Mitsu Chem Plast Ltd

It is with immense gratitude and pride that I present to you an overview of our journey and achievements at Mitsu Chem Plast in the past fiscal year. The year was nothing short of extraordinary for us, marked by significant innovations and advancements in our performance. Central to all our endeavours was a profound dedication to pioneering innovation and contributing to a sustainable future for generations to come. This indomitable commitment is beautifully encapsulated in the theme of this Annual Report ‘Empowering a Sustainable Future Through Innovation.'

This theme also underscores our firm resolve to spearhead transformative progress in the industry, reafirming our determination to drive positive changes.

We are also thrilled to share that our recent rights issue was oversubscribed, demonstrating the unwavering confidence and trust our shareholders have placed in us. We extend our heartfelt gratitude to each and every shareholder for their continued support and belief in Mitsu Chem Plast. Your faith in our vision and capabilities propels us forward, and we are deeply grateful for your partnership as we journey towards a brighter and more sustainable future.

Navigating the dynamic landscape of the global economy presents challenges as well as opportunities. While certain obstacles are expected to persist, India's economy remains promising. With a predicted GDP growth rate of 8.2% for the fiscal year, India stands out as the fastest-growing major economy, attracting substantial foreign investments and emerging as a key player in the global South. This positive growth trajectory is being fuelled by the country's youthful population and a business-friendly environment.

The plastic packaging industry in India is poised for substantial expansion, mainly driven by the food & beverage and consumer goods sectors. The global demand for packaged drinking water is driven by increasing concerns about health and well-being, coupled with a rising awareness of water-borne diseases. In particular, there is a notable uptick in the demand for single-serve consumer packaging formats. As a result, plastic packaging manufacturers are pioneering innovative solutions to develop efficient packaging options to address this surging demand.

However, sustainability remains a pivotal challenge for the industry, as the proliferation of plastic waste continues to present significant environmental risks. In response, there is a growing preference for sustainable and eco-friendly packaging solutions, catalysing the expansion of the rigid plastic packaging market.

Despite having faced formidable cost pressures, we are delighted to announce that our total income for the fiscal year soared to an impressive 311.25 crore. Our firm determination propelled us to achieve a resilient EBITDA of 25.67 crore, while our net profit surged to an impressive 8.86 crore. This remarkable achievement underscores our relentless pursuit of cost optimisation and profitability enhancement.

Mitsu Chem Plast's strategic investments in revolutionary product innovations and value-added offerings were instrumental in meeting the burgeoning demand for packaging products. Looking ahead, we continue to fortify our product portfolio, empowered by a relentless focus on becoming the go-to partner for premium packaging solutions. This dedication ensures we remain at the forefront of the industry's evolution.

We're embracing sustainability with PCR (Post-Consumer Recycled) plastic, combining virgin and recycled materials to cut waste and carbon emissions. It's a key step towards our vision of progress and environmental responsibility

Staying Ahead of the Curve

By virtue of our innovative and proactive approach, we have attracted attention from corners of the globe, highlighting the global impact of our endeavours. To continue growing, we recognise the importance of investing wisely, staying ahead of the curve, and harnessing the rising demand.

Thus, we are excited to introduce next bold step a rights issue. This is an opportunity for our valued shareholders to join us on the journey. For every 8 equity shares held, shareholders will receive 1 rights issue priced at 144 per share, including a premium of 134 per share. The payment will be made in two tranches, 50% at the time of application and the remaining 50% in subsequent calls. More than just raising funds, this initiative is about fuelling innovation and expansion. The proceeds from this initiative will be the lifeblood of our future endeavours, fuelling initiatives like debt repayment, turbo-charging our working capital, and charting new territories in business expansion.

Mitsu Chem Plast has been a driving force in spearheading healthcare innovation on a global scale. Through collaborative efforts, we have cultivated solutions with universal applicability, solidifying our position as an industry pioneer. Our participation in prominent events such as the MEDICA D?sseldorf Exhibition in Germany, hosted by Messe from November 2023 and the Arab Health 2024 in Dubai, UAE, from January to February, 2024, has provided valuable platforms to showcase our innovative healthcare solutions to a global audience. These engagements demonstrate our commitment to pushing the boundaries of innovation and making a meaningful impact on the healthcare landscape worldwide.

In our dedication to sustainability, we continue to prioritise energy conservation and green initiatives. Through our innovative endeavours, we've not only curbed wastage but also streamlined consumption, yielding significant cost savings. By embracing cutting-edge technologies and implementing efficient machinery, we're actively contributing to a more sustainable future.

Furthermore, our commitment extends beyond the boundaries of business. We are deeply involved in uplifting lives through grassroots interventions in education, healthcare, and sports. These initiatives showcase our belief in creating a positive impact at the grassroots level, fostering holistic development and empowerment within communities.

I would like to sign off by extending my heartfelt gratitude to every member of the Mitsu Chem Plast family. Your dedication, hard work, and collaborative spirit have been the bedrock of our success. Together, we have faced challenges, embraced change, and turned ordeals into triumphs.

As we chart our course forward, I am confident that Mitsu Chem Plast Limited will continue to lead the way in our industry. With renewed vigour, let us stride confidently into the future, knowing that our combined efforts will carve pathways to even greater heights. Together, we are poised to shape a promising tomorrow filled with endless possibilities.

Thank you for your continued support.

JAGDISH DEDHIA

Chairman & Whole-Time Director,