Investor Call Transcript Summary (Q4 FY 2324)

Introduction

• Date: Last quarter of financial year FY 2324
• Team Leadership Introduced: Mr. M Krishna (Vice Chairman), Mr. Jagdeep Hir (Managing Director), Mrs. Nia Sui (CFO), Mr. Satish Chamani (Business Head - Compostables Division), Mr. Ramji Suan (Innovation Head), Mr. Sachin Shasta (Company Secretary), PR (Brand Head).

Company Overview

• Mission: Focus on creating a cleaner planet.
• Market Focus: Food packaging market with a potential of $600 billion.
• Key Offerings:
  • Compostable paper-based packaging for flexible FMCG food items.
  • Food wrap and carry solutions using Agri-fiber materials.
  • Food service products under the brand "Chuck".

Growth Plans

• Expansion Projects:
  • Aodha site expansion.
  • Largest facility for regenerative food packaging materials in Guatemala.
  • Manufacturing capacity and turnover potentials discussed.

International Growth Update

• Guatemala Project:
  • Basic engineering phase completed; detailed engineering to begin soon.
  • U.S. team formation underway; roadmap for launching products established.
  • Land payment process ongoing; facility layout planning completed.
  • Targeting to raise $110 million for equity funding in the next few months.

Financial Highlights

• PBT Growth: 1% increase year-on-year despite market challenges.
• Operational Efficiency:
  • Rap and carry production at 97% efficiency.
  • Molded product production efficiency jumped to 55% from 32%.
  • Pulp production efficiency at 99%.

Challenges Faced

• Negative impacts from geopolitical conflicts (Middle East, Ukraine).
• Increase in imports affecting domestic market dynamics (19% to 46% increase).
• Slower FMCG uptake domestically.

Future Strategies

• Increased export volumes despite slow domestic market.
• New product introductions planned; focus on flexible packaging.
• Jagruti project targeting production in FY 24-25.

Innovation Updates

• Focus on flexible packaging and development of new structures.
• Trials for new products in confectionery and other segments ongoing.
• Patenting processes for new innovations in packaging.

Goals for Next Year

• Commitment to improve customer service and achieve a 50% NPS.
• Aim to be in the top 20 best places to work in manufacturing.
• Initiatives for a 10% carbon footprint reduction.
• Continued focus on leadership development and sustainability practices.

Questions & Answers

• Funding Queries: Plans for local fundraising discussed; targeting to finalize equity funding soon.
• Geopolitical Stability: Positive outlook for the project in Guatemala despite regional challenges.
• Market Positioning: Strategy to differentiate Chuck as a global brand.
• Retail Presence: Growing presence in retail with ongoing discussions for partnerships with major retailers.
• Production Capacities: Updates on capacity expansion and efficiency improvements provided.

Conclusion

• Management expressed commitment to transparency and responsibility towards investors.
• Emphasis on the importance of addressing investor questions during calls.