About the Company:
Prima Plastics Limited is one of the major market leaders in the Plastic Moulded Furniture industry in India since the year 1995.Company is India’s fourth-largest moulded plastic furniture company.
They design and manufacture plastic moulded furniture from chairs, baby chairs, dinning tables, stools and teapoys in a wide range of attractive colors and also export their products to USA, Africa and the Middle East.
Company has consistently increased its market share over the last few years and has consolidated its position as a brand leader in the garden & leisure furniture industry.
Company’s clients range from various industries from hotels, restaurants to household use for swimming pools, gardens, etc from domestic and international markets.
Company has manufacturing units in Daman, and Kerala and recently has established a unit in Andhra Pradesh which is catering to different regions in India.
Currently, the company has 400 distributors and 5,000 dealers across India.
The company is basically into plastic moulding furniture business like nilkamal and supreme and its furniture goes with the “prima” brand.
Company also has operations in Cameroon (West Africa) which it operates through a joint venture company, Prima Dee-Lite Plastics S.A.R.L.
Company has recently completed a expansion project in Cameeran to increase production capacity by upgrading its capacity from 4500 tonne p.a. to 8500 tonne p.a.
Recently Company has established a Subsidiary Company, Prima Union Plasticos S.A. at Guatemala, Central America with a local partner.(Company holds 90% stake),planned capacity of 3,000 MT per annum.
During the year the company has also launched premium range of customised plastic products to increase demand.
Company has completed the set-up of a green-field project with an installed capacity of 1500 MT per annum and the commercial production and operation at the newly established plant at Ongole, Andhra Pradesh.
Also Watch (Detailed Analysis Inside this Video):
Positives for the Company:
- Experienced Management Team.
- Turnover will increase because of the expansion projects.
- Also bidding for the government orders under the Swachh Bharat Abhiyaan.
- Company is adding more distributors and retailers across various parts of India.
- Consistent dividend payer.
- Benefit from GST Implementation.
- Currently 40% of the Sector is dominated by unorganised players & in coming years significant portion of this will shift to Organised players.
Current Market Price is around Rs.232 & Marketcap is around Rs.258 cr.
Should give good return in the Long Term.
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