Shree Rama Multi-Tech Ltd Management Discussions

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

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Packaging Market in India:

The India Packaging Market size is worth USD 101.12 Billion in 2025, growing at an 10.73% CAGR and is forecast to hit USD 169.73 Billion by 2030.

Indias packaging sector, riding on a strong historical growth trajectory, is steadily converging with global benchmarks. With promising prospects from the retail and e-retail segments, the industrys evolution is poised to favor organized entities, sidelining smaller, less equipped players. Driven by heightened demand from sectors like e-commerce, FMCG, food and beverages, household products, and white goods, Indias carton industry is witnessing a notable upswing.

The India Packaging Market is on a significant growth trajectory, propelled by the e-commerce boom, technological advancements, and changing consumer preferences. This market, embracing materials like plastics, paper, metal, and glass, serves diverse industries such as food processing, pharmaceuticals, and personal care. The e-commerce surge has spiked demand for both rigid and flexible packaging, steering the market towards sustainable solutions. Government initiatives promoting the Make in India policy and technological progress have further fueled growth. The industry is also moving towards innovative packaging that enhances the customer experience, particularly in the food and beverage sector, which dominates the market. With a strong emphasis on sustainability, paper packaging is emerging as a preferred eco-friendly option. Supported by consumer trends, innovation, and government policies, the India Packaging Market is set for ongoing expansion, playing a crucial role in the nations manufacturing and retail landscapes.

India - Flexible Packaging Market 2025-2030:

The India Flexible Packaging Market size is worth USD 20.41 Billion in 2025, growing at an 11.46% CAGR and is forecast to hit USD 35.11 Billion by 2030.

India Flexible Packaging Market Analysis

Flexible packagings adaptability to various shapes and sizes allows for versatile product presentations, while its cost-effectiveness appeals to businesses looking to optimize their packaging expenses. In addition, the ease of transport associated with flexible packaging contributes to its growing popularity in the Indian market. These factors collectively contribute to expanding the flexible packaging sector in India as industries increasingly adopt these solutions to meet consumer preferences and operational needs.

Flexible plastic packaging dominates Indias plastic packaging market, comprising 75% of total usage. The FMCG sector prefers this packaging type for its versatility and cost-effectiveness. Small-scale manufacturers, focusing on cost, produce diverse multi-layered packaging compositions. This results in a wide range of non-recyclable flexible packaging entering the market.

Companies are increasing their production capabilities in India in response to the growing demand for pouches, bags, and films. This expansion reflects the markets positive trajectory and the industrys efforts to meet consumer needs. As the Indian market continues to show strong demand for these packaging products, manufacturers are strategically scaling up their operations to capitalize on this trend and maintain a competitive edge in the region.

Key India Flexible Packaging Market Challenge

Implementation of new recycling policy in India is increasing operational costs for vendors is a key challenge affecting the market growth. Flexible packaging, primarily composed of non-degradable plastics, poses significant environmental challenges due to its unregulated disposal and high labor and equipment costs for separation during recycling. Governments and environmental organizations are addressing these concerns by mandating manufacturers to establish waste management systems for their plastic products. For instance, under the Plastic Waste Management Rules, companies introducing new flexible plastic products are required to clear the resulting plastic waste within six months. This regulatory focus on recyclability is compelling flexible packaging manufacturers to explore alternative solutions, such as biodegradable or compostable materials, to minimize plastic waste in landfills.

India Tube Packaging Market Trends:

The Tube Packaging Market size is worth USD 7.15 Billion in 2025, growing at an 7.36% CAGR and is forecast to hit USD 10.20 Billion by 2030. Tubes have become a prevalent packaging choice in the cosmetics and personal care sector, due to their user-friendly design, portability, and versatility in storing and dispensing products. The tube packaging market is on an upward trajectory, fueled by urbanization, a burgeoning millennial demographic, and rising disposable incomes. As urban areas evolve, there is heightened awareness and accessibility to cosmetic products. Coupled with increased disposable income, this urban development presents lucrative opportunities for market players, significantly amplifying the demand for Tube packaging. Laminated Tubes, with their advanced multi-layered barrier structure, currently dominate the market. Their superior barrier properties not only extend product shelf-life but also shield against oxygen, moisture, light and bacteria, driving their heightened demand. The global Tube packaging sector is witnessing a surge in demand, particularly from the oral care segment. As public awareness of oral hygienes significance rises, so do dental care costs. These heightened concerns, alongside evolving lifestyles, are propelling the tube packaging markets global growth and spurring demand for specialized oral care products. However, the Tube packaging market grapples with stringent regulations. While these regulations prioritize product safety and environmental sustainability, they also influence manufacturing processes, material choices, and the markets overall growth trajectory. Adhering to these regulations often necessitates hefty investments in research and development, which can escalate production costs for Tube packaging producers.

SRMTLfS PERFORMANCE AS INDUSTRY:

SRMTL is an ISO 9001:2015, ISO 15378:2017, G.M.I and DMF-type III certified Company engaged in providing primary packaging solution. We currently manufacture a wide and diverse range of packaging products such as laminated tubes ("Lami Tubes"), Tube laminates and Flexible laminates. Our products are primarily used for oral care, pharmaceuticals, cosmetics and fast-moving consumer goods (FMCG) sectors. Our products are available in different sizes, diameters and circular shape as per the specifications of our customers. Your companys major product is laminated Tubes and laminates, which is used for packing products in paste or gel form. Production related to Tubes was increased by 9.8 % as compared to last year.

SEGMENT-WISE/ PRODUCT WISE PERFORMANCE:

The Company closed the year at higher level in Laminated Tubes. This is because of robust orders of Laminates from domestic and export market.

OPPORTUNITIES, THREATS AND RISK PERCEPTION:

In the way ahead, the growth in the plastic and packaging industry in India may be impacted by the end use industries, growing consumerism and government initiatives such as Make in India. With expected growth in FMCG segment coupled with more money in the hands of consumers, we expect packaging industry to show growth momentum. In line with this expectation, the capacities are being built up in all segments of packaging and hence competition is expected to intensify in coming years. Also with the Governments approach towards recycling and bio-degradation, it may create need to change the overall concept of changing primary packaging products. However, with its value system and dedicated team, your company is geared up to accept and overcome challenges of future. The key growth trends expected to drive sales and realisations of Tube manufacturers are as follows:

• Continued shift to ABL tubes in the pharma segment for OTC ointments/ gels and prescription cream-based skin application medicine.

• Growth in end-user segments and rise in share of personal care categories in tubes, driven by sales of lip care, eye care, hand creams, face care and OTC ointments/ gels and prescription cream-based skin application medicine.

• Growing concerns over package sustainability and costs are also likely to facilitate substitution of bottles by tubes in personal care products.

• Increase in exports potential and consumption in the European, Middle East and Africa markets. Middle east and African markets have low penetration of production facilities which creates potential for exports Shift from conventional oral care to beauty and pharmaceutical products, demanding high packaging protection and value addition.

• Increase in demand for sophisticated and attractive designs and prints on tubes leading to rise in realisations.

However, threats loom in the form of rising raw material costs, such as those for plastics and polymers, which may affect profit margins. The volatility of global supply chains, including disruptions caused by geopolitical tensions or climate change, poses additional risks. Furthermore, with increasing environmental regulations, manufacturers may face stricter compliance standards and penalties if they fail to adopt sustainable production methods. From a risk perception perspective, manufacturers need to be vigilant about shifting consumer preferences, competitive pressures from both domestic and international players, and the economic uncertainties tied to inflation or potential market slowdown in key sectors. Balancing these factors will require adaptability and a focus on innovation and sustainability.

RISK AND CONCERNS:

The packaging industry is highly fragmented in nature with large number of unorganized players. Also organized players keep on adding capacity to service customers requirements. Accordingly, considerable capacity has been added by organized as well as unorganized players. This has created enormous competition among players. Like any other company, our Company also faces competition from many other players. We compete against our competitors by nurturing our deep customer relationship and establishing ourselves as a manufacturer of quality packaging products. We focus on superior quality, shorter lead time and high service level as means to keep the customer satisfaction high. Major players include Huhtamaki India Limited, Uflex Limited, Skypack India Private Limited etc. Further, all major Raw Material prices like Plastic Granules, Aluminium Foil, Paper, etc have gone up drastically in this year. Even transport cost has gone up on account of rising fuel prices and ocean freight is also skyrocketing because of shortage of containers. Above factors have contributed to a large extent on the bottom line and remains a risk going forward also.

BUSINESS OUTLOOK

The laminate Tube industry is expected to witness steady growth over the next few years, driven by rising demand from the personal care, cosmetics, and pharmaceutical sectors, where product protection, aesthetics, and convenience are key. As brands seek sustainable and cost-effective packaging solutions, LamiTubes are gaining traction due to their lightweight, hygienic, and customizable properties. The push toward recyclable and mono-material tubes is creating new opportunities for innovation, particularly among manufacturers investing in eco-friendly materials and advanced printing technologies. While raw material cost volatility and recycling challenges persist, the overall market outlook remains positive, especially in emerging economies where urbanization and consumer spending are on the rise. We have added latest technology machines to stay at the forefront of the competition going forward.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY

The Company has adequate and effective internal controls to provide reasonable assurance on achievement of its operational, compliance and reporting objectives. The Company has deployed controls through its policies and procedures. These policies and procedures are periodically revised to ensure that they remain updated to changes in the environment. There is a well laid out process for making amendments to processes in the Company and implications of changes are well thought through and all stakeholders are consulted so that implementation is smooth. Internal Audit as part of their audits, review the key processes from an adequacy of controls point of view. Suggestions to further strengthen the processes or to make them more effective are shared with the process owners and changes are made suitably. The Company believes in conducting business in a fair, ethical and compliant manner. In this regard, periodic meetings to make the employees aware of the code of conduct are held. The Company has designed its software tool which helps track key compliances as close as possible to the actual due date. Any deviations are highlighted for prompt corrective action. Functional heads take responsibility for putting in preventive steps. The internal financial control system is also included in the board report.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Your Companys total revenue from operations during the year under review was 207.84 Crore as compared to 177.70 Crore of previous year which shows an increase of 16.96% over the previous year figure. The other income was 0.67 Crore during the year under review. The EBIDTA of the Company during the year was 31.98 Crore. The profit for the Financial Year 2024-25 was 51.34 Crore after accounting of Deferred Tax as compared to profit of 9.96 Crore of the previous year 2023-24.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company attaches importance to the dignity of employee irrespective of position and highly values the cultural diversities of employees. As on March 31, 2025, the total number of permanent employees on the roll of the company is 353. The company is committed to nurturing, enhancing and retaining its top talent through superior learning and organizational development. This is a part of our Corporate HR function and is a critical pillar to support the organizations growth and its sustainability in the long run.

DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO FY- 2023-24) IN KEY FINANCIAL RATIOS

Sr. No.	Ratio	2024-25	Year 2023-24
1	Debtors Turnover	4.43 times	4.42 times
2	Inventory Turnover	6.74 times	5.52 times
3	Interest Coverage Ratio*	38.57 times	13.13 times
4	Current Ratio	2.43	2.89
5	Debt Equity Ratio**	0.25	0.12
6	Operating Profit Margin ^	11.27%	6.09%
7	Net Profit Margin ^	24.93%	5.63%
8	Return on Net Worth $	33.52%	9.70%

* Increase in Interest Coverage Ratio due to increase in Profit as compared to previous year.

** Increase in debt equity ratio due to increase in borrowing.

^ Operating profit ratio and Net profit ratio have been increased as profit increased in current financial year due to steps taken for backward integration of processes.

$ Net Profit has increased, Net Worth has Increased, Return on Net Worth ratio has increased due to Higher Net Profit in current financial year as compared to previous year.

Cautionary Statement:

Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statement" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.

	For, Shree Rama Multi-Tech Limited
Place: Moti-Bhoyan	Mittal K. Patel
Date: May 14, 2025	Chairman
	(DIN: 03619139)