Yashraj Containeurs Ltd. (YCL) strongly believes that robust Corporate Governance is the foundation for long-term value creation. The Company ensures its affairs are conducted in a transparent, ethical, and accountable manner, aligned with the best practices and principles prescribed under SEBI and Companies Act, 2013.
We are committed to fairness in operations, integrity in disclosures, and full compliance with applicable laws, thereby reinforcing stakeholder trust and confidence.
INDIAN ECONOMY
India s economy continued its upward trajectory in FY 2024-25, driven by strong domestic consumption, a boost in infrastructure spending, and government-led reforms. The Reserve Bank of India (RBI) has projected real GDP growth of around 7% for FY 2024-25, reflecting resilience amidst a globally uncertain environment marked by inflation, geopolitical tensions, and commodity volatility.
Despite global headwinds including supply chain disruptions, geopolitical uncertainties (such as Red Sea crisis and continuing Russia-Ukraine conflict), and volatile crude prices, Indias macroeconomic fundamentals remain strong. Key sectors such as manufacturing, infrastructure, renewable energy, and logistics have been major growth drivers.
Continued investment in logistics infrastructure (Gati Shakti), incentives under PLI schemes, and digital transformation are expected to support sustained economic growth in the medium term.
INTERNAL CONTROL SYSTEMS
The Company has in place an adequate internal control system that ensures efficiency of operations, safeguarding of assets, regulatory compliance, and reliability of financial reporting. These are regularly tested through internal audits and reviewed by the Audit Committee and Management.
Based on the internal audit reports and statutory audit findings, the Company has made necessary improvements and strengthened controls wherever required. The Statutory Auditors have also confirmed the adequacy of internal financial controls over financial reporting.
THE BUSINESS
YCL continues to be a key player in the steel drum and barrel manufacturing sector. Given the hazardous nature of handling industrial drums and waste containers, the Company prioritizes health and safety across all levels of operations.
Common risks include fire, explosions, injuries from manual handling, and material degradation. YCL mitigates these through:
Use of modern handling equipment,
Periodic safety training and drills,
Compliance with ISO, MoEF, and CPCB guidelines, and
Preventive maintenance and SOPs to minimize human exposure and errors INDUSTRY SCENARIO & REGULATORY DEVELOPMENTS
India s manufacturing sector is undergoing transformation, with increased demand from chemicals, lubricants, food processing, and hazardous waste handling industries all of which rely on barrel packaging. While the industry continues to face margin pressure due to raw material price volatility (especially steel), demand remains stable with growth in export and MSME sectors.
Key developments:
The Central Government increased capital expenditure by over 20% in Budget 2025 , with focus on logistics and Make in India.
PLI schemes and policies like National Logistics Policy and Gati Shakti are expected to increase industrial output and support packaging demand.
GST framework continues to evolve with simplification in compliance and faster refunds aiding MSME liquidity.
Environmental compliance norms (EPR and waste tracking) have become more stringent, increasing demand for high-quality drums/barrels.
YCL remains aligned with regulatory changes and invests in process upgrades and compliance mechanisms.
THREATS & OPPORTUNITIES
Opportunities
Growing demand from the chemical, agro, and lubricant industries.
Expansion into reusable packaging solutions and IBC (Intermediate Bulk Container) segment.
Preferred supplier status with top Indian and neighbouring country buyers.
Export potential due to India s cost competitiveness and geo-economic shifts (China+1 strategy).
Value-added offerings including customized barrels, environmentally compliant packaging, and bundling of transport and collection services.
Threats
Continued input cost volatility , especially steel and fuel.
Overcapacity in the industry resulting in aggressive pricing by smaller players.
Substitution by IBCs, flexi tanks, and ISO containers in select segments.
ESG compliance pressures , requiring constant investment in sustainability and traceability.
Tender-driven pricing in bulk government and PSU contracts impacting margins.
The Company closely monitors all business risks through a structured framework and Board-level oversight. Risk mitigation strategies include long-term supply arrangements, price escalation clauses, product diversification, and technology upgrades.
SUPPORT FROM GOVERNMENT & REGULATORS
The Government and RBI continue to support the MSME and manufacturing sectors with initiatives such as:
Emergency Credit Line Guarantee Scheme (ECLGS) and CGTMSE to ensure liquidity.
MUDRA loans and collateral-free lending schemes.
Policy pushes for zero-effect-zero-defect (ZED) certification and green manufacturing. YCL has availed various MSME benefits and complies with RBI and Ministry of MSME guidelines.
CAUTIONARY STATEMENT
Statements in this report describing the Company s objectives, expectations, or forecasts may be forward-looking and based on current expectations. Actual results may differ materially due to various risks and uncertainties, including but not limited to changes in government regulations, macroeconomic conditions, raw material prices, labor availability, global disruptions, and geopolitical events.
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