Essen Speciality Films Ltd

I am pleased to present to you the annual report for Essen Speciality Films Limited for the financial year ended March 31, 2024. This year has been marked by significant achievements and strategic initiatives that have positioned our company for continued growth and success.

In 2024, the global economy is anticipated to experience a second consecutive year of slowing growth. This slowdown is largely attributed to high interest rates in major economies worldwide, coupled with weaker growth in China, the world's second-largest economy. Despite these challenges, global growth exceeded expectations in 2023, weathering numerous obstacles such as escalating geopolitical tensions. The conflict between Gaza and Israel, with potential to spread to a region responsible for about 35% of the world's oil exports and 14% of its gas exports, remains a significant concern. Continued attacks in the Red Sea, a conduit for 11% of global trade, and the ongoing war in Ukraine pose risks of new supply shocks, potentially driving up costs for food, energy, and transportation. Container shipping costs have already surged, and the Middle East's volatility adds to the uncertainty. Further geo-economic fragmentation could disrupt cross-border commodity flows, causing more price volatility. Extreme weather events, including floods and droughts, along with the El Nino phenomenon, could lead to food price spikes and worsen food insecurity during the economic slowdown. However, the global economy is expected to gradually stabilize following recent disruptions, particularly in the latter half of 2024, with inflation easing and monetary policies loosening. This should support a reacceleration of global growth, gaining more strength in 2025. Amid these developments, we remain cautiously optimistic due to the anticipated recovery in demand from our export markets, which should bolster domestic growth. Our order inflows remain stable, supported by a healthy pending order book.

This year, we had the pleasure of welcoming esteemed customers from a renowned Australian retail giant to our state-of-the-art manufacturing facility. This visit proved to be a fruitful and insightful exchange of ideas, paving the way for exciting collaborations and new business opportunities. Discussions focused on expanding our offerings in the artificial flower and plants category, as well as introducing innovative products like bendable chopping boards and placemats in the kitchen and dining category. Additionally, we explored ways to optimize purchase order shipments to enhance logistical efficiency and reduce costs, aiming to create a more seamless and cost-effective supply chain.

Our participation in the India Sourcing Conclave 2023, held on July 14-15 at Knowledge Park-II, Greater Noida, was a strategic move aligned with our ongoing efforts to showcase our latest products and services. This event provided an excellent platform to engage with industry stakeholders and explore new business opportunities. Visitors to our booth had the opportunity to witness our diverse portfolio and interact with our knowledgeable team.

Our unwavering focus on research and development has led to the creation of innovative solutions that meet the varied needs of our customers. From advanced packaging materials to high-performance coatings and eco-friendly films, we consistently provide products that surpass expectations. Additionally, our dedication to sustainability remains strong. We understand the importance of reducing our environmental footprint and have introduced several initiatives to cut waste, save resources, and encourage responsible manufacturing. By integrating environmental care into our business strategies, we are proud to support a more sustainable future for our planet.

I am also pleased to announce the formation of a new Limited Liability Partnership, Shrutina Nexgen Solar LLP (LLPIN: ACH-3671), registered with the Registrar of Companies, Gujarat, on May 26, 2024. This partnership includes Essen Speciality Films Limited, holding 18%, along with Promoter Group Entities such as Shrutina Nexgen LLP, holding 74% as its Designated Partners, and Rajoo Engineers Limited (holding 7%) and Rajoo Innovation Centre LLP (holding 1%) as its Partners. This venture marks a significant step in our commitment to sustainable energy solutions and broadening our business horizons.

As we move forward, I remain cautiously optimistic about the future. The global economy is expected to gradually stabilize in the second half of 2024, with inflation easing and monetary policies loosening. This should support a reacceleration of global growth, gaining more strength in 2025. Amid these developments, we remain committed to our strategic goals and look forward to a year of continued growth and success.

Additionally, our dedication to sustainability remains strong. We understand the importance of reducing our environmental footprint and have introduced several initiatives to cut waste, save resources, and encourage responsible manufacturing. By integrating environmental care into our business strategies, we are proud to support a more sustainable future for our planet.

Looking ahead, we are excited about the opportunities that await us. Our strategic partnerships and alliances have set the stage for us to explore new markets and expand our global presence. By keeping a close eye on emerging trends and customer preferences, we are confident in our ability to sustain growth and achieve success.

None of our accomplishments would have been possible without the dedication and expertise of our outstanding team. I extend my deepest gratitude to every member of the Essen family for their hard work and unwavering commitment to our shared vision.

I also want to express my sincere appreciation to our shareholders, employees, customers, and partners for their ongoing trust and support. Your confidence in our capabilities drives us to excel and push our company to new heights. Together, we will continue to shape the future of specialty films and make a positive impact across various industries worldwide.

Thank you for being a vital part of our journey, and I look forward to the exciting future that lies ahead.