Management Discussion and Analysis Report

A. Industry structure and development:

India has witnessed a huge transformation in economic and social growth resulting into emergence of the large Aluminium Foil Industry. This industry brdominantly is run by large companies as well as small scale operations by individual operators but has been transformed into organized structured Industry recognized as Packaging products mainly in Food sector Pharmaceutical, Caterings, Railways, Airlines, Hotels, Restaurants, etc. Aluminium being protective layer from moisture, light etc and biodegradable is good for Pharma packaging. Further the product application for Aluminium foils has been into Health and Hygiene sector also like Hospitals and Health centres resulting into a sector being termed as Aluminium Consumer goods sector. The Country has been seeing huge demand of this products due to increased urbanization and increase exports of Pharmaceuticals resulting into growth by existing players and also few global Companies are trying to market their product initially and may get into operations as and when they find the market ready for their products. Further the Company is constantly looking to expand to newer markets; thereby increasing the overall market of the products.

Opportunities and strengths

The young population, urbanization, international exposure to the current people, environmental rules and regulations, nuclear family concepts, huge demand for improved hygiene levels, huge growth in direct customer markets, provides huge opportunities to scale up this business and industry will see huge multiple growth in years to come.

Outlook, risks and concerns

The current plants of the Company are at two locations. Due to that Company derives huge economies of scale & efficiencies. But there is always a risk of any natural / unnatural eventualities occurring; that shall effect the partial operations of the Company. Since Company is entering direct sales; there would be challenges over supply chain, logistics etc. Inventories and debtors level is expected to be high till such time that the direct business stabilizes. Demand not matching up with the supply as by the end of 2013-14 production capacities of the Company would be almost at the optimum utilization. There could be a slight drop in the bottomline in case of finance cost going up.

CURRENT YEAR'S OUTLOOK

Going forward Company plans to focus more towards direct customer business, product brand building, develop custom made products for Pharmaceutical Industries. This will result in a fundamental change in perception about the Company and there will be lots of value addition thereby increasing the bottom line of the Company. Branding of the Company's product range will also improve the image of the Company. Company is also in process of putting various systems/ processes in place, so that eventually the Company is system/ processes driven. We are also in the process of building a much stronger and professional team in various faculties to facilitate smooth working.

Based on Company's order book position and execution capabilities; we are hopeful of achieving 15% growth in the topline of the Company. We also expect to increase our direct business share, to launch the new pharmaceutical packaging. We target to have everything in place by this yearend so as to kick start the business from early next year onwards. In the current year we shall also be exploring new markets for exports. Overall we look to the immediate future with optimism & sense of wellbeing.