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 as well as thermoformed packaging products and injection moulded packaging products for the sectors it serves.

Our product portfolio includes packaging solutions for the dairy industry, food and beverages ("F&B"), bakery and confectionery items, trays for sweets and snacks, punnets for fruits and vegetables, electronic packaging, etc. We have also developed sealing and lidding laminates for food packaging and conducted product trials with multiple customers. With a wide variety of sizes and designs to suit diverse customer needs we continue to focus on enhancing our strengths in rigid and semi-rigid packaging products.

Industry structure and developments

Economic overview & Outlook

Global Economy

As per the April 2025 report of the International Monetary Fund (IMF) on the Global Economic Outlook, the world economy has demonstrated notable resilience despite facing a confluence of significant headwinds. Over the past year, nations have continued to navigate the lingering after-effects of the COVID-19 pandemic, particularly supply chain disruptions that have yet to fully normalise. These challenges have been compounded by the ongoing Russia-Ukraine conflict, which has kept geopolitical uncertainty elevated and contributed to persistent volatility in global energy and food markets. Elevated prices for these essential commodities have placed pressure on both advanced and emerging economies, especially those heavily reliant on imports.

At the same time, inflationary pressures fuelled by earlier surges in demand, tight labour markets, and commodity price shocks have remained above target in several key economies. In response, central banks worldwide have maintained higher interest rates and adopted tighter monetary policies, aiming to bring inflation under control without derailing economic growth. Parallel to these monetary measures, many governments have implemented targeted fiscal interventions, such as subsidies, tax relief, and infrastructure spending, to cushion vulnerable sectors and support domestic demand.

These combined policy efforts have helped avert a potential global recession, safeguarded banking system stability, and enabled many emerging markets to sustain positive momentum, aided by strong domestic consumption and investment inflows. According to the IMFs latest projections, the global economy is expected to grow by 3.0% in 2025 and 3.1% in 2026. Inflation is projected to continue moderating, with headline rates declining to 4.2% in 2025 and 3.6% in 2026, reflecting easing supply bottlenecks and more stable commodity prices. Nevertheless, inflation in the United States is anticipated to remain above the Federal Reserves target range, suggesting that monetary policy in advanced economies may stay relatively restrictive in the near term.

(Source: World Economic Outlook- July 2025, April 2025 Published by IMF)

Indian Economy

Indias economic growth remained robust in 2024-25, albeit with some moderation compared to the previous year. According to the National Statistical Office (NSO), real GDP grew by 8.2% in FY 2023-24, then slowed to 6.5% in FY 2024-25 as post-pandemic pent-up demand normalized. CRISIL estimates that growth will stabilize around 6.5% in FY 2025-26, in line with the Reserve Bank of Indias projections. The slight slowdown in FY 2024-25 was largely attributed to higher interest rates and a waning fiscal impulse, which together tempered domestic demand.

Despite global geopolitical challenges and persistent inflationary pressures, Indias export sector has shown resilience. Exports of goods and services grew 6% year-on-year in the first nine months of FY 2024-25, indicating robust performance even amid global headwinds. The Economic Survey 2024-25 highlights that Indias external sector remained resilient and notes that global trade conditions are expected to improve going forward. Indeed, world merchandise trade volume, which contracted in 2023, is forecast to expand by 2.6% in 2024 and 3.3% in 2025, as inflationary pressures abate and demand for traded goods picks up. This anticipated easing of global trade headwinds in 2024 and 2025 should help bolster Indias goods trade in the coming years.

Packaging

Packaging plays an important role in building a brands identity and shaping how consumers view it. It not only protects the product but also acts as a powerful marketing tool that reflects a brands values, quality, and uniqueness in a competitive market. Marketers see packaging as essential for attracting attention, sharing product details, and improving the overall customer experience. Well-designed packaging can encourage brand loyalty and influence buying choices by helping a product stand out and leave a lasting impression. In many ways, packaging acts as a silent salesperson, speaking directly to consumers, expressing the brands character, and creating an emotional connection.

Packaging comes in different materials and forms to protect and display products. Rigid packaging, such as bottles, containers, and cartons made from glass, metal, or hard plastic, keeps its shape and provides durability. Flexible packaging, like pouches and bags made from plastic or foil, offers a lightweight, cost-effective, and adaptable option. Both types are important for product safety and meeting consumer needs, including the rising demand for eco-friendly solutions like bioplastics and recycled materials.

Global Packaging Industry

The global packaging market size is estimated at USD 1.18 trillion in 2025 and is expected to reach USD 1.44 trillion by 2030, growing at a CAGR of 3.92% during the forecast period (2025-2030).

Over the past decade, the packaging industry has evolved with innovative formats like high-barrier films and stand-up retort pouches increasingly replacing traditional options such as metal tins and glass jars, especially in the food sector. These solutions offer benefits in weight, space efficiency, and shelf-life, while global trends push for sustainable materials like recyclable, biodegradable, and compostable options. Technological advances, including smart packaging and automation, along with the growth of e-commerce, are driving efficiency and functionality. Asia-Pacific remains the largest and fastest-growing market, fuelled by its large population, economic growth, and strong manufacturing base.(Source: Mordor Intelligence)

Indian Packaging Industry

India packaging market size is estimated at USD 101.12 billion in 2025, and is expected to reach USD 169.73 billion by 2030, growing at a CAGR of 10.73% during the forecast period (2025-2030).

The demand for packaging in India has surged dramatically, driven by the rapid expansion of consumer markets, especially in processed food, personal care, and pharmaceuticals. Packaging is now one of the fastest-growing sectors in India, with significant contributions to technology and innovation across various industries, particularly in the fast-moving consumer goods (FMCG) sector. Factors such as a rising population, increasing income levels, and changing lifestyles are boosting consumption across multiple industries, leading to a higher demand for packaging solutions.

Rigid Packaging Industry

Rigid packaging is known for its ability to keep its shape and structure, offering strong protection for the items inside. It is often made from materials such as glass, metal, and hard plastics. Hard plastics like polyethylene terephthalate (PET) and polypropylene (PP) are commonly used for bottles and containers because they are strong, versatile, and reliable. This type of packaging is widely used in industries such as food and beverages, pharmaceuticals, personal care, and household products, where durability and protection are essential.

Rigid plastic packaging is appreciated for being durable, cost-effective, and increasingly eco-friendly. One of the main factors driving its growth is the rising demand for sustainable packaging options. The convenience packaging market, which supports busy lifestyles through products designed for quick consumption and minimal preparation, also plays a major role in boosting demand. In addition, higher disposable incomes and the growing use of packaged goods in emerging markets are further increasing the need for rigid plastic packaging, creating new opportunities for producers.

Global Rigid Plastic Packaging Industry

The global rigid plastic packaging market is estimated at USD 265.18 billion in 2025, and is expected to reach USD 308.02 billion by 2030, growing at a CAGR of 3.04% during the forecast period (2025-2030).

The demand for rigid plastic packaging is expected to increase due to several key factors, including industrialization, the expansion of the convenience food sector, heightened manufacturing activities, growing disposable incomes, increased consumption levels, and the rise in e-retail sales.

Indian Rigid Packaging Industry

The India rigid plastic packaging market size is valued at USD 14.28 billion in 2025 and is forecast to reach USD 19.40 billion by 2030, advancing at a CAGR of 6.32% over the next five years. This expansion will be primarily driven by increasing demand for rigid plastic products in various sectors, including food and beverages and personal care. Additionally, the need for essential home products like trays, shallow plates, and rigid plastic containers contributes to the markets growth in India.

Rigid plastic packaging is extensively adopted in the country due to its cost-effectiveness, durability, and lightweight nature. Materials such as PET and HDPE are easily recyclable and can be directly placed into recycling bins. While flexible packaging is also recyclable, it is generally less eco-friendly compared to rigid plastics. The market for rigid plastic packaging is expanding as it is increasingly utilized across various end-user industries nationwide.

The rigid plastic packaging market in India is experiencing robust expansion, driven by the growing food and beverage sector. Increasing demand for packaged meals within F&B and healthcare industries is fuelling this growth. Urbanization, rising disposable incomes, and evolving lifestyles are contributing to a steady rise in the need for packaged goods. Rigid plastic packaging enhances food safety and extends shelf life, while its moisture resistance and tamper-proof features are gaining traction in the healthcare sector.

Opportunities

• Rising Consumption in the Food & Beverage Sector

The steady increase in packaged food and beverage consumption driven by changing lifestyles, urbanization, and growing preference for ready-to-eat options continues to fuel demand for innovative packaging. RPPL can capture this opportunity by offering high-performance solutions with improved shelf life, portability, and visual appeal to meet evolving consumer expectations.

• Focus on Sustainability

Sustainability is now a central driver in packaging decisions, with regulatory frameworks and customer preferences pushing for greener solutions. RPPLs capabilities, bolstered by the Olive Ecopak joint venture, position it well to deliver recyclable, biodegradable, and compostable products. Expanding this portfolio can open access to environmentally conscious segments and global markets with strict compliance norms.

• Advances in Technology and Product Innovation

Emerging packaging technologies such as interactive smart packaging, enhanced barrier films, and lightweight rigid formats present avenues to differentiate in a competitive market. Leveraging these innovations can improve customer experience, reduce material use, and strengthen brand value, while also appealing to premium and export markets.

• Growth in E-commerce Packaging Demand

With online shopping volumes climbing, there is greater need for robust, tamper-proof, and efficient shipping-friendly packaging. By developing e-commerce-specific designs and increasing production capacity, RPPL can strengthen relationships with major platforms and logistics providers, capturing a growing share of this segment.

• Market Diversification and Regional Expansion

Increasing incomes and deeper penetration of packaged goods into rural areas, smaller cities, and overseas markets create scope for wider distribution. The Odisha facility will serve as a strategic hub to target high-growth regions, reduce transit times, and enhance competitiveness in both domestic and export markets.

Threats

• Instability in Raw Material Costs

Prices of polymers such as PET, PP, and HDPE remain exposed to fluctuations in global crude oil and commodity markets. Sudden spikes can pressure margins unless effectively managed through procurement strategies, supplier diversification, and cost- optimization measures.

• Evolving Regulatory Environment

Environmental legislation around single-use plastics, recyclability standards, and safe food-contact materials is tightening worldwide. Adapting to these requirements may necessitate re-engineering products, upgrading processes, and investing in sustainable material development to maintain compliance and market access.

• Rapid Technological Shifts

Breakthroughs in bio-based materials, advanced recycling, and automation could alter competitive dynamics. Companies that fail to adopt or integrate such advancements risk losing market share to more agile, tech-forward competitors.

• Macroeconomic and Geopolitical Risks

Uncertain global conditions ranging from economic slowdowns to trade disputes·can reduce demand in packaging-intensive industries. External shocks such as geopolitical conflicts, climate-related events, or pandemics can also disrupt raw material supply chains, affecting production schedules and delivery commitments.

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

The company is a leader in technological innovation, using modern equipment to deliver high-quality products. In recent years, it has greatly increased its production capacity, allowing it to meet the growing demand in the market. The company has set up a manufacturing plant in Orissa. This facility serves as a strategic location to the fast-growing food manufacturing sector in the region. It helps increase production and improve service to local customers, making use of the growth opportunities in the area.

Marketing and branding are important for the companys success. It takes part in many national and international exhibitions and industry events. These efforts, along with strong product development and business promotion, have helped the company gain more than 72 new customers and serve almost 1,173 in total. The companys products have been displayed at well-known international events, attracting interest from large potential customers around the world. This has improved its visibility in global markets and strengthened its position internationally.

A key achievement during the year was the progress of the joint venture, Olive Ecopak Private Limited, which commenced commercial production in March 2024. The venture has since stabilized operations and generated revenue of Rs.16.38 crore in FY2024-25, marking an important step in expanding the companys sustainable paper-based packaging portfolio. The venture is now in the early stage of introducing its products to the market, with samples being shared with many potential customers for approval. This is expected to bring major growth opportunities in the future.

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 20.17% in turnover. The turnover of the Company for FY 2024-25 was Rs.32,973.50 Lakhs as compared to Rs.27,439.15 Lakhs for FY 2023-24. The net profit of the Company stood at Rs.1,445.88 Lakhs for FY 2024-25 as compared to Rs.919.45 Lakhs for FY 2023-24. A brief glimpse of key performance numbers is as under:

Operational Performance

During the year the Company produced 19,919 MT of Rigid Plastic Sheets as compared to 19,039 MT for the FY 2023-24, thereby registering a growth of 4.62% over previous year. The production of Thermoformed Packaging stood at 8,084 MT in FY2024-25 as compared to 8,163 MT indicating a decline of 0.97%. Additionally, Injection Moulding stood at 2,654 MT for FY 2024-2025 as compared to 1,420 MT for the FY 2023-2024 i.e., a growth of 86.90% 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 2025, the Company had 500 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 utilization 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 11.40% % for FY 2023-24 to 13.82% for FY 2024-25. 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