Sabrimala Industries India Ltd Management Discussions

Global economic growth is generally inter linked to Petro-chemical consumption where plastic is an important partner. The Plastic Goods manufacturing industry, particularly the household and food-grade segment, faced several headwinds, including rising input costs, subdued consumer sentiment, and overall market uncertainty. These factors contributed to a slowdown in demand and cautious purchasing behavior across both institutional and retail buyers.

OPPORTUNITIES: The Government has taken certain initiatives to bring the economy back on track. The initial trends of those steps have sent a positive vibe in the business groups. The products offered by the Company are affordable, sturdy and trendy and are best suitable for household use. With the advent of better technology, the designs have become trendier and more durable. The products have achieved mass appeal and its longevity shower sit with the trust and confidence.

The underlying fundamentals of the industry remain strong, with increasing awareness of food safety, hygiene, and lifestyle upgrades driving long-term demand for quality household products. The demand for insulated food storage solutions, durable plastic containers, and fusion products combining plastic and stainless steel continues to grow, especially among urban households and the corporate sector

With increasing urbanization, a growing working population, and the rise of e-commerce and organized retail, the household plastic goods sector is poised for steady growth. Government initiatives such as "Make in India" and improved focus on domestic manufacturing are expected to boost the industrys prospects in the coming years.

The steep increase in the income of middle class and rising level of education will make the customers to prefer quality and branded products. This will in turn help the Company as its offerings have earned the trust and confidence of its customers.

Company has changed its objective and has now been submitting the resolution plan in companies undergoing CIRP.

OPPORTUNITIES: The Company foresees significant growth prospects driven by rising urbanization and the rapid expansion of organized retail, which are expected to enhance market reach and consumer demand. Government initiatives such as Make in India are likely to further strengthen domestic manufacturing capabilities and create a favorable business environment. Additionally, the increasing preference for high-quality, durable household products presents a steady demand pipeline. The Company also views its strategic diversification into the acquisition and resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC) and the SARFAESI Act as a key avenue for expanding its business portfolio and generating long-term value.

THREATS: The Unorganized Sector which doesnt use quality material and fails to pay adequate taxes poses constant threat to the Company as they are involved in copying of designs and offering their sub-standard products at a lower rate due to which the Companys market share has affected.

The management is optimistic about the future outlook of the Company. The industry witnessed testing times with global economic slowdown and weakening profitability and tightening of financial conditions, still the Company has demonstrated its ability to with stand the challenges posed by the current environment.

RESEARCH AND DEVELOPMENT:

Your Company puts a lot of effort in bringing such products which are aesthetically good and sturdy. For this, it carries research to come out with products that exceed the expectations. Every design that we use in our products is executed through an in-house designing software. The Company always strives to serve the customers with the best products, and this zest has made us to achieve international standards. The Companys expansion in the mould making sector has also opened new doors of innovation and research.

The Company evaluates potential risks and has evolved over the years a comprehensive risk-management strategy. It takes in to account changing market trends, competition scenario, emerging customer preferences, potential disruptions in supplies and regulatory changes, among others. Ensuring we have an efficient risk management system in place is key to developing our business and achieving our objectives.

The Company has carried out the internal audit and has ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sufficient measures are taken to update the internal control system. The system also ensures that all transactions are appropriately authorized, recorded and reported. Exercises for safeguarding assets and protection against unauthorized use are undertaken from time to time. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. All these measures are continuously reviewed by the management.

The Company had sufficient numbers of employees at its administrative office. The company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them. The company enjoyed excellent relationship with workers and staff during the last year.

Certain statements made in the management discussion and analysis report relating to Companys objectives, Projections, outlooks, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations projections and outlooks whether express or implied.