Plastene (India) Ltd - Stock Valuation and Financial Performance

Plastene (India) was originally incorporated on October 16, 1998 as - Oswal Agloimpex Private Limited with the Registrar of Company, Gujarat, Dadra and Nagar Haveli vide Registration No. 04-34861. It was converted into public limited company vide special resolution passed at the Extra Ordinary General Meeting of the company held on April 17, 2006 and consequently the name was changed to - Oswal Agloimpex Limited, vide fresh certificate of incorporation dated May 24, 2006 and thereafter the name of the company was changed to Plastene India Limited vide fresh certificate of incorporation dated January 2, 2007 to reflect wider activities of the company.

They are the flagship company of the Champalal Group of Gandhidham. They made their beginning in the year 1998 wherein they imported plastic scrap and started reprocessing it to manufacture agglomerates which inturn were sold to various plastic manufacturers to manufacture pipes, tarpaulin, granules etc. However, they discontinued this business in the year 2007. They currently manufacture Jumbo bags, also known as FIBC (Flexible Intermediate Bulk Containers), woven sacks, (comprising of laminated woven sacks and BoPP laminated woven sacks), flexible packaging (comprising of printed laminates, preformed pouches, surface printed 3 layer films and liners), woven fabric, tarpaulins and other products mostly used in self consumption which comprises of UV masterbatch, Antifab masterbatch, multifilament yarn and webbings. They also sell granules, their main raw material which is imported from countries like Saudi Arabia, Thailand, UAE etc. Currently, they have two manufacturing units, both of which are situated in Gujarat, in the Nani Chirai Village of the Kutch district and in Rajpur Village of Mehsana district. Both their manufacturing units are equipped with requisite technologies to manufacture products as per customers’ requirement. In April, 2005, they started manufacturing woven sacks and woven fabric at Nani Chirai for servicing domestic salt units, cement and fertilizer industry in Gujarat and gradually expanded their product portfolio and started manufacturing Jumbo bags, tarpaulin, laminates, multifilament yarns, masterbatches, fillers and flexible packaging for food grains, pharmaceuticals, chemical, fertilizers, cement etc. Their unit at Rajpur village commenced operations in November 2007. In this unit they primarily manufacture Jumbo bags and woven bags.

They are one of the leading manufacturers of woven bags when compared with packaging companies which are currently listed on the Stock Exchanges. Lower manufacturing costs as compared to countries like China and Turkey and the proximity of their units to the Kandla port and the Mundra port have helped them in maintaining their strong market position. In Fiscal 2009, they started manufacturing master batches, multifilament yarn and fillers as part of their backward integration strategy. Further, to achieve economies of scale, they expanded their manufacturing capacity from 28,000 MTPA in Fiscal 2008 to 55,000 MTPA in Fiscal 2009. Further, they are in the process of enhancing their manufacturing capacity from 55,000 MTPA to 69,000 MTPA to capitalize upon their experience in the packaging industry and to serve the growing demands of Jumbo bags, woven sacks and flexible packaging.

The packaging products manufactured by the company are used in different industrial segments such as food grains, pharmaceuticals, edible oil, cement, fertilizers, chemicals, salt, sugar etc. All their products are customized and manufactured as per customer requirements. They have manufacturing facilities to produce woven sacks from 50 GSM to 120 GSM and Jumbo bags with the help of 90 to 250 GSM fabrics. They have the facilities to manufacture one loop, two loops, and four loops as well as cross corner Jumbo bags. They can manufacture these products in any color and specifications based on customer requirements. For flexible packaging, they can manufacture printed films with surface printing as well as reverse printing, between 20 micron to 150 microns and laminates in two, three and four layer structure. They also manufacture three side seal pouches and zipper pouches as per customers’ requirement. Their machines are capable of manufacturing multiple products. During monsoons when the demand for woven sacks used in cement industry is reduced they use their capacities for manufacturing additional tarpaulin. They have been awarded ISO 9001:2008 certification for quality management systems for manufacture and supply of Jumbo bags, woven sacks, flexible packaging products, woven fabric and tarpaulin. Their company has installed various testing equipments by virtue of which it will develop new packaging solutions at cheaper cost without affecting quality of the products. They regularly conduct batch wise tests on all their products for examining their strength, quality aspects etc. They regularly do tensile strength test and drop test with the help of tensile testing machines and other machines before the batch is approved for sale.

Products:

1. Jumbo bags also called as Flexible Intermediates Bulk Container (FIBC).

2. Woven sacks, laminated woven sacks, BoPP laminated woven sacks.

3. Flexible packaging products comprising of printed laminates, preformed pouches and surface printed 3 layer films.

4. Woven fabric.

5. Tarpaulin and other products mostly used for self consumption like masterbatch compound, fillers, webbings and multifilament yarn.

Group companies:

• Oswal Commoditites
• Oswal Lumbers
• YMP Machineries
• Plastene Polyfilms
• Plastene Infrastructure

Subsidiary:

• Oswal Extrusion - Oswal Extrusion Limited was incorporated on December 31, 2004 under the Companies Act and it received its certificate of commencement of business on January 25, 2005. Oswal Extrusion Limited has been authroised by its Memorandum of Association to carry on the business to manufacture, produce, process, convert, commercialise, design, develop, distribute, laminate, knit coat, dye blend, fabricate, prepare, promote, supervise, supply, import, export, buy, sell, use, turn to account, collaborate, display, barter, pack, repack, jobwork, mix, modify, market operate and to act as agents concessionaries manufacturers, representatives, stockiest, franchisees, collaborators, distributors, suppliers, promoters, wholesalers, retailers, consignors, job workers, otherwise to deal in all sizes, varieties, colours, capacities modalities, specifications, descriptions and applications of bags, sacs, woven sacks bags, HDDP/PP bags, jumbo bags, water tanks, plastic jars, drums, carpets, covers and other allied items made of one or more materials like HDPE, LLDPE, LDPE, PVC, PP, tarpauline, all kinds of plastics and polymers yarn, recycled plastics HDDP, monofilament yarn, tape, films, co-extruded films, collapsible tubes and sheets, laminating materials, thermostating, thermoplastics, Teflon plastics. It is currently engaged in the business of manufacturing and export of woven bags, Jumbo bags and tarpaulin.
• Oswal Extrusion LDA (Portugal) - The Company was incorporated on December 15, 2009 under the laws of Portugal. It is engaged in the business of selling and processing plastics or textiles industry and related activities.

Milestones:

1998

• Incorporation of the company as a Private Limited company
• Admitted as a partner in Oswal Polymers
• Acquired the Polymer division of Oswal Polymers on its dissolution

2003

• Export Excellence Award by Kandla Special Economic Zone (KASEZ) for top export performance during 2002-03 under SSI, agro/ plantation product category

2005

• Commenced manufacturing of flexible packaging products and small sacks at Nani Chirai, Kutch for manufacturing woven sacks for cement and fertilizer and gradually covered other products like tarpaulin, laminates, flexible packaging for food / pharma / chemical with an installed capacity of 21,000 M.T. p.a.

2006

• Conversion of the company from Private Limited to Public Limited Company
• Obtained ISO 9001:2000, BVQI Certificate

2007

• Obtained a supply contract from Sanghi Industries Limited for supply of cement bags.
• Their turnover crossed 10000 Lacs in 2nd year of operation of Nani Chirai unit.
• Received a highest tender from IFFCO to supply the laminated woven sacks
• Oswal Extrusion Limited became a wholly owned subsidiary of the company
• The company rated by - Business World Magazine as India‘s best performing Mid-sized company during 2006-07
• Set up new facility for manufacturing Jumbo bags and woven sacks at Rajpur, Mehsana

2008

• Export Excellence award by All India Flat Tape Manufacturer Association (AAFTMA) on 33rd Annual Session held at Agra in February 2008 in large scale sectors for export of woven sacks and fabrics
• Awarded the status of Star Export House by Ministry of Commerce and Industry, Government of India
• Participated in PLASTINDIA 2009, 7th Internation Plastic Exhibition and Conference, New Delhi

2009

• Participated in Interpac in Dusseldorf (Germany), one the biggest exhibition in packaging.
• Export Promotion Council for EOUs & SEZs (EPCES) export awards for 2007-08 to Oswal Extrusions Limited for best SEZ (SSI – Plastic Products)
• Inauguration of 100% EOU unit-II at Santej by Oswal Extrusion Limited (100% Subsidiary Company)
• Export Excellence award by All India Flat Tape Manufacturer Association (AAFTMA) on 34rd annual session held at Jaipur in October 2009 in large scale sectors for export of woven sacks and fabrics
• Awarded as GAIL‘s Top Customer Award (Ranked 8) for 2008-09
• The company has increased its combined production capacity to 55,000 MTPA.

2010

• Participated in Plastmaegan in Mexico City
• Opened a step down subsidiary Oswal Portugal LDA in Portugal
• Adoption of the ESOP Scheme Teamwork 2010 by the company