Uflex Ltd

Dear Valued Shareholders,

I am pleased to present our Annual Report for the financial year (FY) 2023-24. In 2023, several factors such as fluctuating raw material prices, evolving regulations, and environmental issues contributed to sluggish growth in the global packaging films market. Geopolitical events such as the Red Sea crisis and rising crude oil prices, further strained supply chains and increased costs. However, the shiœ toward sustainable packaging and stricter global regulations underscored the need for ongoing innovation and adaptation. The global flexible packaging market was valued at USD 300.6 billion in 2023 and is poised to record more than 5.2% CAGR from 2024 to 2032 (Global Markets Insights). Evolving consumer tastes in packaged food and beverages, the rise of e-commerce, and the increase in food storage technologies will fuel the demand for flexible packaging solutions in the coming years. Amidst the challenges in 2023, our commitment to product innovation, sustainable and value-added solutions, backward integration, and a global manufacturing strategy to cater to local demand for packaging films, ensured our resilience. I am deeply grateful to our teams across the globe, business partners, and customers for their unwavering support and trust in UFlex.

In FY24, Your Company navigated a challenging packaging environment with exceptional agility, achieving a consolidated net revenue of INR 13,509 crore. The year also witnessed the highest-ever production and sales volume in our aseptic packaging business. In FY24, we made significant strides toward achieving raw material self-su†iciency by commissioning a PET chips plant at Panipat, India, and a PCR (post-consumer recyclate) plant in Egypt. W e c o m m i s s i o n ed a 6 . 5 - m e t e r - w i de C a s t Polypropylene (CPP) Film Line in a CIS country with an installed capacity of 18,000 metric tons per annum (MTPA). The CPP packaging film line is well supported by a new generation metallizer to enable a longer shelf life of food products. In FY25, we will be commissioning several key projects, including a 216,000 MTPA virgin PET chips plant in Egypt, an 18,000 MTPA CPP line in Mexico, and capacity debottlenecking at our aseptic plant in Sanand, India, to increase its annual output to 12 billion packs. These strategic projects are pivotal for creating long-lasting value for all UFlex stakeholders. These investments shall foster operational excellence and propel substantial growth in our top line and EBITDA while yielding considerable free cash flow.

Reinforcing our strategic focus on sustainability, our attention toward PCR flexible packaging is on top of our agenda and we are constantly working toward developing more sustainable solutions. We are the only company that is working on innovative solutions in flexible MLP and PCR and its applications both within India and globally.

Research and Development is the cornerstone of our strategy, driving our dedication to innovation and sustainability. Our commitment to a greener environment is reflected in our focus on sustainable products and eco-friendly solutions.

In FY24, UFlex secured seven patents, six copyrights, and one trademark, rea‘irming our commitment to innovation and leadership.

Our corporate strategy seamlessly integrates sustainability with business growth and technological advancements. We employ a holistic approach that delivers long-term value to our stakeholders.

Your Company has signed two long-term Power Purchase Agreements to secure renewable power for its Noida and Dharwad plants. As part of our ongoing CSR commitment, UFlex conducted sustainability awareness workshops for primary school students across 13 schools in Noida in the National Capital Region in FY24. This educational initiative reached over 4000 students and was designed to deepen the students' and their families? understanding of waste management practices. We also supported open-air park gyms to improve the health and well-being of the underprivileged population and to provide gym access to local communities.

We rea‘irmed our commitment to restoring ecological balance and promoting biodiversity by sponsoring pond rejuvenation in the National Capital Region, amongst several other community impact programs. We continue to invest in employee health, safety, and well-being programs and are proud of our commitment to fostering a global culture of learning and development. Our people practices were conferred several industry awards including "The Most Preferred Workplace in Manufacturing 2023-2024" by Team Marksmen. In addition, a few highlights from our ESG journey in FY24 include: Dedicated 100% of our research and development investments to enhancing our products and processes' environmental and societal impact. Focused on sourcing 67% of our input materials locally in India, bolstering regional sustainability and economic growth.

Secured 11.8% of our electricity from renewable sources, with ongoing plans for strategic power purchase agreements to further increase our renewable energy portfolio.

Implemented rigorous supply chain management strategies through extensive awareness, assessment, and bespoke training programs, covering 59.93% of our suppliers.

Achieved a 3.5% reduction in waste generation compared to the preceding year.

In FY24, we were listed as an Economic Times Sustainable Organization 2023 for our contribution toward sustainable development in the country and the GCC region. We are proud of our progress in sustainability and will continue to play our part in building a circular packaging economy. All this would not be possible without the contribution of every member of the UFlex family and I take this opportunity to thank all our employees for their unwavering support and contribution to our growth. Your dedication sets the pace for us to unlock our full potential as we embark on our next phase of growth.

Sincerely, Ashok Chaturvedi

Chairman and Managing Director