Shree Rama Newsprint Ltd Management Discussions

A] INDUSTRY STRUCTURE AND DEVELOPMENTS

India Bottled Water Market was valued at USD 4.4 Billion in 2024, and it is expected to reach USD 8.9 Billion by 2030, exhibiting a CAGR of 13% during the forecast period (2024-2030). Bottled water market is a symbol of a new lifestyle and health-consciousness rising in India. While a substantial portion of the population struggles to get safe drinking water, a new generation, particularly in metropolitan areas, is becoming accustomed to paying high costs for bottled water. Over the last five years, the bottle water market has grown by 40-45 percent. Higher disposable income, increasing taste for hygiene, improved price, easier availability of packaged drinking water, and a lack of safe drinking water are driving demand for bottled water. While India is among the top ten bottled water users in the world, its per capita bottled water consumption is estimated to be five litres per year, which is far lower than the global average of 24 litres. Bottled water is becoming one of Indias fastest growing industries.

In India, packaged drinking water bottles are sold in four main types of Stock Keeping Units (SKUs) - one- liter bottles, two-liter bottles, 500 ML bottles, 200 ML bottles, pouches, and barrels of 15-20 liters. Among the different SKUs, one-liter bottles have acquired the largest market share of 42% in 2024, followed by 500 milliliter bottles and 250 milliliter bottles.

The packaged bottled drinking water has become popular in India. Different kinds of flavored water containing fruit essence and artificial sweeteners like soda, cola, juice, and other sweetened beverages often act as a substitute to plain bottled water. At times consumers prefer flavored bottled water to normal bottled water. This shift is developing an opportunity to expand the product line of bottled water manufacturers in India.

B] OPPORTUNITIES & THREATS Opportunities: -

• Increasing market trends

• Direct-To-Consumer

• Increasing health awareness

• Government Policies

• Low production cost

• Surging Tourism

• Duplication

• Unorganized Industry

• Quality inconsistencies in unregulated brands

• Environmental concerns over plastic usage.

C] SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The company has discontinued the production in its paper division. Hence there is only one operating segment i.e. Packaged drinking water segment. The production and performance of said segment is mentioned in Boards Report.

D] OUTLOOK

The organized sector for packaged water bottles is increasing with a CAGR of approx. 25 %. The market players in India have recently inclined towards institutional sales through partnership with airlines, movie theatres, and hotels. Such partnerships are eventually increasing the penetration of the product in the market, followed by rise in the overall sales volume in India

E] RISK & CONCERNS

Nearly 67% of the population resides in rural areas. However, the rate of penetration of bottled water is significantly low in these regions. This, as a result, hinders the growth of the market in India.

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements.

This has been dealt with in the Directors Report and key financial ratio are disclosed in note 38 to financial statements.

The Company recognizes human capital as strategic resource and believes empowerment of employees across the organization in order to achieve organizational effectiveness. There have been no material developments/ significant changes in Human Resource during the year under review. The Company employs 50 people as on 31.03.2025 as against 51 people employed as on 31.03.2024.

The statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.