Shri Jagdamba Polymers Ltd Management Discussions

The Board of Directors is pleased to share with you the ‘Management Discussion and Analysis Report for the Financial Year ended on March 31, 2025.

COMPANY SYNOPSIS

Shri Jagdamba Polymers Limited is a leading manufacturer in the Technical Textiles Industry, renowned for its innovative solutions and commitment to quality. Established in 1985, listed on the Bombay Stock Exchange Limited (BSE Limited) in 1986, the Company has grown significantly over the past 4 decades, positioning itself as a key player in the production of a wide range of Technical Textiles.

Shri Jagdamba Polymers Limited is primarily engaged in the manufacturing and export of Technical Textile. Our main focus is on the export market, although we also cater to domestic sales.

At Shri Jagdamba Polymers Limited, quality and innovation remain at the core of everything we do. We are dedicated to delivering high-performance textile solutions that address the diverse needs of our customers across industries. Our broad portfolio of fabrics enables us to serve a wide array of applications with precision and reliability.

Our unwavering focus on quality is validated by our ISO 9001:2015 certification an internationally recognized standard for robust Quality Management Systems. This certification underscores our capability in the manufacturing and supply of HDPE/PP woven fabrics and bags that meet global benchmarks.

Beyond manufacturing, we also offer job work services, enabling us to provide tailored solutions that align with specific client requirements. This approach leverages our technical expertise to deliver added value and flexibility. With a strong emphasis on customer satisfaction, operational excellence, and product reliability, our skilled team and modern manufacturing infrastructure work seamlessly to meet and exceed expectations.

Our export-oriented strategy allows us to strengthen global partnerships and broaden our market presence. We actively seek new opportunities worldwide to grow our international business and support the economic development of our country.

Shri Jagdamba Polymers Limited stands as a forward-thinking, customer-focused company specializing in the production and export of textile fabrics that are impregnated, coated, covered, or laminated with plastic. Our dedication to quality, continuous innovation, and client success defines our position in the global marketplace.

GLOBAL ECONOMY OVERVIEW

The global economy in FY 2024 25 exhibited moderate but stable growth, despite facing persistent macroeconomic and geopolitical headwinds. According to the International Monetary Fund (IMF), global GDP expanded by approximately 3.2% in 2024, with a similar forecast of 3.3% in 2025. While this marks a consistent recovery path since the pandemic, it remains below historical averages, reflecting the lasting impact of structural issues, rising debt levels, and subdued productivity in key economies.

According to the IMF World Economic Outlook (January 2025), the global economy maintained steady growth, with worldwide GDP expanding by 3.2% in 2024, and a similar growth rate of 3.3% projected for 2025, following 3.3% in 2023. However, a notable divergence persisted between advanced and emerging economies. Advanced Economies (AEs) registered modest growth of 1.7% in both 2023 and 2024, with a slight uptick to 1.9% forecasted for 2025, reflecting sluggish demand, tighter financial conditions, and structural headwinds. In contrast, Emerging Market and Developing Economies (EMDEs) continued to drive global momentum, growing by 4.4% in 2023, and stabilizing at 4.2% in both 2024 and 2025, supported by robust domestic demand and policy stimulus in major markets like India and China. This divergence underscores the ongoing importance of dynamic emerging economies in shaping the global recovery and influencing trade opportunities especially relevant for export-oriented companies like Shri Jagdamba Polymers Limited.

Global trade faced headwinds due to rising protectionism, supply chain adjustments, and re-imposition of tariffs by some large economies. According to the World Trade Organization (WTO), global services trade grew by only 5% in early 2025, with Asia contributing significantly to this recovery.

While inflation declined across regions, it remained above central bank targets in several emerging and developing economies. Monetary policy tightening continued, though at a moderated pace, as central banks balanced inflation management with growth preservation.

Key global risks during the year included geopolitical tensions (notably in Eastern Europe and the Middle East), fluctuating energy prices, debt sustainability concerns in low-income countries, and rising cybersecurity threats. These factors contributed to increased volatility in global financial markets and a cautious investment environment. Despite these challenges, the global outlook for 2025 26 remains cautiously optimistic, underpinned by a broad-based but uneven recovery and a gradual normalization of macroeconomic conditions.

For companies such as Shri Jagdamba Polymers Limited, operating in the technical textiles industry as manufacturers and exporters, these global dynamics highlight the importance of resilience, operational agility, and diversification to navigate uncertainties and capitalize on emerging opportunities.

INDIAN ECONOMY AND INDIAN TECHNICAL TEXTILE OVERVIEW AND OUTLOOK

Indias economy grew by 6.5% in FY 2024-25, maintaining its position as the worlds fastest-growing major economy despite a slowdown from the 9.2% growth recorded in the previous year. According to data released by the National Statistical Office (NSO), the economy expanded by 7.4% in the quarter ending March 2025, reinforcing Indias strong growth trajectory. In current US dollar terms, Indias GDP reached approximately $3.9 trillion in FY 2024-25, up from $3.6 trillion in the previous fiscal year, based on estimates by research agency Crisil.

The International Monetary Fund (IMF) projects Indias GDP to reach $4.3 trillion in 2025-26, positioning the country as the worlds fourth-largest economy.

As the fifth-largest technical textiles market globally, India is rapidly adapting to the demand for performance-driven fabrics. The technical textiles market in India is projected to reach a revenue of approximately 2,39,475.95 crore (US$ 28,693.5 million) by 2030. From 2025 to 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 6%, reflecting steady expansion driven by rising demand across various industrial and consumer sectors.

India technical textiles market highlights

India contributed 9.8% to the global technical textiles market revenue in 2024, reflecting its growing presence on the global stage.

Among Asian countries, India remains one of the most promising markets, driven by government initiatives like the National Technical

Textiles Mission and increasing private sector investments.

While other countries in Asia Pacific continue to show growth, Indias expanding domestic demand, policy support, and innovation ecosystem position it as a key player in shaping the future of technical textiles.

Exports of technical textiles rose by 15.5% in FY 2025, reaching 24,732.68 crore, up from 16,100.50 crore in FY 2021 a four-year CAGR of nearly 11%.

Indias exports of technical textiles to the UK are projected to rise to USD 1 billion by 2030, up from the current level of USD 240 million, following the signing of the India UK Comprehensive Economic Trade Agreement (CETA) in FY 2024 25. This trade deal is expected to

provide a major boost to Indian manufacturers by reducing tariffs, improving market access, and enhancing competitiveness in high-value textile categories.

Government Initiatives to Boost Technical Textiles Market

Given the rising importance of technical textiles across sectors such as healthcare, infrastructure, automotive, and agriculture, the Government of India has introduced a series of strategic interventions aimed at enhancing domestic MMF (man-made fibre) production and reducing dependency on imports, particularly from China. These initiatives are underpinned by supportive policies, increased R&D funding, and targeted infrastructure development.

The Government of India has implemented robust measures in FY 2024 25 to advance the domestic technical textiles sector. These efforts focus on capital investment, infrastructure, technology localization, and export growth:

i. Budget Allocation Increase: The Ministry of Textiles allocation rose to 5,272 crore for the FY 2025-26 (up from 4,417 crore in FY 2024 25 and 3,443 crore in FY 2023-24), with the PLI scheme for technical textiles and MMF seeing a 33% budget boost from 45 crore to 60 crore.

ii. PLI Scheme Progress: Launched in 2021 with a 10,683 crore outlay, the scheme has catalysed 7,343 crore in investments to date and is crucial in scaling MMF and technical textile manufacturing.

iii. National Technical Textiles Mission (NTTM): Ongoing efforts under NTTM support innovation, skills, market promotion, and exports across 4 strategic components.

iv. PM MITRA Parks: The 4,445 crore initiative for mega textile parks will help create plug-and-play infrastructure for high-value textile segments including technical textiles.

v. Export Support & Incentives: Export-linked schemes like RoDTEP and RoSCTL remain in place, while Indias technical textile exports rose by 15.5% YoY to 24,732.68 crore in FY 2024 25.

vi. Import Substitution Drive: Proposals such as 7% interest subsidies for local machinery manufacturing are under consideration, aiming to reduce dependency on imported textile equipment.

Together, these initiatives reinforce Indias vision to achieve $40 45 billion in technical textile output by 2030, positioning the country as a global alternative in the "China-plus-one" sourcing strategy.

Road Ahead

The Indian technical textiles industry is at a pivotal growth phase with immense potential. Supported by robust government initiatives such as the National Technical Textiles Mission (NTTM), the Production Linked Incentive (PLI) scheme, and the establishment of PM MITRA textile parks, the sector is poised to scale new heights.

Unlike conventional textiles that emphasize comfort and style, technical textiles are valued for their durability, functionality, and specialised applications from fire-resistant gear for firefighters to geotextiles reinforcing national infrastructure.

As demand rises across infrastructure, healthcare, agriculture, and defence sectors, technical textiles known for their durability, functionality, and specialized applications are becoming indispensable. The growing emphasis on man-made fibres, smart textiles, and sustainable materials aligns with global trends and environmental priorities.

Indias competitive advantage lies in its skilled yet cost-effective workforce, expanding R&D capabilities, and strong manufacturing ecosystem centered in key hubs like Gujarat and Tamil Nadu. The industrys evolving landscape is attracting significant domestic and foreign investments, positioning India as a global technical textiles hub.

Addressing ongoing challenges such as infrastructure enhancement, skill development, and reducing import dependency on advanced machinery will be crucial. With continued policy support and innovation, India is well on track to realize the full potential of its technical textiles sector, capturing emerging opportunities both domestically and globally.

Sources: International Monetary Fund (IMF World Economic Outlook, Jan Apr 2025 updates); World Trade Organization (WTO) annual trade statistics; ministry and NSO data (India); Crisil research; Grand View Research / Frost & Sullivan estimates (India technical textiles); and Government of India export data and policy updates.

KEY DEVELOPMENTS IN FY 2024-25

During the year ended March 31, 2025, the Company incorporated a wholly owned subsidiary, Global Polyweave Private Limited, to expand its presence in the technical textiles segment. An initial investment of 5.50 lakhs secured a 55% equity stake, providing majority ownership and operational control. The subsidiary has been consolidated in the financial statements in accordance with applicable accounting standards.

Subsequent to the financial year-end, the subsidiary undertook a rights issue to raise additional growth capital. The Company subscribed fully, increasing its stake from 55% to 80%, further strengthening its strategic position and control. This development is aligned with the Companys long-term vision to diversify its product offerings, enhance vertical integration, and leverage high-growth opportunities within the sector. The subsidiary is expected to contribute meaningfully to revenue and margin growth in the coming years.

In addition to the subsidiary expansion, the Company recorded a notable 38.2% increase in export sales, reaching 45,196.20 lakhs in FY 2024 25 compared to 32,692.35 lakhs in the previous year. This growth highlights the Companys strengthening international presence and robust demand for its products in key global markets.

REVIEW OF OPERATIONS

During the financial year ended March 31, 2025, the Company demonstrated robust operational and financial performance marked by significant growth across key revenue and profitability metrics.

Income and Revenue:

Total revenue from operations grew 33% to 48,147.81 lakhs in FY 2024-25, up from 36,194.04 lakhs in FY 2023-24. This was driven by a 37.1% increase in manufactured goods sales to 47,455.04 lakhs ( 34,609.14 lakhs last year), while traded goods revenue declined to 692.77 lakhs from 1,584.90 lakhs.

Other income rose 86.6% to 945.84 lakhs from 506.71 lakhs, resulting in total income of 49,093.65 lakhs compared to 36,700.75 lakhs in the previous year.

Expenses:

Total expenses increased to 42,601.53 lakhs from 32,267.23 lakhs in the previous year, reflecting the scaling of operations

Profitability:

The company demonstrated strong financial performance in FY 2024-25, with Profit Before Tax (PBT) increasing significantly by 46.5% to 6,492.12 lakhs from 4,433.52 lakhs in the previous year.

The total tax expense for the year was 1,682.44 lakhs, up from 1,206.18 lakhs in the previous year.

Correspondingly, Profit After Tax (PAT) rose by 49.0% to 4,809.68 lakhs, compared to 3,227.34 lakhs in FY 2023-24.

Earnings per Share (EPS):

Earnings per share (EPS) on a face value of 1 each improved substantially to 54.92 (basic and diluted), compared to 36.85 last year, reflecting enhanced shareholder value.

Exports Performance

In the Financial Year 2024-25, the Companys total sales increased significantly to 48,147.81 lakhs, supported by export sales of 45,196.20 lakhs In the Financial Year 2023-24, the Companys total sales increased to 36,194.04 Lakhs, with export sales amounting to 32,692.35 Lakhs.

These figures indicate that the Companys export sales increased from 32,692.35 lakhs in FY 2023-24 to 45,196.20 lakhs in FY 2024-25.

SEGMENT-WISE PERFORMANCE

The Company currently has only one segment of business i.e., manufacturing of Technical Textiles.

OUTLOOK

As Shri Jagdamba Polymers Limited has embarked into the Financial Year 2025-26, our outlook is shaped by a combination of strategic investments, market dynamics, and evolving industry trends in the technical textile sector. The global technical textile market is experiencing robust growth, driven by increasing demand across various sectors such as automotive, healthcare, construction, and sports. The rising emphasis on high-performance, durable, and specialized materials presents significant opportunities for the Company. Our strategic focus on enhancing our technical textile offerings positions us to capitalize on these trends and expand our market share.

OPPORTUNITIES AND THREATS

Opportunities

Rising Demand in Buildtech & Construction Textiles

The rapid growth in infrastructure, geotextiles, facade systems, and safety fabrics is expanding demand for HDPE/PP textiles specifically designed for construction applications.

Enhanced Growth in Pack tech Segment

Increasing requirements in agricultural and industrial packaging especially bulk bags and moisture-resistant woven sacks support expansion in Pack tech. There is also growing interest in bio-based and reusable packaging products.

Policy Support & Export Potential

Initiatives like the PLI Scheme, NTTM, PM MITRA Parks, and international trade agreements (e.g., India UK CETA) offer fiscal incentives, better market access, and strategic export opportunities aligned with the companys export-oriented model.

Regional Growth & MMF Transition

Traditional textile hubs like Tirupur are increasingly adopting man-made fibres (MMF), which is well-aligned with the companys HDPE/PP expertise and positions it to capture higher-value market segments.

Innovation & Sustainable Textiles

Emerging demand for smart textiles, coating technologies, and eco-friendly applications such as biodegradable fabrics and PCM-based textiles presents opportunities for value-added product lines.

Threats

Volatile Raw Material Costs

Fluctuations in prices of HDPE, PP, and other petrochemical-based inputs can significantly impact margins.

Exchange Rate & Trade Policy Risks

Heavy reliance on exports exposes the company to foreign currency fluctuations and potential trade disruptions or tariffs in target markets.

Competitive Pressures

Rising competition from both domestic and global players in technical textile segments can lead to margin compression and pricing pressures.

Skill & Innovation Constraints

Limited availability of skilled labour and slow pace of R&D can hinder product development especially for technical textile applications requiring advanced coating or lamination.

Import Dependency for Machinery

Dependence on imported textile processing and coating machinery introduces execution risks, delays, and potential disruptions in capacity expansion.

Conclusion

Shri Jagdamba Polymers Limited is well-positioned to benefit from rising demand in Buildtech, Packtech, and sustainable technical textiles, supported by infrastructure growth, MMF adoption, and favorable policies like the PLI Scheme and India UK trade agreements. Its core expertise in HDPE/PP aligns with emerging market needs, offering strong potential for innovation and export expansion.

However, challenges such as raw material price volatility, trade risks, growing competition, skill gaps, and machinery import dependence could impact margins and scalability. To sustain growth, the company must focus on innovation, supply chain resilience, and building in-house capabilities enabling it to capture high-value opportunities in the evolving technical textile sector.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Industrial relations continue to remain cordial during the year and total 1303 employees are on the Companys payroll as on March 31, 2025, as compared to 1310 employees on the Companys payroll as on March 31, 2024.

INTERNAL CONTROL

The Company has an adequate internal control system for safeguarding the assets and financial transactions of the Company. The strong internal control systems have been designed in such a way that, not only it prevents fraud and misuse of the Companys resources but also protect shareholders interest.

ACCOUNTING POLICIES

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.

DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS

Sr. No. Ratio	Numerator	Denominator	As At 31/03/2025	As At 31/03/2024	% Variance	Reason for Variance
1 Current Ratio	Current Assets	Current Liabilities	3.48	3.98	-12.48%	N.A.
2 Debt-Equity Ratio	Total Debt	Total Equity	0.20	0.10	106.29%	Refer Note- 1
3 Debt Service Coverage Ratio	Earnings before Interest, Tax, Depreciation and Exceptional Items	Current maturity of long-term debt + Interest Expense	7.66	3.99	92.04%	Refer Note- 2
4 Return on Equity (ROE) (%)	Profit after tax	Average Net worth	17.90%	14.09%	27.05%	Refer Note- 3
5 Inventory Turnover Ratio	COGS	Average Inventory	6.30	5.33	18.22%	N.A.
6 Trade receivables turnover ratio	Revenue from Operations	Average Trade Receivable	4.06	4.18	-3.00%	N.A.
7 Trade payables turnover ratio	Purchases	Average Trade Payable	17.42	15.78	10.39%	Refer Note- 4
8 Net capital turnover ratio	Revenue from Operations	Average working capital	2.95	2.51	17.85%	N.A.
9 Net profit ratio (%)	Profit after tax	Revenue from Operations	9.99%	8.92%	12.03%	N.A.
10 Return on capital employed (ROCE) (%)	EBIT	Capital Employed	23.32%	20.67%	12.82%
11 Return on investments (%)	Net Profit	Equity + Reserves & Surplus	16.44%	13.17%	24.86%

Note- 1: Debt Equity Ratio- The increase in Debt Equity Ratio reflects strategic borrowing to fund growth, while maintaining a balanced and prudent capital structure.

Note- 2: Debt Service Coverage Ratio- The Increase in Debt Service Coverage Ratio is due to increase in borrowing costs.

Note- 3: Return on Equity (ROE) (%): The Increase in Return on Equity is on account of increase in profit.

Note- 4: Trade payables turnover ratio: It is primarily decreased on account of increase in purchases towards end of the year.

Further note that the above ratios are based on the standalone financial statements of the company. For ratios based on consolidated financial statements, please refer to note no.: 44.

CAUTIONARY STATEMENT:

Certain statements in the 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 and regulations. Actual results could differ from those expressed or implied therein.

Registered Office:	For and on behalf of Board of Directors
Harmony, 4th Floor,15/A, Shree Vidhyanagar Co. Op. Hsg Soc.	Shri Jagdamba Polymers Limited
Ltd. Opp. NABARD, Nr. Usmanpura Garden, Ahmedabad-
380014, Gujarat

 

Date: August 14, 2025	Ramakant Bhojnagarwala	Vikas Shrikishan Agarwal
Place: Ahmedabad	Managing Director	Executive Director
	DIN: 00012733	DIN: 03585140