Uma Converter Ltd Management Discussions

INDUSTRY OVERVIEW

The Plastic Packaging Industry is a major contributor to the Indian economy. For decades, plastic has played a vital role in industries as diverse as Agriculture, Healthcare, Packaging, Construction, Electronics, Transportation, and Machinery. Plastics popularity can be attributed to its remarkable properties, such as being lightweight, durable, chemically stable, and the ability to be moulded into various shapes and sizes. Additionally, plastics are also cheap. The domestic plastic sector in the country has done well in recent years, and it has tremendous potential to grow further. The contribution of the plastic sector in making India a developed nation will be unparalleled and invaluable.

COMPANY OVERVIEW

Uma Converter Limited is more than twenty-five years old Company specialising in manufacturing flexible packaging material which is multifunctional and caters to the packaging requirements of various industries. Our products are crafted out of an extensive range of industry approved materials such as polyethylene terephthalate, biaxially-oriented polypropylene, polythene, cast polypropylene, foil, paper, bio-degradable films, etc. Our product portfolio largely consists of multi-colour pouches, stand-up pouches, zip-lock pouches, vacuum pouch, paper bag, e-commerce bag, etc.

Company has commenced its export operations in Unit-I in the year 2006 and in Unit - II in the year 2019. Owing to the consistent efforts of your Company towards quality control and efficient fulfilment of orders, presently company export their finished products to countries such as Saudi Arabia, Australia, Senegal and the United States of America.

Besides, the Company also planning to expand its offset capacity by adding a new Plant and Machineries at Timba Plant. With these capacity additions your company is well poised to manage the higher demand for sustainable packaging solutions which is expected going forward. While continuing to enhance the Companys capacities to capture growth, your company is focused on consolidating and optimally utilizing its facilities.

FINANCIAL PERFORMANCE

In the financial year 2024-25, UMA CONVERTER LIMITED delivered a healthy performance the turnover your Company of Rs. 227.54 Crores against the turnover of Rs. Rs. 181.02 Crores of Previous Year 2023-24. Your company is taking all the possible steps to increase the profitability.

SUSTAINABILITY INITIATIVES

UMA CONVERTER LIMITED is wholly committed to be Indias leading sustainable packaging Company. UMA CONVERTER LIMITED Team constantly endeavours toward a more sustainable tomorrow with the motto - Reuse, Recycle and Upcycle”.

In addition to the sustainable nature of its products, your Company is also investing in making the manufacturing process more sustainable and environment friendly. In order to ensure that our manufacturing operations remain sustainable, we have executed various memorandums of understanding with third parties for collection, segregation, transportation, recycling and disposal of plastic waste. We have also executed a service agreement with Ambuja Cements Limited for disposal of plastic waste in an environmentally friendly manner in the cement kiln process at high temperatures and long residence time, while simultaneously manufacturing cement of desired quality. From reducing energy consumption and waste, to choosing environmentally friendly products, there are many ways to make a difference. For businesses, sustainability can also mean creating products or services that conserve resources or reduce negative environmental impacts. While implementing sustainable practices can seem daunting at first, its worth taking the time to learn about and incorporate them into your everyday life and work. Packaging is one of the most important factors when it comes to sustainability. Not only does it protect the product, but if done correctly, packaging can be made from recycled materials, reducing waste and bio-based resources. Additionally, well-designed packaging can be reused or even composted. While some sustainable packaging solutions can be more expensive than traditional packaging, the long-term benefits often make them worth the investment.

Sustainable Packaging Products:

We, UMA CONVERTER LIMITED have been pioneering in the innovation of sustainable packaging since a decade and have range of products which have been engineered using Biopolymers & Eco Coatings. We are making Ropes from the Trim wastage of our products.

OPPORTUNITIES

The macroeconomic conditions in India are expected to continue to improve considering the continuation of a stable government in the country. With a diverse geographical presence across India, your Company fulfils the requirements of its customers for flexible packaging giving your Company a competitive advantage. Also, considering optimising some of the unutilised capacity, an improvement in the market scenario will translate into good growth prospects for the coming years.

The Company is now recognised as a leader in its field across segments, and your Companys management is very confident of leveraging its existing relationships with leading customers, besides entering new customer segments, to continue with high rates of growth as witnessed in the past. The ability to produce recyclable flexible packaging also gives the Company an edge over its competition.

THREATS

Granules, Adhesive, Ink, paper, film, chemicals and other key raw materials are subject to cost volatility and margin pressures. Intense competition from domestic players and imports, as well as substitutes can impact pricing power and market share.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Your Company currently has only one segment of business i.e., Printing and Packaging.

DIVIDEND POLICY AND AMOUNT

In order to conserve resources, your Directors do not recommended dividend for the year 2024-25 on Equity Shares of the Company. The dividend distribution policy is available on the website of the Company i.e. www.umaconverter.com

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control system and a defined organizational structure besides, internal rules and regulations for conducting the business. The Management reviews actual performance with reference to budgets periodically. The Company has an Audit Committee, Independent Statutory Auditors and Internal Auditors who submit reports periodically which are reviewed and acted upon.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Industrial relations continue to remain cordial during the year and estimated around 386 employees are on the Companys payroll as on 31^st March, 2025 as compared to 350 employees on the Companys payroll as on 31^st March, 2024.

DISCLOSURE OF ACCOUNTING TREATMENT

In preparation of financial statements, the Company has not followed a treatment different from that prescribed in the Accounting Standards. There are no significant changes in key financial ratios viz Debtors Turnover, Inventory Turnover, Interest Coverage Ratio, Current Ratio, Debt Equity Ratio, Operating Profit Margin, Net Profit Margin.

CAUTIONARY STATEMENT

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized.