World Economic Condition:
The year 2024 began with signs of improved economic activity across major regions. The world GDP grew at a steady rate. While the growth rate is projected to stabilize at 3.3% by 2026, these projections remain below the historical average of 3.7% observed between 2000 and 2019
Global inflation is expected to moderate, driven by decreases in fuel and commodity prices, as well as reduced inflation rates in advanced economies
Global trade is expected to remain slow and could possibly worsen if reciprocal tariffs are implemented. The year 2025 began with optimism, underpinned by expectations of macroeconomic stability and recovery with global growth, falling inflation, and tailwinds from falling interest rates. However, this macro narrative shifted with rising concerns as policy uncertainty rose with shifts in trade policy.
The U.S. economy is approaching a soft landing, with growth rate projected to reach 2.7% in 2025 and 2.1% in 2026. Inflation is expected to decline, allowing the Federal Reserve to ease monetary policy
Chinas growth is projected to decline to 4.6% in 2025 and 4.5% in 2026, reflecting weak consumer confidence, a sluggish labour market and persistent challenged in the real estate sector.
Indian Economic Condition:
India is expected to maintain a growth rate of 6.5% in FY 2025. Despite a slowdown in investment and a weak manufacturing industry, the services and agriculture sector have demonstrated steady growth. Additionally, private consumption, driven by improved rural incomes and better agricultural output, contrasts with the dampening effect of elevated inflation and slower credit expansion on urban consumption.
The US tariff risks remain tilted to the downside. A further intensification of trade disputes, coupled with rising uncertainty around trade policy, could dampen both short-term recovery and long-term investment prospects. At the same time, reduced fiscal and monetary policy buffers leave many economies more vulnerable to future shocks
In the Union Budget for FY2024-25 the Indian government has allocated INR 11.21 lakh crore for capital expenditure, maintaining the previous years level. This allocation represents approximately 22% of the total government spending of INR 50.65 lakh crore. The RBI has reduced the interest rate by 25 basis points, marking the first cut in two years, bringing it to 6.25%. These help business and the economy grow
Financial Performance:
TPI company has achieved a 27% revenue growth, compared to previous year achieving a turnover of INR 30.01 crores primarily due to contributions from higher volumes across the packaging segment. The net profit for FY 24-25 stood at INR 35.85lacs compared to INR 46.43lacs, the decrease was primarily due to higher raw material costs, higher costs for transportation and manufacturing and low utilization of capacity
We have continuously been adding new customers and strengthening the market share, resulting in the sales growth mentioned. Furthermore, our efforts on stringent cost control measures, enhanced product mix and focus on reducing process wastage will contribute to the achievement of healthy margins in the coming quarters.
The Indian FIBC market has undergone a remarkable increase in the last decade. The total export sales of FIBC from India have tripled over the past decade, reaching a value of $708.48 million in the fiscal year 2021. This growth can be largely attributed to the expanding industries, including food products & agriculture, pharmaceutical products, and chemicals and fertilizers. The Indian governments favorable measures and increased international commerce have propelled industrialization in these sectors, increasing the demand for FIBC for effective storage and transportation of goods and we remain optimistic to capitalize on this demand
Strength and Opportunity
Rising demand for FIBCs
The demand for FIBCs is increasing due to its improved functionality such as lowest package to product weight ratio of any intermediate industrial container. FIBCs can be handled, transported and stored without the use of pallets due to integrated lifting loops. Also when empty they are light and can fold flat to take up a fraction of the space
Growing applications in various industries
FIBCs can be customized to meet your needs in terms of the size, capacity, filing and discharge spouts, handling features etc, they functional properties make them valuable in every industry. Additionally increasing innovation is expected to drive demand
Export Potential
Due to high production and lower cost of production in india, exports contribute significantly to the markets revenue growth
Threat and Weakness
Our customers generally consist of other manufacturers and suppliers who purchase industrial packaging products for their own packing and shipping purposes. Because we supply a cross section of industries, including chemicals, paints and pigments, food, petroleum, industrial coatings, agriculture, agrochemical, pharmaceuticals, mineral products, packaging, automotive, demand for our products and services has historically corresponded to changes in general economic and business conditions of the industries to which we supply. The overall demand and prices for our products and services could decline as a result of numerous factors outside of our control, including an economic recession, increased labor costs, availability of and increased cost of energy, and disruptions in supply chains to our business, our customers, their end markets and our suppliers, changes in industrial production processes or consumer preference, changes in laws and regulations, inflation, tariffs, changes in published pricing indices, fluctuations in interest rates and currency exchange rates and changes in the fiscal or monetary policies of governments in the regions in which we operate. Accordingly, our financial performance is substantially dependent upon the general economic and business conditions existing in these industries and countries where we do business, and any prolonged or substantial economic downturn or geopolitical uncertainty in the markets in which we operate could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Internal Control System:
The Company has a requisite system of internal controls which are regularly evaluated, tested & revisited by the Management and the Internal Auditors. Further, the report of the Internal Auditors is reviewed by the Top Management and the Audit Committee on a quarterly basis
Material Development in Human / Industrial Relation:
In accordance with our values, we encourage our employees to embrace an inclusive culture of language, location and thought. Our success depends on maintaining a culture where every employee communicates with respect, candor and trust. We rely on the unique qualities and talents of our employees to help us achieve our Build to Last strategy. We strive to create an inclusive and equitable working environment as well as promoting equitable treatment within our workforce, including the support of multiple colleague-led resource groups, fostering an environment where our employees feel valued and appreciated for the distinct voice they bring to our Company. In addition, we strive to compensate our employees fairly and equitably and continue to monitor pay equity data and educate our managers to make objective compensation decisions in line with our Companys compensation policies.
To foster employee engagement, we encourage and value feedback from our employees and conduct annual engagement surveys of all our global employees to better understand our employees level of engagement and identify areas of improvement to build high performing teams to meet our strategic goals
TPI believes in and considers Human Resources as a vital asset for growth of the Company. The Company emphasizes its People Development Processes and strives to upgrade skill sets to motivate the workforce to contribute towards organization goals. The Company focuses on adequate training to empower and encourage employees. A transparent and active line of communication also exists within the organization to enable team work and promote a culture of trust and confidence. As on March 31, 2025, TPI has a team of 150 employees
Risk and Concern:
Risk management is an inherent part of any business, and the management is proactive in terms of managing risks prudently. By virtue of the nature of its business, the Company is susceptible to risks that might arise due to economic, political, legal, environmental, people, operational, currency fluctuation, and so on
Your Company has a well-defined risk management framework in place. The risk management framework works at various levels across the enterprise. The Company has a robust organizational structure for managing and reporting on risks. A statement of a risk management policy for the Company can be found on its website
Future Outlook:
Considering the positive outlook of the packaging industry and the strategic moves made by the Company, the directors confidence in the Companys performance in the coming years is well-founded. However, its important to note that market conditions can be subject to changes, and the Company will need to continuously adapt and innovate to maintain its competitive edge. Overall, with its strong market position, focus on sustainability, expanded production capacity, strategic acquisitions, technological advancements, and efficient cost management, the Company is well-equipped to thrive and achieve sustained growth in the future.
As we set sight on the future of TPI we are filled with enthusiasm and optimism. Our unwavering commitment to quality, innovation, and customer satisfaction has positioned us as a market favorite. Going forward we will continue to build on this strong foundation and strive to maintain our leadership position by consistently delivering exceptional products and services
At TPI, the future outlook is bright and promising. With a clear vision, a focus and dedicated team, we are well prepared to navigate the challenges and capitalize on the opportunities that the future holds
Cautionary Statement
The management discussion and analysis report contain forward-looking statements based on data available to the company, assumptions about economic circumstances, current government policies and so on. Despite managements ongoing monitoring of market conditions and other factors, the company cannot guarantee the accuracy of its assumptions or future performance. As a result, actual result, performance or accomplishments may vary significantly from those anticipated in any such forward looking statements. The company accepts no responsibility to publicly change, modify or revise any forward looking statement based on any later development, information or event.
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