Shree Tirupati Balajee FIBC Ltd Management Discussions

Global Economic Overview

The global economy continued to navigate a challenging environment in FY 2024-25, marked by persistent inflationary pressures, tightening monetary policies, geopolitical uncertainties, and uneven recovery across regions. The International Monetary Fund (IMF), in its April 2025 World Economic Outlook, projected global GDP growth to slow to around 3.1%, compared to 3.5% in the previous year, reflecting subdued economic activity in advanced economies and a mixed recovery in emerging markets.

Major policy shifts are resetting the global trade system and giving rise to uncertainty that is once again testing the resilience of the global economy. Since February, the United States has announced multiple waves of tariffs against trading partners, some of which have invoked countermeasures. Markets first took the announcements mostly in stride, until the United States near-universal application of tariffs on April 2, which triggered historic drops in major equity indices and spikes in bond yields, followed by a partial recovery after the pause and additional carve-outs announced on and after April 9. Despite significant equity market corrections in early March and April, price-to-earnings ratios in the United States remain at elevated levels in historical context, raising concerns about the potential for further disorderly corrections. Uncertainty, especially that regarding trade policy, has surged to unprecedented levels. The degree of the surge varies across countries, depending on exposures to protectionist measures through trade and financial linkages as well as broader geopolitical relationships.

In the United States, consumer, business, and investor sentiment was optimistic at the beginning of the year but has recently shifted to a notably more pessimistic stance as uncertainty has taken hold and new tariffs have been announced. China, the worlds second-largest economy, showed signs of recovery driven by domestic consumption and policy support. However, concerns remain regarding its property sector and export demand. Other emerging markets, including India and Southeast Asian economies, remained relatively robust, benefiting from demographic advantages, digital transformation, and increased infrastructure spending.

Global inflation is moderating but remains above central bank targets. Headline inflation is projected at 4.3% in 2025 and 3.6% in 2026, amid persistent price pressures in several advanced economies. The outlook is clouded by downside risks including further trade disruptions, financial market volatility, high public debt levels, and weak medium-term growth prospects. These challenges are compounded by demographic shifts, constrained fiscal space, and tightening global financial conditions. In response, global policymakers are urged to strengthen international coordination, ensure macroeconomic stability, and restore fiscal buffers. Emphasis is placed on implementing structural reforms, maintaining monetary policy discipline, and fostering a predictable trade environment to support long-term economic resilience.

Amidst these developments, global businesses increasingly focused on cost optimization, digital innovation, ESG (Environmental, Social & Governance) commitments, and de-risking strategies to ensure resilience. Overall, while the global economic outlook shows signs of stabilization, risks remain elevated due to geopolitical uncertainties, policy divergences, and climate-related disruptions. Companies with agile business models and diversified operations are better positioned to navigate this evolving macroeconomic landscape.

Indian Economic Overview

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. According to the April 2025 edition of the IMFs World Economic Outlook, Indias economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers. India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. The countrys economy is expected to expand by 6.2 per cent in 2025 and 6.3 per cent in 2026, outpacing many of its global counterparts. In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting Indias exceptional outperformance.

Despite global uncertainties and downward revisions in growth forecasts for other large economies, India is set to maintain its leadership in global economic growth. Supported by strong fundamentals and strategic government initiatives, the country is well-positioned to navigate the challenges ahead. With reforms in infrastructure, innovation, and financial inclusion, India continues to enhance its role as a key driver of global economic activity. The IMFs projections reaffirm Indias resilience, further solidifying its importance in shaping the global economic future.

Indias foreign exchange reserves remain strong, and the banking sector has shown improved asset quality and capital adequacy. Structural reforms, enhanced digital infrastructure, and corporate deleveraging have laid a strong foundation for sustained medium-term growth.

However, deepening geo-economic fragmentation could affect external demand, while deepening regional conflicts could result in oil price volatility, weighing on Indias fiscal position. Domestically, the recovery in private consumption and investment may be weaker than expected if real incomes do not recover sufficiently. Weather shocks could adversely impact agricultural output, lifting food prices and weighing on the recovery in rural consumption.

Looking ahead, Indias financial sector health, strengthened corporate balance sheets, and strong foundation in digital public infrastructureunderscore Indias potential for sustained medium-term growth and continued social welfare gains. With strong macroeconomic fundamentals, policy consistency, and a focus on long-term development, India remains well-poised for sustained growth in the coming years. The outlook for FY 2025-26 remains positive, supported by anticipated gains from infrastructure investment, demographic dividends, and increased global investor confidence.

The flexible intermediate bulk container market size reached USD 8.63 billion in 2025 and is on course to touch USD 10.96 billion by 2030, reflecting a 4.88% CAGR across the period. Demand continues to come from chemicals, agriculture and construction, but stronger growth now comes from sustainable packaging mandates, in-plant automation and the rapid scale-up of lithium and rare-earth supply chains. North America held the largest flexible intermediate bulk container market share at 38.74% in 2024 on the back of stringent safety rules and sizeable agricultural exports, whereas Asia-Pacific is expanding at 8.12% CAGR through 2030 on the strength of capacity additions in China, India and Southeast Asia. Tightened global hazardous-goods regulations have lifted premium demand for Type C and Type D electrostatic-safe bags, while circular-economy policies accelerate adoption of recycled-content polypropylene variants.

In addition, increased global trade and logistics activities are fueling the need for durable and lightweight packaging options. One of the primary growth drivers for the FIBC market is the increasing use of bulk containers for packaging and transporting agricultural products such as grains, seeds, sugar, and flour. As global food trade rises, especially in developing regions such as Southeast Asia and Africa, the need for cost-effective, lightweight, and durable packaging solutions becomes critical.

However, the industry continues to face challenges from volatility in raw material prices—particularly polypropylene and HDPE, which are derived from crude oil—impacting production costs and margins. As regulatory norms and ESG expectations evolve, manufacturers are increasingly focusing on automation, sustainability, and compliance with international quality standards to remain competitive. Going forward, innovation in product design, strategic sourcing, and market diversification are expected to be critical in driving growth and resilience in the FIBC sector.

The India flexible intermediate bulk container market is anticipated to grow at a CAGR of over 8.5% during the forecast period. India is one of the largest producer and exporter of rice, spices, and pulses, which requires bulk packaging solutions. In addition, the increasing government investment towards urban development and smart cities relies on bulk container for transportation of cement, sand and other raw materials, further pushing the market growth in the region. Investing in FIBC manufacturing companies or suppliers in India can be lucrative, especially as the market is projected to expand further with the countrys rapid industrialization and infrastructure development. Additionally, innovations in FIBC technology, such as anti-static FIBCs for hazardous materials or food-grade FIBCs for the food industry, offer avenues for differentiation and value creation. Overall, the India FIBC market offers potential for investors seeking exposure to a growing segment of the packaging industry with diverse applications and strong growth prospects.

We, Shree Tirupati Balajee FIBC Limited is a leading manufacturer and exporter of Flexible Intermediate Bulk Containers (FIBCs) and polypropylene (PP)/HDPE woven packaging solutions based in Pithampur, Madhya Pradesh, India. STB offers a comprehensive portfolio, including jumbo bags, woven sacks (laminated/unlaminated and BOPP coated), FIBCs (tubular, tubular coated, U panel, and four panel), builder bags, woven fabrics, narrow woven belts, tarpaulins, liners, and multifilament yarns for industries such as agriculture, chemicals, construction, food, and pharmaceuticals. Our product quality is at par with the international standards and we try to excel in all the fields. Naturally, the advantage is passed on to our customers. A better design, better attitude towards production process, timely dispatch, good packing and a responsive approach - all are sure to help us grow further miles ahead of competition. Our Company is committed to achieving long-term, sustainable growth by strengthening its position as a globally trusted and quality-driven manufacturer of Flexible Intermediate Bulk Containers (FIBCs) and woven packaging products.

Shree Tirupati Balajee FIBC Limited has been a reliable manufacture of FIBC since 2009 that is over Fifteen years of experience for customer equipped with integrated clean room F.I.B.C manufacturing facility with B.R.C.G.S certification. Our manufacturing unit operates in Special Economic Zone (SEZ) in Pithampur Dhar with an installed capacity of approximately 8,000 MT per annum for FIBCs and about 4,000 MT for fabric production. Our Company is distinguished by its strong quality credentials, holding certifications such as ISO 9001:2015, ISO 14001:2015, ISO 22000:2018, ISO 45001:2018, SEDEX, BRCGS, and HALAL—demonstrating compliance with international standards expected by export markets across Europe, North America, Australia, Africa etc. The Company prioritizes long-term customer relationships by offering customized, high-quality packaging solutions with reliable service and delivery. Its focus is to remain a preferred partner across sectors like food, chemicals, construction, and agriculture.

Companys customer base is spread across the globe with major presence in United States of America, United Kingdom, Australia, Germany, Italy, Spain, New Zealand, etc. and the majority of sales are through exports which continue to contribute about 77% of total sales of the Company.

Strengths and Opportunities

Shree Tirupati Balajee FIBC Limited has established itself as a prominent manufacturer and exporter of Flexible Intermediate Bulk Containers (FIBCs), backed by its integrated manufacturing infrastructure, broad product range, and strong export orientation. The Company benefits from state-of-the-art facilities in Pithampur, Madhya Pradesh, enabling in-house production of FIBCs, woven sacks, liners, and technical textiles. With exports to over 38 countries and certifications such as ISO, BRCGS, and SEDEX SMETA, the Company is well-positioned in regulated global markets. A diverse product portfolio, focus on food- and pharma-grade packaging, and experienced leadership further strengthen its market position.

Looking ahead, Shree Tirupati Balajee FIBC Limited is poised to capitalize on global trends favoring sustainable and recyclable packaging, expansion into new geographies and end-use sectors, and the increasing demand for specialized, value-added FIBCs. Policy support from the Indian government and global supply chain diversification efforts also present attractive growth opportunities for the Company.

Further, the growing demand for technologically advanced ventilated FIBCs—designed to enhance durability, sustainability, and functional performance—is becoming increasingly evident across the global market. The emergence of smart packaging solutions, including real-time tracking systems, humidity sensors, and temperature-controlled bulk bags, is driving a new wave of innovation in the packaging industry, particularly in sectors such as agriculture, seafood, and pharmaceuticals. Shree Tirupati Balajee FIBC Limited intends to capitalize on these emerging opportunities by investing in product development, integrating smart technologies into its packaging solutions, and aligning its offerings with the evolving requirements of global customers and regulatory standards.

Weakness and Threats

Despite its strengths, the Company operates in an environment that presents certain inherent risks. Volatility in raw material prices—particularly polypropylene and HDPE, which are petroleum-based—can impact input costs and margins. Given that all manufacturing units are located within a single region, there is an element of geographic concentration risk, which could affect operations in the event of local disruptions. Working capital intensity and delayed receivables, particularly in export markets, pose challenges to liquidity management and cash flows. Currency fluctuations and trade policy changes also affect export competitiveness. Further, increasing regulatory requirements, environmental compliance norms, and certification costs may pressure smaller manufacturers and require continuous investment in processes and technology. The industry remains highly competitive, with pressure on pricing and margins, both in domestic and international markets. Addressing these risks through proactive sourcing strategies, operational efficiency, geographic diversification, and prudent financial management will be critical to sustaining long-term growth and profitability.

Segment Wise Performance

The Company is mainly engaged in the business of manufacturing of HDPE/PP Woven Sacks Fabric. All other activities of the Company revolve around the main business and as such there is no separate reportable business segment.

Discussion on financial performance with respect to operational performance

During the financial year 2024-25, the Company has posted total revenue from operations of Rs. 208.30/- Crore as against Rs. 161.11/- Crore as compared in the previous financial year 2023-24 representing an increase in total revenue of29.29% on Standalone basis. The Net Profit after tax of the Company for the financial year 2024-25 has been increased to Rs. 14.62/- Crore as compared to Rs. 14.27/- Crore during the previous financial year 2023-24 on Standalone basis.

The summarized financial results for the year ended 31 st March, 2025 are as under: -

(Rs. In Lakhs)

Particulars	Standalone		Consolidated
	Year ended on		Year ended on
	31.03.2025	31.03.2024	31.03.2025	31.03.2024
Revenue from Operations (Net)	20,830.37	16,110.81	20,830.37	16,110.81
Other Income	385.12	251.80	385.12	251.80
Total Income	21,215.49	16,362.61	21,215.49	16,362.61
Total Expenses	19,343.23	14,603.78	19,345.55	14,604.18
Profit Before tax	1,872.26	1,758.84	1,869.94	1,758.44
Less: - Current tax	343.75	307.30	343.75	307.23
Deferred Tax	35.03	(0.15)	35.03	(0.15)
(MAT Credit Entitlement)	56.65	40.97	56.68	40.97
Profit After Tax (PAT)	1,436.84	1,410.70	1,434.49	1,410.38
Other Comprehensive Income	25.19	15.99	25.19	15.99
Total comprehensive income for the year	1,462.03	1,426.69	1,459.68	1,426.37
Earnings per share (Basic & Diluted)	14.18	13.93	14.16	13.92

Internal Control System

We have an adequate system of internal controls in place. We have documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance regarding maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, compliances with regulations. We have continued our efforts to align all our processes and controls with global best practices.

Material developments in Human Resources / Industrial Relations front, including number of people employed

Human capital remains a core pillar of Shree Tirupati Balajee FIBC Limiteds growth and operational excellence. The Company recognizes that its people are critical to sustaining long-term value creation, innovation, and competitiveness in the global packaging industry. We have established a transparent and inclusive work environment that fosters collaboration, accountability, and employee well-being. Our policies are aligned with statutory compliance, industry best practices, and our commitment to diversity, equality, and safety. The industrial relations climate remained harmonious throughout the year. The Company maintained open communication with its workforce and adhered to fair labor practices. Our core values and code of conduct are emphasised throughout the organisation. We prioritise a safety-conscious culture, implementing programs and procedures to safeguard the health and well-being of our employees. Our goal is to create an inclusive workplace that embraces individuals from diverse backgrounds, acknowledging differences in preferences, culture, and gender. As on March 31,2025, we have 626 employees on payroll each contributing to our success.

Risks and concerns

Shree Tirupati Balajee FIBC Limited recognizes that effective risk management is fundamental to achieving sustainable business performance and protecting stakeholder value. The Company has established a structured and proactive risk management framework to identify, assess, and mitigate potential risks across operational, financial, strategic, regulatory, and environmental domains. Key risks identified include volatility in raw material prices (notably polypropylene and HDPE), foreign exchange fluctuations, working capital pressures, geographic concentration of manufacturing units, changes in regulatory environments, and global trade dynamics. To mitigate these, the Company has adopted strategies such as hedging mechanisms, supplier diversification, robust financial controls, and business continuity planning. Further, below is a table summarizing key risks, their potential impacts, and appropriate mitigation strategies adopted by the Company:

KEY RISKS	POTENTIAL IMPACT ON THE COMPANY	MITIGATION STRATEGY ADOPTED BY THE COMPANY
Raw Material Price Volatility	Fluctuations in the cost of polypropylene and other petrochemical inputs may lead to increased production costs and margin pressure.	\u2022 Entering into long-term contracts with key suppliers \u2022 Identifying alternative and sustainable sources \u2022 Incorporating price escalation clauses in customer contracts
Foreign Exchange Fluctuations	Variations in currency exchange rates can adversely impact export earnings and cost competitiveness in global markets.	\u2022 Hedging through forward contracts and financial instruments \u2022 Maintaining a natural hedge by balancing foreign currency inflows and outflows \u2022 Diversifying currency risk
Regulatory and Compliance Risks	Non-compliance with evolving environmental, safety, and packaging regulations may lead to legal penalties or restricted market access.	\u2022 Periodic internal and external audits \u2022 Staying updated on jurisdictional regulations \u2022 Maintaining dedicated compliance teams for different geographies
Supply Chain Disruptions	Delays in sourcing raw materials or transportation bottlenecks may disrupt timely order fulfillment and affect customer satisfaction.	\u2022 Establishing a diversified and resilient supplier network \u2022 Maintaining buffer inventory of critical inputs \u2022 Enhancing logistics agility and contingency planning
Customer Concentration Risk	Dependence on a limited number of key clients could impact revenue in case of order reduction or contract termination.	\u2022 Expanding the customer base across sectors and regions \u2022 Developing value-added and specialized products \u2022 Strengthening client relationships through engagement
Technological Obsolescence	Lack of investment in automation and innovation may hinder the Companys ability to remain competitive in a dynamic market.	\u2022 Investing in modern machinery and R&D initiatives \u2022 Adopting sustainable and efficient production technologies \u2022 Encouraging internal innovation and technical training
Geopolitical and Trade Policy Risks	Political instability, trade restrictions, or tariffs in export markets can affect international sales and market entry strategies.	\u2022 Targeting diversified and politically stable markets \u2022 Monitoring trade policies through advisory support \u2022 Creating flexible trade and logistics frameworks
Environmental & Sustainability Pressures	Growing demand for eco-friendly solutions may affect market acceptance if not adequately addressed.	\u2022 Developing recyclable and environmentally sustainable product lines \u2022 Pursuing certifications such as GRS- Promoting green practices across operations
Labor Availability and Skill Shortages	Inadequate availability of skilled manpower can impact product quality and production efficiency.	\u2022 Conducting regular skill enhancement and training sessions \u2022 Offering attractive employee benefits and retention initiatives \u2022 Investing in semi-automation
Quality and Safety Issues	Deficiencies in product quality or safety may lead to rejections, customer complaints, or legal consequences.	\u2022 Enforcing stringent quality control protocols \u2022 Using standardized and certified raw materials \u2022 Ensuring safety training and compliance across all production stages

Details of Significant Changes in Key Financial Ratios

Sr. No. Ratios	FY 2024-25	FY 2023-24	Variance %	Reason for variance if more than 25%
1. Debtors Turnover	5.22	6.92	-24.53%	-
2. Inventory Turnover	2.40	2.33	3.26%	-
3. Interest Coverage Ratio	3.09	3.84	-19.53%	-
4. Current Ratio	1.76	1.70	3.53%	-
5. Debt Equity Ratio	0.96	0.94	2.48%	-
6. Operating profit margin %	10.55%	12.65%	-16.60%	-
7. Net profit margin Ratio %	6.77%	8.62%	-21.46%	-
8. EBITDA %	11.84%	14.24%	-16.85%	-
9. Return on net worth (in %)	15.60%	18.20%	-14.31%	-

Compliance with Indian Accounting Standards

In the preparation of the financial statements, the Company has followed the Indian Accounting Standards as notified. The significant accounting policies which are consistently applied have been set out in the Notes to the Financial Statements.

Future Outlook:

Shree Tirupati Balajee FIBC Limited is strategically positioned to capitalize on the evolving opportunities within the global FIBC market. With a strong foundation in export-oriented manufacturing, the Company has built significant capabilities in producing a diverse range of high- quality, certified bulk packaging solutions tailored to the specific needs of global industries such as agriculture, chemicals, food, and pharmaceuticals. The Companys integrated manufacturing infrastructure, combined with robust certifications including ISO, BRCGS, and SEDEX, enables it to meet stringent regulatory and quality expectations in developed markets like Europe, North America, and Australia. In response to the increasing demand for sustainability, the Company is actively exploring the development of eco-friendly and recyclable FIBC variants. Efforts are also underway to incorporate smart packaging technologies such as moisture-resistant liners, tamper-proof features, and real-time tracking mechanisms.

The Company is leveraging its India-based cost advantages, skilled labor, and strong logistics connectivity to expand market share and deepen international relationships. By aligning its strategic initiatives with global trends in safety, sustainability, and customization, the Company remains well-placed to strengthen its position as a preferred global supplier in the growing FIBC market.

Cautionary Statement:

The report contains forward-looking statements that may be identified by their use of words such as plans, expects, will, anticipates, intends, projects, estimates or other words of similar meaning. All statements that address expectations or projections about the future,

including statements about the Companys strategies for growth, market position, expenditures and financial results are forward-looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised.

	For and on behalf of the Board
Date: 25 th August 2025	Binod Kumar Agarwal
	Chairman & Managing Director
Place: Pithampur (Dhar)	DIN:00322536