* OVERVIEW OF ECONOMY
> Global Economy
According to the IMFs January 2025 World Economic Outlook Update, global growth is projected at 3.3% in both 2025 and 2026moderately below the 2000-2019 average of 3.7%. This outlook features an upward revision for the United States, which balances out downward adjustments in other major economies.
Headline inflation is projected to decline to 4.2% in 2025 and 3.5% in 2026. Advanced economies are expected to return to their inflation targets sooner than emerging markets and developing economies. However, the IMF cautions that upside risksstemming from trade conflicts and policy uncertaintycould prolong elevated inflation, sustaining higher interest rates for longer.
Regional Growth Projections
United States: The U.S. economy is projected to grow at 2.7% in 2025, supported by a strong labor market and sustained consumer spending. However, potential risks include higher tariffs and immigration restrictions under the current administration.
Eurozone: Growth in the Eurozone is forecasted at 1.0% in 2025, with Germany facing challenges due to persistently high energy prices and weak consumer confidence.
China: Chinas growth is projected to decelerate to 4.6% in 2025, influenced by a slowdown in the property market and reduced export demand.
Policy Recommendations
The IMF stresses that achieving price stability and rebuilding fiscal buffers depends on a precisely sequenced policy approach. This involves carefully weighing trade-offs between controlling inflation and sustaining economic activity, while simultaneously implementing structural reforms that support medium-term growth. Moreover, the Fund underscores the critical need for enhanced multilateral cooperation to effectively navigate global challenges and uncertainties.
> Indian Economy
The IMF has raised Indias GDP growth forecast for FY 2026 to 6.5-7%, up from an earlier estimate of 6.4%, citing stronger consumption driven by tax reliefs, moderating inflation, robust agricultural output, and sustained public infrastructure investment. The Funds baseline projection remains at 6.5% for FY 2026, anchored by stable private consumption and overall macroeconomic resilience. This optimism is reinforced by Indias success in maintaining retail inflation at 5.4% in FY 2024, the lowest since the pandemic. In addition, fortified bank and corporate balance sheets, ongoing fiscal consolidation, a stable external sector, and ample foreign exchange reserves further underpin the nations strong economic foundation. Taken together, these factors highlight Indias accelerating economic momentum and its growing stature in the global economy.
* END USER INDUSTRY OVERVIEW
> Plastic Industry
The global plastic market, valued at USD 650 billion in 2024, is expected to grow at a CAGR of 4.1% from 2025 to 2030, driven by the shift from traditional materials like glass and metals to plastics. The market is highly regulated and features various resins, including polystyrene (PS), polyethylene (PE), ABS, and polypropylene (PP). In India, the plastic industry employs 4.5 million people and includes 35,000 processing units. The government aims to boost the sectors economic contribution from 3.5 lakh crore (US$ 42 billion) to 12 lakh crore (US$ 150 billion) in the next 4-5 years, focusing on expanding exports. Polyethylene (PE) and polypropylene (PP) remain the dominant market segments.
Plastic consumption has increased due to regulations promoting its use over metals like aluminium and steel in automotive components, enhancing fuel efficiency and reducing carbon emissions. Relaxed FDI norms and growing infrastructure needs have also boosted Indias construction sector, driving market growth. Emerging markets like Brazil, China, India, and Mexico are key drivers of plastic demand through expanding construction activities. While ESG norms and environmental regulations on single-use plastics pose challenges, the rising demand for sustainable, multi-use plastics and innovations in packaging help mitigate these concerns, ensuring continued growth in the sector.
> Packaging Industry
As of 2025-26, the global packaging market is valued at approximately USD 1.14 trillion, with forecasts suggesting it will reach USD 1.38 trillion by 2029, growing at a CAGR of 3.89%. In India, the packaging materials market is projected to be worth USD 44.4 billion in 2024, with a growth rate of 6.8% CAGR through 2030. The Indian plastic packaging market is expected to reach USD 22.44 billion by
2025, growing at a CAGR of 3.09% from 2025 to 2030. Flexible plastic packaging, particularly in the food, beverage, and e-commerce sectors, is witnessing significant growth due to increasing consumer demand for convenience and sustainability. Meanwhile, rigid plastic packaging, including PET and HDPE containers, remains dominant due to their strength, durability, and recyclability.
Plastics play a crucial role across industries like packaging, automotive, and manufacturing due to their unique properties. Demand is set to grow rapidly, driven by the rising need for recycled plastics and bioplastics. The packaging market is also evolving, with paper packaging benefiting from the rise of online retail and environmental regulations on non-biodegradable solutions. Additionally, government regulations are increasing the use of recycled PET in flexible packaging, gradually replacing traditional methods.
The Flexible Packaging Association reports that over 60% of flexible packaging is used for food products, driving significant growth in the industry. Its ability to integrate innovative solutions for various packaging challenges has positioned flexible packaging as a key driver of market expansion. Additionally, the increasing demand for sweets and confectionery has prompted many flexible plastic packaging providers to develop tailored solutions, further boosting sales and revenue in this sector.
> Rigid Packaging
As of 2025-26, the global rigid plastic packaging market is valued at approximately USD 265.18 billion and is expected to reach USD 308.02 billion by 2030, growing at a CAGR of 3.04%. The growth is driven by rising consumer demand, technological advancements, and improved recycling rates. Asia-Pacific leads the market, holding over 39.7% of the share in 2024, with China and India playing key roles due to their growing economies and industrial sectors.
Rigid plastic packaging is commonly used in food, beverages, pharmaceuticals, and personal care for its durability, lightweight, and cost-effectiveness. Materials like PET, HDPE, and PP are widely used for bottles, containers, and other packaging. Advancements in manufacturing, such as injection molding and thermoforming, improve design flexibility and efficiency. The push for sustainability is also driving the adoption of recyclable and eco-friendly packaging.
As of FY2025-26, the Indian rigid plastic packaging market is anticipated to reach approximately 2.18 billion (USD 2.64 billion), with a projected growth rate of 8% CAGR through 2030. This expansion is fueled by the growing demand for consumer goods, innovations in packaging technologies, and improvements in recycling practices. The Asia-Pacific region continues to lead the market, holding over 39.7% of the share in 2024, with India and China playing key roles due to their rapidly expanding economies and industrial sectors.
> Chemical Industry
As of FY2025-26, Indias chemical sector remains the 6th largest producer globally and 3rd in Asia, contributing around 7% to GDP. Valued at approximately US$ 300 billion, the sector is expected to reach US$ 383 billion by 2030, driven by demand in textiles, agriculture, pharmaceuticals, and automotive. This growth is supported by investments, including 8 lakh crore (US$ 107.38 billion) in chemicals and petrochemicals by 2025, and 1 lakh crore (US$ 12 billion) in the Dahej PCPIR infrastructure.
The Global chemical industry stands strong at US$ 5.11 trillion in 2023 and is expected to grow to US$ 5.57 trillion in 2024 with a CAGR of 9%. This is further anticipated to rise to US$ 7.78 trillion by 2028 with a CAGR of 8.7% (2024-2028).
India is the fourth-largest producer of agrochemicals globally, following the United States, Japan, and China. The country contributes 16-18% of the worlds production of dyestuffs and dye intermediates, and its colorants industry has become a significant global player with a market share of approximately 15%. Indias chemicals industry operates under a de-licensing framework, with the exception of certain hazardous chemicals. The nation holds a strong global position in both chemical exports and imports, ranking 14th in exports and 8th in imports (excluding pharmaceuticals), underscoring its vital role in the global chemical supply chain.
> REVIEW OF OPERATIONS
The company concluded the financial year 2024-25 on a robust note, marking a year of consistent performance. In FY 2025, the company achieved a commendable 11.5% revenue growth and 18.8% growth in Profit After Tax (PAT) compared to FY 2024. Key growth in drivers included the rising demand for products such as Intermediate Bulk Containers (IBC), etc. The demand in industrial packaging products, fueled by the shifting of the chemical manufacturing base from China to other Asian countries, including India. Additionally, the increased exports of chemicals, specialty chemicals, and pharmaceuticals from India played a pivotal role in accelerating growth, positioning the company to capitalize on the evolving global market dynamics.
Dahej Plant: A strong volume growth of 16% in FY25 was supported by the successful commencement of operations at our Greenfield facility in Dahej, Gujarat, which began in FY24. This facility manufactures key packaging products, including Plastic Containers and Intermediate Bulk Containers (IBCs). Building on this momentum, we have further expanded capacity, aiming to boost overall productivity and to meet rising demand.
Lote-Parshuram: We are establishing a state-of-the-art Greenfield manufacturing facility at Lote-Parshuram in the MIDC area, specializing in I BCs, Plastic Drums, and Jerry Cans. Strategically located to serve industries like agrochemicals, Solar/PV Chemicals, fruit and juice sectors, and more, the plant will offer a cost advantage through advanced technology. The company has been allotted possession of the site, and the project is on schedule for completion in Q2FY 2027.
* CAPITAL EXPENDITURE
During FY25, the Company undertook a significant capital expenditure of 221.16 million, reflecting its continued commitment to operational excellence and capacity enhancement. This investment was directed towards plant automation, debottlenecking initiatives at existing facilities, and strategic expansion at the Dahej Unit, including the installation of an additional production line for Intermediate Bulk Containers (IBCs) to cater to the robust and growing demand in the western region.
* KEY RISKS
> Raw material availability
We have faced no significant challenges in sourcing our primary raw materials. Polyethylene (PE) granules, derived from petroleum and natural gas, remain the cornerstone input across all our business segments. A substantial portion of these granules is imported from neighboring countries, with the balance procured from domestic manufacturers. Our procurement strategy is a balanced mix of open-market purchases and both short- and long-term supply agreements, ensuring stability and cost efficiency. As the global focus on sustainability intensifies, the landscape for recycled plastics continues to evolve. Despite this shift, we anticipate sustainedand potentially risingdemand for virgin polyethylene, driven by both regulatory developments and quality considerations. Countries such as China, India, Vietnam, Indonesia, the United States, and regions across Europe are increasing investments in recycling infrastructure, which is expected to support long-term demand equilibrium within the market.
Commodity price risk
The Company is exposed to fluctuations in polymer prices which are determined by the supply and demand in the Indian and international markets. Since polymers are crude derivatives, the prices also tend to follow crude prices which are volatile, and this volatility has an effect on Companys income and net profit.
* HUMAN RESOURCES OVERVIEW
At the core of our Human Resource philosophy lies a deep commitment to continuous learning and employee development. We foster a culture where every team memberregardless of their positionis encouraged and expected to pursue ongoing personal and professional growth. Continuous learning is not just a value but a prerequisite for employment within our organization. We are dedicated to offering meaningful, realistic career development opportunities that empower employees to evolve alongside the business, aligning both market dynamics and individual aspirations.
Our talent strategy emphasizes long-term capability building, ensuring that our workforce remains agile and the future ready. To support this, we provide structured training programs, upskilling initiatives, and internal mobility opportunities that inspire innovation and adaptability. Industrial relations are managed with a localized and structured approach. Responsibility rests with site- level managementat factories and warehouses, ensuring direct engagement and quick resolution of issues. Matters requiring escalation are addressed at regional or national levels, in full compliance with local labor laws and best practices, fostering a collaborative and respectful workplace environment.
INTERNAL CONTROLS AND THEIR ADEQUACY
The Company has internal control systems commensurate with the size and nature of the business and has experienced personnel positioned adequately in the organization to ensure internal control processes and compliances.
Internal control is an important component of the Companys operations and addresses all those operating methods and procedures whose objective it is to ensure:
- the reliability and integrity of the Companys financial and management information,
- effective and profitable operations that are in line with the Companys strategy,
- that the Companys assets are protected,
- that applicable legislation, guidelines, regulations, agreements and the Companys own governance and operating guidelines are complied with.
Internal Auditors comprising of professional firms of Chartered Accountants have been entrusted the job to conduct regular internal audit at all units/location and report to the management the observation, if any. The Audit findings are reported on quarterly basis to the Audit Committee of the Board headed by a Non-Executive Independent Director.
CAUTIONARY STATEMENTS
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectation may be "forward-looking" within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied. Companys operations may be impacted by various factors, including its reliance on telecommunication and information technology systems, government policies, and other influences. The Company disclaims any liability for consequences arising from decisions based on these statements and does not undertake to update them in the future.
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