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I. Global Economy

The global economys growth forecast has been slowed from 6.1% in 2021 to 3.2% in 2022. According to International Monetary Fund – World Economic Outlook Update, April 2023 (IMF – WEO, April 2023) global slowdown, tightening financial conditions due to higher inflation in most of the major economies and prolonged after-effects Russia-Ukraine war has led to weakest growth profile. The global growth forecast is pegged at 2.8% in 2023 and 3.0% in 2024 with easing of supply chain and inflation moving back to the Central banks target for most of the economies.

Advanced Economies (AEs) is estimated to grow by 2.7% in 2022 slowing from 5.2% in 2021 owing to stress in financial sector. AEs growth is expected to slow down registering growth of 1.3% in 2023 and 1.4% 2024 weighed by slowdown in the Euro area and the United States due to weaking of economy due to a sharp deterioration in financial conditions, higher borrowing cost and lower growth prospects.

Emerging Markets and Developing Economies (EMDEs) continue to be the engine for the global growth outperforming AEs despite of 4.0% growth in 2022 as against 6.8% growth in 2021. EMDEs growth is expected to be 3.9% in 2023 and 4.2% in 2024 led by reopening and recovery in China and prudent monetary policy support estimated to propel Indias growth. The global slowdown reflects slow pace of policy reforms, rising trade tensions due to geoeconomics fragmentation, drying direct investment and slow pace of innovation and technology. The policymakers need to implement and communicate a tighter monetary policy allowing interest rates to return to normalcy along with fiscal buffer for financial stability. Additionally, policymakers need to design a faster and cost effective decarbonisation push on carbon pricing and equivalent policies. The conscious adoption towards clean energy investment spurs consistent energy supply thereby achieving decarbonisation goals.

II. Indian Economy

According to Economic Survey 2022-23, India continues to prove its economic resilience by reducing external imbalances caused by the Russian invasion to Ukraine coupled with global inflationary trend. India is ranked as the 3rd largest economy in the world in PPP terms (Purchasing Power Parity) and the 5th largest in terms of exchange rate.

Indian economy has staged a strong comeback in FY23 with an upward pre-pandemic growth path navigating adverse macroeconomic challenges including turbulence in the banking sector of some advanced economies and currency depreciation hindering to slow global recovery.

As per Bloombergs recession meter report ‘Recession Probability Worldwide 2023, India is the only economy in the globe zero percent chance to experience a recession in 2023. India continues to be the bright spot in the world economy backed by adoption of digitalization to combat pandemic woes, prudent fiscal policies and spur in capital investments to fillip sustainable growth. According to IMF WEO, April 2023 India is projected to grow 5.9% in 2023, contributing to 15% of the global growth in 2023.

Indias Union Budget 2023-24 focused on array of measures including higher capital expenditure spending linked to priorities such as green growth, empowering youth and inclusive development. The total capital expenditure is pegged at ~INR 10 trillion in 2023-23, an increase of 37.4% over Revised Estimates 2022-23 signalling a strong commitment of the Union Government to boost economic growth with focused infrastructure investments. Despite of an increase in capital expenditure plan for supporting growth, the Governments targets a positive roadmap fiscal deficit roadmap of 5.9% for 2023-24 as against 6.4% budgeted for 2022-23.

The Reserve Bank of India (RBI) has hiked the benchmark repurchase rate (repo rate) by 250 basis points (bps) cumulative since May 2022 to keep the inflationary trends under check. According to RBI, the average annual retail inflation was projected at 6.5% in FY23. The Monetary Policy Committee (MPC) has kept the repo rate unchanged at 6.5% in April 2023 for accessing the impact of previous cumulative price hikes of 250 bps in FY23. The RBI estimate 5.2% retail inflation for FY24 considering adverse climatic conditions and rising uncertainty in international financial markets as key risks.

Indias economic growth in FY23 is attributed to private consumption and capital formation leading to new employment generation. It has helped the corporates to strengthen their balance sheets. The public sector banks are geared to increase credit supply to Micro, Small and Medium Enterprises (MSMEs) and other sectors. Additionally, the Government initiative like PM Gati Shakti, the National Logistics Policy and the Production-Linked Incentive schemes (PLI Schemes) is expected to boost manufacturing output and support economic growth in the coming years.

III. Industry Overviews a. Plastic Extrusion Machines Overview*

The market for plastic extrusion machines stood at US$ 6.4 billion in 2022. It is estimated that plastic extrusion machines industry will surpass US$ 8.5 billion in 2028, growing at 4.6% CAGR during 2023-28 period.

Extrusion process is implemented for creating fixed cross-sectional profiles by using plastic or thermoplastic materials pressed through a die of desired shape and cross-section. Plastic extrusion manufacturing process uses high volumes of plastic material for manufacturing and producing plastic products including weather-stripping lines, pipes, tubes, deck railings, plastic films, window frames, plastic sheets, wire insulations and thermoplastic coatings.

The Plastic extrusion machine market is gaining traction owing to innovation processing technologies and the introduction of new plastic products in piping industries and manufacturing products, rising awareness about benefits of plastic extrusion machines and increasing awareness amongst the consumer for environment-friendly equipment. The manufacturers are continuously looking forward to launching innovative plastic products which are fuel efficient and high on performance with lighter weight.

*Source: IMARC Group, ‘Global Plastic Extrusion Machines Market Size, Share, Growth, Industry Trends, Opportunity and Forecast 2023-2028 Union Budget 2023-24: Key Announcements for Plastics Extrusion Machine Manufacturers

The Union Budgets 2023-24 emphasis on sustainable agriculture and economic growth. The record-high goal for agriculture credit of INR 20 trillion would enable Indian farmers to enhance their output with the assistance of smart machines and techniques.

The Government allocation towards the Pradhan Mantri Awas Yojana grew by 66% to INR 790 billion.

The plastic pipes manufacturers and infrastructure industry is likely to benefit from the Government flagship drinking water project ‘Jal se Nal Yojana with 700 billion allocation for FY24.

The Central Governments effective capital expenditure is estimated at 10 trillion crores in 2023-24 translating to 3.3% of GDP. b. Electric Vehicles and Allied Industries

India is gradually transitioning toward e-mobility to trim its oil imports, increasing pollution and to honour its international commitments to combat global climate change. India aims to be a 100% electric vehicle nation by 2030 as per NITI Aayog. In terms of volume, India eyes to be the third largest automotive market in 2030.

As per CEEW Centre for Energy Finance (CEEW-CEF), Indias EV market translates to a US$206 billion opportunity by 2030 as the nation makes conscious efforts to achieve its ambitious vision.

Snapshot: EV Sales Trend from FY18-23








YoY Change

CAGR % (FY18-23)

E-2 Wheelers 2,004 28,006 26,829 44,798 2,52,550 7,27,370 188.0% 225.1%
E-3 Wheelers 91,970 1,16,031 1,43,051 90,989 1,72,543 4,01,882 132.9% 34.3%
E-4 Wheelers 2,242 2,407 2,404 5,201 19,782 48,105 143.2% 84.6%
E-Buses 149 745 928 373 1,611 8,988 457.9% 127.0%
Total 96,365 1,47,189 1,73,212 1,41,361 4,46,486 11,86,345 165.7% 65.2%

Source: Society of Manufacturers of Electric Vehicles (SMEV)

The EV sales in India hit the 1 million annual sales to 11,86,345 units, growing 165.7% YoY in FY23 demonstrating higher consumer demand for EVs due to rising petrol, diesel and CNG prices. The E-2 Wheelers sales grew by 188.0% YoY to 7,27,370 units in FY23. The E-2 Wheelers share in total EV sales expanded by 475 bps YoY to 61.3% in FY23. The E-3 Wheelers sales surged by 132.9% YoY to 4,01,882 units in FY23. The E-3 Wheelers share in total EV sales stood at 33.9% in FY23 as compared to 38.6% in FY22. The E-4 Wheelers sales grew exponentially by 143.2% YoY to 48,105 units in FY23. The E-4 Wheelers share in total EV sales was pegged at 4.1% in FY23 as compared to 4.4% in FY22. E-Buses Wheelers sales grew by 457.9% YoY to 8,988 units in FY23. E-Buses share in total EV sales doubled in FY23 to 0.4%.

Union Budget 2023-24: Key Announcements for EV Industry

The Union Budget 2023-24 has allotted ~INR 882 billion towards climate-related measures favouring EV startups, Original Equipment Manufacturers (OEMs) and battery makers for driving India towards green growth promoting clean energy.

The ministry of Ministry of Petroleum and Natural Gas has committed a capital investment of INR 350 billion towards energy transition, net zero goals and energy security.

The government eyes green hydrogen production of 5 MMT by 2030.

The launch of the Green Credit Program under the Environment (Protection) Act will encourage behavioural change amongst individuals.

The Union Budget 2023-24 has allocated investment of INR 207 billion towards creation of an inter-state transmission system for the evacuation of 13 GW of renewable energy from Ladakh.

The National Green Hydrogen Mission has a provision of INR 197 billion, reducing Indias carbon intensity and dependency on fossil fuels.

The Government aims to handle battery energy storage systems with 4,000 MWH capacity with viability gap funding.

The custom duty on imported EVs and luxury cars has been raised from 10% to 70%. The removal of customs duty on capital goods imported for manufacturing lithium-ion cells will be beneficial for the EV industry in the coming years.

The Union Budget 2023-34 reduced the custom duty on lithium-ion batteries to 13% from 21%. The EV batteries subsidies were extended till FY24.

The scrappage of old polluting vehicles will fuel the automobile industry benefiting the EV and EV component industry.

Additionally, the Indian government took a clarion call with amendments to the existing safety norms following several following several EV fire incidents. The ministry under the Central Motor Vehicle Rules introduced new AIS – 038 (for E-4 Wheelers) and AIS – 156 (for E-2 Wheelers and E-3 Wheelers) standards including additional safety requirements related to EV battery cells, Battery Management System, battery pack design, etc. The amended testing norms was implemented in two phases, with phase 1 effective from December 1, 2022 and phase 2 from March 31, 2023. According to Arthur D Littles report titled Unlocking Indias electric mobility potential, India will require approximately 800 GWh of batteries by 2030 for attaining over 30% EV adoption. In order to cater the surging demand, India is accelerating plans to manufacture Lithium-ion cells within the country, anticipating USD 2.3 billion in government subsidies and more than USD 7.5 billion in investment potential. The EV Industry is a sunrise industry. The governments indirect tax proposal coupled with focus on green energy and mobility, thrust on domestic manufacturing, encourage exports and push towards adoption of electric vehicles augurs well towards the growth of EV and allied industries in the coming years.

IV. Company Overview

Kabra Extrusiontechnik (KET) is Indias premier manufacturer & exporter of Plastic extrusion plants. KET is a part of renowned Kolsite Group having over 6 decades of experience, more than 15,000 installations and presence in more than100 countries across the world. KET enjoys leadership position in the extrusion market. KET constantly endeavours to offer better solutions to plastics processors across the globe. Kabra Extrusiontechnik has set benchmarks in plastics extrusion industry by modern R&D techniques and various processes to cater the market requirements. Battrixx is the future technologies division of KET. It is dedicated to developing and producing green energy systems and solutions that will power the growth of Indias transition into green energy storage and electric transportation. The brand stands tall with state-of-the-art facilities for design, development and production in Chakan, Pune. The noble objectives are epitomised by the brands flagship product – advanced lithium-ion battery packs and modules for e-vehicles.

Key Business Highlights of FY23

Hero Electric Partnership: Battrixx has inked a strategic partnership for developing ‘Made in India Ultra Safe Lithium-ion batteries for Hero Electrics e-scooter range. The batteries are embedded with latest technologies conceptualized and designed in-house in collaboration with Hero Electric team.

Industry First AIS 156 Amendment III Phase 2 Certification: Battrixx received ARAI certification under AIS 156 Amendment III Phase 2 for its batteries, conceptualized and designed in-house strategically with Hero Electrics R&D team before 31st March deadline. Battrixx latest batteries offers enhanced performance maintaining the highest safety standards.

Credit Rating: CRISIL upgraded long term credit rating of Kabra ExtrusionTechniks to A+/Stable from ‘A Positive in FY23. Additionally, the Companys short term bank facilities ratings was reaffirmed at ‘A1.

A. Key Strengths

1. Strong Parentage: KET is a part of Kolsite group which enjoys a legacy of 60 years. Customi Kolsite group has 8 state-of-art manufacturing plants across the nation. It has annual turnover of approximate 1,500 crores led by ~2,000 skilled professionals.

2. Competitive Market Position: KETs competitive positioning lies in its understanding KETs Edge of the indigenous markets with strong client relationship, coupled with continuous efforts towards enhancing its technological expertise. KET enjoys market leadership status in the extrusion market The Company has a strong brand loyalty and wide customer base in the 1000+ export markets.

3. Technical Collaboration: KET believes in continuous innovation with strong technical partnership.

Company Purpose
Battenfeld-Cincinnati Technical tie-up with Battenfeld-Cincinnati since 1983 for pipe and profile machinery
Extron Mecanor JV with Extron Mecanor, Finland to provide an integrated approach to pipe producers by
offering pipe socketing and belling solutions
Penta A 50:50 JV with Penta SRL, Italy for auto-feeding systems for the plastics and food
processing industry
Unicor Technology partnership with Unicor GmbH to make corrugated pipe machines

4. R&D Focussed Approach: KET has one of the largest R & D team in the Plastics Machinery Industry with qualified engineers working in different areas of processing, manufacturing, application development, design, controls and automation. KET has added new range of Pipe and Film plants and other new products, like drip lines have widened the range of products.

5. Battery Management System (BMS): Battrixx, KETs Battery Division offers advanced lithium-ion battery packs with smart BMS both for electric vehicles and other energy storage applications. Additionally, Battrixx acquired 100% stake in Pune-based Varos Technology to develop end-to-end battery management systems by leveraging cloud-based Artificial Intelligence (AI)-driven analytic tools to help predict battery life and monitor battery performance.

6. Battrixx Technical Edge: Battrixx infrastructure can handle both cylindrical and prismatic cells to manufacture modules and packs with in-house built advanced BMS integration.

Battrixxs Capabilities in EV Landscape

Battrixx facilitates EV charging operators to manage & control assets with dynamic end-to-end EV Charging Management Solutions in the electric 2 Wheelers & 3 Wheeler space.

7. Staying ahead of the Curve: Battrixx culture to constantly innovate and the ability to partner with global innovators is helping the Company to stay ahead of the curve. Battrixx innovation remains relevant making their product market ready, thereby providing differentiation our esteemed consumers. Battrixx commitment towards constant innovation and thrust for end-customer delight makes us the preferred supply of choice from EV OEMs.

B. Financial Performance Snapshot

Particulars (in Cr)




Revenue 406 670 65.1%
Gross Profit 132 184 38.9%
Gross Profit margin % 32.6% 37.4 % (516 bps)
EBITDA 55 74 34.9%
EBITDA margin % 13.5% 11.1% (240 Bps)
EBIT 46 63 37.17%
PAT 30 38 23.97
PAT margin % 7.5% 5.6% (190 bps)

KETs revenues grew by 65.1% YoY to 670 crores owing to growth in both extrusion and Battery business. The revenue mix of Extrusion Business: Battery Division stood at 48:52 in FY23 as against 73:27 in FY22.

The Companys EBITDA grew by 34.9% YoY to 74crores. EBITDA margin stood at 11.1% in FY23. KETs PAT grew by 23.9% YoY to 38 crores. PAT margin stood at 5.6% during FY23.

C. Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more) as compared to the immediately previous financial year) in key sector-specific financial ratios.

Sr. Particulars

% Change Reasons for Variation


1. Debtors Turnover -21.78%
2. Inventory Turnover 26.79% Due to increase in sales
3. Interest Coverage Ratio -31.31% Due to higher interest cost and Repayment
4. Current Ratio 9.90%
5. Debt Equity Ratio 8.56%
6. Operating Profit Margin -17.78 %
7. Net Profit Margin -25.41% Due to increase in sales of Battrixx Division
8. Return on Capital Employed 18.97%

D. Business Outlook

Extrusion Business: The Company is making continuous efforts to develop a wide range of extrusion lines and allied products. Effective implementation of key strategies will enable us to achieve long-term sustainable growth. The Companys focus is on investing more in technology and increasing reach in the promising markets. With a wider and more innovative product portfolio, the Company shall be better equipped to withstand the challenges in the short to medium term.

BMS/ESS Business: Battrixx plans to add 5 additional Cylinderical and 4 Prismatic battery pack production lines. Battrixx has already started its capacity expansion, taking annual capacity to 2GWH by end of FY 2024 in gradual manner by investing Rs.100 Crores.

E. Risk and Challenges

The Companys business operations may fluctuate due to a variety of factors such as Technology obsolescence, unforeseen contingencies such as Covid-19, market conditions, growing competition, including imports and unorganized sector that may have adverse effect on Companys business and its margin in future. A risk identification and mitigation framework has been adopted by the Company. Major risks have been identified by the businesses and functions and the Company will adopt various measures at different points in time to counter these risks successfully on a continuing basis. The Company is geared up to provide a technological solution to face the upcoming challenges to process reusable, recyclable or compostable Plastic as well as Lead-Free stabilizers by upgrading the existing set up of its customers. The Company has diversified its business into a segment of Energy Storage Systems (ESS), to reduce the dependency on single segment business. The Company will leverage its ability to adapt new technologies to manufacture advance Lithium-ion Battery Packs equipped with Battery Management Systems (BMS) under the brand name "BATTRIXX" to power the growth of Indias transition to green energy storage and electric transportation.

V. Internal Control Systems and Their Adequacy

The Companys internal audit system is geared towards ensuring adequate internal controls commensurate with the size complexity and needs of the business, with the objective of efficient conduct of operations through adherence to the

Companys policies, identifying areas of improvement, evaluating the reliability of financial statements, ensuring compliance with applicable laws and regulations and safeguarding of assets from unauthorized use. The Company has appointed a firm of Chartered Accountants as Internal Auditors in compliance of Section 138 of the Companies Act, 2013 to conduct internal audit of functions and activities of the Company. They report on quarterly basis to the Company on their findings. The Report is reviewed by the Audit Committee Members and Statutory Auditors.

VI. Human Capital

The Company continues to maintain cordial and peaceful industrial relations facilitating smooth manufacturing activities. The programmes aiming at leadership development and upgradation with advancing technology on all fronts were conducted during the year. Our human capital strength stood at 532 including Workers, Staff and Executives as on 31st March 2023.

Cautionary Statement:

Actual performance may differ from projections made, as the Companys operations are subject to various economic conditions, government regulations, natural calamities and other incidental factors over which the Company may not have any direct / indirect control.

For and on behalf of the Board
Place : Mumbai
Date: May 10, 2023
S. V. Kabra
Executive Chairman
(DIN: 00015415)