Shetron Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31,2025.

In 2025, the food can market is expected to continue growing, with a projected market size of US$9.233 billion. This growth is driven by factors like the enduring appeal of canned foods for their shelf stability and ease of preparation, as well as evolving consumer preferences for sustainability and convenient packaging. The global economy, however, faces challenges such as climate shocks, conflict, and economic instability, which can impact food production and supply chains, potentially affecting the food can market.

The food can market is projected to expand at a CAGR of 6.81% from 2025 to 2030, reaching US$12.835 billion by 2030, according to Aggregate Global.

The global economy is expected to experience moderate growth in 2025 and 2026, with a slowdown in growth momentum, according to the European Commission. The enduring demand for canned foods, particularly in developing countries, could provide growth opportunities. Geopolitical tensions and climate events could disrupt food supply chains, impacting the availability and cost of canned goods. Consumers are increasingly concerned about the environmental impact of food packaging, which could drive demand for sustainable food can options. Fluctuations in the price of raw materials and transportation costs could lead to price volatility in the food can market.

Overall, the food can market in 2025 is expected to be a dynamic and evolving landscape, influenced by both positive growth trends and global economic challenges.

In 2025, the Indian economy is projected to be the fourth largest in the world, exceeding Japans nominal GDP. India is expected to grow at 6.2% in 2025 and 6.3% in 2026, driven by private consumption, particularly in rural areas. This growth outlook is relatively stable, but it is slightly lower than previous projections due to higher levels of trade tensions and global uncertainty.

With an estimated real GDP of Rs. 187.95 lakh crore in 2024-25, against the real GDP of Rs. 176.51 in 2023-24 generated by a population of over 1 billion, India is among the highest population-based economies in the world. Additionally, as per IMF projections, Indias GDP grow is at 6.2% in 2024-25 and 2025-26. This means Indias economic growth next fiscal year will be the fastest among major economies. Therefore, in the upcoming years, rising consumption and investments, both domestic and foreign, will contribute to the nations growth and may also help India to rank higher in the World GDP Ranking list.

Though Indias rank in the World GDP Ranking 2025 list is fifth, the per capita income is substantially low. Indias per capita income of the population for 2025 is $2,880 (Approx Rs.2.4 lakh). Multiple factors have led to low per capita income in India compared to the top GDP countries.

However, the per capita income has increased as compared to the previous years. In the financial year 2024, Indias per capita income was $2,500 (nearly Rs. 1.8 lakh) and in 2023 it was approx Rs. 1.6 lakh. On the contrary, in the financial year 2015, Indias per capita income was Rs. 86,647. It has increased by almost 188% in the last 10 years. The drastic increase in population and demand for employment has significantly increased the nations GDP per capita.

The Food Cans Market Report is Segmented by Material (Aluminium Cans and Steel/Tin Cans), Application (Ready Meals, Powder Products, Fish and Seafood, Fruits and Vegetables, Processed Food, Pet Food, and Other Applications), and Geography (North America (United States, Canada), Europe (United Kingdom, Germany,

France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia and New Zealand, Rest of Asia Pacific), Latin America (Brazil, Mexico, Rest of Latin America), and the Middle East and Africa (United Arab Emirates, South Africa, Saudi Arabia, Rest of Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The Food Cans Market size is worth USD 27.50 Billion in 2025, growing at an 3.20% CAGR and is forecast to hit USD 32.19 Billion by 2030.

The increase in the popularity of canned food to preserve a wide variety of food, such as fruits, vegetables, beans, soups, meats, and seafood, offers significant market opportunities for packaging companies. The surge in demand for ready-to-eat canned food products in developing countries is expected to boost the market value.

Food cans are a widespread option for maintaining the freshness and nutritional content of food products. An increase in the canning process to enhance the shelf life of packaged food is expected to strengthen the food cans market. The rise in the utilization of steel as the material for cans for packaging beverages and frozen dairy products presents significant opportunities for companies operating in the market.

On the other hand, metal cans are infinitely recyclable, which is anticipated to fuel the growth of these cans among food packaging companies. According to the American and Iron Steel Institute, over 90% of the co-products from the steel-making process are reused or recycled.

The Company products constitute metal packaging and hence there is no separate disclosure on segment reporting.

The company has a proper and adequate system of internal controls to ensure that all assets are safeguarded, and protected against loss from unauthorized use or disposition. Various Checks and balances ensure that transactions are authorized, recorded, and reported correctly. The Company has an extensive system of internal controls which ensures optimal utilization and protection of resources, accurate reporting of financial transactions and compliance with applicable laws and regulations and internal policies and procedures.

The internal control system is regularly reviewed by the Audit Committee and has well documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statements and other data.

The Company maintains a cordial relationship with its employees by creating a positive work environment, with focus on improving productivity and efficiency. The Company has a team of qualified and dedicated personnel contributing to the better performance of the operations and processes of the company. Constant training continues to be the focus for developing and honing the skill sets and competency levels of employees in the organization in line with the business standards and requirement. The company firmly believes that well trained man power at every level provides the true competitive advantage in its business and hence the Company invests resources in training. The companys endeavour is to offer fair and reasonable compensation to its employees based on the market benchmarks.

The Company has completed the twenty first year of TPM (Total Productive Maintenance) programme to sensitize employees in safe and clean working environment enabling, zero accidents and breakdowns, highly skilled teams with high OEE rates and customer are clear through good quality, less cost and timely delivery.

The Company is ISO 9001:2015 certified for Quality Management Systems (QMS). The ISO version is upgraded from ISO 9001:2008 to ISO 9001:2015 by stringent audits from TUV-Rheinland. Through this the company is committed to be competitive with stringent quality norms which will in turn will ensure to achieve customer satisfaction with Continual process improvements. The company is making continuous efforts for improvement in the processes, Quality Management Systems (QMS) and skill building.

In addition to this, the company is certified for Environment Management System(EMS) ISO 14001:2015. This ensures to protect environment, preserve resources, promote sustainable practices and pollution prevention. With this company is certified for Occupation, Health and Safety (OHS) ISO 45001:2018. This provides Safe working environment by eliminated Occupational Hazards and protect workers, prevents Occupational related injury and ill health at workplace.

In addition to above ISO certificates, the Company is also FSSC-22000-5.1 certified for Food Safety Systems Certificate (FSSC) which was received in the financial year Dec-2022. This is further revised to FSSC 22000-6.0 This will help in maintaining and monitoring of Hazard and Critical Control Points (HACCP) during the process of manufacturing metal cans for food packaging. The certification helps to set standards and commitment for hygiene of employees and the surroundings which will impact in hygienic packaging for processed food. As the companys policy of FSMS speaks, it prevents contamination in source and ensures product safety, while also complying with the applicable statutory and regulatory requirements.

Statements in this report describing the companys objectives, expectations or forecasting may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and price conditions in the domestic and also international markets, changes in the Government regulations, tax laws, other statutes and also many exogenous variables. The Company assumes no responsibility to publicly amend, modify and revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.

In Accordance with SEBI (Listing Obligation and Disclosure Requirement Regulations 2018) Amendment regulations 2018, The Company is required to give details of significant Changes).