About the Company:
Pyramid Technoplast Ltd is an industrial packaging company engaged in the business of manufacturing polymer based molded products (Polymer Drums) mainly used by chemical, agrochemical, speciality chemical and pharmaceutical companies for their packaging requirements.
Company is one of the leading manufacturers of rigid Intermediate Bulk Containers (IBC) in India manufacturing 1,000 litre capacity IBC.
IBCs are industrial-grade containers engineered for the mass handling, transport, and storage of liquids, semi-solids, pastes, or solids. rigid IBCs are manufactured across a volume range which is in between that of standard shipping drums and intermodal tank containers, hence the title intermediate bulk container.
Company also manufactures MS Drums made of mild steel (MS) used in the packaging and transport of chemicals, agrochemicals and speciality chemicals.
Company’s products are marketed and sold under the brand name “Pyramid”.
Company started commercial production in the year 1998 in Unit I. Presently, Company has six (6) strategically situated manufacturing units out of which four (4) are in Bharuch, GIDC, Gujarat and two (2) are situated at Silvassa, UT of Dadra and Nagar Haveli.
The seventh (7) manufacturing unit is under construction at the Bharuch, GIDC, Gujarat adjacent to the existing six units
The total installed capacity of our Polymer Drum manufacturing units is 20,612 MTPA. The total installed capacity of our IBC manufacturing unit is 12,820 MTPA and the total installed capacity of our MS Drums unit is 6,200 MTPA.
Company’s Expansion:
Company intend to continue our focus on IBC by expanding our existing capacity by adding new manufacturing unit (Unit VII) at Bharuch, Gujarat, near our existing manufacturing units.
Company has already acquired land from GIDC – Bharuch. The civil construction work for our manufacturing Unit VII has been completed.
Company plans to install two lines of IBC in this new manufacturing unit. The installation of machinery at Unit VII is still in process which is expected to be completed by Q2 of FY 2024.
Company will in aggregate have 4 lines of production of IBC with an aggregate capacity of around 30,000 IBC units per month once the Unit VII is fully operational.
Company’s Revenues from operations across product verticals for Fiscals 2023.(in lakhs)
Management Team:
- Mr. Bijaykumar Agarwal (Designation: Chairman and Managing Director)
- Mr. Jaiprakash Agarwal (Designation: Whole-time Director & Chief Financial Officer)
Objectives of the Issue:
Offer for Sale: (Rs. 61.75 cr )
- The proceeds of the Offer for Sale shall be received by the Selling Shareholder. Company will not receive any
proceeds from the Offer for Sale.
Fresh Issue: (Rs. 91.30 cr)
- Repayment and/or pre-payment, in full or part, of certain outstanding borrowings availed by the Company.
- Funding working capital requirements of the Company.
- General corporate purposes.
Positives for the Company:
Rising Demand for Chemicals in Various End use Industries.
The demand for chemicals and petrochemicals has significantly expanded as a result of the new trend of consumption and production migrating to South Asian nations across all industries.Hence company will immensely benefit from capacity expansion of chemical companies.
Increasing demand for Intermediate Bulk Containers (IBCs).
- In terms of storage and transportation, mild steel barrels are less expensive than Intermediate Bulk Containers (IBCs).
- Looking at the form, steel drums’ circular shape results in wasted space, whereas IBCs result in optimal space usage.
- Moving on to the usability aspect, mild steel barrels are less usable than IBCs. Furthermore, because IBCs are fastened to pallets from the bottom, they are easier to handle than drums. IBCs can drain entirely, however, mild steel barrels cannot because the residue accumulates at the bottom.
- As a result of all of these variables, end-use sectors may gradually shift to IBCs, resulting in a 75% cost savings.
Continued focus on Intermediate Bulk Containers (IBC) by expanding our existing facilities.
- Company intends to continue our focus on IBC by expanding our existing capacity by adding new manufacturing unit (Unit VII) at Bharuch GIDC, Gujarat near our existing manufacturing units.
- Company has already acquired land from GIDC – Bharuch, Gujarat. The civil construction work for our manufacturing Unit VII has been completed.
- Company plans to install two lines of IBC in this new manufacturing unit.
- The installation of machinery at Unit VII is still in process which is expected to be completed by Q2 of FY 2024. We will in aggregate have 4 lines of production of IBC with an aggregate capacity of around 30,000 IBC units per month once the Unit VII is fully operational.
Company has UN certification for IBC and MS Drums to meet safety levels outlined by United Nations.
- 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, in order to transport them safely (by road, rail, sea and air).
- Company’s 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.
- Because of these certifications, company is constantly getting repeat orders from chemical companies which export chemicals to other countries.
Diverse customer base.
- Company caters to bulk packaging requirements of our clients from diverse industries like chemicals, agrochemicals, pharmaceuticals, lubricants and edible oil by supplying them Polymer Drums, IBC and MS drums.
- Companyhas over the years established relationships with various clients across these industries and continue to serve them our product offerings.
- Company’s clients have stringent quality and qualification requirements which are required to adhere to for continued supply of products.
- Company enjoy’s long term relationships with most of our clients and the repeat business from them allows us to have strong visibility on future revenues and a stable client base.
- Company has served more than 376 customers on a regular basis during the past three financial years.
Comprehensive product portfolio.
- Company’s offer complete bulk industrial packaging solutions to our clients since we manufacture both polymer based bulk packaging drums and IBC, as well as MS Drums for packaging. Our product offering in polymer based packaging by way of drums ranges from 20 litres to 250 litres and IBC which is 1,000 litres.
Strategic location of Manufacturing units.
- Company has six (6) manufacturing units out of which our four (4) are situated at Bharuch, GIDC, Gujarat and two (2) units are situated at Silvassa, UT of Dadra and Nagar Haveli.
- Company’s units are situated in the industrial belts of Bharuch, Gujarat and Silvassa, UT of Dadra and Nagar Haveli which are manufacturing hubs for various industries like chemicals, agrochemicals, pharmaceuticals, lubricants, edible oil, etc. Proximity to these industries enables easy accessibility and delivery of our products to these industries in these industrial regions.
- Since company is a B2B supplier of products, being close to our end-user market provides various advantages including lower freight costs and improved customer relationships.
- The location of our units is in proximity to Mumbai and major industrial zones having good connectivity to ports, airports and highways which enhances company’s capability of supplying our products in time and on a cost-effective basis to our clients.
- Company’s seventh (7) unit is under construction at Bharuch, GIDC, Gujarat and is close to our existing units.
- Company also have a fleet of 51 trucks which enables on time delivery of our products to our customers.
Company will Explore organic growth opportunities to increase capacity and business.
- In the past company has increased our manufacturing capacity by expanding our manufacturing units and their capacities.
- The total installed capacity of our Polymer Drum manufacturing units is 20,612 MTPA. The total installed capacity of our IBC manufacturing unit is 12,820 MTPA and the total installed capacity of our MS Drums unit is 6,200 MTPA.
- In addition to increasing the existing capacity and line of production, company now also intends to explore acquisition of businesses, assets and machines in new geographies where considerable business opportunities would be available to grow our business.
- Strategic acquisitions targeted to increase capacity and penetrate newer markets will be the focus of our Company going forward.
Benefit from increasing export of several chemicals from India.
- China’s adoption of the ‘Blue Sky’ program to realize green GDP has led to the shutdown of several chemical plants in China. This, in turn, is expected to result in higher production and export of several chemicals from India.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 |
|---|---|---|---|
| Revenue | 313.50 | 400.41 | 480.00 |
| Net Profit | 16.99 | 26.14 | 31.76 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Pyramid Technoplast Ltd | 10 | 10.24 | 16.21 | 29.61% | 34.28 |
| Time Technoplast Ltd | 1 | 9.69 | 14.16 | 9.61% | 102.92 |
| TPL Plastech Ltd | 2 | 2.06 | 20.50 | 13.89% | 14.79 |
| Mold-Tek Packaging Ltd | 5 | 24.40 | 41.10 | 14.40% | 168.46 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 18th August 2023 |
| Issue Closes on:. | 22nd August 2023 |
| Issue Price | Rs.151 -166 |
| Face Value | Rs.10 |
| Retail Category Allocation | 50% |
| Minimum Lot | 90 shares |
| Minimum Investment | Rs.14,940 |
| Issue Constitutes | 25.06% |
| Issue Size | Rs.153.05 cr ($18 million) |
| Market Cap | Rs.610.62 cr ($73 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 55,00,000 (Rs.91.3 cr) |
| Equity Shares Offered (OFS) | 37,20,000 (Rs.61.75 cr) |
| Total Equity Shares Offered | 92,20,000 (Rs.153.05 cr) |
| Equity Shares Prior to the Issue | 3,12,84,800 |
| Equity Shares after the issue | 3,67,84,800 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 25th August 2023 |
| Initiation of Refunds | on or Before 28th August 2023 |
| Credit of Equity Shares: | on or Before 29th August 2023 |
| Listing Date: | on or Before 30th August 2023 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 10.24 | 16.21 | 29.61% | 34.28 |
| Company Contact Info: |
|---|
| Pyramid Technoplast Limited Office No.2, 2nd Floor, Shah Trade Centre, Rani Sati Marg, Near W.E. Highway, Malad (East) Mumbai 400097 Tel.: +91 22 4276 1547 E-mail: cs@pyramidtechnoplast.com Website: www.pyramidtechnoplast.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India Telephone: +91 22 6263 8200 Email: ipo@bigshareonline.com Investor grievance email: investor@bigshareonline.com Website: www.bigshareonline.com |
