Rajshree Polypack Ltd Management Discussions

About Rajshree

With over 20 years of expertise in the packaging industry, Rajshree Polypack Limited ("RPPL" / "Company") is a leading manufacturer of rigid plastic sheets for specialized Form, Fill and Seal ("FFS") applications, thermoformed packaging products, injection moulded packaging products, and barrier packaging solutions for food packaging. Backed by integrated manufacturing capabilities across extrusion, thermoforming, injection moulding, printing, sleeving, and in-mould labelling ("IML"), the Company provides packaging solutions for a wide range of customer requirements.

Our product portfolio includes packaging solutions for the dairy industry, food and beverages ("F&B"), bakery and confectionery, sweets and snacks, fresh fruits and vegetables, convenience foods, seafood, and FMCG products. Along with rigid and semi-rigid plastic packaging, the Company has expanded into sustainable paper packaging through its joint venture, strengthening its presence in environmentally responsible packaging solutions. With a wide variety of products, designs, and manufacturing capabilities, the Company continues to focus on technology, product innovation, and delivering value-added packaging solutions to customers across Indian and International markets.

Industry structure and developments

Economic overview & Outlook

Global Economy

According to the International Monetary Funds (IMF) World Economic Outlook (April 2026), the global economy entered 2026 amid a more uncertain environment following the outbreak of conflict in the Middle East. The disruption to energy production and transportation routes, particularly through the Strait of Hormuz, increased pressure on global commodity markets, inflation expectations and financial conditions. These developments came after a year in which the global economy was supported by technology-related investments, accommodative financial conditions, easing trade policy tensions and policy support across several economies.

Global economic growth was estimated at 3.4% in CY2025. Under the IMFs reference forecast, growth is projected to moderate to 3.1% in CY2026 before improving slightly to 3.2% in CY2027. The downward revision for 2026 primarily reflects the impact of the Middle East conflict, although lower tariff rates, continued policy support and stronger-than-expected economic performance in late 2025 partly offset the slowdown. Emerging market and developing economies are expected to experience a larger impact than advanced economies, particularly commodity-importing countries facing higher energy and food prices.

Global trade remained supported by continued growth in technology-related exports and ongoing changes in supply chains, with several countries strengthening regional trade partnerships. However, geopolitical uncertainty remains elevated, and risks continue to weigh on the outlook. Inflation is projected to increase from 4.1% in CY2025 to 4.4% in CY2026, before easing to 3.7% in CY2027, reflecting higher energy and food prices resulting from the conflict. The IMF expects downside risks to remain dominant, with a prolonged conflict, further disruptions to energy supplies, tighter financial conditions and rising trade tensions posing challenges to global growth. At the same time, continued investment in artificial intelligence, productivity improvements and structural reforms could support economic activity over the medium term.

(Source: World Economic Outlook- June 2026, April 2026 Published by IMF)

Indian Economy

India continued to remain among the fastest-growing major economies in CY2025, despite prevailing geopolitical tensions and trade uncertainties globally. Looking ahead, global conditions are expected to remain influenced by developments in West Asia, energy prices and trade policies. For FY2026, Indias real GDP growth is estimated at 7.5%, supported by favourable farm sector trends, lower food inflation, policy support and private consumption. ICRA expects GDP growth to moderate to 6.5% in FY2027, while nominal GDP growth is projected to improve from 8.6% in FY2026 to 10.5% in FY2027, supported by higher inflation.

Indias macroeconomic indicators remained stable during FY2026. Average CPI inflation is estimated at 2.1%, while the current account deficit is expected at around 1.0% of GDP. Looking ahead, CPI inflation is projected at 4.3% in FY2027 and the current account deficit at around 1.7% of GDP, mainly due to a higher oil import bill. The fiscal deficit is expected to remain at 4.5% of GDP. While higher energy prices and geopolitical developments may influence economic activity, continued government capital expenditure, improving domestic consumption, policy measures and investment activity are expected to support Indias growth outlook over the medium term.

(Source: ICRA: FY2027 Outlook, April 2026, IBEF: About Indian Economy Growth Rate & Statistics, May 2026)

Packaging

Packaging is more than a protective layer; it is a key element of a brands identity and a powerful medium for consumer engagement. Beyond safeguarding products throughout the supply chain, packaging communicates a brands values, quality, and distinctiveness, helping products stand out in an increasingly competitive marketplace. It serves as a silent salesperson by attracting consumer attention, conveying essential product information, enhancing the overall user experience, and building lasting brand recall. Thoughtfully designed packaging also strengthens customer loyalty by creating meaningful and consistent brand experiences.

Packaging solutions are broadly classified into rigid and flexible formats, each serving distinct application needs. Rigid packaging, including bottles, containers, and cartons made from materials such as glass, metal, and hard plastics, offers superior strength, protection, and durability. Flexible packaging, comprising pouches, sachets, and bags made from plastic films, paper, or foil, provides lightweight, cost-effective, and versatile solutions. As consumer preferences and sustainability priorities evolve, the industry is increasingly adopting recyclable materials, recycled content, and bio-based alternatives, balancing product performance with environmental responsibility.

Global Packaging Industry

The global packaging market was valued at USD 1.22 trillion in CY2026, compared with USD 1.18 trillion in CY2025, and is projected to reach USD 1.44 trillion by CY2031, growing at a CAGR of 3.42% during 2026-2031.

Growth is being supported by rising demand from the food, beverage, pharmaceutical, healthcare and e-commerce sectors. Brand owners are increasingly adopting recyclable materials, mono-material packaging and bio-based feedstocks to meet sustainability requirements and evolving consumer preferences. At the same time, smart packaging, digital printing, automation and connected packaging technologies are improving product functionality, supply chain efficiency and consumer engagement. Asia-Pacific continues to be the largest as well as the fastest-growing regional market, supported by its manufacturing base, expanding consumer markets and increasing packaging demand. (Source: Mordor Intelligence)

Indian Packaging Industry

Indias packaging market was valued at USD 40.73 billion in CY2026, up from USD 38.27 billion in CY2025, and is projected to reach USD 55.67 billion by CY2031, registering a CAGR of 6.44% during 2026-2031.

Market growth is supported by increasing consumption of processed food, expansion of organised retail, rising e-commerce and direct-to-consumer channels, and higher demand for convenient and shelf-stable packaging. Government initiatives, including the Production Linked Incentive (PLI) Scheme and food safety regulations, are encouraging investments in automated packaging and cold chain infrastructure. Flexible packaging continues to account for a major share of the market, while investments in recyclable materials and food-grade packaging solutions are supporting the industrys long-term development. (Source: Mordor Intelligence)

Amid ongoing geopolitical realignments and shifts in global sourcing strategies, packaging manufacturers with diversified, domestically-integrated capabilities are increasingly well-positioned to support brand owners seeking greater supply chain resilience.

Rigid Packaging Industry

Rigid packaging is designed to retain its shape and provide high levels of protection during storage, transportation, and handling. It is commonly manufactured using materials such as glass, metal, and hard plastics, including polyethylene terephthalate (PET) and polypropylene (PP), which offer strength, durability, and versatility. These characteristics make rigid packaging suitable for a wide range of applications across the food and beverage, pharmaceutical, personal care, household, and industrial sectors, where product safety and shelf-life are important.

The demand for rigid plastic packaging continues to grow, supported by increasing consumption of packaged products, rising disposable incomes, and changing consumer lifestyles. The expansion of convenience foods and ready-to-consume products has further increased the need for durable and functional packaging solutions. At the same time, greater emphasis on sustainability is encouraging the adoption of recyclable materials, lightweight designs, and circular packaging solutions, creating new opportunities for innovation and long-term industry growth.

Global Rigid Plastic Packaging Industry

The global rigid packaging market was valued at USD 475.79 billion in CY2025 and is estimated to reach USD 500.43 billion in CY2026. The market is projected to grow at a CAGR of 6.01% during 2026-2034. Growth is supported by rising demand from the food and beverage, pharmaceutical, personal care, and e-commerce sectors. Increasing preference for durable, lightweight and recyclable packaging, along with the adoption of paper-based packaging and sustainable materials, continues to support market expansion across major end-use industries.

Source: Future Market Insights - Consumer Packaging Industry Analysis in India (2026-2036)

Indian Rigid Packaging Industry

Indias consumer packaging industry is projected to grow from USD 62.79 billion in CY2026 to USD 109.30 billion by CY2036, registering a CAGR of 5.7% during the forecast period. The packaging industry is expected to reach US$ 92 billion by FY2030, supported by a CAGR of around 9% over the next five years. Growth is being driven by increasing consumption across food and beverages, pharmaceuticals, personal care, agriculture, consumer durables and e-commerce. India also continues to offer significant long-term potential due to relatively low per capita packaging consumption compared with developed economies.

Plastic remains the leading packaging material, accounting for more than half of the market, owing to its versatility and wide range of applications. Rigid packaging formats such as bottles, jars, trays, tubs, lids, cartons and containers continue to be widely used across food and beverage, healthcare and consumer goods industries. Increasing demand for packaged food, beverages and pharmaceutical

products, together with urbanisation, rising disposable incomes and the expansion of organised retail and e-commerce, is supporting demand for rigid packaging solutions. Manufacturers are also investing in advanced moulding, printing and forming technologies to improve production efficiency and product quality.

Sustainability continues to influence industry developments, with increasing adoption of recyclable materials, post-consumer recycled plastics and bioplastics. Government initiatives promoting recycling, along with evolving environmental regulations, are encouraging the development of sustainable packaging solutions. In addition, smart packaging, customised designs and technology- driven manufacturing processes are enabling companies to meet changing customer requirements while supporting the industrys long-term growth.

As global brands increasingly diversify sourcing away from geographically concentrated manufacturing hubs, Indias packaging industry stands to benefit from this broader supply chain realignment, reinforcing its position as a growing manufacturing base.

Source: Future Market Insights - Consumer Packaging Industry Analysis in India (2026-2036), IBEF

Opportunities

• Expanding Demand from Food & Beverage and Healthcare Industries

Food & beverage continues to be the largest end-use segment for rigid packaging, supported by increasing consumption of packaged food, dairy products, beverages and ready-to-eat meals. Demand from healthcare and pharmaceutical applications is also increasing due to higher requirements for safe, durable and hygienic packaging. RPPL can leverage its product portfolio to cater to these expanding end-use industries.

• Growing Preference for Sustainable Packaging

Brand owners and consumers are increasingly adopting recyclable materials, post-consumer recycled plastics and bio-based packaging solutions to meet sustainability goals. The Companys capabilities in recyclable rigid plastic packaging, along with its paper packaging offerings through Olive Ecopak, provide opportunities to address the growing demand for environmentally responsible packaging solutions across domestic and international markets.

• Technology-led Product Development

Advancements in moulding, thermoforming, digital printing and smart packaging are enabling manufacturers to develop lightweight, functional and customised packaging solutions. These technologies can help improve product quality, optimise material usage and strengthen the Companys ability to offer value-added packaging across multiple customer segments.

• Expansion of Organised Retail and E-commerce

The continued growth of organised retail, quick commerce and e-commerce is increasing demand for packaging that offers product protection, durability and ease of transportation. This creates opportunities for RPPL to develop application-specific packaging solutions for online distribution while expanding its presence across FMCG, food and consumer goods categories.

• Growth Across Multiple Consumer Industries

Increasing disposable incomes, urbanisation and changing consumption patterns are supporting higher demand for packaged products across food, beverages, personal care, consumer goods and healthcare industries. As packaging requirements become more specialised, the Company has opportunities to diversify its product portfolio, strengthen customer relationships and increase its presence across new applications and markets.

Threats

• Volatility in Raw Material Prices

Rigid plastic packaging relies on polymers such as PET, PP and HDPE, whose prices remain linked to global crude oil and commodity markets. Changes in raw material prices can influence input costs and margins, requiring effective procurement planning and cost management.

• Increasing Environmental Regulations

Governments across global markets are introducing stricter regulations related to plastic usage, recyclability and waste management. Compliance with evolving environmental standards may require investments in sustainable materials, process improvements and product redesign to meet regulatory requirements and customer expectations.

• Rising Adoption of Alternative Packaging Materials

Growing demand for paper-based packaging, bio-based materials and flexible packaging solutions may influence material preferences across certain applications. Manufacturers will need to continue investing in product innovation and sustainable packaging solutions to remain competitive.

• Rapid Changes in Packaging Technologies

The packaging industry continues to evolve with developments in automation, smart packaging, lightweight materials and advanced manufacturing technologies. Companies that do not keep pace with these developments may face challenges in meeting changing customer requirements and maintaining their competitive position.

• Macroeconomic and Supply Chain Uncertainty

Global geopolitical developments, trade disruptions, logistics challenges and fluctuations in economic activity can affect the availability and cost of raw materials as well as customer demand across packaging-intensive industries. These factors may influence production planning, procurement and delivery schedules.

Segment-wise performance

Presently, the Company operates in only one primary segment, i.e., Rigid packaging products and hence, segment-wise information does not apply to the Company.

Outlook

Technology and capacity expansion remain central to the Companys long-term growth strategy. During FY2026, extrusion capacity increased to 25,600 MTPA from 24,000 MTPA, while injection moulding capacity expanded from 3,300 MT to 4,800 MT. Looking ahead, the Company has already increased injection moulding capacity to 5,800 MT and sleeving capacity from 1,275 lakh units to 1,675 lakh units per annum. Alongside these initiatives, the Company continues to focus on improving operational efficiency, optimising its customer mix, rationalising low-margin products, and strengthening relationships with key customers to support margin-led growth.

Product innovation and market development continue to support the Companys growth strategy. During FY2026, the Company expanded its product portfolio with new rigid packaging and injection moulding products while increasing its presence in international markets. Export revenue grew by 30.1% year-on-year, reflecting increasing acceptance of the Companys products across overseas markets. Participation in national and international exhibitions has further strengthened customer engagement, enhanced brand visibility, and created opportunities to expand its presence across domestic and global markets.

Sustainable packaging remains an important focus area for the Company. Olive Ecopak Private Limited has commercially launched more than 150 SKUs of eco-friendly paper-based tableware and packaging products, supported by aqueous barrier coating technology and compostable solutions. Going forward, the Company will continue to invest in manufacturing capabilities, sustainable packaging, product innovation and value-added solutions to address evolving customer requirements while creating long-term growth opportunities across the food and beverage and other consumer-focused industries.

While the global operating environment continues to be shaped by geopolitical and trade-related developments, RPPLs integrated manufacturing base, diversified customer mix and expanding export footprint position it to navigate this landscape while continuing to execute on its growth and capacity plans.

Risks and concerns

Internal control systems and their adequacy

RPPL has adequate internal control systems commensurate with its size and operations. During the year, such controls were tested and no reportable material weakness in the design or operations was observed.

The Company is following all applicable Accounting Standards for maintaining its books of accounts and reporting financial statements. Discussion on financial performance with respect to operational performance Performance Highlights

During the year under review, the Company registered growth of 0.74% in turnover. The turnover of the Company for FY 2025-26 was Rs. 33,218.39 Lakhs as compared to Rs. 32,973.50 Lakhs for FY 2024-25. The net profit of the Company stood at Rs. 1,721.70 Lakhs for FY 202526 as compared to Rs. 1,445.88 Lakhs for FY 2024-25. A brief glimpse of key performance numbers is as under:

Operational Performance

During the year the Company produced 21,635 MT of Rigid Plastic Sheets as compared to 19,919 MT for the FY 2024-25, thereby registering a growth of 8.62% over previous year. The production of Thermoformed Packaging stood at 9,054 MT in FY2025-26 as compared to 8,084 MT registering a growth of 12%. Additionally, Injection Moulding stood at 4,029.02 MT for FY 2025-2026 as compared to 2,654 MT for the FY 2024-2025 i.e., a growth of 51.81% over the previous year. The overall capacity utilisation of the Company can be seen as under:

Material developments in Human Resources / Industrial Relations front, including number of people employed

As of March 2026, the Company had 627 full-time employees on its payroll. The Company has maintained its record of good industrial relations with its employees. During the year, various initiatives had been taken to improve the performance and productivity levels in various departments of the Company.

The Company has its own in-house facilities in the plant to train the new recruits before their placement, that helps in optimum utilisation of resources as well as maintaining quality standards. It also indulges into and implements various HR initiatives and activities including employee welfare, special rewards, performance review system and various employee motivation activities.

Details of significant changes (i. e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Details of any change in Return on Capital Employed as compared to the immediately previous financial year along with a detailed explanation thereof:

The Companys Return on Capital Employed ("ROCE") has increased from 13.81% for FY 2024-25 to 14.50% for FY 2025-26. This increase can be attributed to increase in the profit margins.

Safe Harbour Clause

Certain statements in this Report describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable Securities Laws and Regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, finished goods prices, availability and prices of raw materials, power, interest rates, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other ancillary factors. Your Company is not obliged to publicly amend, modify or revise any forward-looking statements, based on any subsequent development, information or events or otherwise.