Krishca Strapping Solutions Ltd

Leveraging strategic partnerships for long-term success and strengthening our footprint across key markets

Lenin Krishnamoorthy Balamanikandan

Chairman & Managing Director

Dear Shareholders,

As we reflect on Fiscal Year 2024, I am proud to present a comprehensive overview of the remarkable progress Krishca Strapping Solutions has made. This year has been pivotal, marked by strategic milestones, industry recognition, and robust financial performance, all of which have strengthened our foundation for future growth. Since our inception in December 2017, Krishca has rapidly become a leader in manufacturing and wholesaling High Tensile Steel Straps, Strapping

Seals, and Strapping Tools. Launching commercial production in March 2020, we've distinguished ourselves through innovation, quality, and sustainability. As operators of India's first "Lead-Free" and eco-friendly steel strapping production line, we've set new industry standards while reducing environmental impact. Our strategic location in Tamil Nadu, combined with advanced technology, has given us a competitive edge by lowering production costs, minimizing waste, and enhancing energy efficiency.

The global steel strapping industry is undergoing significant transformation, driven by the increasing demand for high-performance, sustainable materials. In this rapidly evolving landscape, Krishca stands at the forefront, leveraging advanced automation and eco-friendly processes to meet the stringent demands of our clients.

Domestically, India's steel production is on a growth trajectory, with IBEF's projections indicating a rise from 125 million tons per annum to 300 million tons by 2030. This surge, combined with the growing demand for steel strapping due to increased steel exports, presents a lucrative opportunity for us.

Moreover, the global shift towards the "China + 1" strategy is opening doors for non-China suppliers, and Krishca is poised to capitalize on this trend, expanding our footprint in key international markets.

Our financial performance in FY24 reflects the successful execution of our strategic initiatives and our commitment to operational excellence. We achieved a significant revenue milestone of 105.02

Crores, driven by increased production capacity and market expansion. Our EBITDA reached

20.26 Crores, while our PAT stood at 13.24 Crores, underscoring our ability to deliver strong profitability. The company's cash flow remained healthy, enabling us to reinvest in critical areas such as technology upgrades, capacity enhancements, and market development. These financial outcomes are a testament to our sound business model and the disciplined approach we have taken to ensure sustainable growth.

Key Developments in FY24

FY24 was marked by several key developments that have solidified our market position and laid the groundwork for continued success:

Doubling of Production Capacity: In May 2024, we launched a new state-of-the-art production line, increasing our steel strapping capacity by 20,000 Metric Tons. This expansion allows us to meet growing market demand with enhanced efficiency, superior product quality, and reduced lead times.

Strategic Contracts: We secured landmark contracts with Shyam Metallics Ltd, SAIL, and

Vedanta Limited, totaling over 25 Crores. These contracts are not just revenue drivers; they are a validation of our capabilities and our reputation as a trusted partner in the industry. They also set the stage for long-term partnerships that will contribute to our sustained growth.

Global Expansion: We made significant strides in our global expansion strategy with the launch of Krishca Total Packaging Solutions FZCO in the UAE and Krishca Total Packaging and Preservation Solutions PTE LTD in Singapore. These ventures extend our market reach, providing a broader range of packaging solutions to customers across the Middle East and Southeast Asia, and reinforcing our presence in these strategic regions.

Innovation in Customer Engagement: The introduction of the KRISHCA Mobile App is a prime example of our commitment to innovation. This tool empowers our sales force with real-time data, essential documents, and resources, streamlining operations and enhancing the customer experience.

Expansion Plans and Strategy

As we look to the future, our strategy is focused on driving growth, diversifying our product offerings, and expanding our market presence:

Production and Portfolio Diversification:We are investing in a new hardening and tempering line in Tamil Nadu, which will enable us to introduce Ultra High Tensile Strapping products to new markets. In parallel, we are entering the welding consumables market with the establishment of a MIG welding wire production plant in Chennai. These initiatives will not only diversify our product portfolio but also strengthen our position in the global market.

Strategic Investments: Our investments in the Middle East, including new sales offices, warehouses, and a state-of-the-art manufacturing plant, will serve as a strategic gateway to the US market. These initiatives are aligned with our goal of becoming a dominant player in the global packaging industry.

Market Expansion: We are actively exploring opportunities in new markets such as Bangladesh,

Sri Lanka, Australia, the US, Europe, and Africa. Our focus is on increasing our packaging contract revenue and capturing a larger share of the steel strapping market. By appointing distributors in these regions, we aim to enhance our market reach and drive export growth.

As we move forward, I want to take a moment to express my deep appreciation to our dedicated employees, valued customers, and loyal shareholders. Your unwavering support and contributions have been instrumental in our success. Together, we have built a company that is resilient, innovative, and poised for continued growth.

Thank you for your trust in our vision and for your commitment to our shared journey. I am confident that with your continued support, Krishca will achieve even greater heights in the years to come.