SMVD Poly Pack Ltd Management Discussions

Industry Structure and Development, Opportunities and Threats

Global Outlook and India

Global growth is projected to slow down in 2026, with emerging market and developing economies (EMDEs) facing the weakest per capita income growth since the pandemic. The conflict in the Middle East has triggered sharp increases in energy prices, renewed inflationary pressures, and fueled expectations of tighter monetary policy. Global growth is projected to slow from 2.9 percent in 2025 to 2.5 percent in 2026—the lowest rate since the COVID-19 pandemic—amid weaker prospects for economies dependent on energy imports and those directly affected by hostilities. Activity is expected to firm in 2027-28 as energy supplies recover, monetary easing resumes, and trade strengthens. Risks to the outlook remain skewed to the downside.

Despite the challenging global environment, India is projected to remain the worlds fastest growing major economy. The world Bank expects Indias GDP to grow 6.6% in fiscal year 202627 following an estimated 7.7% growth in 2025. Further it projected the estimated growth of 7.2% in 2027 and 7.0% in 2028. Primary sources used: World Banks Global Economic Prospectus June 2026.

For India, however, the growth outlook is relatively more stable. As per the "The Plastic Industry Status Report" released by PLASTINDIA in 2026, the plastic industry is one of the Key pillars of Indian manufacturing ecosystem and is expected to have high growth in coming years with domestic demand projected to increase from 28+MMT in FY 2025 to 42+MMT by 2031 supported by sustained investments in polymers manufacturing and downstream value chains. The industry is increasingly adopting designs for recycling principles and investing in energy efficient machinery and processing lines, reflecting strong commitment to sustainability and circularity. With strong economic fundamentals, supportive policies, and a focus on sustainability, Indias plastics industry is poised to become a globally competitive, Circular economy oriented and value-added manufacturing hub.

Recent Trend & Future Outlook

According to Straits Research analysis, the India FIBC Market was valued at USD 554.35 Million in 2024 and is projected to reach USD 835.69 Million by 2030, expanding at a CAGR of 7.2% during the forecast period. Key drivers contributing to this growth include increased demand from agriculture, chemicals, and energy industries due to the convenient, cost-effective, and efficient packaging solution provided by FIBC. Industry-specific uses, such as the transportation of sand, fertilizers, grains, and minerals, spur the growth too. Green production and sustainability trends, along with technological advancements, offer lucrative opportunities. Export potential is a major untapped growth avenue. In positioning itself for future growth, India is reinforcing its market presence by leveraging these trends, thereby setting itself up as a significant contributor in the global FIBC market.( https://straitsresearch.com/vertex/insights/fibc-market/india )

The India packaging market size is valued at USD 101.12 billion in 2025 and is forecast to reach USD 169.73 billion by 2030, advancing at a 10.73% CAGR. (https://www.mordorintelligence.com/industry-reports/packaging-industry-in-india )

At the same time the industry is expected to become more competitive and technology driven as customers are likely top focus on more quality consistency, customization, delivery reliability, sustainability and compliance with both domestic and international standards. But overall the Company believes that the Indian HDPE/PP and FIBC Industry offers strong long term growth potential.

Internal control systems and their adequacy

The Company maintains adequate internal control systems commensurate with the Companys size and business, which provide, among other things, reasonable assurance of recording the transactions of its operations in all material aspects and providing protection against misuse or loss of the Companys assets. The systems and processes are continually reviewed for their effectiveness by the company and augmented by documented policies and procedures.

Financial and Operating Performance

The operating revenue stood at Rs. 9.07 Lakhs (Rs. 37.42 Lakhs in FY 2024-25) and operating profit at Rs. 2833.75 Lakhs (Rs. 1193.36 Lakhs in FY 2024-25) respectively. The gross loss margin has increased from (424.59)% last year to gross loss (616.60)% in the present year. An overview of the financial performance can be seen as follows:-

A brief note on the Companys Segment operations was provided as notes to Financial Statements.

Material developments in human resources & industrial relations including number of people employed

Human Resources are considered to be the most important and vital asset not only for your Company but also for every other Organization. The Company emphasizes its People Development Processes and strives to upgrade skill sets to motivate the workforce to contribute towards organizational goals. During the year under review there was no such possibility to conduct regular training in order to upgrade the skills of workers. Rather during the last years maximum of the temporary and permanent workers left the job on account of the situation caused by the fire.

Your Company continuously takes adequate and necessary steps to maintain a competitive, healthy and harmonious work environment and cordial industrial relations with all its customers, suppliers etc. As on 31st March 2026, there were 12 permanent employees in the Company.

Disclosure of Accounting Treatment

In the preparation of the financial statements, the Company has followed the Accounting Standards referred to in Section 133 of the Companies Act, 2013. The significant accounting policies which are consistently applied are set out in the Notes to the Financial Statements.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities, laws and regulations. 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 by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors such as cost of raw materials, tax laws, interest and power cost and economic developments and such other factors within the country which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.