Uflex Ltd Management Discussions

<dhhead>Management Discussion & Analysis</dhhead>

Global Economy

The global economy in 2025 is positioned at a strategic inflection point, navigating persistent headwinds, while exhibiting emerging
indicators of resilience. The International Monetary Fund (IMF), in its recent projections, forecasts global growth to moderate to 2.8%
in 2025. While this reflects a deceleration relative to the pre-Covid averages, it also is indicative of sustained economic expansion.
This easing in momentum is largely driven by elevated trade barriers, persistent policy uncertainty, and muted consumer sentiment,
particularly across advanced economies.

GDP Growth Projections

(in %)

	2024	2025	2026
Global Economy	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Markets and Developing Economies	4.3	3.7	3.9

(Source: https://www.imf.org/en/PubIications/WEO/Issues/2025/04/22/worId-economic-outIook-apriI-2025)

New Tariffs and a Temporary Truce: Trade Tensions Resurface

In early April 2025, the U.S. implemented a significant shift in trade policy, imposing a universal 10% minimum tariff on all imports,
citing a national emergency’ due to perceived unfair foreign trade practices. This move affected nearly all trading partners, with
China bearing the brunt, as tariffs on Chinese goods soared to 145%, prompting a reciprocal tariff hike by China on U.S. exports.
The escalation disrupted global supply chains, heightened cost pressures, and sparked volatility in financial markets. Amid rising
instability and international diplomatic pressure, the U.S. suspended additional tariff hikes for 59 countries, including the Volume
Growth and Diversified Portfolio EU, Canada, Mexico, South Korea, and Vietnam, though China was excluded. This overhaul marks a
sharp pivot toward protectionism, undermining previous free trade agreements and injecting significant uncertainty into the global
economy, while aiming to address longstanding trade imbalances.

Regional Economic Positioning
United States

The U.S. economy is now forecast to experience slower growth of 1.8% in 2025, a downward revision primarily attributed to the
combined impact of restrictive monetary policy and escalating trade disruptions. Inflation is expected to remain elevated at
approximately 3%, with recent tariff measures expected to contribute an additional one percentage point to this figure. Domestic
consumption is showing signs of contraction, while the manufacturing sector continues to face escalating input costs, driven by
persistent global supply chain bottlenecks.

China

China’s growth is projected to moderate further, with a revised forecast of 4% in 2025. This deceleration is primarily driven by a
combination of softening external demand, ongoing internal deleveraging efforts, and structural shifts towards a more consumption-
driven economy. Inflation is projected to remain subdued, with the possibility of entering deflationary territory, raising concerns
about an underlying demand weakness. Additionally, there are escalating risks of renewed credit stress, especially within the property
sector, which continues to be a significant area of vulnerability.

Euro Area

The Eurozone continues to face persistent headwinds, prompting a downward revision of GDP growth to just 0.8% in 2025. Sluggish
domestic consumption and softening external demand remain key drags on economic momentum. Compounding these bottlenecks
are rising political instability in several member countries and lingering energy security concerns, both of which continue to dampen
investor confidence, particularly in major economies such as Germany and France. Collectively, these factors are expected to weigh
heavily on the region’s economic recovery.

Emerging Markets and Developing Economies (EMDEs)

Growth across emerging markets and developing economies is showing signs of moderation, with significant slowdowns in countries
like Mexico, South Africa, and Argentina. Elevated debt burdens and depreciating currencies are intensifying inflationary pressures,
constraining policy flexibility. Additionally, many developing nations are facing tighter financing conditions and diminishing investor
interest, further amplifying underlying economic vulnerabilities.

Global Inflation Trends

The IMF’s April 2025 World Economic Outlook projects a steady decline in global inflation, from 6.8% in 2023 to 5.9% in 2024, and
further to 4.5% in 2025, driven by easing supply chain pressures, lower food and energy prices, and tight monetary policy, especially
in advanced economies. Advanced economies are expected to reach inflation targets more quickly than Emerging Market and
Developing Economies (EMDEs), where inflation will remain elevated for longer. Core inflation is set to decline more gradually,
reflecting persistent price pressures in services and wages. However, recent tariff hikes and increased policy uncertainty pose risks to
this disinflation trend, as higher import costs could raise consumer prices and hinder progress toward sustained price stability.
(Source: https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025)

Outlook

The global economy is undergoing profound structural changes, driven by technological advancements and automation, which have
reshaped labor markets and manufacturing systems, leading to productivity gains but also job displacement, wage stagnation, and
rising inequality, particularly in advanced economies. While short-term geopolitical tensions and protectionism dominate current
discourse, deeper challenges lie in the vulnerabilities of interconnected global supply chains, which are susceptible to disruptions
from tariffs, trade disputes, and other shocks, causing far-reaching ripple effects. Investment uncertainty, heightened by policy
ambiguity and trade tensions, is leading to delayed investments and tighter financial conditions, dampening economic momentum.
Meanwhile, market volatility is increasing, with risks to global growth exacerbated by prolonged trade disputes and consumer and
business uncertainty, exposing potential vulnerabilities in the global financial system as confidence wanes. Addressing these issues
requires a nuanced policy response that fosters a resilient, inclusive global trading system, moving beyond binary narratives of trade
winners and losers’ to support broad-based prosperity.

(Source: https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025)

Indian Economy

Indian economy’s growth rate is reported at 6.5% in FY 2024-25, according to the National Statistics Office’s second advance estimates
released on February 28, 2025 - standing its ground amidst a challenging global backdrop. This robust outlook reflects the resilience
of India’s domestic economic structure and the effectiveness of its calibrated policy responses in managing elevated external risks,
including persistent trade tensions and tariff-related disruptions.

The country’s economic stability is driven by strong domestic consumption, with rural demand acting as a buffer to external shocks.
Supported by robust agricultural performance and government initiatives, rural consumption remains vital. However, sustained
growth requires demand revival across both rural and urban sectors, amid labor market challenges and inflation. Structural reforms,
digital adoption, and infrastructure investment are strengthening macro fundamentals. Yet, additional reforms are needed to boost
investment and manufacturing competitiveness. Despite easing oil prices, inflation remains a key concern for the RBI’s monetary
policy.

GDP Growth Projections

(in %)

FY 2020-21	FY 2021- 22	FY 2022-23	FY 2023-24	FY 2024-25 (P)
(6.6)	8.7	7.0	8.2	6.5

(Source: https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf)

P - Projected

Union Budget 2025-26: Key Priority Areas

The Union Budget 2025-26 outlines nine key priority areas designed to drive inclusive and sustainable growth. These focus areas
include agriculture, manufacturing, urban development, energy security, green growth, youth empowerment, financial sector
development, infrastructure and investment, and reaching the last mile. Together, they reflect a strategic vision for building a resilient,
future-ready economy.

To advance these priorities, the Government of India continues to pursue an infrastructure-led growth model. For FY 2025-26, a capital
outlay of Rs. 11.21 lac crore is allocated, a slight increase from the previous year. This highlights the government’s commitment to
sustained public investment as a catalyst for long-term growth.

(Source: https://www.ey.com/en_in/technical/alerts-hub/2025/02/budget-2025-infrastructure-sector#:~:text=Budget%20
2025%2D26%2C%20core%20to,government%20has%20proposed%20various%20measures.)

Agriculture Sector Driving Growth

India’s growth vision is closely tied to the agriculture sector, which is expected to rebound with a 3.8% growth rate in FY 2024-25, up
from 1.4% in FY 2023-24. Key factors driving this recovery include a favorable monsoon, sustained rural consumption, and government
interventions like the Kisan Credit Card scheme and e-National Agriculture Market (eNAM). The Union Budget for 2025-26 allocated
Rs. 1.52 trillion to agriculture, focusing on improving credit access, developing digital marketplaces, and promoting sustainability.
The government aims to boost productivity, support farmer welfare, and strengthen allied sectors such as horticulture and livestock.
While the growth reflects steady progress, it marks a crucial phase of stabilization for sustained future development.

(Source: https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf)

Manufacturing Sector Performance

India’s manufacturing sector grew by 6.2% in FY 2024-25, a slowdown from 9.5% in the previous fiscal, reflecting broader softness
across key segments. The Index of Industrial Production (IIP) is projected to rise 5.2%, down from 5.5% last year. External factors
like subdued global demand and assertive industrial policies, alongside domestic challenges such as slower output growth and
cautious inventory buildup, weighed on performance. Seasonal disruptions, including an above-average monsoon affecting mining
and construction, compounded supply chain strains. However, India’s strong macroeconomic fundamentals, fiscal discipline, and
infrastructure investments support future industrial growth.

(Source: https://pib.gov.in/PressReleaselframePage.aspx?PRID=2091785#:~:text=The%20Quick%20Estimates%20of%20lndex%20
of%20lndustrial,as%20per%20the%20revision%20policy%20of%20IIP.)

Inflation Dynamics

Inflation dynamics in 2024 further shaped the economic narrative of the country. Throughout much of the year, Consumer Price Index
(CPI) inflation hovered above the RBI’s 4% target, mainly due to recurring spikes in food prices. A turning point came in February 2025,
when CPI inflation eased to 3.61%, falling below the target for the first time in six months, primarily driven by a steep drop in food
inflation. In contrast, Wholesale Price Index (WPI) inflation saw a slight uptick to 2.38%, reflecting upward pressure from fuel and food
prices. A concurrent decline in rural inflation also helped temper overall price levels. These evolving dynamics suggest a softening
inflationary landscape in early 2025, offering relief to consumers and potentially allowing for a more accommodative monetary policy
stance by the RBI.

(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2111710#:~:text=WPI%20Food%20lndex%20(Weight%2024.38,the%20
revision%20policy%20of%20WPI.)

Rural Income and Consumption Dynamics

India’s rural income outlook for 2025 is optimistic, driven by strong policy support and a favorable monsoon forecast. The India
Meteorological Department predicts an above normal’ monsoon, with rainfall expected to reach 105% of the long-period average,
benefiting the agrarian economy, where 60% of farmland relies on rain. A well-distributed monsoon will boost agricultural output,
particularly Kharif crops, improving rural earnings and stabilizing food prices. This will stimulate rural consumption, boosting demand
in sectors like agri-inputs, farm machinery, and FMCG. However, sustained investment in rural infrastructure and market linkages is
crucial to maintain this growth momentum.

(Source: https://blogs.krishivikas.com/india-to-receive-105-rainfall-in-2025-a-positive-outlook-for-farmers-and-the-economy/)
India’s Export Sector Performance

India’s external sector showed strong performance in FY 2024-25, with total goods and services exports surpassing USD 820 billion, a
6% increase from the previous year. This growth was led by services exports, which reached USD 354.90 billion, driven by IT, consulting,
and business process outsourcing. Merchandise exports were relatively flat, at USD 395.63 billion. Despite facing challenges from
geopolitical disruptions, such as the Red Sea shipping crisis and the Israel-Hamas conflict, India’s export sector displayed resilience,
supported by strategic diversification and adaptability. This highlights India’s growing global trade stature and ability to navigate
external headwinds.

(Source: https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-exports-cross-usd-820-bn-in-2024-25-
commerce-ministry/articleshow/120134648.cms?from=mdr)

Foreign Exchange Reserves and the Indian Rupee

India’s external sector gained further strength on the foreign exchange front, with reserves rising to USD 676.3 billion as of March 31,
2025, up from USD 648.6 billion a year earlier. This increase reflects both proactive interventions by the RBI and favorable valuation
gains on foreign assets. The sustained build-up in reserves offers India a sound cushion against external shocks, ensuring ample
import cover - particularly crucial in the context of ongoing global uncertainties.

(Source: https://www.thehindu.com/business/Economy/indias-forex-reserves-rise-to-6763-billion/article69430292.ece)

Despite navigating a turbulent global environment, the Indian rupee exhibited relative stability throughout FY 2024-25. While there
were intermittent bouts of depreciation, the currency rebounded in early 2025 and logged its sharpest monthly appreciation in over
six years in March. A strong foreign portfolio inflow and a weakening US dollar were instrumental behind this recovery. Over the full
fiscal year, the rupee registered a modest depreciation of around 2.4% against the US dollar, faring better than many other emerging
market currencies. The RBI’s timely interventions and the presence of strong forex reserves played a decisive role in mitigating
external shocks and sustaining investor confidence in the currency.

(Source: https://www.business-standard.com/finance/news/indian-rupee-logs-best-month-in-over-6-years-ends-fy25 down-2-5-

125032800756_1.html)

Outlook

India is projected to maintain a real GDP growth rate of 6.5% from FY 2025-26 to FY 2027-28, driven by strong fundamentals in
manufacturing, export sectors, and digital transformation. Key enablers such as improved competitiveness in these sectors and
a significant rise in services exports are expected to boost productivity and efficiency, reinforcing the country’s long-term growth
prospects. However, risks remain, including a potential global slowdown, particularly in major economies like the U.S. and China,
which could dampen external demand.

Domestically, delays in private corporate capital expenditure, influenced by concerns over China’s excess manufacturing capacity,
could stifle investment. Additionally, depreciation of the Chinese Renminbi could pressure India’s trade balance. Despite these
challenges, India stands to benefit from the growing adoption of the China + 1’ strategy by multinational corporations, which could
bolster its position in global manufacturing and supply chains, unlocking opportunities for investment, exports, and job creation.
(Source: https://www.ubs.com/global/en/investment-bank/insights-and-data/2024/indias-outlook-2025-2026-story.html)

Global Flexible Packaging Industry

The global flexible packaging market was valued at USD 210.62 billion in 2023 and is projected to reach USD 238.91 billion by 2029,
at a CAGR of 2.12% during the forecast period. This market spans key sectors such as pharmaceuticals, food and beverage, personal
care, and household products, with innovation driving the evolution toward smaller, more convenient pack sizes like sachets, pillow
packs, and mini pouches. Flexible packaging is increasingly viewed as an extension of the product itself, offering both functional and
aesthetic value. The sector’s growth is further fuelled by sustainability imperatives, prompting the development of recyclable and
eco-friendly formats, particularly for multi-layer plastic materials.

China, the largest contributor in the APAC region, benefits from low production costs and rapid urbanization, which align with evolving
consumer demands for convenient and sustainable solutions. Additionally, the increase in SKUs across industries necessitates
customized, versatile packaging formats. Flexible packaging’s cost-effectiveness, ease of transport, and strong performance in single-
serve and small-format applications continue to make it the preferred choice for global brands and consumers alike.

Global Flexible Packaging Market Size and Growth Rate (2020-2029)

Year	Market Size (USD Billion)	YoY Growth Rate (%)
2020	190.27	2.96
2021	195.90	2.96
2022	214.15	9.32
2023	210.62	(1.65)
2024	211.32	0.33
2025	215.19	1.83
2026	220.19	2.33
2027	225.85	2.57
2028	232.09	2.76
2029	238.91	2.94

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

Market by Geography

APAC

Largest segment in 2029
APAC

The Asia-Pacific (APAC) flexible packaging market was valued at USD 80.74 billion in 2023 and is projected to reach USD 94.67 billion by
2029, at a CAGR of 2.69% during the forecast period. APAC is expected to dominate the global flexible packaging landscape, supported
by high domestic demand, cost-effective labour, and expanding manufacturing infrastructure. These advantages are attracting
global players to increase investments, enter strategic partnerships, and launch innovative offerings aimed at consolidating their
position in the region. Growth is further boosted by economic development, a rising workforce, and strong demand from the food
and pharmaceutical sectors. However, the region’s fragmented market structure and geographic scale, particularly in China and India,
pose supply chain complexities. Companies that diversify sourcing and streamline procurement processes will be better positioned to
meet local brand expectations. The market spans a wide product range from affordable sachets to premium packaging with notable
expansion anticipated in convenience-driven, protective formats across food, pharma, and industrial use cases.

APAC Flexible Packaging Market Size and Growth Rate (2020-2029)

Year	Market Size (USD billion)	YoY Growth Rate (%)
2020	70.91	3.56
2021	73.43	3.56
2022	80.73	9.95
2023	80.74	0.01
2024	81.46	0.89
2025	83.42	2.40
2026	85.83	2.89
2027	88.53	3.14
2028	91.47	3.33
2029	94.67	3.49

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

Europe

The Europe flexible packaging market was valued at USD 58.66 billion in 2023 and is projected to reach USD 65.58 billion by 2029, at
a CAGR of 1.88% during the forecast period. Market growth is supported by economic stability and rising disposable incomes, with
advanced technologies such as aseptic, retort, anti-counterfeit, and child-resistant packaging giving vendors a competitive advantage.
Increasing demand across key sectors—coffee, pet food, and fresh foods—continues to drive production and innovation. A significant
trend in the region is the shift from rigid to flexible packaging, particularly suited to smaller households and single-serve consumption,
as modern lifestyles prioritise convenience and portability. Western Europe leads the market, with mature consumption patterns in
countries like Germany, France, Belgium, and the Netherlands, while Eastern Europe is poised for faster growth due to improving
consumer purchasing power. However, challenges persist especially for high-volume exporters stemming from Brexit-related trade
disruptions, which have introduced uncertainties across cross-border supply chains, particularly affecting the packaging sector.
Europe Flexible Packaging Market Size and Growth Rate (2020-2029)

Year	Market Size (USD Billion)	YoY Growth Rate (%)
2020	53.72	2.73
2021	55.19	2.73
2022	60.20	9.07
2023	58.66	(2.56)
2024	58.71	0.09
2025	59.64	1.59
2026	60.88	2.08
2027	62.30	2.32
2028	63.86	2.51
2029	65.58	2.68

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

North America

The North America flexible packaging market was valued at USD 48.66 billion in 2023 and is projected to reach USD 52.62 billion by
2029, at a CAGR of 1.31% over the forecast period. Growth is being driven by the expansion of e-commerce, especially in high-volume
categories like personal care products and pet foods, which is increasing the demand for flexible sacks and FIBCs. The region—
particularly the United States, the largest revenue contributor—has a mature and resilient economy, with rising consumer spending,
dining-out frequency, and retail activity, all favouring packaging growth. Flexible plastic films and resins dominate due to their cost-
efficiency, durability, and versatility, particularly in the food and beverage sector, where product protection and shelf life are critical.
Additionally, smart packaging innovations such as RFID and QR codes are enhancing supply chain visibility, product authentication,
and consumer interaction, particularly in pharmaceutical and food segments. The increasing preference for portable pouches in food
and personal care further supports market expansion across the region.

North America Flexible Packaging Market Size and Growth Rate (2020-2029)

Year	Market Size (USD Billion)	YoY Growth Rate (%)
2020	45.32	2.14
2021	46.29	2.14
2022	50.20	8.44
2023	48.66	(3.05)
2024	48.45	(0.44)
2025	48.95	1.02
2026	49.68	1.51
2027	50.55	1.75
2028	51.53	1.94
2029	52.62	2.11

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

Latin America

The Latin America flexible packaging market was valued at USD 14.83 billion in 2023 and is projected to reach USD 17.25 billion
by 2029, at a CAGR of 2.55% during the forecast period. This growth is largely fuelled by a growing middle-class population and
rising disposable incomes, which are driving increased consumption and packaging needs outpacing the more mature markets of
North America and Europe. Brazil and Mexico lead the region’s flexible packaging landscape, especially in the pet food segment, with
Brazil ranked as the second-largest pet food market globally. The country’s strong grain production base supports this industry, and
continued growth in both agriculture and services is expected to boost the overall demand for flexible packaging. Latin America is
also a key global exporter of meat, poultry, and seafood, necessitating durable and efficient packaging for international shipping.
Brazil plays a central role in the region’s retail and consumer ecosystem, boasting over 90,000 retail outlets across healthcare, food,
electronics, and pet care categories. With ongoing recovery in Brazil’s economy and rising investment in organized retail, the region’s
demand for flexible packaging is poised to grow steadily in the years ahead.

Latin America Flexible Packaging Market Size and Growth Rate (2020-2029)

Year	Market Size (USD Billion)	YoY Growth Rate (%)
2020	13.31	3.43
2021	13.77	3.46
2022	15.12	9.82
2023	14.83	-1.91
2024	14.94	0.75
2025	15.28	2.27
2026	15.70	2.76
2027	16.17	3.00
2028	16.69	3.19
2029	17.25	3.36

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

Middle East & Africa

The Middle East & Africa flexible packaging market was valued at USD 7.72 billion in 2023 and is projected to reach USD 8.79 billion
by 2029, at a CAGR of 2.19% during the forecast period. Despite relatively low per capita consumption compared to mature markets
like Europe and North America, the region holds significant growth potential. Economic expansion in countries such as Turkey, the
UAE, and Saudi Arabia is driving demand for flexible plastic packaging, especially in food, pharmaceuticals, and consumer goods.
However, challenges such as economic volatility in parts of Africa, lingering effects of global recessions, and underdeveloped logistics
infrastructure in several African nations could hinder growth. Nonetheless, key urban centers like Dubai, Abu Dhabi, Riyadh, and
Doha are witnessing increasing demand. As economies rebound post-pandemic and post-conflict disruptions, countries like Saudi
Arabia, Kuwait, and Qatar are positioned to see sustained packaging demand. The region is also home to a large number of small
and medium enterprises (SMEs), creating ample opportunity for larger global players—such as Amcor, Constantia Flexibles, and
Huhtamaki Group—to expand beyond their current hubs in South Africa and the UAE.

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

Middle East & Africa Flexible Packaging Market Size and Growth Rate (2020-2029)

Year	Market Size (USD Billion)	YoY Growth Rate (%)
2020	7.01	3.03
2021	7.22	2.99
2022	7.90	9.40
2023	7.72	-2.26
2024	7.75	0.39
2025	7.90	1.90
2026	8.09	2.39
2027	8.30	2.64
2028	8.54	2.83
2029	8.79	3.00

(Source: GLOBAL FLEXIBLE PACKAGING MARKET2024-2029 - Arizton)

Growth Drivers

Evolving Consumer Preferences

Modern consumers increasingly demand packaging that combines functionality, convenience, and sustainability. There is a distinct
shift towards minimalistic, mono-material designs that balance usability with aesthetic appeal. This is particularly evident in the
food, beverage, and personal care sectors, where hygienic and visually appealing packaging has become a priority, especially in the
post-pandemic era.

Boom in Online Food Delivery

Urbanisation, mobile commerce, and changing lifestyles are driving exponential growth in online food ordering. The rise of dark
kitchens and platforms has led to increasing demand for disposable food containers, bowls, and trays. As food delivery becomes an
integral part of urban life, its packaging needs will continue to expand.

Packaging as a Brand Enabler

Beyond its protective role, packaging is now a critical element of marketing and brand differentiation. Companies are leveraging
packaging to influence consumer behavior and reinforce brand identity through limited editions, unique structural designs, and
interactive features such as QR codes. This enhances customer engagement and fosters brand loyalty in a crowded retail environment.

Innovation in Packaging Design

Demand for single-serve, multi-pack, and miniaturised packaging is rising, especially in health, beauty, and food segments. These
formats support on-the-go lifestyles and cater to portion control needs. Concurrently, the push for recyclable, compostable packaging
is prompting brands to adopt eco-friendly materials like biodegradable plastics and plant starch. Visual appeal, portability, and
sustainability are converging in next-generation designs.

Digital Transformation and Smart Packaging

Technological advancements are reshaping packaging solutions. Tools like RFID and blockchain are enhancing traceability, supply
chain transparency, and anti-counterfeiting efforts. Smart packaging equipped with sensors enables real-time tracking and
personalized experiences, while AI-driven design is helping optimize materials and reduce waste. These innovations also support
circular economy objectives by improving efficiency and end-of-life handling.

Shift to Flexible and Paper-Based Packaging Flexible plastics continue to lead market growth due to their convenience and cost-
effectiveness. Simultaneously, there is a marked shift toward paper and paperboard alternatives driven by sustainability imperatives.
Products like folding cartons, corrugated boxes, and molded fiber packaging are gaining traction, particularly in food, cosmetic, and
electronics sectors. E-commerce expansion further fuels demand for durable, eco-friendly formats.

Focus on Food Safety and Advanced Adhesives

Hygiene, safety, and shelf life are paramount in food and pharmaceutical packaging. Innovations in adhesives and substrates are
enabling tamper-evident features and integrity-preserving properties. Reusable formats are also gaining adoption in grocery delivery
and personal care, providing sustainable options without compromising product safety.

Sustainability and Regulatory Compliance

With rising environmental concerns, governments are tightening regulations on packaging waste and mandating Extended Producer
Responsibility (EPR). Laws such as the EU’s Packaging Waste Directive and global plastic taxes are compelling brands to transition to
recyclable, compostable, and reusable materials. In response, several leading companies have pledged to make their packaging fully
sustainable by 2025-2030, accelerating the industry’s green transformation.

Market Opportunities
Vendor-Led Product Innovation

Global packaging vendors are actively investing in new product platforms to stay ahead of regulatory and consumer expectations.
These innovations are expanding product portfolios and geographic reach, supporting long-term growth.

Growth in Tamper-Proof Packaging

Increased regulatory scrutiny and the need for product safety are driving demand for tamper-proof packaging, especially in food,
beverage, and pharmaceutical sectors. This packaging not only ensures integrity but also builds consumer trust. The visible evidence
of tampering provides an extra layer of assurance, particularly for high-value or sensitive products.

Emergence of Reusable Packaging Models

Reusable packaging is gaining traction as sustainability concerns mount. Durable materials like aluminium and stainless steel are
being adopted for products traditionally packaged in plastic. These formats support waste reduction and align with circular economy
goals.

Market Challenges

High Cost of Plastic Recycling

Recycling rigid plastic packaging remains capital-intensive, requiring significant energy, labour, and water for cleaning and
processing. For many SMEs, producing new plastic packaging is more economical than recycling. Additionally, most packaging plants
are configured for virgin plastic processing, making recycling infrastructure upgrades costly and complex.

Risk of Food Contamination

Packaging materials can sometimes be a source of contamination, especially when harmful chemicals migrate into food. Substances
like PFAS, phthalates, and mineral oils—often present in recycled or treated materials—pose health risks when exposed to heat
or poor processing. Cross-contamination during packaging processes can also compromise product integrity, particularly in food
production lines.

Environmental Impact of Plastic Waste

Plastic packaging continues to be a major contributor to global waste. Most food delivery disposables are made from non-degradable
polymers like polystyrene, which are not only difficult to recycle but also release carcinogens upon degradation. Increasing public
awareness and government interventions are pushing the industry to phase out single-use plastics, creating both regulatory and
reputational pressures for packaging companies.

Outlook

The global flexible packaging market is expected to see steady, broad-based growth through the next decade, with expanding
applications in food, healthcare, personal care, and digital commerce. Its inherent cost-effectiveness, adaptability, and environmental
advantages position it as a frontrunner in the packaging sector’s transformation. Going forward, sustainability, digitalisation, and
intelligent packaging functionalities will define competitive advantage. Companies that invest in closed-loop solutions, AI-enabled
design, and next-generation film technologies will be best positioned to lead in a market shaped by shifting consumer priorities,
stricter regulation, and climate-aligned innovation.

Indian Flexible Packaging Industry

The India flexible packaging market is set to witness strong expansion, with the market size expected to increase by USD 17.49 billion
between 2024 and 2029, at a CAGR of 12.7%. This high-growth trajectory is being driven by the country’s increasing demand for
lightweight, cost-effective, and sustainable packaging solutions. Flexible packaging—comprising products such as pouches, bags,
films, and wraps—is gaining momentum across end-user segments like food and beverages, pharmaceuticals, personal care, and
household goods due to its versatility, efficiency, and ability to extend product shelf life. The industry also offers a promising entry
point for global players seeking to tap into the evolving Asia-Pacific packaging ecosystem.

India Flexible Packaging Market

(in USD billion)

	2024	2029
CAGR: 12.7%	21.36	38.85

(Source: Flexible Packaging Market in India 2025-2029-Technavio)

Government Initiatives

Extended Producer Responsibility (EPR) Mandate: FY 2025-26

Extended Producer Responsibility (EPR) is a regulatory framework that mandates Producers, Importers, and Brand Owners (PIBOs) to
take ownership of their packaging materials throughout their entire lifecycle - from production to post-consumer waste management
and final disposal. Designed to minimize environmental impact, EPR encourages waste reduction, boosts recycling efforts, and fosters
a more sustainable and resource-efficient packaging ecosystem.

Key Highlights

• Mandatory Registration

All PIBOs must register with the Central Pollution Control Board (CPCB) via a centralized EPR portal before conducting any
packaging-related business operations.

• Lifecycle Accountability

PIBOs are responsible for the end-to-end management of their packaging waste across different material types, including paper,
plastic, glass, metal, and sanitary products, ensuring environmentally sound collection, recycling, and disposal.

• Recycled Content and Reuse Obligations

Effective April 1, 2025, packaging must meet minimum thresholds for recycled content and include provisions for material reuse,
in alignment with circular economy principles.

• Traceability and Labeling Requirements

Starting July 1, 2025, all plastic packaging must feature a barcode, QR code, or unique identifier to enable traceability. This
information will be submitted to the CPCB and made publicly accessible via a centralized database, updated quarterly.

• Waste Collection Mechanisms

Producers must establish robust collection systems and collaborate with recyclers to ensure responsible end-of-life product
handling.

• Enforcement and Penalties

Non-compliance with ERP regulations will attract stringent penalties under the Environment (Protection) Act, 1986, highlighting
the need for strict accountability and compliance among stakeholders.

Food Safety and Standards (Packaging and Labeling) Regulations, 2011

This initiative, unveiled on August 5, 2011, is designed to establish comprehensive standards for the packaging and labeling of food
products, with the dual goals of ensuring consumer safety and enhancing product traceability. These regulations cover a wide range
of requirements, including definitions, labeling norms, and packaging material standards for all food products sold in India. These
labelling guidelines mandate clear and accurate information about ingredients, nutritional content, allergens, expiry dates, and
the manufacturer’s details. Additionally, the regulations specify that packaging materials must be safe, non-toxic, and food-grade,
ensuring that food remains free from contamination and retains its quality. Administered by the Food Safety and Standards Authority

of India (FSSAI), these regulations are essential for maintaining the safety and transparency criteria of food products for consumers.
In January 2025, Food Safety and Standards Authority of India (FSSAI) announced a standard enforcement timeline for amendments
to the Food Safety and Standards (Labeling and Display) Regulations, 2020. According to this policy, all amendments will come into
effect on July 1 each year, with a minimum compliance window of 180 days from the date of notification. This framework aims
to streamline regulatory compliance for food businesses and ensure that consumers receive accurate and up-to-date labeling
information.

FSSAI Regulations on Recycled Plastics in Food Packaging

In a significant regulatory development, the FSSAI introduced an amendment on March 28, 2025, permitting the use of select categories
of recycled plastics in food packaging. This move marks a major step towards integrating sustainability into food systems without
compromising safety. Under the amendment, only recycling technologies approved by FSSAI are allowed. To ensure transparency
and accountability, all such packaging must carry mandatory traceability labels. Moreover, food businesses will be subjected to
regular audits and compliance checks to ensure adherence to the prescribed safety and quality standards.

Plastic Waste Management (PWM) Rules, 2016

The Plastic Waste Management (PWM) Rules, 2016 were enacted to create a robust regulatory framework for the systematic
management of plastic waste, particularly plastic packaging, across India. The primary objective is to curb plastic waste pollution by
promoting responsible disposal, recycling, and waste management practices.

Ban on Single-Use Plastics

The Ban on Single-Use Plastics, introduced in July 2022, marked a critical step in India’s efforts to mitigate the environmental
damage caused by low-value, non-recyclable plastics. Targeting 19 specific single-use plastic items, such as plastic straws, cutlery,
and certain types of packaging, the ban aims to reduce plastic pollution. The ban directly impacts packaging manufacturers and
brands, prompting them to seek sustainable alternatives for packaging. It encourages them to adopt eco-friendly solutions, such as
biodegradable or recyclable materials, as part of India’s effort to long-term environmental stewardship.

India Plastics Pact

The India Plastics Pact, was launched in September 2021 as a collaborative effort by the Confederation of Indian Industry (CII) and
WWF India, with support from WRAP. It is a bold step towards establishing a circular economy for plastic packaging in India by 2030.
The roadmap for implementation was released on August 25, 2022. The Pact sets out ambitious targets including making 100% of
plastic packaging as reusable, recyclable, or compostable by 2030. It also seeks to ensure that 50% of plastic packaging is effectively
recycled and that all plastic packaging contains an average of 25% recycled content. Additionally, the initiative focuses on eliminating
unnecessary or problematic plastic packaging through design innovation and systematic transformation, aligning industry practices
with environmental sustainability.

Legal Metrology (Packaged Commodities) (Amendment) Rules, 2015

This Act granted an extended timeline for compliance in light of the Covid-19 pandemic. Businesses were permitted to use pre-
printed packaging materials until January 1, 2025. This measure was introduced to support a smoother transition to updated labeling
standards, while minimizing waste and avoiding disruptions to operations.

Outlook

India’s flexible packaging industry is poised for sustained double-digit growth, driven by structural consumption shifts, increased
urbanisation, the boom in e-commerce, and growing demand for processed food. With rising logistics costs, businesses are gravitating
toward lighter, compact, and durable packaging to lower shipping expenses and improve supply chain efficiency. The government’s
focus on Make in India, sustainability regulations, and support for MSMEs creates a favourable policy environment for long-term
growth. However, to capture this potential, players will need to balance cost-efficiency with compliance, invest in green technologies,
and build local recycling partnerships to adapt to India’s evolving regulatory landscape.

(Source: Flexible Packaging Market in India 2025-2029-Technavio)

Company Overview

We, at UFlex Limited (‘UFlex’ or We’ or the Company’), began our journey in 1985, and steadily transformed into India’s largest
multinational in flexible packaging and solutions company. Over the past three decades, we shaped the packaging industry with
pathbreaking innovations, setting new benchmarks both in India and across global markets. Driven by our commitment to excellence,
customer centricity, and long-term value creation, we scaled into a multi-billion-dollar enterprise, upholding the trust of stakeholders
worldwide.

We offer end-to-end packaging solutions that span the entire value chain - from the production of resins and packaging films to
the manufacturing of flexible and aseptic packaging, holography, printing and packaging machinery, and specialty chemicals. Our
integrated capabilities ensure that our solutions become a seamless part of everyday life, serving wide range of industries.

With a diverse product portfolio and a robust global footprint, we serve as a trusted partner to leading global brands and a preferred
solutions provider among packaging companies worldwide. Our globally benchmarked packaging solutions are designed to preserve
freshness and extend the shelf life of food and other products. Guided by a quality-led, customer-first approach, we consistently
redefine excellence in packaging, delivering leading-edge materials and technologies that shape the future of the industry.

Business Segments

Packaging Films

Chemicals

Aseptic Packaging

Flexible packaging

Holography

Engineering

Printing Cylinders

PACKAGING FILMS

UFlex is India’s largest end-to-end flexible packaging materials and solutions provider, serving a vast range of industries across the
globe. Our Packaging Films business is driven by innovation and scale, offering a comprehensive portfolio of high-performance
films and raw materials that meet the diverse packaging needs of customers around the world. With our manufacturing facilities
strategically located in India (Noida, Dharwad, Panipat), the UAE, Egypt, Poland, Mexico, the USA, CIS, Hungary, and Nigeria, we have
built a strong global presence, supported by advanced technology and substantial production capacity.

The Research and Development laboratory of the Packaging Films business, known as the Testing and Research Centre (TARC),
has been accredited with ISO/IEC 17025:2017 by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
This prestigious certification affirms TARC’s technical competence and commitment to delivering reliable, high-quality testing and
calibration services in accordance with internationally recognized standards.

Our product portfolio includes:

• BOPET (Biaxially Oriented Polyethylene Terephthalate) films are crafted using high-quality resins, offering exceptional
mechanical strength, chemical resistance, and excellent oxygen barrier properties. These films also provide superior surface
receptivity for coatings and high abrasion resistance. With world-class production facilities across multiple regions, our global
BOPET production capacity stands at 4,01,800 MTPA.

• BOPP (Biaxially-Oriented Polypropylene) films, produced at our facilities in India, Egypt, and Hungary, have a cumulative
production capacity of 1,50,200 MTPA. These films are renowned for their tensile strength, optical clarity, and moisture
resistance. Their rigidity, heat stability, and cost-efficiency make them an ideal choice for packaging food, beverages, and
electronics. Additionally, BOPP films are resistant to oils, grease, chemicals, and environmental changes, ensuring product
protection and durability.

• CPP (Cast Polypropylene) films are manufactured at our plants in India (Noida and Dharwad), Egypt, the UAE, and CIS. In FY
2024-25, we expanded our capacity with a new CPP film line in Mexico, which adds 18,000 MTPA, bringing our total global CPP
production capacity to 84,160 MTPA. This strategic addition enables us to better serve our customers across North and South
America.

• We are also a major producer of metalized films, manufactured at all of our facilities worldwide, with a cumulative capacity of
2,38,600 MTP. These films are ideal for packaging products requiring extended shelf life and enhanced protection. Additionally,
we offer high-barrier metalized films for industries with advanced packaging requirements.

• Our AlOx-coated transparent ultra-high barrier films are widely used in stand-up pouches, providing consumers with clear
visibility at the point of sale while ensuring superior protection against moisture and gases.

To support our vertically integrated operations, we run a poly-condensed polyester chips plant in Panipat, India, and Egypt, with a
cumulative capacity of 3,84,000 MTPA. This integration strengthens our supply chain and ensures consistent quality control and raw
material availability.

As part of our commitment to sustainability, we operate Post-Consumer Recyclate (PCR) PET chip facilities in India, Mexico, and Egypt,
with a total production capacity of 43,020 MTPA. These facilities recycle post-consumer PET bottle waste into high-quality resin chips,
which we upcycle to create our sustainable packaging films under the Asclepius™ brand.

Industry Opportunity

The global packaging films market is projected to grow from USD 105.4 billion in 2024 to USD 159.7 billion by 2033, reflecting a
CAGR of 4.7% during the forecast period. This steady growth is being driven by a host of factors, including increasing demand for
lightweight, flexible, and cost-effective packaging solutions. The upward trend is particularly visible in the food and beverage sector,
where packaging films play a crucial role in ensuring product safety, extending shelf life, and offering convenience. High-barrier
films are gaining significant popularity, especially in the packaging of meat, seafood, and poultry, due to their superior protective
properties that help maintain product freshness and quality. Furthermore, innovative applications, such as stand-up pouches and
easy-pour spouts, are witnessing greater adoption owing to their user-friendly features and ability to enhance product appeal.

Global Packaging Films Market

(in USD billion)

	2024	2033
CAGR: 4.7%	105.4	159.7

(Source: https://www.marketsandmarkets.com/Market-Reports/packaging-fiIm-market-1283.htmI)

FY 2024-25 Highlights

Rebound in Packaging Films Business

In FY 2024-25, our Packaging Films business experienced a remarkable resurgence, particularly in the BOPET segment. This rebound
was driven by favorable industry spreads and improved pricing discipline among domestic players. Utilization levels reached
impressive highs across key geographies, emphasising the operational momentum we have been able to maintain globally.

While domestic demand remained strong, we took steps to optimise certain legacy production lines in India, which had been
operating below optimal levels, to improve overall efficiency and performance. However, this was offset by a surge in demand for
high-margin specialty films, largely fueled by short-cycle orders from leading FMCG brands. This trend clearly signals a growing
industry preference for customized, value-added packaging formats over traditional commodity films.

Strategic Expansion of Raw Material Capabilities

One of our major strategic milestones this year was the commissioning of our PET chip manufacturing facility in Egypt.

Meanwhile, our PET chip manufacturing unit in Panipat ramped up operations, strengthening our internal supply chain. These
developments mark important steps toward vertical integration and risk mitigation in our sourcing strategy.

Sustainability Milestones and Innovation

Sustainability remains a core pillar of our growth strategy. Our PET bottle-to-bottle recycling plant in India operated at optimal
capacity. In response to rising demand, construction of a second plant is already underway.

Embracing the Shift Towards Value-Added Solutions

Throughout the year, our Packaging Films segment benefitted from a pronounced shift in market preferences. Clients - especially
from the FMCG sector - are increasingly favoring specialized, high-margin films over conventional commodity products. The influx of
short-cycle orders is evidence to our agility, innovation, and commitment to delivering performance-driven, customized packaging
solutions.

Product Launches
F-ETS

It is a specialized one-side MST-coated transparent BOPET film designed for secondary packaging of pharmaceutical tablets and pills.
Developed using proprietary technology, it offers a sustainable alternative to traditional cellophane-coated films for strip-to-paper
sealing applications. A key feature of F-ETS is its easy tearing property in both machine and transverse directions, ensuring user
convenience without compromising packaging integrity. The film is coated with a water-based layer that provides calibrated heat
seal strength when bonded with pharmaceutical-grade wrapper paper. With excellent gloss, good transparency, and compatibility for
single-web lamination with aluminum foil, F-ETS is ideally suited for tablet strip packaging where the MST-coated side is sealed with
paper for easy fiber tearing. The untreated side can be laminated with aluminum foil, while the MST-coated surface enables efficient
sealing.

F-MEX-M

F-MEX-M is a high-performance metallized BOPET film available in optical densities ranging from 2.2 to 2.8, offering customers
versatility across a wide range of applications. Engineered for efficiency and performance, the film is suitable for extrusion coating
on both sides without the need for additional priming. It ensures clean processing with no solvent emissions or residuals during
extrusion, making it an environmentally friendly choice. Designed for direct adhesion with extruded polyethylene, F-MEX-M delivers
excellent barrier properties and is well-suited for hot fill applications, providing both durability and functionality in demanding
packaging environments.

B-TCM-M

B-TCM-M is an 8-micron high-barrier, non-heat sealable metallized BOPP film designed to support sustainable packaging solutions.
As the thinnest metallized BOPP film in its category, it offers a low GSM and high linear mileage, making it an efficient and eco-friendly
option. With a high optical density of 2.8, B-TCM-M ensures excellent metal brilliance and superior barrier performance. It features
good metal adhesion and strong adhesive bonding, enhancing its durability in end-use applications. Ideal for cold release processes
and paperboard lamination, this film meets the demands of both performance and sustainability in modern packaging.

B-TDF

B-TDF is a heat-sealable transparent BOPP film designed with a diamond COF (Coefficient of Friction) of 0.80 on the sealing side,
ensuring consistent slip performance. The reverse side is surface-treated to offer excellent printability and strong lamination
bonding. With features such as good extrusion bond strength, dimensional stability, and superior optics, B-TDF is ideal for demanding
packaging applications. Its robust properties make it particularly well-suited for use in heavy-duty bags, including pet food and rice
packaging, where durability and visual appeal are essential.

F-HSA

F-HSA is a transparent BOPET film featuring a one-side heat-sealable surface with excellent anti-fog properties, while the other side
remains untreated. Designed for high-performance packaging, this film provides strong sealing to itself as well as to substrates like
APET, CPET, PVDC, and PVC. It offers outstanding anti-fog performance in both hot and cold conditions, along with excellent clarity
and transparency. These characteristics make F-HSA ideal for food tray sealing and tack seal applications, ensuring product visibility
and freshness throughout the packaging lifecycle.

B DSC AA - Dual Acrylic-Coated BOPP Film

B DSC AA is a premium-grade biaxially oriented polypropylene (BOPP) film featuring acrylic coatings on both surfaces. Engineered
for modern flexible packaging, it delivers superior seal integrity, excellent hot tack, and compatibility with both lap and fin sealing
formats. Its outstanding optical clarity, high gloss, and robust barrier properties ensure enhanced product visibility while preserving
freshness and aroma. With reliable ink adhesion and a stable coefficient of friction (COF), it ensures consistent performance across
diverse machinery. Ideal for monolayer pouches, this film is perfectly suited for tamper-evident and aesthetically appealing packaging
of snacks, baby food, biscuits, tobacco products, and fragrance-sensitive goods like tea and incense.

B DSC AL - Acrylic-Coated Low SIT BOPP Film

B DSC AL is an advanced acrylic and low-seal initiation temperature (SIT) coated BOPP film tailored for high-speed packaging
operations. With a SIT as low as 65?C, it ensures rapid sealing, enhanced productivity, and excellent hot tack performance. This film
offers high gloss, clarity, and an exceptional barrier to flavor and aroma, thereby maintaining product freshness throughout the
supply chain. Designed for use in transparent monolayer pouch applications, it is ideal for packaging dairy products, ice cream,
chocolate, confectionery, and bakery items where both visual appeal and freshness retention are essential.

B DSC DA - High-Barrier PVDC-Acrylic Coated BOPP Film

B DSC DA combines a PVDC coating on one side and an acrylic coating on the other to provide a high-barrier BOPP film solution. It
delivers superior protection against oxygen (OTR <15 cc/m²/day) and moisture (WVTR <5 gm/m²/day), retaining product integrity and
freshness even in high humidity conditions. Its excellent heat sealability, optical brilliance, and versatility in sealing combinations
(acrylic-to-acrylic, PVDC-to-PVDC, and cross-combinations) make it ideal for packaging oxygen-sensitive and high-fat products such
as biscuits, dairy, and baked goods. Compatible with both VFFS and HFFS machinery, it is a robust solution for preserving flavor,
aroma, and shelf life.

B DSC DL - Low SIT PVDC-Coated High-Barrier BOPP Film

B DSC DL is a high-performance BOPP film featuring a PVDC barrier layer and a low-temperature sealable surface with a SIT as low
as 65?C. This film combines clarity with high oxygen and aroma barrier capabilities, ensuring optimal freshness preservation across
a variety of packaging formats. Its low-temperature sealing performance supports high-speed line efficiency, while improved fat
migration resistance enhances product shelf life and packaging integrity. Ideal for snacks, dry foods, pet food, and bakery products,
B DSC DL delivers both visual appeal and functional reliability in modern flexible packaging.

B TMA - Dual Heat-Sealable BOPP Film for Pharmaceutical Applications

B TMA is a specialized BOPP film designed for pharmaceutical packaging, particularly suited for sterilized applications like syringes.
Featuring heat-sealable surfaces on both sides, it maintains excellent seal strength post gamma radiation exposure. The film also
exhibits low friction, anti-static properties, and exceptional optical clarity, ensuring secure and efficient packaging. B TMA supports
sterile presentation and handling while preserving the integrity and freshness of sensitive medical products.

B TLL - Ultra-Low SIT Transparent Heat-Sealable BOPP Film

B TLL is a transparent BOPP film engineered for low-temperature sealing applications with an ultra-low SIT below 85?C. Its rapid
sealing capability, excellent hot tack, and consistent processing behavior ensure reduced energy consumption and enhanced line
speeds. With superior optical quality and seal strength, this film maintains product freshness and integrity while offering excellent
printability. It is ideally suited for packaging snacks, sandwiches, baked goods, and confectionery where both presentation and
performance are critical.

B TMS M - Metallized High-Barrier BOPP Film

B TMS M is a metallized BOPP film that delivers a striking metallic appearance alongside exceptional barrier properties. With a WVTR
of 0.3 gm/m²/day and an OTR of 60 cc/m²/day, it offers superior protection against moisture and oxygen, thereby extending product
shelf life and maintaining freshness. Its strong metal adhesion and high bond strength make it ideal for extrusion lamination. Perfect
for packaging biscuits, snacks, and confectionery, it ensures premium product appeal and robust performance on high-speed HFFS
and VFFS equipment.

F MRC M - Release-Coated Metallized Polyester (BOPET) Film

F MRC M is a high-performance metallized polyester film featuring a modified release coating on one side and enhanced metallization
transfer capabilities on the other. Designed for specialized applications requiring moisture resistance and easy release, it performs
exceptionally under high temperatures. With strong structural integrity and barrier characteristics, this film is ideally suited for self-
adhesive waterproof membranes and industrial liners, ensuring dependable protection and process efficiency.

B TAO - One-Side Acrylic-Coated Transparent BOPP Film

B TAO is a transparent BOPP film with an offline-applied acrylic coating on one side. With a low SIT of 85?C, it enables efficient
sealing while safeguarding the product’s original aroma and freshness. Its water-based coating, combined with excellent optical
properties and dimensional stability, makes it an eco-friendly choice for overwraps in bakery, confectionery, and snack packaging
where freshness and visual clarity are paramount.

B TAL - Ultra-Low SIT Transparent Acrylic-Coated BOPP Film

B TAL is a transparent BOPP film with an ultra-low SIT of 65?C, coated on one side with water-based acrylic via offline technology. It
delivers superior aroma and flavor retention, ensuring that freshness is sealed in from the moment of packaging. With high optical
quality, stiffness, and dimensional stability, this film is ideal for bakery, chocolate, and confectionery applications that demand
superior shelf appeal and product protection.

B TAA - Dual Acrylic-Coated Ultra-Low SIT Transparent BOPP Film

B TAA is a dual-side acrylic-coated transparent BOPP film featuring an ultra-low SIT of 65?C. This film offers exceptional hot tack,
flavor and aroma barriers, and high clarity. With excellent print resolution, stiffness, and hot slip properties, it ensures a premium
packaging experience. Ideal for wrapping bakery items, confections, and chocolates, B TAA enhances both visual presentation and
product freshness.

B UNB M - High-Barrier Non-Sealable Metallized BOPP Film

B UNB M is a metallized, non-heat-sealable BOPP film designed as a high-barrier alternative to aluminum foil and PVDC-coated films.
Offering ultra-low oxygen (<0.1 cc/m2/day) and moisture (<0.1 gm/m2/day) transmission rates, it ensures maximum preservation of
freshness and aroma. With excellent metal adhesion and a sustainable, chlorine-free profile, it is ideal for dry fruits, chocolates, and
beverage packaging requiring superior barrier performance and environmental responsibility.

C CPR CH - Transparent CPP Film for Cheese Packaging

C CPR CH is a co-extruded, transparent cast polypropylene (CPP) film developed specifically for cheese packaging. Featuring dual-
side sealability and advanced raw material technology, it delivers excellent sterilization resistance, high seal strength, and strong
lamination bond. This film ensures long-lasting freshness and structural integrity, making it a reliable solution for preserving the
quality and taste of cheese products.

Outlook

As we look to FY 2025-26, we anticipate continued steady growth in our Packaging Films business. This will be supported by improved
margins and better utilization across both existing and recently commissioned facilities, including the PET chip plant in Egypt and the
CPP line in Mexico. The BOPP market in India is expected to remain stable in the early part of the year. For BoPET, pricing is expected
to remain firm for the next one to two years, barring the entry of new capacities.

Strategic Capacity Expansion

We commissioned a virgin PET chips plant in Egypt with an annual production capacity of 2,16,000 MT. The facility supplies super-
clear, high-quality chips for PET film lines.

Additionally, our wholly owned subsidiary Flex Middle East FZE, Dubai, has incorporated a step-down subsidiary, FLEX FILMS AZB
AFEZCO, in Azerbaijan. This new entity will develop a BOPP film manufacturing facility aimed at serving both the domestic Azerbaijani
market and neighboring CIS and European regions—highlighting our commitment to regional diversification and supply proximity.

Maximizing Global Capacity and Specialty Focus

Our priority remains at optimizing utilization across overseas operations in Europe, Nigeria, Dubai, and Egypt while continuing to focus
on value-added films. These specialized products are especially important in competitive market environments, where customization
and shorter lead times offer a clear edge.

We also see strong potential in Post-Consumer Recyclate (PCR) chips, as regulatory developments in India and Europe drive demand
for recycled content. With our early investments in this space, we are well-placed to support this shift and potentially benefit from
favorable early-cycle margins.

Domestic Growth and Market Diversification

India’s packaging industry is projected to grow at 10-12% in FY 2025-26, which will strengthen domestic demand and reduce our
reliance on exports. This shift will help balance capacity deployment and offer more stability across regions. We are also keeping
a close watch on the U.S. market, where structural gaps between demand and local supply could offer long-term opportunities for
entry and growth.

Navigating Evolving Regulations

We remain aligned with evolving regulatory frameworks, particularly around Extended Producer Responsibility (EPR). Our integrated
value chain, from material production to recycling, positions us to adapt effectively and deliver compliant, sustainable packaging
solutions.

CHEMICALS

Since its establishment in 1994, UFlex Chemicals has been an integral part of the UFlex packaging ecosystem, serving both internal
needs and a growing network of customers across India and over 20 countries. With state-of-the-art manufacturing facilities in
Noida and Jammu, alongside a dedicated Research & Development Centre, UFlex Chemicals delivers forward-thinking, sustainable
chemical solutions.

Our extensive product range includes high-performance liquid inks (solvent- and water-based), laminating adhesives (water-based,
solvent-based, and solvent-less), ink binders, polyester polyols, and specialty coatings (UV, UV-LED, and EB). These solutions serve a
variety of applications, including flexible packaging, labels, mono cartons, folding cartons, QSR solutions and decor & construction
applications.

UFlex Chemicals is committed to providing eco-friendly, food-safe, and sustainable solutions that meet stringent environmental
standards. Our products are designed to reduce environmental impact, minimize energy usage, and cut down on volatile organic
compounds, aligning with global sustainability goals.

A key driver of our innovation is our 18,000 sq. ft. Research & Development Centre in Noida, India’s first NABL-accredited (ISO/IEC
17025:2017) facility for inks, adhesives, and coatings. Recognized by the Department of Science and Technology, Government of
India, this cutting-edge centre is equipped with advanced technology to develop and rigorously test products, from raw materials to
final applications, ensuring consistent performance and quality.

Our dedication to innovation is demonstrated through several Indian patents, including Patent No. 406417 for a solvent-free pigmented
adhesive and its production process. This environmentally friendly, cost-efficient adhesive works seamlessly with existing solvent
less lamination machines, reducing the need for white ink and significantly lowering production costs while cutting environmental
impact. Earlier, we were awarded Patent No. 354903 for a process that enhances the efficiency of epoxy ester resin curing, further

Industry Opportunity

The global chemicals packaging market is projected to grow from USD 16.56 billion in 2025 to USD 22.79 billion by 2034, registering a
steady CAGR of 3.61%. This positive trajectory is driven by the increasing need for safe, reliable, and regulatory-compliant packaging
solutions capable of storing and transporting a broad spectrum of chemicals. These include commodity and specialty chemicals,
petrochemicals, and construction chemicals, among others. In response to a rise in chemical production, the demand for packaging
formats such as drums, intermediate bulk containers (IBCs), jerrycans, and specialized bags is increasing. These packaging solutions
ensure safety, prevent leaks, and support efficient logistics, crucial for maintaining the integrity of chemical products during storage
and transportation.

Global Chemicals Packaging Market

(in USD billion)

	2025	2034
CAGR: 3.61%	16.56	22.79

(Source: https://www.towardspackaging.com/insights/chemicals-packaging-market-sizing)

Performance Overview

FY 2024-25 marked a robust year for our Chemicals Business, with a clear focus on driving innovation, sustainability, and global
expansion. We continued to advance our offerings to meet the evolving needs of our customers while strengthening our presence in
both domestic and international markets. The year was characterized by the successful introduction of several new products and the
scaling of our capabilities to support sustainable growth.

Global Expansion & Market Growth

Our customer base grew steadily across India and key international markets such as Africa, the Middle East, and Southeast Asia. The
expansion was driven by our ability to offer precision-engineered chemical solutions and reliable service delivery that catered to
the specific needs of diverse markets. Our growth was also supported by the introduction of bespoke solutions and the provision
of dedicated technical support, which helped enhance customer satisfaction and engagement in these regions. This growth further
solidified our global presence and reputation as a trusted partner in the packaging ecosystem.

Product Innovation & Launches

During FY 2024-25, we introduced several cutting-edge products in adhesives, inks, and coatings, each designed to meet the
growing demand for eco-friendly and high-performance solutions. This included an expanded range of solvent-free and water-based
adhesives and coatings, responding to increasing demand for sustainable products. Additionally, we enhanced our ink formulations
for flexographic and gravure applications, which led to improved print performance and consistency. These innovations reflect our
commitment to providing high-quality solutions that align with the evolving needs of the packaging industry.

Sustainability Focus

Sustainability was at the heart of our innovation efforts throughout the year. We focused on developing green chemistry solutions that
adhere to low-VOC content with water based technologies. Our goal was to reduce the environmental impact of our products while
upholding the highest standards of responsible manufacturing. By strengthening our R&D capabilities, we successfully developed
sustainable solutions that align with our commitment to environmental stewardship, driving both innovation and compliance with
sustainability standards.

Expansion of Capabilities

In response to growing demand, we took significant steps to scale up production capacities and enhance operational efficiency.
Investments in automation and digitalization have allowed us to boost both product quality and service delivery. These initiatives
have not only improved our ability to meet customer needs but have also streamlined our operations, ensuring faster turnaround
times and improved consistency in product performance. The enhanced capabilities have positioned us to better serve our expanding
customer base while maintaining high operational standards.

Compliance, Quality & Safety

Throughout FY 2024-25, we maintained a strong commitment to global compliance standards, ensuring that all products and processes
met the highest benchmarks for quality, safety, and environmental performance. We successfully renewed our existing certifications,
which reflected our dedication to continuous improvement and our focus on exceeding industry standards. By upholding strict
quality controls and safety protocols, we positioned ourselves as a reliable and responsible partner in the global packaging industry.

Products Launches

Flexcure PVC Texture and Matt Coating for Decor & Construction

UFlex has expanded its portfolio in the Decor & Construction segment with the launch of Flexcure PVC Texture and Matt Coatings.
Designed for applications like PVC wall panels, doors, ceiling boards, and laminates, these UV-curable coatings deliver uniform grain
textures, fast curing, and excellent resistance to nail marks and tape. Suitable for 2- or 3-roller applications, they offer ideal viscosity,
long pot life, and consistent gloss or matt finishes, making them a reliable choice for modern surface finishes.

Flexgreen NW Texture Solution for label applications

Flexgreen NW Texture Matt Base Coat is a UV-LED curable coating designed for high-speed label applications. Engineered for consistent
performance across various substrates, it delivers a uniform, coarser grain texture, fast curing, strong adhesion, and excellent nail
resistance. Its moderate viscosity ensures smooth press performance, making it ideal for high-efficiency label production.

Flexcoat Soft Touch Coating-1035

This soft-touch coating, primarily recommended for BOPET and BOPP films, provides a uniform finish with excellent wetting, levelling,
and lay characteristics. Ideal for offline application, it can be effortlessly applied using a conventional rotogravure cylinder. As a
100% aqueous, eco-friendly solution, it offers a pleasant soft-touch effect, alongside scratch resistance, antiblocking properties, and
outstanding levelling-making it a premium choice for high-quality packaging finishes.

Flexbon 801A/888C

The Flexbon 801A/888C is an economical, general-to-medium performance 2K solvent-free adhesive, designed for use on metallized
and polyethylene structures. NCPU-compatible, this adhesive ensures superior run ability and prevents PAA migration within 24
hours, offering an effective solution for various industrial bonding needs.

Flexcote 985HF 200 for Alu-Alu Applications

This high-performance solvent-based (SB) adhesive is tailored for Alu-Alu pharmaceutical packaging foils. The three-layer laminate
structure - comprising oriented polyamide (OPA), aluminum foil, and PVC - ensures robust mechanical strength and effective moisture
and oxygen barriers. Flexcote 985HF 200 enhances operational efficiency by allowing converters to achieve higher tray solids, reducing
solvent consumption by 10-15% and delivering both performance and sustainability benefits for pharmaceutical packaging.

Flexcoat FP Barrier Coat UF009

An environmentally friendly, water-based oxygen barrier coating, the Flexcoat FP Barrier Coat UF009 offers a primer-free, cost-effective
solution for food packaging. Specially formulated for clear BOPET film, it reduces Oxygen Transmission Rate (OTR) values, enhancing
the shelf life and protection of packaged food. With superior adhesion and easy offline application using conventional rotogravure
cylinders, it ensures long-lasting quality for food packaging.

Flexgreen NW UV-LED Flexo Inks for In-Mold labels

Flexgreen NW UV-LED Flexo Inks are next-generation, free-radical-based ink systems formulated for in-mold label (IML) applications.
These inks offer exceptional anti-static properties, low odor, and outstanding compatibility with IML substrates, ensuring superior
print quality and performance across various packaging formats. Ideal for containers such as tubes, paint cans, and food packaging,
these inks support high-quality labels with consistent results.

Flexgreen HFS Screen Coating - for premium Foil Stamping jobs

The Flexgreen HFS Screen Coating is a free-radical-based, polychromatic curing foil stamping coating, designed for screen application
on flatbed surfaces. This coating provides excellent foil adhesion, exceptional nail and scratch resistance, and durable finishes for
premium packaging and print applications. Ideal for paper and board substrates, it ensures high-quality foil stamping results for
luxury packaging.

Flexcure ‘Metal Spray’ Gloss Coating

The Flexcure Metal Spray’ Gloss Coating is a next-generation UV curing mechanism developed for metal decor applications, including
aluminium, steel, iron, and metal composites. Eco-friendly and VOC-free, it delivers high gloss, superior exterior durability, and
exceptional adhesion, ensuring lasting finishes. Resistant to yellowing and offering high mechanical and chemical resistance, it is
compatible with both UV and LED digital printing technologies, making it perfect for modern metal decor projects.

Flexcure ‘PVC Mirror Gloss’ Coating for Decor & Construction

The Flexcure PVC Mirror Gloss" Coating is specially designed for PVC doors and panels, offering a mirror-like finish with non-
yellowing properties. Applied through roller coater systems, this advanced coating provides excellent levelling, de-foaming, and
adhesion properties. With outstanding resistance to mechanical wear and chemical exposure, it ensures durability and long-lasting
performance for both flexible and rigid PVC surfaces.

FLEXBOND PB 40

The FLEXBOND PB 40 is a water-based synthetic adhesive specifically designed for handle and bottom pasting on high-speed automatic
paper bag-making machines. It is also suitable for side-pasting in corrugated boxes, flute board pasting, and corrugation honeycomb
production. Featuring high wet tack, fast setting time, and strong green bond strength, it delivers reliable bonding performance on
medium to high GSM Kraft paper and corrugated materials.

Polyurethane Acrylate (FLEXCRYL 3333)

FLEXCRYL 3333 is a polyurethane acrylate resin widely used in UV-curable coatings, printing inks, and adhesives. With excellent
mechanical properties, flexibility, and resistance to chemicals, extreme temperatures, yellowing, and abrasion, this resin is ideal for
demanding environments where durability and stability are essential.

FLEXBON R110A/FLEXBON R110C (2K Solvent-Free Reverse Chemistry PU Adhesive for Flexible Packaging)

The FLEXBON R110A/FLEXBON R110C adhesive is a superior choice for flexible packaging, providing excellent wetting properties and
ensuring high-quality laminates. It works effectively with metallized films, aluminium foils, and printed films, producing speckle-
free laminates with strong bonds. This adhesive significantly reduces PAA migration and supports high-speed lamination processes,
offering an excellent lay and fast curing for flexible packaging applications.

UV Digi Gloss Coating - FLEXCURE HIGH SLIP DIGI COATING

It is a premium UV gloss coating specifically designed for LED digitally printed PVC sheets used in decor and signage applications. This
advanced coating offers excellent adhesion on digitally printed surfaces, delivering a high gloss finish that enhances the visual appeal
of prints. Known for its superior scratch and abrasion resistance, the coating also ensures fast curing under UV lamps, significantly
improving production efficiency. By enhancing the durability and lifespan of printed materials, this coating provides a reliable and
high-performance solution for commercial digital printing needs.

High Flexibility UV Coating for Flexible Packaging - FLEXCURE HF GR GLOSS COATING

It is a high-performance UV coating developed for flexible laminates, pouches, and specialty packaging applications. Engineered
with exceptional flexibility and fold-crack resistance, it ensures durability even in demanding packaging formats. The coating offers
excellent adhesion on a wide range of substrates including paper, BOPP, PET, and PE films. With high curing speeds suited for modern
flexo and gravure presses, along with low odour, low migration, and good heat resistance, FLEXCURE HF GR is ideal for high-speed
production environments. Additionally, it is designed to support sustainable and recyclable flexible packaging structures, making it
a future-ready solution for eco-conscious brands.

FLEXBOND FB DL-502 and FLEXBOND FB DL-504

These are high-performance, water-based dry lamination adhesives formulated for offset packaging applications. These synthetic
copolymer emulsion adhesives are designed for laminating a wide range of films—including clear BOPP, matt BOPP, METPET, clear
PET, and PVC—to printed or unprinted paperboard substrates. Ideal for use with high-speed dry lamination machines equipped
with dual metal rollers, they deliver excellent bond strength and high gloss post-lamination. With 100% aqueous composition, good
machinability, and ready-to-use convenience, FLEXBOND FB DL-502 and DL-504 offer reliable, sustainable solutions for modern
packaging needs.

FLEXPAK 5300

It is a thermoplastic polyurethane resin designed with high molecular weight, based upon aliphatic urethane technology, aligning
with modern sustainable packaging solutions. This versatile binder system is soluble in a variety of alcohols, esters, and co-solvents,
making it ideal for use in flexographic ink systems. It is compatible with nitrocellulose and polyvinyl butyrate resin systems, and is
specifically tailored for CT/CC PET reverse lamination flexo inks. It offers excellent bond strength, superior printability, and resistance
to blocking, and is also suitable for both solvent-based and solvent-free lamination adhesives—making it a robust choice for high-
performance, eco-friendly packaging applications.

Updates on Inks:

1. Water based ink application areas has been extended by developing new inks for corrugation, Paper Cups, Paper bags, Tissue
paper & Note book printing. Brand owners like Subway, KFC, Adidas has approved our inks.

2. In CI Flexo new inks series developed for corona treated PET, breathable & non breathable PE printing.

Outlook

As we look to FY 2025-26, we are focused on continuing our momentum through innovation-driven growth and strategic expansion.
Our priority will be developing high-performance, sustainable products that address the evolving needs of converters and brand
owners. Additionally, we plan to scale our manufacturing capabilities and expand our presence in emerging markets.

Sustainability & Innovation

Sustainability remains central to our strategy. We will further expand our portfolio of bio-based chemistry, re-pulpable and recyclable
solutions, aligning with the growing demand for eco-friendly packaging and reinforcing our commitment for greener packaging.

Customer-Centric Approach

Our customer-first approach will guide us in co-creating value-added solutions and quickly responding to market changes. By
focusing on strong relationships and tailored offerings, we aim to drive customer satisfaction and long-term partnerships.

Strategic Vision & Future Growth

With a clear vision and strong foundation, we are poised for continued growth in the flexible packaging, labels, folding cartons, paper
and board, QSR solutions and decor and construction applications. Our focus on innovation, sustainability, and global expansion will
ensure we lead responsibly and sustainably in the market.

ASEPTIC PACKAGING

At Asepto, the aseptic packaging brand of UFlex, we have rapidly positioned ourselves as a global leader in providing comprehensive
liquid packaging solutions. Serving the dairy, beverage, and alcoholic segments, we operate across India, Africa, the Middle East, and
Europe. Our commitment to innovation, sustainability, and operational excellence enables us to address the evolving needs of our
clients and end consumers with precision and reliability.

Our state-of-the-art manufacturing facility in Sanand, Gujarat, India’s first for aseptic packaging materials, represents a significant
milestone in our journey. To support our global growth strategy, we are also establishing a new facility in Egypt, reinforcing our
capability to serve diverse international markets efficiently.

We differentiate ourselves through proprietary technologies and design-forward packaging formats that combine functionality with
aesthetic appeal. Our unique offerings, under the Asepto Spark, Premium, and Eye categories, feature advanced embellishments such
as foil stamping, holography, and 3D lens effects. These innovations help our customers elevate brand visibility and drive consumer
engagement at the point of sale.

As a fully integrated solutions provider, we offer both high-quality aseptic packaging materials and advanced, filling machines. Our
equipment is engineered to deliver high efficiency and adaptability across a wide range of liquid applications, including juices, dairy
products, milk, and non-aerated alcoholic beverages. Our solutions are designed to ensure superior product protection, extended
shelf life, and enhanced user convenience.

Today, we serve over 200 clients and export to more than 50 countries, supported by a robust order pipeline and strong market
demand. Over the past five years, we have registered a CAGR of 37%.

We remain focused on driving value through innovation, quality, and sustainability. We take pride in partnering with leading global
brands to support their packaging strategies, enabling differentiation, efficiency, and environmental responsibility. As we look to the
future, we continue to redefine the standards of aseptic packaging through transformative solutions and customer-centric innovation.

Industry Opportunity

The global aseptic packaging market size was valued at USD 72.07 billion in 2023 and is projected to grow from USD 80.06 billion in
2024 to USD 185.89 billion by 2032, exhibiting a CAGR of 11.10% during the forecast period. aseptic packaging technology is a game
changer in the food, beverage, and pharmaceutical sectors, particularly for perishable items, enabling safe, sterile packaging without
the need for refrigeration or preservatives. The changing lifestyle of consumers brings with it a commensurate surge in demand
for convenient, ready-to-eat meals, dairy alternatives, and shelf-stable beverages. This clear shift is driving the adoption of aseptic
packaging, as it offers the benefit of extended shelf life, in addition to preserving product quality and ensuring food safety. With
growing preference for convenience and quality among the consumers, aseptic packaging is a perfect match for health-conscious
and convenience-driven choices.

Global Aseptic Packaging Market

(in USD billion)

	2024	2032
CAGR: 11.10%	80.06	185.89

(Source: https://www.fortunebusinessinsights.com/aseptic-packaging-market-106589)

FY 2024-25 Highlights

Strong Financial and Operational Performance

FY 2024-25 was a stellar year for our aseptic packaging business, marked by robust growth, strategic expansion, and operational
excellence. It remained one of the Company’s most profitable businesses, driven by higher volumes, improved efficiencies, and strong
export performance. Utilization levels averaged well over 100% throughout the year, with peaks crossing 120%, reflecting exceptional
demand and sustained operating efficiency.

Export-Led Growth Momentum

Exports played a pivotal role in driving the year’s performance, contributing 35-40% of the division’s revenue. We witnessed a
significant uptick in demand from Africa, the Middle East, and Southeast Asia, supported by reliable supply capabilities and high-
quality offerings. A strategic enabler of this growth was the commercial ramp-up of our new Egypt facility, which is well-positioned to
serve local markets as well as key regions across Europe and Africa.

Technology and Capability Leadership

We achieved a significant technological milestone by commissioning a high-speed filling line with a capacity of 25,000 packs per
hour, becoming one of the few companies in world to offer this revolutionary speed. This positions as a comprehensive, end-to-end
aseptic packaging solutions provider and strengthens our competitive edge globally. Additionally, we enhanced our customer service
capabilities by deploying aseptic filling machines at client locations, which helped deepen long-term partnerships and drive volume
growth.

Innovation and Sustainability

In line with our sustainability goals, we successfully implemented an enzymatic delamination technology (EDT) that enables full
material recovery from aseptic packs—representing a breakthrough in circular packaging and responsible manufacturing. We also
continued to push the envelope on product innovation, launching differentiated packaging formats tailored for the dairy, juice, and
beverage sectors. These formats cater to evolving consumer preferences around convenience, shelf life, and aesthetics.

To further elevate the visual appeal of aseptic packaging, we introduced advanced embellishment features such as foil stamping
and holography, significantly enhancing on-shelf aesthetics and brand differentiation. Additionally, the launch of our Asepto Speed+
25K machine marked a key innovation—delivering high-speed performance with enhanced automation and precision, further
strengthening our leadership in the aseptic packaging space.

Outlook

Strong Domestic Demand Driving Growth

UFlex’s aseptic packaging business, Asepto, is witnessing significant momentum, fueled by rising consumption of ready-to-drink
beverages and dairy products, particularly in India’s tier-II and tier-III cities. To meet this surge, we are accelerating the deployment
of aseptic filling machines and upgrading production through automation and digitalization.

Growing Demand in the Domestic Market

Our aseptic packaging business is experiencing steady growth, driven by increasing demand for ready-to-drink beverages and dairy
products, particularly in tier-II and tier-III cities across India. To meet this demand, we are focusing on expanding our production
capacity through the installation of additional aseptic filling machines and enhancing automation and digitalization at our facilities.

Capacity Expansion in India

By FY 2025-26, we aim to achieve an annual production capacity of 12 billion packs in India. We plan to maintain a mix of approximately
60% for the domestic market and 40% for exports, reflecting the growth potential in both areas.

Global Capacity Expansion

We are expanding our international footprint with a new greenfield aseptic packaging facility in Egypt through our wholly owned
subsidiary, Flex Asepto (Egypt) S.A.E. This facility, with an annual production capacity of 12 billion carton packs and a total investment
of USD 126 million, is a significant step toward meeting the growing demand for aseptic packaging across Egypt, Europe, the Middle
East, and Africa. The Egyptian market currently imports around 5 billion packs annually, presenting a key opportunity for us to
strengthen our presence in these regions.

With cost structures similar to those in India, the new facility will help us better serve markets such as Africa, the Middle East, and
Southeast Asia. Once operational by FY 2025-26, the facility will contribute to Asepto’s total capacity, bringing it to 24 billion packs
annually by FY 2026.

Focus on Innovation

Innovation continues to be a key priority for us. Through ongoing research and development, we are creating differentiated, functional,
and sustainable packaging solutions that align with customer needs. This focus helps us remain competitive and responsive to
changes in the market.

Commitment to Sustainability

We are committed to sustainability and are working on developing recyclable materials while engaging in Extended Producer
Responsibility (EPR) initiatives. As part of this commitment, we are already using 5% recycled polymers as per EPR guidelines. Our
efforts aim to reduce our environmental footprint and meet the growing demand for sustainable packaging solutions

FLEXIBLE PACKAGING

UFlex is India’s largest flexible packaging company, headquartered in Noida, offering end-to-end packaging solutions across various
sectors including food, beverages, home care, personal care, pharmaceuticals, and industrial applications. With manufacturing
facilities in Noida and Jammu, and a combined capacity exceeding 1,00,000 TPA, we ensure reliable supply, cost efficiency, and
operational flexibility in the flexible packaging industry.

Our integrated capabilities in films, inks, adhesives, and cylinders allow us to provide customized solutions such as laminates,
pouches, and recyclable structures. We serve a wide range of customers, from major Indian players to multinational companies.

Our flexible packaging business offers a broad portfolio of products, including laminated roll stocks and various types of pouches,
such as 3D and 4D pouches with re-closable options, wicketed bags for the baby and hygiene markets, pet food pinch-bottom bags,
cement block-bottom bags, Flexi-tubes, lids, confectionery foils, embossed foils, hygiene films, innolock pouches, pocket PTC zippers,
and more.

Our value proposition focuses on three main pillars: sustainability, brand protection, and innovation. These principles guide us in
offering tailored solutions that meet the diverse needs of our customers, helping us maintain leadership in the market.

With full backward integration in films (BOPET, BOPP, CPP, Metalized Films), chemicals (inks, coatings, adhesives), engineering
(converting and packing machines), holography (packaging films and labels), and printing cylinders (electronic, laser, gravure, and
flexographic plates), we are able to demonstrate agility in delivering high-quality, customized packaging solutions efficiently and
cost-effectively.

Sustainability is a key focus for us. In FY 2024-25, we became the first Indian company to receive approval from the United States Food
and Drug Administration (USFDA) for our recycling process, allowing us to use recycled polyethylene (rPE) in food packaging. This
achievement represents a significant step toward reducing plastic waste and supporting global brands in their sustainability goals. We
continue to drive sustainable innovation, focusing on source substitution, source reduction, and biodegradability. Our commitment
to sustainability shapes the packaging solutions we provide, ensuring they meet both functional and environmental needs.

We offer flexible packaging solutions for a wide range of product types, including solids, semi-solids, powders, granular materials,
viscous fluids, pastes, and gels. This versatility allows us to cater to the needs of different industries, delivering both functional and
sustainable packaging options.

Industry Opportunity

The flexible packaging market is projected to grow from USD 270.83 billion in 2025 to USD 406.14 billion by 2032, exhibiting a
CAGR of 5.96%. This momentum is fueled by its inherent versatility, cost-efficiency, and reduced material consumption, making it
an increasingly preferred choice across industries. Encompassing bags, pouches, films, envelopes, and wraps, flexible packaging
combines the strengths of plastic, film, paper, and aluminium foil to offer enhanced product protection, while keeping packaging
lightweight. Asia Pacific dominates this segment, holding a market share of 41.44% in 2024. The food and beverage industry remains

the largest end-use segment, with flexible packaging widely used for snacks, beverages, dairy products, and meat, among others. As
sustainability becomes more important, this market’s growth is driven by innovations in eco-friendly materials and designs aimed at
reducing plastic waste.

Flexible Packaging Market

(in USD billion)

	2025	2032
CAGR: 5.96%	270.83	406.14

(Source: https://www.fortunebusinessinsights.com/flexible-packaging-market-104897)

(Source: https://www.marketsandmarkets.com/IMarket-Reports/packaging-film-market-1283.html)

FY 2024-25 Highlights
Performance and Market Challenges

FY 2024-25 proved to be a challenging year for our Flexible Packaging business, especially in the first half. Margins were impacted by
the lag effect caused by a sharp rise in raw material prices, particularly packaging films. The delay in passing these price increases on
to customers, typically taking 1 to 3 months, squeezed margins during this period. Despite these challenges, the business remained
stable, with no significant growth in volumes over the year.

Strategic Focus on Product Mix and Margins

To improve profitability, we shifted our focus towards higher-margin products like pouching, moving away from less profitable
roll-form packaging. This strategic move, combined with our integrated operations, allowed us to maintain a better margin profile
compared to competitors. Our vertical integration, which includes in-house production of films, packaging cylinders, chemicals, and
inks, remains a key differentiator in managing raw material cost fluctuations and maintaining a competitive edge.

Volume Growth and Diversified Portfolio

Despite the challenges, we recorded healthy volume growth during FY 2024-25. This was driven by our diversified product portfolio,
which spans across key categories such as snacks, beverages, detergents, and rice. Our strategic product mix—60% commodity and
40% value-added packaging—set us apart from our competitors and helped us maintain a strong position in high-growth segments,
particularly large-format liquid detergents.

Operational Efficiency and Innovation

Leveraging our backward integration and agile manufacturing capabilities at our Jammu and Noida plants, we ensured a consistent
supply and adaptability across product lines. Our centralized operations also contributed to operational efficiency, achieving over
91% full truckload optimization and ensuring lead times of nine days or less, enhancing service reliability. We also focused on
sustainable packaging solutions, including low grammage packs and region-specific formats like spouted pouches for ghee, further
enhancing our market differentiation.

Product Launches

First-ever 50 KG SKU packaging for Jay Baba Bakreswar Rice Mill Pvt. Ltd

We have developed an innovative packaging for Jay Baba Bakreswar Rice Mill Pvt. Ltd. under their brand Farm House. Designed
specifically for the export market in Africa, this product marks a significant milestone as it is the first-ever 50kg SKU rice bag
produced by UFlex. The bag features a block bottom design, offering superior stability and stackability—ideal for bulk handling and
transportation. Engineered with a robust structure of 18 BOPP / 20 EXT.W / 78 WPP W, the packaging ensures excellent durability,
barrier properties, and print quality. This customized solution reflects UFlex’s commitment to meeting diverse market requirements
while pushing boundaries in large-format packaging.

Innovative sustainable packaging for Savlon

We have partnered with ITC Ltd. for the development of a new, sustainable packaging solution under the renowned Savlon brand. This
innovative 8.2gm SKU features a high-barrier laminate structure of 10PET / 6.3 ALU.FOIL / 10PET / 40PE.N, ensuring excellent protection
and shelf life for the product. What sets this pack apart is its use of PCR (Post-Consumer Recycled) based laminate, reinforcing both
companies’ commitment to environmental responsibility and circular packaging solutions. Designed for the domestic market, this
launch underscores UFlex’s focus on combining performance, sustainability, and brand value in modern packaging formats.

New Variants in tube laminates

We have developed new variants in tube laminates, which are aimed at tapping into emerging premium segments across personal care,
cosmetics, and pharma. These advanced structures include a silver and gold metallica laminate, constructed with a high-performance
combination of 70 mic natural PE + 34 extruded PE + 12 mic special-grade metallized PET + 34 extruded PE + 130 mic natural EVOH
PE, offering superior barrier properties, visual appeal, and durability. Additionally, the silver holographic laminate introduces an eye-
catching aesthetic with 70 mic natural PE + 13 mic metallized holographic film + 30 extruded PE + 12 mic aluminum foil + 30 extruded
PE + 130 mic natural PE, ensuring both shelf differentiation and functional excellence. These innovations not only elevate the look and
feel of tube packaging but also open new market opportunities for brand differentiation in high-growth categories.

RTE pouch for Cloud Kitchens

We developed an advanced Ready-to-Eat (RTE) pouch for cloud kitchens, featuring a high-performance specification of 12 ULP PET /
70 PE natural. These ULP PET pouches are designed for direct microwave heating and are ideal for hot-fill applications such as gravy,
ketchup, sauces, jams, and marinades. In addition to liquid and semi-liquid foods, the pouches are well-suited for packaging meat,
grated cheese, frozen foods, dates, nuts, and dry fruits, offering excellent versatility across food categories. With this product we are
strategically targeting the cloud kitchen players to enable them to expand its reach in the growing ready-to-eat and convenience food
segment. This development reinforces UFlex’s commitment to innovation in food-safe, high-barrier packaging solutions tailored to
modern consumer needs.

DetoXyFi 10L Spout Pouch

We have developed an innovative packaging solution to address the critical issue of clean drinking water availability in underprivileged
communities. Our 10-Litre Double Spout Pouch is a portable, sustainable water filtration system designed with both convenience
and durability in mind. The pouch is made with a high-performance laminate structure—12j PET, 15J BON, and 165J Natural PE—
ensuring its strength and longevity. Featuring a 40mm spout, it provides smooth and controlled water dispensing, and with our
patented natural filter, we ensure that the water remains safe and clean. This affordable and impactful solution is a step forward in
making clean water accessible to vulnerable populations.

50mm Diameter Oval Tubes

We have taken packaging innovation to the next level with our 50mm diameter oval tubes. These tubes provide 20% more space on the
front and back panels compared to conventional round tubes, offering brands more real estate to communicate their message. The
oval shape enhances visual appeal and optimizes retail shelf space, allowing brands to showcase more products without increasing
costs. Additionally, the design improves logistics by fitting more tubes per pallet, reducing transportation costs. This innovation
reflects our ongoing commitment to empowering brands with smart, functional, and effective packaging solutions.

Streax Gel Hair Colour (24ml / 45ml Gel Sachets)

In collaboration with Hygienic Research Institute Pvt Ltd, we have helped launch Streax’s premium gel-based hair dye in convenient
24ml and 45ml sachets. These sachets feature a distinctive matte finish and a gold-colored logo, making them stand out in the hair
dye segment. The specialized laminate structure—18 BOPP, 12 MET PET, and 30 PE NAT—ensures durability, product protection, and
an upscale appearance that aligns perfectly with the brand’s premium image.

Innovative Packaging for Frozen Food

We have partnered with Jubilant Food Works to enhance the packaging of their marinated chicken in 500g packs. Our new packaging
uses a thermoformed laminate with a vacuum-sealed barrier film that protects the food from contamination and air exposure. This
innovative solution ensures the chicken stays fresh and safe for consumers, addressing both functionality and food safety.

3D Pouch with Handle Inside Gusset

In a first for the bio-fertilizer sector, we have introduced a 3D pouch with a handle inside the gusset, designed specifically for Crystal
Crop, India’s leading crop production company. This unique pouch features a five-panel structure that offers a strong shelf presence,
while the convenient side gusset handle enhances usability. Made with 18J BOPP Matt, 12J Met PET, and 150J PE Natural film, this
4kg pouch is both visually appealing and functional.

Elephant Extra-Long Basmati Rice (20kg Pouch)

For over 20 years, we have been providing premium packaging for Elephant Extra-Long Basmati Rice in a 20kg three-side gusset pouch.
This packaging is 100% recyclable, made with a mono PE design for superior recyclability and sustainability. The pouch structure—25
MDO PE, 25 PE NAT, and 180 PE NAT—features a reclosable opening for convenience, ensuring better customer experience. With its
tamper-proof zipper, we also guarantee product authenticity and safety.

Alshalan 2kg Punjabi Amber Rice (Innolok Zippers)

During FY 2024-25, we introduced a game-changing packaging solution for Alshalan’s rice and basmati products—an inner zipper
in roll form. This innovative solution provides a cost-effective reclosure option compared to traditional zipper pouches. Our zipper-
in-roll laminate, made with 18 BOPP Matt, 12 PE NAT, and 70 PE NAT, is pre-fitted with the Inno Lock zipper and runs seamlessly on
existing FFS machines. This packaging not only elevates the shelf appeal with foil stamping for anti-counterfeit protection but also
offers significant operational efficiency.

Mankind Agritech 3D Pouch with Plastic Handle

We have introduced a 3D pouch with a plastic handle for Mankind Agritech’s pesticide and fertilizer products. This innovative
packaging solution is tailored specifically for the Nurturkind and Zeauesforce variants, setting a new standard in the agricultural
packaging industry. It offers both convenience and enhanced functionality for users.

RISO Flaxomega Multi-Source Edible Oil (1L Pouch)

We have created a convenient, innovative packaging solution for RISO Flaxomega edible oil with the introduction of the 1-litre center
spout pouch. This pouch provides an easy-to-use alternative to traditional PET bottles, featuring a stand-up spout for hassle-free
dispensing. This design marks a shift in the way edible oils are packaged and dispensed, prioritizing consumer convenience.

3D Pouch for Vermicompost

Our new 3D format pouch for vermicompost comes in two variants—one with a degassing valve and one without. The variant with the
degassing valve helps maintain optimal conditions for the compost, ensuring its effectiveness and longevity. Both variants provide a
sustainable and efficient packaging solution, supporting environmentally friendly agricultural practices.

Active & Modified Atmospheric Packaging (AMAP) Film for fresh produce - Litchi

AMAP Film is a breakthrough innovation designed to extend the shelf life of perishable goods such as fresh vegetables, fruits, and
flowers. By regulating the internal atmosphere without the use of chemicals, it helps slow spoilage and preserve freshness for an
extended period beyond normal. This enables businesses to strengthen domestic distribution and tap into international export
markets. Recently APEDA approved this film for exporting Litchi to the Middle East. There are also other fresh produce being tested
with this packaging for exports.

Outlook

Our Flexible Packaging business is expected to remain in a steady-state in terms of capacity. However, we anticipate future growth
and margin improvements through better utilization of our existing capacity by focusing on a higher-value product mix, particularly
through value-added offerings like pouching.

Our integrated operations in Flexible Packaging continue to provide us with a margin advantage over less integrated competitors.
Operational Excellence and Financial Stability

With robust infrastructure, especially at our Jammu facility, we are well-positioned to scale efficiently while maintaining high service
quality and financial stability. Our strong customer relationships and innovation-led approach enable us to deliver precisely tailored,
high-quality packaging solutions that meet the specific needs of our clients

New Manufacturing Initiatives

We are also expanding our production footprint with the establishment of a woven polypropylene (WPP) bags manufacturing plant
in Mexico. With an estimated capital expenditure of USD 50 million, this facility will have an annual production capacity of over 80
million bags. This expansion is part of our broader strategy to diversify our product offerings and tap into growing global markets,
strengthening our international presence.

Sustainability and Innovation-Driven Growth

Sustainability remains a key focus for us, and we are preparing to meet evolving regulations around recyclable packaging and
Extended Producer Responsibility (EPR) norms. Our early investments in mono-material and biodegradable packaging give us a clear
competitive edge, allowing us to deliver more sustainable solutions as brand owners increasingly demand functional and customized
packaging.

While inflation and price sensitivity may impact industry demand, we are confident in our ability to offset these challenges through
portfolio diversification, offering both premium and low-unit price formats. Additionally, we are pursuing opportunities in emerging
markets, which will further strengthen our position. Our in-house recycling capabilities play a critical role in improving cost
management and ensuring margin resilience.

Recycling and Sustainability Initiatives

To further enhance our sustainability efforts, we are investing Rs. 317 crores (USD 38 million) in advanced recycling technologies. This
includes the establishment of two new recycling plants at our Noida facility in India, with a combined annual capacity to process 39,600
metric tons of plastic waste. These plants will significantly boost our production of recycled PET (rPET), recycled polypropylene (rPP)
and recycled polyethylene (rPE) materials for use in food packaging, aligning with India’s growing sustainability goals and evolving
regulatory frameworks. Our enhanced recycling operations will empower brand owners to meet their EPR commitments and set a
global benchmark for sustainable packaging.

HOLOGRAPHY

At UFlex’s Holography Business, we specialize in delivering advanced anti-counterfeiting and brand protection solutions to customers
across the globe. Our work spans a diverse range of industries, including pharmaceuticals, textiles, FMCG, automotive, consumer
electronics, food & beverages, publishing, premium packaging, government organizations as well as educational institutions. Through
continuous innovation, we help brands, enhance packaging, protect brand equity, and build consumer trust in an increasingly
competitive marketplace.

With our in-house mastering and proprietary nano-structuring capabilities, we create customized holographic products that
seamlessly blend strong visual appeal with robust security features. Our comprehensive range includes holograms, holographic films,
pressure-sensitive labels, stamping foils, textile embellishments, and transfer metalized substrates, all tailored to ensure product
authenticity while elevating brand aesthetics.

We are proud to be a certified MICR instrument printer by the Indian Banks’ Association (IBA), partnering with leading banks and
government bodies to deliver secure, high-quality print solutions. This recognition underscores our commitment to excellence and
trustworthiness in all that we do.

Over the years, we have demonstrated consistent growth by entering new market segments in India and abroad, while strengthening
our relationships with existing clients. Our innovative, end-to-end solutions have earned the trust of some of the world’s most
respected brands. We remain committed to staying ahead of the curve - driving value, security, and differentiation for our partners
around the world.

Industry Opportunity

The global holographic film market was valued at USD 13.42 billion in 2024 and is projected to grow to USD 30.91 billion by 2034. The
demand for holographic films is expected to record a strong CAGR of 8.7% during the forecast period from 2024 to 2034.

Holographic Film Market

(in USD billion)

	2024	2034
CAGR: 8.7%	13.42	30.91

(Source: https://www.factmr.com/report/holographic-film-market)

Holographic films and foils are increasingly used in sectors like food, pharmaceuticals, cosmetics, and consumer electronics, serving
as both decorative elements and anti-counterfeiting measures.

Amidst the growing threat of counterfeiting, particularly in pharmaceuticals and branded consumer goods, holographic labels and
holograms provide a robust line of defense. With features, including embedded security codes and complex patterns that are hard to
replicate, these solutions help ensure product authenticity and brand protection.

The visual appeal of holography, with its three-dimensional effects and vibrant colors, also boosts shelf appeal and consumer
engagement, supporting marketing and sales. As industries increasingly seek packaging that is both protective and aesthetic,
holography is fast becoming a crucial tool in the packaging strategies of leading industries.

FY 2024-25 Highlights

In FY 2024-25, our Holography business sustained its strong growth trajectory, achieving double-digit growth for the fourth consecutive
year and maintaining a robust CAGR of approximately 16%. This consistent performance was driven by a combination of innovation,
operational excellence, and strategic market expansion.

Market Leadership and Segment Expansion

We continued to lead the Indian textile stamping foil segment, while expanding our footprint into decorative applications. A major
milestone was our successful entry into pharmaceutical packaging, launching holographic blister foils for key products such as
Azithromycin and Pantoprazole, showcasing our commitment to brand protection in high-sensitivity sectors.

Capacity Enhancement and Technological Advancement

To meet rising demand and improve operational efficiency, we expanded our production capacity by commissioning high-speed
embossing and coating lines. Our innovation efforts remained focused on developing advanced security features and sustainable
labelling solutions, aligned with global trends in eco-conscious packaging.

Diversified Market Penetration

We strengthened our presence in both domestic and international markets, gaining traction in critical sectors including FMCG,
pharmaceuticals, liquor, and government documentation. Responding to the evolving digital landscape, we integrated QR codes and
track-and-trace systems into our offerings, providing comprehensive authentication solutions.

Sustainability and Eco-Innovation

Sustainability remained a central pillar of our strategy. We progressed in developing recyclable and compostable holographic labels
and actively promoted transfer metalized paper and board as eco-friendly alternatives to conventional laminated films. We have
restructured Cold Transfer foil thickness from 12 micron to 10 and progressing to 8 micron. These initiatives not only aligned with our
clients’ sustainability objectives but also positioned us as a leader in responsible packaging innovation.

Product Launches
Calendars That Shine

UFlex Holography has reintroduced a specialized holographic film tailored for premium calendar applications. Utilizing precision
micro-embossing, this film delivers dynamic 3D visuals and vibrant color shifts, dramatically enhancing the visual impact and festive
appeal of calendars. The dual-side coating ensures durability and design versatility, while customizable patterns allow brands to
align each calendar with specific seasonal or thematic aesthetics. Enhanced with UV embossing technology, the film offers superior
gloss, clarity, and resilience-making it a standout choice for high-end calendar production and long-lasting brand engagement.

Advanced Holographic Blister Packs

UFlex has introduced state-of-the-art holographic blister packaging, designed to enhance both visual appeal and product security.
These advanced packs incorporate high-impact 3D holographic imagery that shifts and transforms with movement, making
replication extremely challenging. In addition to these overt features, the packaging incorporates covert authentication technologies
such as micro-text, nano-patterns, and unigram, which are invisible to the naked eye and can only be verified using specialized
equipment. This layered security approach offers a powerful deterrent against counterfeiting, ensuring product authenticity and
reinforcing brand integrity. In the pharmaceutical sector, where consumer safety and trust are critical, UFlex’s innovative blister pack
solutions provide essential protection, boosting confidence in both the product and the brand.

Customized Registered Transfer Metallized Board

This advanced packaging innovation combines high-end aesthetics with environmental responsibility. Through precise registered
metallization, metallic effects are applied only to select areas of the board-creating a striking contrast between reflective and matte
surfaces. This targeted approach not only enhances branding and shelf visibility but also reduces material usage and environmental
impact. Made using fine aluminum through a transfer process, the resulting board remains fully recyclable and re-pulpable. The ultra-
thin, selectively applied metal layer supports sustainability goals without compromising on luxury appearance or functional integrity.

Raised Holographic QR Code

A breakthrough in secure packaging, this innovation merges aesthetics, traceability, and brand protection. Each QR code is uniquely
generated and embedded with a raised holographic overlay, delivering tactile appeal and enhanced security in one element. Designed
for seamless application on labels and flexible packaging, it enables authentication, track-and-trace functionality, and consumer
engagement while elevating the visual identity of the product. This next-gen solution reflects UFlex’s commitment to integrating
advanced security with premium design.

Phygital Solutions

3D Motion Strip / 3D Flipogram

The 3D Flipogram delivers unparalleled visual anti-counterfeiting protection through advanced micro-optical technology, generating
a distinctive visual effect that is extremely difficult to replicate and effortless to verify. Composed of hundreds of thousands of micro-
lenses-similar to those used in currency notes-this technology ensures consumers can confidently identify genuine products
simply by viewing the 3D imagery.

Beyond its strong security function, the Flipogram enhances product appeal with its striking visual impact, requiring no special
lighting or reading device for authentication. By leveraging complex micro-optical structures, it offers one of the highest levels of
brand protection while elevating the user experience.

Matte Laser Sequins Film with Subtle Holography

This matte-finish holographic sequin film offers a refined alternative to traditional high-gloss holography. Engineered for elegance,
it features soft iridescence achieved through precision surface coatings and laser holographic designs in controlled patterns. The
result is a visually engaging yet understated aesthetic-ideal for haute couture, evening wear, fashion accessories, and sophisticated
ready-to-wear lines. Combining modern design sensibilities with reliable performance, this film exemplifies UFlex’s trend-focused
innovation in the fashion embellishments segment.

Outlook

Driving Global Expansion

We are set for accelerated growth in our Holography business, supported by our technological leadership and an expanding global
footprint. A sustained focus on emerging markets such as Africa, Southeast Asia, and Latin America is expected to drive higher export
revenue. Strategic partnerships with global packaging and label converters will help us extend our reach and deliver integrated brand
protection solutions to clients worldwide.

Innovating for Security and Efficiency

On the technology front, we are advancing next-generation security features with 4P Hyper Nano Technology, which offers an
exceptional resolution of 25,40,000 DPI at 10 nm. This advanced technology enables the creation of specialized, white-shaped lenses,
white embossing effects, nano-scale images, vibrant RGB color imaging, and blockchain-enabled authentication-delivering a
powerful defense against counterfeiting.

The growing regulatory focus, especially in pharmaceutical and agrochemical sectors, is driving demand for holographic security
labels. We are also embedding Al-based quality control and automation into our processes to improve efficiency and reduce
turnaround times.

Leading Sustainable Packaging Transformation

As we pursue global growth, our emphasis on innovation and sustainability remains strong. From developing eco-friendly labelling
solutions to supporting clients’ environmental goals, we are well-positioned to lead the evolution of secure and sustainable packaging
for a future-ready world.

ENGINEERING

Established in 1985, UFlex’s Engineering business has evolved into a strategic pillar of the company, offering a comprehensive suite
of customized machinery and automation systems for the packaging, printing, and allied industries. With over three decades of
expertise, the business designs and manufactures high-end equipment that caters to both UFlex’s internal operations and a diverse
clientele across India and global markets.

Our product portfolio includes a wide range of advanced machinery such as pouch-making machines, extrusion coating lines,
laminators (solvent-less, solvent-based, combi, and extrusion), Cl Flexo and Rotogravure printing presses, slitters (including wide-
web variants), wrapping systems, Form-Fill-Seal machines, and special-purpose solutions. These machines are tailored to meet the
varied needs of the Converting and Packaging industries, delivering exceptional durability, efficiency, and consistent output.

Innovation, sustainability, and customer-centric design are at the heart of our operations. From basic configurations to highly
sophisticated systems, every solution is built to ensure precision engineering, unmatched production efficiency, and long-term
reliability. Our offerings are backed by responsive after-sales support, reinforcing our commitment to delivering value beyond just
equipment.

Addressing the growing need for sustainable solutions, UFlex Engineering has developed the ReLAM 250, an advanced recycling
machine designed in line with European standards. This breakthrough technology enables the recycling of multi-layer mixed plastic
waste, traditionally deemed non-recyclable, into high-quality plastic pellets without the need for layer separation. These pellets can
be repurposed into a wide range of molded products such as dustbins, outdoor benches, paver tiles, and various household and office
items, effectively debunking the myth that multi-layer plastic cannot be recycled.

Driven by research-led innovation and deep industry insight, UFlex’s Engineering Business remains committed to developing market-
leading solutions that meet evolving customer and environmental expectations. With a proven track record in both domestic and
international markets, we continue to lead the way in delivering engineering excellence for the future of packaging.

Industry Opportunity

In 2025, engineering-led solutions - such as robotics, AI, and intelligent automation - are transforming packaging operations by
making them faster, more reliable, and less dependent on manual intervention. Automated systems for filling, capping, and labeling,
developed through engineering expertise, are improving efficiency, cutting down costs, and enabling scalable production across the
industry.

FY 2024-25 Highlights

FY 2024-25 was a transformative year for the Engineering Business. Our performance was fuelled by continued innovation and strong
execution across both of our core divisions: Printing and Allied Machinery (PAM) and the Packaging Machines Division (PMD).

Driving Product Innovation Across Divisions

In our PAM division, we expanded our range of high-speed printing and advanced coating machines, keeping pace with the fast-
evolving needs of the flexible packaging industry. Our new product lines reflect a deep understanding of the demand for precision,
material adaptability, and operational speed in flexible packaging and labelling.

Significant advancements were made in coating technology, including the development of special coatings such as PVDC, Soft Touch,
and Alox. During FY 2024-25, we supplied four coating machines to our plants in Mexico and Egypt-two Single Head Coating machines
and two Double Head Coating machines, with widths of 1650 mm and 2500 mm, respectively. Additionally, a technology agreement
is underway with Gravtech, Italy (Dr. Cerutti’s new company), for the transfer of technology for a next-generation ELS Rotogravure
printing machine, capable of operating at 500 meters per minute. The formal trial and launch of this machine are scheduled for July-
August 2025.

Meanwhile, the PMD division made tremendous strides in both speed and efficiency. We enhanced our flagship aseptic packaging
machine, Asepto, which now delivers up to 25,000 packs per hour-placing it among the best in the industry. Additionally, we
increased the output of our bag-making machines from 100 to 160 bags per minute, all within the same footprint. This breakthrough
enables our customers to scale production without expanding factory space. We also introduced new high-speed vertical form-fill-
seal (VFFS) machines, built to handle a wide array of product types and formats with reliability and ease.

Aligning with Industry Shifts and Customer Needs

We have remained sharply focused on the shifting dynamics of the packaging industry. A clear move towards pack miniaturisation-
driven by affordability and rising demand for small-format packs has increased the need for high-throughput machinery. At the same
time, legacy manufacturing sites across FMCG and food sectors face spatial constraints, and our compact, high-efficiency machines
are designed to deliver more output per square metre.

Our customers are also increasingly prioritising automation to reduce manual dependency and improve ROI. To meet this demand,
we are delivering integrated systems that automate the entire packaging line, from primary packing to secondary containment. These
systems not only reduce manpower but also enhance reliability. On the technology front, we have embedded smart features and
AI-based predictive maintenance in our machines. With real-time monitoring of motors, sensors, and temperature, our systems help
customers anticipate issues and minimise downtime. We are also seeing growing adoption of Overall Equipment Effectiveness (OEE)
tracking among our large clients.

Expanding Our Global Footprint

While India remains our primary market, we have started executing a well-calibrated export strategy. Our machines are already
making an impact in Mexico, Iraq, South America, Africa, and parts of the Middle East. In FY 2025-26, we aim to deepen our footprint
in the Middle East and Southeast Asia by appointing new international agents and expanding our reach with high-performance,
cost-effective machines. Our positioning-offering European-grade functionality at more accessible pricing-makes us especially
competitive in cost-sensitive, quality-driven global markets.

Enabling a Sustainable Packaging Ecosystem

Sustainability continues to be a central theme in our engineering roadmap. We have ensured that our machines are compatible
with recyclable mono-material films such as PE and PP, aligning with global shifts toward circular packaging. Additionally, by
replacing traditional mechanical systems with energy-efficient servo-based operations, we are helping customers lower their power
consumption and operating costs. Our collaboration with the UFlex Films business has been instrumental in testing and validating
machine performance with new-age sustainable laminates-ensuring smooth, end-to-end integration for our customers.

Leveraging the Power of Integration - ‘One UFlex’

One of our biggest strategic advantages is our position within UFlex’s fully integrated packaging ecosystem. Our Engineering, Films,
and Chemicals businesses work in close collaboration, which allows us to co-develop solutions that reduce trial-and-error, speed up
customisation, and ensure high reliability. This approach enables us to innovate faster and deliver more value to customers across
the packaging value chain.

Outlook

Going ahead, we are determined to consolidate our leadership in the domestic market. Our clear objective is to secure an industry
leader position across all major categories of packaging machinery. We will continue to leverage our innovation pipeline and
integrated capabilities to stay ahead of market needs.

Accelerating Export Growth

We are strategically focused on scaling our international presence. Through the introduction of differentiated, value-rich machines
and region-specific partnerships, we aim to enhance our share in cost-conscious but quality-driven markets across the Middle East,
Southeast Asia, and beyond. Our export strategy will be guided by our commitment to offering European-grade performance at
competitive price points.

Advancing Smart Machine Platforms

Our journey toward digital transformation will intensify in FY 2025-26. We will deepen the integration of AI and predictive analytics
into our machines, making them smarter, more autonomous, and capable of real-time performance optimisation. This shift will drive
measurable value for our customers through greater uptime, enhanced traceability, and actionable insights.

Championing Sustainability Through Engineering

We recognise our role in enabling the global shift to sustainable packaging. Our engineering teams will continue to design and
deliver machines that support recyclable, biodegradable, and circular-ready packaging materials. We will work closely with our Films
business to ensure our equipment evolves in tandem with emerging sustainable substrates.

Driving Innovation Through Modularity and Customisation

Design innovation remains central to us. We are investing in modular, flexible machine platforms that can be tailored to specific
customer needs and adapted quickly to new formats or regulations. This agility will allow us to stay responsive in a fast-changing
industry landscape.

PRINTING CYLINDERS

UFlex’s Printing Cylinders Business plays a crucial role within our packaging value chain, providing high-precision Rotogravure
Printing Cylinders, Flexo Plates, and Flexo Printing Sleeves for flexible packaging and label printing. In addition to supporting our
internal operations, we cater to a diverse network of external clients across India, the Middle East, Africa, and other international
markets.

Our fully integrated manufacturing facility oversees every stage of production, including copper plating, surface finishing, digital
engraving, chrome plating, and final proof printing. This all-encompassing setup ensures superior quality, consistency, and quick
turnaround times. Utilizing advanced engraving, electroplating, and polishing systems, we consistently deliver high-performance
products that meet the ever-evolving demands of the printing industry. Our expertise covers the entire printing lifecycle, from design
to final print, ensuring impeccable consistency and reliability for customers in the converting industry.

The business offers a broad portfolio of products, such as electromechanically engraved rotogravure cylinders, robotic laser-
engraved rotogravure cylinders, embossing rotogravure cylinders, specialized cylinders for high and low GSM coating, anilox rollers,
flexographic printing plates (produced using the Esko CDI Crystal Imager and Kodak Flexcel NX System), and flexo elastomer plates.
With manufacturing facilities in Noida, Jammu, and Sanand, we maintain the highest standards of quality and ensure timely delivery.
Our Noida facility is equipped with a fully automatic robotic laser engraving line for rotogravure cylinder production, as well as a laser
embossing machine from Schepers, Germany. Cylinders are produced using both the robotic laser engraving and electromechanical
engraving lines, guaranteeing compatibility with sustainable inks, such as water-based inks. This technological edge positions us at
the forefront of innovation, enabling us to meet the dynamic needs of the global printing and packaging sectors.

Industry Opportunity

The printing cylinders market is projected to grow from USD 3.5 billion in 2024 to USD 5.8 billion by 2033, registering a CAGR of 6%. This
steady trajectory reflects its critical role in supporting the broader packaging industry. Essential to flexographic, gravure, and other
advanced printing technologies, printing cylinders enable precise and high-speed ink transfer onto various packaging substrates.

Printing Cylinders Market

(in USD billion)

	2024	2033
CAGR: 6%	3.5	5.8

(Source: https://www.verifiedmarketreports.com/product/printing-cylinder-market/)

FY 2024-25 Highlights

Resilience in a Challenging Market Environment

FY 2024-25 was a year of resilience and reinvention for our Printing Cylinders business. Operating in a dynamic environment marked
by cost fluctuations, customer payment delays, and pricing pressure, we focused sharply on innovation, operational efficiency, and
strategic product segmentation to deliver strong performance. Revenue grew by approximately 10%, supported by a robust order
pipeline during the initial three quarters. At the same time, profitability saw meaningful expansion, with margins crossing the 10%
mark, driven by favorable operating leverage and a deliberate shift toward high-margin, value-added offerings.

Dual Strategy Driving Growth

A key enabler of this performance was our dual strategy-cost leadership in commodity segments and premiumisation in differentiated
products. While electromechanically engraved cylinders continued to benefit from scale and process efficiency, our laser-engraved
and embossed cylinders gained traction in niche, high-entry-barrier segments. These premium products, which demand high design
complexity and precision, have increasingly replaced imports from China in applications like home decor, textiles, artificial leather,
and wood paneling.

Engineering-Led Innovation

Innovation remained at the core of our offerings, marked by the launch of advanced solutions such as Male-Female Embossing
Cylinders for tissue paper decoration; textured embossing on artificial leather like PU/PVC; and decorative applications for modular
kitchens and furniture. These solutions also found use in the automotive sector and in out-of-home properties such as corporate

signboards, lift and metro wall decorations, and laser-emulated hand embossing effects-a technological leap that replicates
artisanal craftsmanship. We also made headway into new applications with glitter printing cylinders for premium gift wraps and
embossing cylinders for metal sheets, laminates, and decorative panels, further diversifying our end-user base.

Sustainability by Design

Sustainability continued to be an integral part of our design philosophy. During the year, we introduced low-GSM laser cylinders
to reduce ink transfer without compromising quality and expanded compatibility with water-based inks to support customers in
their transition away from solvent-based systems. Customised cell geometries were developed to minimise ink usage, while Ballard
Skin Technology enhanced cost-effectiveness, reduced turnaround time (TAT), and enabled the reusability of cylinder bases —
significantly reducing copper and nickel consumption. Our high-mileage cylinders and circular use programs not only enhanced
operational efficiency for customers but also reduced raw material usage and waste generation. These efforts collectively advanced
our commitment to sustainable printing while enhancing customer value.

Customer-Centric Excellence

Our customer-first approach translated into one of the highest retention rates across UFlex verticals, with over 90% repeat business.
This loyalty is rooted in the consistency, quality, and adaptability of our offerings. By delivering hybrid cylinder solutions that blend
electromechanical and laser technologies, we have created strong strategic lock-ins that are hard to replicate. Our ability to offer
proximity-based service, shorter lead times, and unmatched responsiveness has further strengthened our positioning as a preferred
domestic partner—especially in time-sensitive or highly customized jobs where offshore suppliers struggle to compete.

New Products and Innovations
Crocodile Skin Pattern

This design exudes luxury and sophistication with its textured, scaly appearance that mirrors the natural look of crocodile or alligator
skin. Often associated with high-end fashion, it conveys a sense of opulence and craftsmanship, making it a favored choice for
premium apparel, accessories, and home decor. Its exotic appeal brings an air of refinement to any product.

Geometric Chevron Embossed Tile Design

Featuring a modern, sleek geometric chevron pattern, this design is embossed onto a metallic-like surface to create a striking three-
dimensional illusion of depth. The interlocking Y-shaped blocks are meticulously detailed with fine hatching, resulting in a textured
and sophisticated visual that enhances the elegance of the material.

Grid Weave Pattern

Renowned for its visual appeal and tactile richness, the grid weave pattern is widely sought after across various industries such as
fashion, home decor, automotive, and industrial products. Its distinctive design not only elevates the aesthetic value of the product
but also contributes to a 0.45% increase in our overall revenue, further cementing its popularity globally.

Intricate Vines and Floral Design

This laser-embossed design showcases intricate detailing, creating a visually captivating effect through deep textures and a
harmonious composition. The floral motifs and organic shapes are complemented by a vibrant green hue, adding freshness and
vibrancy to the design, making it both striking and inviting. The result is a timeless design that enhances the visual appeal of any
surface.

Reptile Retreat

The Reptile Retreat effect replicates the texture and appearance of authentic reptile skin on artificial leather using advanced laser-
embossed cylinders. This treatment offers an ethical, cost-effective alternative to real reptile skin while maintaining a luxurious
aesthetic. Durable and low-maintenance, this design has contributed to a 0.4% increase in our total revenue, providing a high-end
look without compromising on sustainability.

Tangled Threads Design

This intricate design features interwoven tangled threads that create a striking, textured surface full of artistic complexity and
dimension. Ideal for fashion, home decor, and automotive applications, the embossing process enhances the material with raised
patterns that offer not only a visually captivating effect but also improved grip or insulation, adding both form and functionality to
the product.

Outlook

As we look ahead to FY 2025-26, the business is poised to build on this momentum by further expanding our value-added portfolio,
especially in fast-growing segments such as pharmaceuticals, personal care, ready-to-eat food, and e-commerce packaging. We also
see significant potential in non-packaging sectors including home furnishings, synthetic leather, and decorative laminates, where our
technology edge creates a natural differentiation.

Technology and Capacity Expansion

A key area of focus will be the piloting and adoption of Extended Colour Gamut (ECG) technology across select customers, which
promises to drastically reduce ink changeovers and material wastage. Concurrently, we are scaling our domestic capacity for laser
embossing to meet rising demand from design-intensive industries.

Deepening Sustainability and Global Reach

Our sustainability roadmap will deepen through enhanced recycling and rework programs, wider adoption of reusable cylinder
components, and a broader push towards eco-ink-compatible solutions. On the global front, we aim to tap into design-led export
opportunities through our subsidiaries, focusing on markets with limited local capabilities and high product customization needs.

Patents

• UFlex received Indian Patent No. IN 563397 for its invention titled Water-Based Heat Seal Coating for Aluminium Foil and
Polyester Film’

• UFlex received Indian Patent No. IN 529269 for its invention titled Polyester-Based Monomaterial Film as a Sustainable Alternate
to Multilayered Laminates’

• Flex Films (USA) Inc. received Indian Patent No. IN 561464 for its invention titled Controlled Density Thermoplastic Multilayer
Films’

Awards & Recognition

UFlex continued to set benchmarks in innovation, sustainability, and excellence, earning numerous prestigious accolades across
industry domains during FY 2024-25.

• Mr. Ashok Chaturvedi, Chairman & Managing Director, was honoured with the Business Leader of the Decade’ award at the 21st
Indo-US Economic Summit 2024. The award was presented by Mr. Jorgan K. Andrews, Deputy Chief of Mission, US Embassy,
recognizing his exceptional contributions to industry and Indo-US economic relations

• UFlex was named a Times Now Sustainable Organization 2024’, highlighting our commitment to environmental stewardship
and sustainable development

• Awarded the CII Industrial Innovation Award 2024, UFlex was also listed among the Top 75 Most Innovative Companies in India,
underscoring our innovation-driven growth

• Recognized as a Top 10 Pharma Brand Protection & Anti-Counterfeiting Solutions Provider by India Pharma Outlook for our
advanced packaging technologies

• Featured in Fortune India’s 500 list for 2024

• UFlex received its official membership certificate from the United Nations Global Compact (UNGC), highlighting our dedication
to ESG principles and sustainable global practices

• Winner of the Sustainable Packaging Challenge at PACK.NXT 2024, recognizing advanced, eco-friendly packaging solutions

• Honored with the North India Best Employer Brand Award 2024, reflecting our strong people-first culture and HR leadership

• UFlex was conferred the Dream Employer of the Year’ award at the World HRD Congress 2025, securing accolades in categories
such as Most Engaged Workplace, Best Training & Development Team, Innovative HR Technology Deployment and Training
Leader of the Year

• Named one of the Most Preferred Workplaces 2024-25’ by Team Marksmen in collaboration with India Today Group

• Secured eight awards at SIES SOP Star Awards 2025, including the prestigious President’s Award for Sustainability, thereby
showcasing our innovation in packaging solutions

• Bagged 10 awards at the IFCA Star Awards 2024, the highest tally among participants, recognizing excellence in packaging
innovation

• UFlex’s booth was awarded Best Design and Product Presentation at RosUpack 2024, spotlighting our creativity and innovation
in showcasing products

• UFlex’s Packaging Films business received the Gold Award for the F-ISB PET film for Cold Blister Forming at the 35th Dow
Packaging Innovation Awards

• Our Packaging Films business was honored with four major awards at the INDIASTAR 2024 Awards

• UFlex’s Packaging Films business won an award for the best debut at the PTAK Warsaw Recycling Fair 2024 for the demonstrated
special contributions to developing recycling technologies at the event

• UFlex’s Chemicals business earned the Environment Health & Safety Impact Award at the CII 8th Automotive Industry 4.0 Summit

• UFlex’s Chemicals business won the Energy Champion Award at the 3rd CII Northern Region Green Practices Awards, affirming
our focus on energy efficiency and green practices

Financial Overview

Particulars	Standalone (Rs. crore)		Consolidated (Rs. crore)
	Year Ended March 31, 2025	Year Ended March 31, 2024	Year Ended March 31, 2025	Year Ended March 31, 2024
INCOME
Revenue from Operations	7,724.74	6,610.23	15,036.09	13,363.63
Other Income	84.86	41.32	163.18	158.97
Share in Profit of Associates	0.00	0.00	(15.32)	(12.23)
Share in Loss of Joint Venture	0.00	0.00	(0.20)	(0.59)
Total Income	7,809.60	6,651.55	15,183.75	13,509.79
EXPENDITURE
Cost of Materials Consumed	4,956.36	4,250.52	9,440.18	8,197.03
Purchase of Stock-in-Trade	76.14	37.98	82.37	37.98
Changes in Inventories of Finished Goods, Work-in-	(4.15)	(28.31)	(230.85)	100.08
Progress and Stock-in-Trade Employee Benefits Expense	696.61	619.10	1,362.48	1,202.10
Other Expenses	1,165.19	1,014.75	2,778.76	2,507.93
Expenses Allocated to Self-Constructed Assets	(9.21)	(12.59)	(67.98)	(48.79)
Total Operating Expenses	6,880.94	5,881.46	13,364.96	11,996.32
EBIDT	928.66	770.10	1,818.79	1,513.47

Significant Change in Financial Ratios (Standalone Basis)

Financial Ratio	FY 2024-25	FY 2023-24	Change(%)	Reason for Change
Return on Equity	6.8%	5.4%	25.9%	The Revenues and Profits of the Company have increased during the year, which has resulted into the improvements in the ratio
Trade Payables Turnover Ratio	6.28%	4.6%	36.5%	Payments have been accelerated on account of

Risks and their Mitigation Strategies

We, at UFlex Limited, acknowledge that risk is an inherent aspect of doing business. Operating within an ever-evolving global
landscape, we prioritise effective risk management to safeguard our long-term sustainability, stability, and growth agendas. To
this end, we established a comprehensive Risk Management Framework that empowers the organisation to identify, assess, and
proactively address key risks. By facilitating informed decision-making and cultivating a culture of accountability, this framework
aligns our operational endeavours with the Company’s commitment to exemplary governance.

Integral to this framework is the Risk Management Committee, composed of members from the Board of Directors, which plays a
pivotal role in overseeing UFlex’s risk management strategies. The Committee ensures that risks are systematically identified,
rigorously evaluated, and appropriately prioritized. At the same time, it helps safeguard the organisation against potential disruptions
by implementing swift mitigation strategies. By embedding risk management into day-to-day operations, UFlex is well-positioned to
respond decisively and adapt effectively to the dynamic business environment.

Risk Category	Risk Brief	Mitigation Strategy
Economic Risk	Exposure to macroeconomic fluctuations, global market volatility, and economic downturns impacting demand and profitability.	UFlex continues to diversify across geographies and product segments, analyse market trend proactively, and bolster strategic planning to adapt to dynamic economic perspective.
Financial Risk	Risks arising from liquidity issues, credit defaults, and interest rate fluctuations.	UFlex employs prudent financial management practices, including hedging strategies and long-term supplier agreements, while maintaining adequate liquidity buffer to cushion against vulnerabilities.
Foreign Exchange Risk	Adverse impacts from fluctuations in currency exchange rates due to global operations and exports.	UFlex undertakes natural hedging through global operations, and conducts regular review of currency exposures.
Sectoral / Industry Risk	Regulatory changes, evolving customer demands, and increased competition in the packaging industry may affect market positioning.	UFlex ensures continuous investment in innovation, market diversification, compliance monitoring, and customer engagement initiatives to stay ahead of industry trends.
Information	Risk of data breaches, misreporting, or loss of	UFlex implements robust IT security frameworks,
Risk	sensitive business information.	conducts regular audits, facilitates employee training, and fast tracks the adoption of data protection policies to maintain adherence to global best practices.
Operational Risk	Disruptions in manufacturing operations, supply chain inefficiencies, and equipment failures could impact business continuity.	UFlex formulates comprehensive preventive maintenance programs, diversifies supplier network, prioritizes contingency planning, and streamlines automation of key processes to bolster operational resilience.
Sustainability & ESG Risk	Environmental regulations, climate change impacts, and social governance challenges could affect reputational standing and operational continuity.	UFlex integrates ESG principles into business strategy, maintains sound investment in sustainable products (e.g., PCR films), promotes energy conservation initiatives, and sustains community development programs.
Cyber Risk	Increasing reliance on digital systems exposes the Company to cyberattacks and system vulnerabilities.	UFlex strengthens cybersecurity protocols, undertakes regular vulnerability assessments, implements employee awareness campaigns, and consistently invests in advanced cyber defense technologies.

Environment, Occupational Health and Safety

UFlex prioritizes employee well-being and ethical business conduct, while embedding environmental stewardship across our
operations. Our Company’s sustainability strategy is structured around six key focus areas: reduction of carbon emissions, increased
use of renewable resources, systematic waste recycling, adoption of energy-efficient technologies, minimization of plastic usage, and
promotion of green polymers.

As a responsible producer under the Extended Producer Responsibility (EPR) framework, we are committed to fulfil our plastic
packaging obligations. This encompasses compliance with targets for plastic waste recycling, end-of-life plastic disposal, and the
mandated inclusion of recycled content in packaging. In the event of non-compliance, Environmental Compensation (EC) is levied.
Uflex has so far not been levied with any EC due to the strict adherences to the compliances.

During the year, we achieved significant progress across several dimensions of sustainability. We advanced the deployment of energy-
efficient technologies, expanded rainwater harvesting systems, carried out extensive tree plantation drives, and ensured 100%
in-house waste recycling - reinforcing our alignment with circular economy principles. A key pillar of our approach to sustainable
packaging is our proprietary, four-fold strategy designed to convert waste into valuable resources. This includes:

1. Waste2Energy: We process six tons of discarded packaging waste daily at our Noida facility, turning them into liquid fuel.

2. Recycling: We recycle multilayer plastic (MLP) waste into granules, which are repurposed into over 1,000 products creating
tangible economic and environmental value.

3. Green Film Innovation: We have developed PCR film, under the brand name Asclepius™, made with upto 100% post-consumer
recycled content, delivering up to a 75% decline in carbon footprint compared to virgin BOPET films. We have also developed
rPE and rPP on the same lines. All the 3 Green films have been approved by the USFDA for direct food contact applications.

4. Biomass Conversion: We produce masterbatch additives that help the uncollected plastic waste biodegrade into biomass.
Collectively, these initiatives reflect our philosophy of transforming ‘Waste to Wealth’ and affirm our leading edge in circular
economy practices. Ensuring the health and safety of our employees remains a top priority, with a continued focus on achieving zero
accidents across all operations. This is further supported by periodic audits, comprehensive training programs, and active employee
engagement, combining to foster a strong safety culture. By embedding environmental protection and occupational health concerns
in our practices, we continue to strengthen our long-term resilience and drive sustainable progress.

Human Resource Development and Industrial Relations

At UFlex, our people are our greatest strength. We are proud to have a dynamic, multi-generational workforce representing diverse
ethnicities, cultures, educational backgrounds, and professional experiences. This diversity fuels our innovation, resilience, and
growth. We are committed to fostering an inclusive, collaborative, and performance-driven culture, one that nurtures talent aligned
with UFlex’s core values and business vision.

Our Human Resources function is strategically aligned with the Company’s overarching goals, operating under a robust Business
Integrated HR (BIHR) model. This model emphasizes a Talent First approach, building a future-ready organization that thrives on
agility and adaptability amid rapid industry changes.

A key element of our people strategy is the UFlex Learning Academy (ULA), a dedicated platform for skill enhancement and leadership
development. Through a rich blend of structured learning modules and guidance from subject matter experts, ULA cultivates a
continuous learning culture. We prioritize upskilling across all levels of the organization and provide clear pathways for advancement,
both domestically and globally, ensuring long-term career growth and talent retention.

Our employee base is a powerful combination of youthful enthusiasm and experienced leadership, working together to drive strategic
objectives and create stakeholder value. We are deeply committed to providing a safe, rewarding, and intellectually stimulating work
environment where employees feel empowered and motivated.

UFlex’s Employee Value Proposition (EVP) is built on the pillars of Empowerment, Transparency, and Meritocracy. We champion a
culture that values ownership, performance-driven development, and equitable growth opportunities.

In alignment with our ESG commitments, UFlex integrates diversity metrics into recruitment, supports green skill development, and
promotes holistic well-being through our ‘Radiant Life’ program. Employee engagement is further strengthened through initiatives
like "Care & Connect" and regular feedback mechanisms that reinforce a purpose-led, inclusive, and trust-based workplace.

As of March 31 2025, UFlex had 7,620 permanent employees in its Indian operations. The Industrial Relations (IR) climate during FY
2024-25 remained cordial, harmonious, and constructive-reflecting the strength of our people practices and shared organizational
ethos.

Internal Control Systems, their Adequacy and Operational Effectiveness

We uphold a strong and well-integrated internal control framework that ensures compliance with applicable regulations, safeguards
corporate assets, and cultivates a culture of transparency and accountability. Our framework is aligned with the provisions of Section
134(5)(e) of the Companies Act, 2013 and is suitably scaled to match our operational size, scope, and complexity.

The internal control systems are structured to ensure that all transactions are duly authorized, accurately recorded, and transparently
reported, while also safeguarding assets from unauthorized access, misuse, or disposition. The framework extends beyond financial
oversight to encompass comprehensive operational and fraud risk controls embedded across business-critical processes, enhancing
governance standards across the board.

This control environment is reinforced through a well-defined internal audit mechanism and periodic management reviews that
assesses the adequacy and effectiveness of stipulated measures. Clearly defined policies, standard operating procedures (SOPs), and
control guidelines ensure consistent implementation of internal financial controls across all units and subsidiaries. Collectively, these
systems enable the accurate and timely preparation of reliable financial and operational reports.

We systematically mapped critical risks and corresponding controls across all significant material processes impacting financial
reporting. The Internal Audit team, operating independently, conducts objective evaluations to assess the effectiveness and integrity
of these controls. Audit findings, along with management’s corrective action plans, are regularly reviewed by the Audit Committee
to ensure timely remediation and accountability. The Statutory Auditors also issue their independent opinion on the adequacy of

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Cautionary Statement

Asperapplicable Imesaod fonuisliopa, this Report contains certain forward-looking statements. However, it should bo noted that
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