe India Ltd Management Discussions

The Management Discussion and Analysis Report are prepared in adherence to the spirit enunciated in the Code of Corporate Governance, approved by the Securities and Exchange Board of India and in compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Indian packaging industry, valued at approximately USD 75 billion in FY20, is projected to grow at a CAGR of 18-20% and reach nearly USD 200 billion by FY25. This growth is driven by the retail market, which is the 5th largest sector in Indias economy and has shown steady growth with high potential for expansion, particularly in exports.

Packaging plays a crucial role in determining a products perceived value. However, with the wide variety of packaging and box options available, choosing the most suitable solution can be challenging. Packaging can generally be divided into two main categories: Rigid Packaging and Flexible Packaging. India is one of the worlds biggest and fastest growing flexible packaging markets. The growth is expected to be driven by population growth, urbanization, and improved quality of life, increasing environmental awareness and increasing consumerism.

Rigid plastic, which includes products and packaging made from plastic resin, is predominantly used for molded items such as food containers, tubes, cups, bottles, pots, cans, and closures. This type of packaging is rapidly replacing traditional materials like metal cans, glass bottles, aluminum tubes, and metal caps in various applications. The primary materials used in rigid plastics are PET (Polyethylene terephthalate), PP (Polypropylene), and HDPE (High-Density Polyethylene).

The growth of this category is driven by factors such as demand for lower-cost packaging, technological innovation and development, a shift towards packaged products by middle-class consumers, modern retail formats that emphasize product presentation, and a growing desire for higher-quality products. Rigid packaging offers the best alternative for recyclability and reusability compared to flexible, glass, or metal packaging.

The market for rigid plastic packaging in India has grown significantly in recent years and is expected to continue growing at a CAGR of around 10-12% by FY 25. The Northern region is the largest market for rigid plastic packaging, accounting for 35% of the market share, followed by the West with 32%.

Flexible packaging, made of easily moldable materials, is a rapidly growing segment of the packaging industry. It utilizes materials such as paper, plastic film, foil, and metalized or coated papers to preserve product freshness and extend shelf life. Compared to rigid plastic packaging, it is lighter, takes up less space, and is easier to dispose of. The market for flexible packaging is estimated to grow at a CAGR of 15-18% by FY25, with plastics dominating due to their moisture-resistant properties. Flexible packaging has various applications in the food and non-food industries, including ready-to-eat foods, boil-in-bag pouches, insulation, cosmetics, and healthcare. India is one of the worlds largest and fastest-growing flexible packaging markets, with growth driven by factors such as population growth, urbanization, improved quality of life, environmental awareness, and consumerism.

We are pleased to inform that, due to our remarkable growth over the last few years, we are expanding!

Looking at the various exciting business opportunity, we at Raaj Medisafe India Limited, have decided to explore huge business potential in Hygiene industry. In hygiene industry, we aim to cater needs of Baby diapers, sanitary pads, Panty liners, Maternity pads.

Market Overview:

The Indian tissue paper and hygiene product market is expected to grow significantly until 2030, driven by increasing income of urban consumers, improving literacy rates, and growing awareness about hygiene. The demand for baby diapers and sanitary napkins is on the rise, making it a promising venture for entrepreneurs.

Madhya Pradesh offers several initiatives that can benefit manufacturers of sanitary napkins and baby diapers. While there arent specific financial benefits exclusively for baby diaper manufacturers, the states focus on promoting menstrual hygiene creates opportunities for sanitary napkin producers. Here are some potential benefits:

Government Schemes:

- Sanitation and Hygiene Scheme: Provides 300 per year to schoolgirls for buying sanitary napkins, promoting demand for quality products.

- Udita Scheme: Aims to create awareness about menstrual hygiene, increasing demand for sanitary napkins and potentially benefiting local manufacturers.

Industry Opportunities:

The growing awareness of menstrual hygiene in Madhya Pradesh, presents opportunities for local manufacturers to cater to the increasing demand for sanitary napkins. By focusing on quality, innovation, and sustainability, manufacturers can establish themselves in the market and benefit from government initiatives

The Indian sanitary napkin market touched US$ 618.4 million worth in 2021. Looking at the statistics, reports anticipate the market to touch US$ 1,185.0 million by 2027, thereby exhibiting a CAGR of 11.31% during 2022-2027. India Sanitary Pads Market has valued at USD 685.89 million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 6.23% through 2029.

The diaper market in India size reached US$ 1.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3.0 Billion by 2032, exhibiting a growth rate (CAGR) of 7% during 2024-2032. The rising concerns among parents regarding the overall health and hygiene of their babies, growing prevalence of various health conditions, and increasing consciousness regarding personal hygiene are among the key factors driving the market growth.

Looking ahead, the volume of the Baby Diapers market is expected to reach 1.4bn kg by 2029. Additionally, a volume growth of 4.4% is projected for 2025.On average, each person in India is expected to consume 0.8kg units of Baby Diapers market in 2024.

The Company has put into place an Internal Control system to monitor the movement of parameters considered important for the business. The Company has an Internal Audit Department reporting directly to the management. This department is responsible for monitoring of the above parameters with suitable internal control procedures.

Availability of desired RM at affordable price, growing competition, pricing and margins, Talent management, logistics will be the critical aspects for company as well competitions.

All the similar industries use the same strategy to capture the emerging markets but difference lies in the quality of execution.

The company to stay in market has to lower the cost of production and have to adapt the strategies as per the changing environment and policies to get strategic advantage.

The Key Financial ratios of the Company are as under:

Our Company believes in philosophy of communicating with the entire team in a two way process. Company also believes in the principal of proper delegation of authority which results in upliftment of Commitment level, responsibility and accountability of entire team right from Managing Director to Lowest level of administration. Every effort is made to implement the suggestions received and to encourage staff for more suggestion. During the financial year ended on 31st March 2024 the company has maintained cordial and harmonious relation with the employees, negligible attrition at staff and worker level, adherence to compliances, as applicable. Our focus would remain on hiring the right, retain them successfully and remain complied with the laws of land at any given point in time.

Actual performance may differ from projections made as the Companys operations are subject to various economic conditions, government regulations and other incidental factors.