Max Speciality Films Limited

Management Discussion & Analysis

Economic Overview and Impact of Covid-19

The Coronavirus pandemic, which began in November 2019, is expected to push the global economy into a recession. Even as India takes measures to minimise the impact of the pandemic, the GDP forecast for FY 21 reduced from an estimated 4.9% in FY 20 to 0.8%. One of the major factors for this decrease is an exponential reduction in consumer spending. Most small businesses are expected to close due to high market volatility, liquidity and operational issues, with the exception of essential goods companies.

During these unprecedented times, the essential goods industry is expected to survive although with issues such as stock piling, price volatility and transportation. Consumer and producer priority at this time is the consumers’ health and safety. As consumer preferences shift from loose packaged products, a stability in demand is expected for the flexible packaging industry.

A Max Speciality Films kiosk at the Label Expo Brussels event

Latest Trends

The global market for Bi-axially Oriented PolyPropylene (BOPP) films in FY 20 was 9 Million Tonnes Per Annum (MTPA), of which India contributes just 380 Kilo Tonnes Per Annum (KTPA), about 4% of the global demand.

Apart from increasing health and safety concerns leading to a disproportionate increase in demand for certain segments of BOPP packaging such as Anti-microbial film, another noteworthy trend is the rising awareness around climate change, as a result of which governments and organisations are slowly yet steadily leaning towards a circular economy with a focus on recyclability. This is also trickling down to the packaging industry as multiple brands aspiring to implement recyclable packaging by 2025 are evaluating BOPP-based laminates to meet this objective.

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Annual Report 2019 - 2020