About the Company

Pyramid Technoplast Limited is an industrial packaging company.

The company was incorporated in the year 1997 and it started commercial production in the year 1998. Presently, the company has 6 manufacturing units out of which 4 are in Bharuch GIDC, Gujarat and 2 are at Silvassa, UT of Dadra and Nagar Haveli. The 7^th manufacturing unit is under construction at the Bharuch GIDC, Gujarat adjacent to the existing 6 units.

The company manufactures polymer-based molded products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemical, and pharmaceutical companies for their packaging requirements.

The company is also one of the leading manufacturers of rigid Intermediate Bulk Containers (IBC) in India. IBCs are industrial-grade containers engineered for the mass handling, transport, and storage of liquids, semi-solids, pastes, or solids.

It also manufactures MS Drums made of mild steel (MS) used in the packaging and transport of chemicals, agrochemicals, and specialty chemicals.

Images to understand the products better

Polymer Drum

Intermediate Bulk Container (IBC)

MS Drums

The company has obtained UN certification for IBC and MS Drums to meet safety levels outlined by United Nations Recommendations on the Transport of Dangerous Goods, to transport them safely (by road, rail, sea, and air).

The manufacturing units are ISO 9001:2015/ ISO 14001:2015/ISO 45001:2018 certified by quality, environment, health, and safety management systems for the manufacture of Polymer Drums, carboys, jerry cans, IBC & MS Drums and accessories connected thereto.

Further, MS Drums meet quality standards as per IS 1783:2014 (Part 1 and 2) laid down by the Bureau of Indian Standards.

Key Industry Growth Parameters

1. The global molded plastics market is forecasted to grow at a CAGR of 6.84% for the period 2022-2030.

2. The Intermediate Bulk Container (IBC) market in India is forecasted to deliver revenue growth at a CAGR of 10.56% and sales volume growth at a CAGR of 7.47% for the period 2022-2030.

3. The Indian Polymer Drums market is forecasted to have a revenue growth of 9.87% for 2022-2030 and a volume growth of 6.51% for the same period.

4. The MS Drums industry expects a revenue growth of 8.76% for 2022-2030 and volume growth of 5.41% for the same period.

IPO Objectives

1. Repayment and/or pre-payment, in whole or part, of certain outstanding borrowings availed by the company;

2. Funding working capital requirements of the company; and

3. General corporate purposes.

The company's revenue from operations has risen from Rs. 313.50 crores in FY 2020-21 to Rs. 480.03 crores in FY 2022-23, reflecting a CAGR of 23.75%. Over the same period, the EBITDA and Net Profit have experienced a CAGR of 26.28% and 36.72%, respectively. The EBITDA and Net Profit margins have maintained consistency throughout the reviewed period. Similarly, both ROCE and ROE have also demonstrated stability.

Valuation

The company's PE ratio stands at 16.21, while the industry's PE ratio is 25.21. Consequently, the issue price appears to be undervalued. On the other hand, the company's PB ratio is 4.84, whereas the industry's PB ratio is 3.37, suggesting that the issue price might be overvalued.

Peer Comparison

Time Technoplast Limited emerges as the largest player based on revenue. Mold-Tek Packaging Limited is taking the lead among its peers in terms of EBITDA and PAT margins. Furthermore, it boasts the highest EPS. Meanwhile, Pyramid Technoplast has achieved the highest ROE and ROCE.

Key Risks

1. The manufacturing units of the company are situated in Gujarat and Silvassa only. The operations of the company may be affected by various factors associated with the region where we operate.

2. Substantial portion of the company’s revenue comes from the manufacturing and sale of Polymer Drums. For the FY 2022-23, 57.21% of revenue from operations was derived from the manufacture of polymer drums, whereas 26.42% and 8.54% of revenue from operations were derived from the manufacturing and sale of Intermediate Bulk Containers (IBC) and MS Drums respectively.

3. The company derives a significant portion of its revenue from its Top 5 and Top 10 customers. For the FY 2022-23, 24.38% and 32.03% of revenue from operations was derived from the Top 5 and Top 10 customers respectively.

4. Polymer including polypropylene and polyethylene is the primary raw material consumed by the company and constitutes a significant percentage of the company’s total expenses. For the FY 2022-23 81.40% of the cost of raw material consumed was spent on this specific raw material.

5. The company is dependent on a few suppliers for a significant portion of raw material consumed. For FY 2022-23, 54.51% of the total purchases were from its Top 5 suppliers and 69.86% of the total purchases were from its Top 10 suppliers.

IPO Details