Dear Shareholders,
I am delighted to present our 13th Annual Report, showcasing the overall
business performance of Rajshree Polypack Limited for the financial year 2023-24.
The global packaging industry is experiencing significant growth, driven by trends such
as the rise of e-commerce, online retail, and urbanization. Evolving consumer food habits
and behaviours are reshaping the industry, with the demand for packaging that preserves
freshness, enables on-the-go consumption, and offers individual portions of food.
Rajshree has established itself as a prominent leader in Rigid
Thermoformed Packaging Products, consistently striving to fortify its market standing.
Over the years, we have developed substantial production capabilities to serve the food
packaging sector, adding value through new designs and innovative packaging options. Our
ongoing commitment to product innovation, technological advancements, and process
enhancements has allowed us to provide exceptional products and services to our clientele.
This dedication has enabled us to stay ahead of the competition in our industry.
The financial year 2023-24 was eventful for the Company, marked by numerous positive
developments. Our first major achievement was setting up a new paper packaging plant for
the food service industry, with an installed capacity of 12,000 MTPA, in our joint venture
company, Olive Ecopak Private Limited. This is a unique plant in India with all relevant
processes integrated under one roof. Additionally, we have successfully augmented the
demand for injection moulding products from our Daman unit, operating at full capacity,
which necessitated a significant capacity expansion from 1,000 MTPA to 3,300 MTPA. This
expansion requires minimal investment in the Mold bank, as the primary investment will be
made by the toll manufacturer. We have also added IML capabilities to our injection
moulding machines and onboarded our first institutional customer in this segment.
Simultaneously, we have expanded capacities in traditional sheet extrusion and
thermoforming through technological advancements, increasing production and sales. We are
planning further capacity additions in the current financial year. With the advent of
injection moulding, exports have seen robust growth, and we look forward to scaling up
export sales further. We have also secured land allotment in Orissa for our next phase of
expansion in manufacturing food packaging products and are working on a detailed project
forthe same.
During the financial year 2023-24, the Company delivered higher production and achieved
revenue and EBITDA of Rs.27,439.15 lakhs and Rs.3,671.03 lakhs, respectively, compared to
Rs.25,219.24 lakhs and Rs.3,548.69 lakhs in the previous financial year. However, the
Company's Profit After Tax declined to Rs.919.45 lakhs for the financial year 2023-24,
compared to f1,095.09 lakhs in the previous year. Our overall production has grown, with
19,039 MT of rigid sheets produced in FY24, a 10.64% increase from 17,207 MT in FY23. The
production of packaging products rose by 8.48% to 8,163 MT, compared to 7,525 MTin the
previous financial year.
Our core product lines have experienced substantial growth, and given the current order
volume, we anticipate even greater success. In terms of new product development, the
Company has created over 40 new products this year. We are also focusing on derisking our
business by adding more distributor-led sales alongside our core institutional business.
Also we are focusing on adding distributor based sales which will further help in boosting
the sales of the Company. Also with the success in the export sales the Company now has 3
platforms viz. institutional sales, domestic sales and export sales which will help in
scaling the business at faster pace.
As we move forward, I want to sincerely thank our shareholders on behalf of the Board
of Directors for their steadfast trust in us. I also extend my heartfelt appreciation to
our lenders, suppliers, business partners, employees, and all other stakeholders for their
unwavering support in our company's growth journey.