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Huhtamaki India Ltd

| Annual Report 2025-26

Report Source

⬤10th Apr 26

Summary : Huhtamaki India achieved strong profitability in 2025 through disciplined execution and sustainable packaging focus, positioning for continued growth in the robust Indian market.

Annual Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: 16,200.7 Mn (2025).
  2. Employee benefit expenses: 2,589.5 Mn (2025).
  3. Finance costs: 165.6 Mn (2025).
  4. Depreciation and amortisation expense: 521.6 Mn (2025).
  5. Other expenses: 3,894.2 Mn (2025).
  6. Trade receivables (considered good): 5,537.2 Mn (2025).
  7. Trade receivables (credit impaired): 9.0 Mn (2025).
  8. Aging (2025): Not Due 4,554.0 Mn, Less than 6 months 948.3 Mn.
  9. Revenue from operations: 24,694.1 Mn (2025) vs 25,211.8 Mn (2024).
  10. Net Cash flows from operating activities: 2,378.1 Mn (2025).
  11. Net cash flows (used in) Investing activities: (1,562.1) Mn (2025).
  12. Net cash flows (used in) financing activities: (357.5) Mn (2025).
  13. Claims against Company not acknowledged as Debts: 309.8 Mn (2025).
  14. Includes Excise Duty, Service Tax, Custom Duty, GST, Income Tax, Sales Tax.
  15. Total Assets: 20,043.2 Mn (2025) vs 19,370.6 Mn (2024).
  16. Total Equity: 12,935.3 Mn (2025) vs 11,935.5 Mn (2024).
  17. Total Liabilities: 7,107.9 Mn (2025) vs 7,435.1 Mn (2024).
  18. Cash and Cash Equivalents: 945.2 Mn (2025) vs 488.9 Mn (2024).
  19. Trade Receivables: 5,537.2 Mn (2025) vs 5,703.9 Mn (2024).
  20. Trade Payables: 4,543.2 Mn (2025) vs 4,778.6 Mn (2024).
  21. All transactions in ordinary course of business and on arm's length basis.
  22. Compensation of Key Management Personnel: 73.3 Mn (2025).
  23. Transactions with Ultimate Parent Company and Fellow Subsidiaries.
  24. Cash Flow Statements on Standalone basis.

Corporate Overview

  1. Operates in India with 10 manufacturing sites.
  2. Exports to over 70 countries globally.
  3. Asia-Pacific is largest and fastest-growing market.
  4. Competitive intensity and rapid innovation cycles.
  5. Geopolitical tensions and energy market disruptions.
  6. Raw material cost volatility (plastics, paper, aluminum).
  7. Regulatory uncertainty from state-level plastic bans.
  8. Supply chain constraints (logistics, port congestion).
  9. Fragmented converter base in India.
  10. Exports contribute 33.51% to total turnover.
  11. Subsidiary of Huhtamaki Oyj, leveraging global expertise.
  12. Creating packaging combining functionality, aesthetics, protection.
  13. Delivering innovative solutions, strengthening partner brands.
  14. Advancing sustainability in packaging solutions.
  15. Global leader in packaging for food and everyday necessities.
  16. Expertise in paperboard, molded fiber, flexible packaging.
  17. Honored and confident in company's resilience.
  18. Committed to accelerating growth and responsible leadership.
  19. Emphasizes sustainability, partnership, and innovation.
  20. Brand owners seeking differentiation and value co-creation.
  21. Suppliers looking for innovation partners.
  22. FMCG sector, food and beverage industry.
  23. Pharmaceuticals, personal care, consumer segments.
  24. Food and beverages
  25. Home and personal care
  26. Healthcare
  27. Industrial
  28. Pharmaceuticals
  29. E-commerce
  30. 10 manufacturing sites in India.
  31. R&D Centre in Khopoli.
  32. Global packaging market estimated $1.22 trillion (2026).
  33. Union Budget 2026-27 increased capital expenditure.
  34. Investing in renewable captive solar power projects.
  35. Capital expenditure of 558.1 million in 2025.

Risk Factors

  1. Raw material price fluctuations impact margins.
  2. Uncertainty from state-level plastic bans.
  3. Supply chain disruptions pose fulfillment challenges.
  4. Fragmented industry limits automation pace.

Key Drivers

  1. Profitability significantly improved despite lower volumes.
  2. Strong focus on sustainable packaging solutions.
  3. Increased capital expenditure for future growth.
  4. India's robust economic growth outlook.

Auditor’s Report

  1. Unqualified opinion on financial statements (true and fair view).
  2. Unqualified opinion on compliance with Corporate Governance requirements.
  3. Unqualified opinion on internal financial controls (adequate and operating effectively).
  4. Timing of revenue recognition due to variety of delivery terms.

Board Commentary

  1. Mr. Axel Glade appointed Non-Executive Director (Oct 15, 2025).
  2. Mr. Thomas Geust appointed Non-Executive Director (Nov 14, 2025).
  3. Mr. Kamal Taneja appointed Managing Director (Jan 16, 2026).
  4. Ms. Ramya Mohan appointed Whole-time Director (March 18, 2026).
  5. Mr. Vinit Mahadevan appointed Whole-time Director (March 18, 2026).
  6. Resignations: Mr. Marco Hilty, Mr. Stefan Lotz, Mr. Jagdish Agarwal, Mr. Dhananjay Salunkhe, Mr. Sami Pauni.
  7. Recommended 2/- per equity share (100%) for 2025.
  8. Total cash outflow of 151 million.
  9. In accordance with Company's Dividend Distribution Policy.
  10. Management Discussion & Analysis forms part of the Annual Report.
  11. Risk Management Policy formulated and Risk Management Committee constituted.
  12. No instances of fraud required to be reported.
  13. Orders from government authorities imposing penalties for non-compliance.
  14. Some appeals pending for tax and penalty demands.
  15. No additional external borrowings availed during the year.
  16. No loans, guarantees, or investments under Sections 185 and 186 of the Act.
  17. Estimated value of contracts in capital account remaining to be executed: 155.0 million (2025).

Corporate Governance

  1. Code of Conduct for Board and Senior Management.
  2. Whistle Blower Policy promotes speak-up culture.
  3. Anti-corruption and anti-bribery policy in place.
  4. Equal opportunity policy for employees.
  5. Board comprises 7 Directors, 3 are Independent.
  6. Independent Directors constitute more than one-third of Board.
  7. Independent Directors meet criteria of independence.
  8. Audit Committee (3 Independent Directors).
  9. Nomination & Remuneration Committee.
  10. Stakeholders Relationship Committee.
  11. Risk Management Committee.
  12. Corporate Social Responsibility Committee.
  13. Day's delay in filing one director's resignation letter.
  14. 4 complaints received under Whistle Blower mechanism, addressed.
  15. No disciplinary action against Directors/KMPs for bribery/corruption.
  16. No complaints on conflict of interest, working conditions, health & safety.

Management Discussion & Analysis

Future Strategy

  1. Accelerate growth and lead responsibly.
  2. Focused value creation: profitable growth, capital allocation, execution.
  3. Intensifying engagement with key customers.
  4. Investing in innovation and scaling responsibly.
  5. Advance sustainable packaging solutions.

Industry Overview

  1. Indian packaging industry projected to reach $169.73 billion by 2030.
  2. Transitioning to technology-enabled, sustainability-aligned solutions.
  3. Flexible packaging leads Indian market, projected 11.51% CAGR.

Macroeconomic Outlook

  1. Global economy shows underlying resilience.
  2. Global GDP growth projected at 3.3% for 2026.
  3. India is a structurally attractive long-term growth market.
  4. Indian economy expected to grow 6.8-7.2% in 2026-27.

Operational Focus Areas

  1. Enhance manufacturing efficiency and procurement discipline.
  2. Improve overhead control and operational performance.
  3. Strengthen safety outcomes.
  4. Implement automation, digitalization, data-driven decision-making.
  5. Waste reduction, yield improvement, plant utilization.

Performance Drivers

  1. Disciplined portfolio decisions and cost optimization.
  2. Improved operating leverage and profitability.
  3. Demand from end-use industries (F&B, pharma, e-commerce).
  4. Sustainability-linked purchasing commitments.
  5. Shift towards mono-material and recyclable packaging.
  6. Regulatory pressure on single-use plastics.
  7. Digital printing and on-demand customization.

Risk Control Measures

  1. Continuous monitoring of global developments.
  2. Diversified sourcing and flexible strategies.
  3. Long-term contracts and pricing mechanisms.
  4. Continuous investment in R&D and digitalization.
  5. Structured talent development and DEI focus.
  6. Strengthened IT security and regular audits.
  7. Integration of ESG into strategy and operations.

Critical Risks

  1. Macroeconomic volatility and geopolitical tensions.
  2. Raw material price and energy cost fluctuations.
  3. Technology obsolescence if adoption lags.
  4. Evolving regulatory landscape and inconsistent implementation.
  5. Talent shortages impacting productivity and succession.
  6. Cybersecurity threats and data breaches.
  7. Failure to meet ESG expectations.