Rajshree Polypack : Transcript of Analysts/Institutional Investor Meet/Con. Call

August 27, 2022

To,

Listing Department

National Stock Exchange of India Limited,

Exchange Plaza, Plot No. C-1, Block G,

Bandra Kurla Complex,

Bandra (E), Mumbai - 400051

Symbol:- RPPL

Dear Sir/Madam,

Subject: Transcript- Q1 FY 2023

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find enclosed a transcript of the earnings conference call for the quarter ended June 30, 2022 which was held on Thursday, August 25, 2022. The same is also available on the website of the Company i.e. www.rajshreepolypack.com.

The conference call held on August 25, 2022, as per the Transcript enclosed incorporates mainly the highlights of financial results upto June 30, 2022, and other related information which is already in public domain and / or made available / uploaded on the Company's website.

Please take the same on record.

FOR RAJSHREE POLYPACK LIMITED

Mitali Rajendra

Shah

Digitally signed by Mitali Rajendra Shah

Date: 2022.08.27 16:06:59 +05'30'

Mitali Rajendra Shah

Company Secretary & Compliance Officer Membership: A48197

Place: Thane

Encl: a/a

Rajshree Polypack Limited Q1 FY23 Earnings Conference Call August 25, 2022

MANAGEMENT:- Mr. Ramswaroop Thard:-Chairman & Managing Director Mr. Praveen Bhatia:- Director

Mr. Sunil Sharma: - Chief Financial Officer

MODERATOR:- Ms. Shweta Shekhawat

Rajshree Polypack Limited

August 25, 2022

Rajshree Polypack Limited. Q1 FY23 Earnings Conference Call August 25, 2022

The conference is now being recorded

Moderator:

• Good day ladies and gentlemen and welcome to the Q1 FY23 earnings conference call off Rajshree Polypack Limited hosted by Prabhudas Lilladher Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta Shekhawat from Prabhudas Lilladher. Thank you and over to you Ma'am.

Ms. Shweta Shekhawat - Prabhudas Lilladher Private Limited:

• Thanks Michelle. On behalf of Prabhudas Lilladher, I welcome you all to the 1Q FY23 earnings call of Rajshree Polypack Limited. We have with us the management represented by Mr. Ramswaroop Thard, the Chairman & the Managing Director, Mr. Praveen Bhatia, Non-Executive Independent Director, and Mr. Sunil Sharma, the CFO. I would now like to hand over the call to the management for opening remarks after which we can open the floor for Q&A. Thank you and over to you Sir.

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• Thank you, Shweta. Good evening everyone. I welcome you all to earnings call of Rajshree Polypack Limited for Q1 FY23. I hope all of you and your family are in good health. Joining me on call are Mr. Sunil Sharma, CFO and Mr. Pravin Bhatia, Director of Rajshree Polypack Limited. We have already uploaded the investor presentation and I hope that everyone got the opportunity to go through the same. for quarter 1 FY 23, company has achieved a turnover of ₹ 68.3 crore as against turnover of ₹48.67 crores for the corresponding quarter of previous year thereby achieving a growth of 40.3%. The EBITDA of the company has increased by 49% and it's stood at ₹10.8 crores for quarter1, 23 as against ₹7.2 crores for corresponding period earlier year. EBITDA margin for the company for the quarter stood at 15.8% as against 14.8% for corresponding period of previous year. At the same time, the company earns profit after tax amounting to ₹4.76 crores for quarter 1 FY23 as against ₹2.6 crores for quarter 1 FY22, thereby reporting an increase of 83% over previous year. PAT margins for the period stood at 6.9% of sale as against 5.34% of sales for corresponding period earlier year.
• Quarter 1 is always one of the strongest quarter for our business and this year was no exception with expanded production capacity, larger product basket, and expanded customer base. The efficiently increased demand in our product, we did our best to meet the demand by utilizing all our capacities at maximum as a result, our sales volume grew up by almost 24% to 2,800 metric ton for the quarter as against 2,269 metric ton for quarter one of FY 22. Further with achieving economies of scale, we have been able to improve our EBITDA margins gradually. Looking at expanding demand, we are already in process of adding more capacities and in our process of installation of another extrusion machine with installed capacity of 3,500 metric tons per annum, which will take our total sheet extrusion capacity to 18,200 metric tons per annum as against present 14,700 metric tons per annum. Further two more thermoforming machines with installed capacity of 900 metric tons per annum around their way and are expected to commence commercial

Rajshree Polypack Limited

August 25, 2022

production in the month of September 22. This will take our total installed capacity to 8,920 metric ton per annum of thermoforming from present 8,020 metric tons per annum.

• For painting, we have already added one machine with installed capacity of ₹06 crores cups per annum and we have placed order for two more machines with installed capacity of ₹20 crores per annum. The two new machines are expected to be operational by February 23 and we'll take our total printing capacity to ₹94 crores pieces per annum. I'm also glad to invite your kind attention to the fact that company has entered into exclusive toll manufacturing agreement for injection molding products for food packaging with a third-party manufacturer and the production for the same is expected to commence in the first week of September 22.This will help the company exploring injection molding technology with initial installed capacity of 1,000 metric ton per annum. The Company intend to expand capacities into this segment gradually based on demand scenario. Talking about product development, we developed barrier container for packing of hummus, which is used in Middle East for the long shelf life. At the same time, we also developed barrier packaging for Indian sweets for one of the largest dairy customer in southern part of India and barrier packaging for ethnic sweets for one of the largest dairy brand in India. All such developments in barrier segments will further help the company grow at rapid pace with better profit margins. In case of Olive Ecopak Private Limited, we have already finalized the construction plans and received requested approval while engaging all respective vendors and contractors, we intend to start the construction in the month of September 22 as soon as the rain recedes. With this, I would like to invite your questions.

Moderator:

• Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press * and 1 on their touch tone phone. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
• The first question is from the line of Suyog Patil, from Patil Investments. Please go ahead.

Mr. Suyog Patil - Patil Investments:

• Yeah. Hello Sir, am I audible?

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• Yeah. Good afternoon, Suyog.

Mr. Suyog Patil - Patil Investments:

• Sir what is the thickness limit in India for plastic packaging and what is the thickness of our finished products at Rajshree.

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• See basically, Rajshree is into manufacturing of rigid packaging products wherever thicknesses are all about 250 microns and the minimum thickness, which is there that is for I will say when it comes to packaging activation and functional packaging the limits are not there, but still we are in to rigid so it's all about 300 Micron. So, we don't fall under that particular issue as such.

Mr. Suyog Patil - Patil Investments:

• Okay Sir. Other question I had was which are the top three contributing clients for our sales as of now?

Rajshree Polypack Limited

August 25, 2022

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• For us the top clients is Ferrero, Nourishco, which is Tata Global Beverages, Amul, and Hindustan Unilever.

Mr. Suyog Patil - Patil Investments:

• Okay and there is one last question if I may ask. Can you simplify for me the difference between barrier packaging and rigid packaging because I saw that in your presentation what is the exact difference between these two barriers and rigid?

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• Rigid packaging, we say barrier and non-barrier, both are rigid categories. When we say barrier, it is basically to increase the shelf life of the food. So, then where it is classified as a barrier packaging, which is a functional feature of the packaging.

Mr. Suyog Patil - Patil Investments:

• Okay Sir. That's it from me. Thank you.

Moderator:

• Thank you. Reminder to all the participants to press * and 1 to ask a question. The next question is from the line of Gurjot Ahluwalia an individual investor. Please go ahead.

Mr. Gurjot Ahluwalia - Individual Investor:

• Yeah. Hi, good afternoon. Thanks for the opportunity.

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• Yeah. Good afternoon.

Mr. Gurjot Ahluwalia - Individual Investor:

• So, first question is around the competitive landscape of the packaging industry in which Rajshree Polypack is operating, so I would like to know a few things like who are the top three to five players in the market? What is the market position and market share of Rajshree in this industry?

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• Yeah. So, I will say the space which we are in the niche sector, thermoforming with rigid packaging is not a very big segment in India. So, I will not be able to give you the exact references, but there are companies like RN Packaging in South, there's been some Greiner Packaging in North of India, these are few names which I know, but I can only say that this is a niche sector and there are certain customers where we are the monopolistic suppliers.

Mr. Gurjot Ahluwalia - Individual Investor:

• Okay. So, in that respect is the overall size of the market quite small because we are already doing like 200 crores of revenue, so what would be the overall size of the market that you're operating in?

Mr. Ramswaroop Thard -- Chairman & Managing Director, Rajshree Polypack Limited:

• See we can say, the overall size of the market is around 800-1,000 crores, but it is divided into different segments and into different zones. So, that's the size for thermoforming into food packaging for brand with brand owners who are using them.