Ecoline Exim
- Ecoline Exim is coming out with an initial public offering (IPO) of 54,20,000 equity shares in a price band of Rs 134-141 per equity share.
- The issue will open on September 23, 2025 and will close on September 25, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 13.40 times of its face value on the lower side and 14.10 times on the higher side.
- Book running lead manager to the issue is Hem Securities.
- Compliance Officer for the issue is Sonum Jain.
Profile of the company
Incorporated in 2008, the company is primarily engaged in manufacturing of wide range of sustainable packaging and promotional bags made out of cotton and jute. It is engaged in the export of these bags globally. During the Fiscal 2025, the company exported its products to more than 27 countries. Its major export market is European Union, USA, Japan, and South East Asia and Mexico, etc. With the awakening of global market where more and more measures are being taken to reduce the use of plastics, it addresses to the alternate solution to use products which are sustainable, reusable and biodegradable, like bags made out of cotton or jute which are eco-friendly.
The company is OEM’s catering to packaging solutions of various customers like: Super Markets and Retail chains, Wholesalers and Promotional companies. It customizes its products as per the customer requirements with screen printing, embroidery, labelling, sizing etc. Its customer base is divided into two major segments i.e. (i) Functional – where major customers are Retailers/Wholesalers and Supermarkets and (ii) Promotional – where major Customers are Promotional companies and Corporate Gifting agencies. During the Fiscal 2025, the company sold its products to 55 number of customers addressing to functional requirements and 32 number of customers addressing to promotional requirements. As on June 30, 2025, it has an outstanding order book for supply for cotton and jute bags worth Rs 8809.67 lakh from around 63 number of customers.
The company’s factories are audited by its customers as per Business Social Compliance Initiative (BSCI) standard. It is a global social compliance framework and the BSCI audit is recognized by major European Supermarkets & retail chains. The products manufactured by it conform to stringent quality standards and it has been accredited with various quality certifications to conform product quality. It has comprehensive in-house capabilities of designing and manufacturing wide variety of bags. Its manufacturing activities involve fabric cutting, printing, sewing and stitching, packaging etc. for onward usage by its customers in the relevant industry. Along with in house manufacturing capabilities, it also outsources some of the manufacturing activities like stitching on jobwork as per the demand requirements.
Proceed is being used for:
- Funding the capital expenditure towards construction of building, mechanical and electrical works and procurement of plant and machinery for setting up a new manufacturing facility at Ahmedabad.
- General Corporate Purpose.
Industry Overview
The Global Shopping Bag market is expected to grow at a CAGR of 3.14% in terms of value to reach $23.168 Billion in 2033 from $17.580 Billion in 2024. The global shopping bag market has witnessed significant growth in recent years, driven by factors such as increasing consumer awareness about environmental sustainability, stringent government regulations on plastic usage, and growing demand for reusable and eco-friendly alternatives. Shopping bags, which are commonly used for packaging goods purchased from retail outlets, are available in various materials including plastic, paper, fabric, and jute. A shift towards sustainable solutions, spurred by environmental concerns, is shaping the trajectory of the shopping bag market, which is expected to grow steadily over the coming years. One of the primary drivers of the shopping bag market is the rising awareness of the environmental hazards posed by single-use plastics. Governments across the globe have enacted stringent regulations to limit the use of plastic bags, which has significantly contributed to the growth of the market for reusable shopping bags. The increasing demand for sustainable products among environmentally conscious consumers is another key factor propelling the growth of the shopping bag market. Consumers are becoming more aware of the detrimental effects of plastic waste on ecosystems, leading to a shift towards reusable bags made from materials such as cotton, jute, and canvas. These reusable shopping bags are not only durable but also provide a means for consumers to reduce their carbon footprint. The growing demand for such eco-friendly options has prompted retailers to offer a wider variety of sustainable shopping bags, further contributing to market expansion.
Based on Material, plastic segment is expected to have a major share in the Global Shopping Bag Market with a CAGR of 3.15% in terms of value during the forecast period. Despite the rising environmental concerns, plastic bags remain a popular choice due to their cost-effectiveness, versatility, and lightweight nature. Plastic shopping bags are widely used across various industries, including retail, supermarkets, and e-commerce, where affordability and convenience are key considerations. The continued demand for plastic shopping bags can be attributed to their strength, ability to carry heavy loads, and ease of production. Moreover, the development of biodegradable and recyclable plastic materials has helped mitigate some environmental concerns, allowing plastic shopping bags to maintain a significant market share. Innovations such as oxo-degradable and compostable plastic bags have gained traction, especially in regions with strict regulations on plastic waste. However, traditional plastic bags still dominate the market in developing countries where affordability and convenience are prioritized over environmental impact. The plastic segment, therefore, continues to play a vital role in the shopping bag industry. As manufacturers focus on sustainability, there is a growing trend toward offering plastic bags with eco-friendly properties, which is likely to further support the growth of this segment. Based on end use, retail segment is expected to have a major share in the Global Shopping Bag Market with a CAGR of 3.19% in terms of value during the forecast period. Retailers, including supermarkets, grocery stores, apparel outlets, and shopping malls, represent the largest end-users of shopping bags. The growth of this segment is driven by the continuous expansion of the retail sector, especially in developing economies where modern retail formats are gaining traction. Shopping bags, particularly those used in retail, serve as a convenient tool for customers to carry their purchases, making them an indispensable component of the shopping experience.
Pros and strengths
Sustainable and Eco-friendly business model: The company’s focus on manufacturing bags out of organic cotton further creates the differentiation. The raw materials that are organically produced are less hazardous to the natural environment. It has been granted authorization to use the STANDARD 100 by OEKO-TEX for Woven bags made of 100% cotton or 100% jute in natural. Additionally, the company has got Registration Cum Membership Certificate from Jute Products Development and Export Promotion Council – Kolkata, Global Recycled Standard (GRS) Certificate and Organic Content Standard (OCS) Certificate. The focus of the company on organic and sustainable products has helped in expanding its business globally as the demand of organic & recycled products is increasing globally. Its customer base currently comprises of a number of multinational companies focusing on sustainable development. The company has installed Effluent Treatment Plants (ETP) at its factory I and II, so that the wastes generated in factory are first treated, and the treated water is then safely discharged in the environment. Thus, the company's commitment to using cotton and jute materials, coupled with their focus on reducing plastic use, reusing materials, and recycling, aligns with the core environmental principles of three R’s of the environment - Reduce, Reuse, and Recycle. This approach not only supports environmental sustainability but also helps drive positive changes in consumer behavior and industry practices.
Stringent quality control mechanism ensuring standardized product quality: The company has a quality control system that ensures consistent product quality, efficient resource allocation, minimizing waste and maximizing productivity and advanced designs, ensuring enhanced strength and durability of its bags. This comprehensive approach ensures that its products meet customer expectations, providing long-lasting performance and reliability. It adheres to quality standards as prescribed by its customers and employs stringent quality control mechanism at each stage of manufacturing process, which are required to ensure that its finished product conforms with the exact requirement of its customers and successfully passes all validations and quality checks. Most of its customers are multinational companies having stringent quality control mechanism and its adherence to quality standards as prescribed by its customers to meet the desired requirement has helped it get repetitive orders from its customers.
Strategically located in-house manufacturing capabilities with design expertise: The company has comprehensive in-house capabilities of designing and manufacturing wide variety of bags. Its manufacturing activities involve fabric cutting, printing, sewing and stitching, packaging etc. for onward usage by its customers in the relevant industry. All raw materials procured for manufacturing its products are sourced from vendors and its quality control team applies stringent quality measurements at every manufacturing stage to ensure low rejection rate such that its finished product confirms to the exact requirement of its customers and successfully passes all test, validations and quality checks. Over the years, it has developed its process that gives it control, right from procurement of raw materials, design, production and marketing. It has placed its reliance on domestic sourcing of its key raw materials such as cotton and jute. These measures are aimed at strengthening its supply chain and sourcing processes to ensure greater efficiency in its operations.
Risks and concerns
Rely on outsourcing certain proportion of production processes, activities to third-parties: Currently, the company completely outsources the dyeing process of fabrics required to manufacture bags. All the fabric which is required to be dyed is procured from vendor and delivered to the third-party dying unit. It relies on these third parties to provide it with an uninterrupted supply of raw material or grey fabric. However, it cannot assure that they may do so in a timely manner or at all. These third parties may decide not to accept its future orders on the same or similar terms, or at all. It may face the risk of its competitors offering them better terms, which may cause them to cater to its competitors alongside, or even instead of it. They may discontinue their work on short notice and its production process may be stalled or hindered due to this. Conversely, due to increased customer demand for its products, it may need to obtain more products from third parties, and any inability to do so may render its unable to execute its growth strategy. Relying on external dyeing services leads to dependence on third-party suppliers, resulting in potential delays, quality control issues, and increased costs. Moreover, it faces limited colour flexibility, as it is restricted to a limited color palette or encounter longer lead times for custom colours, hindering its ability to meet customer demands. Outsourcing dyeing services also makes maintaining consistent quality standards difficult, further exacerbating the issue. The lack of an in-house dyeing unit also stifles innovation, as it is less likely to experiment with new colors, finishes, or sustainable dyeing methods.
Depends on certain key customers: The company is engaged in the export of bags globally and depends on certain customers who have contributed to a substantial portion of its total revenues. There is no guarantee that it will retain the business of its existing key customers or maintain the current level of business with each of these customers. Reliance on a limited number of customers for significant revenue may generally involve several risks. These risks may include, but are not limited to, reduction, delay or cancellation of orders from its significant customers, failure to renegotiate favourable terms with its key customers, the loss of these customers entirely, its inability to meet the expectations to track the changing preferences of its customers or non-acceptance of its products by customers, all of which would have a material adverse effect on the business, financial condition, results of operations and future prospects of the company. In order to retain some of its existing customers it may also be required to accept such terms which it may place restraints on its resources.
Pricing pressure from customers: The company’s major export market is European Union, United Kingdom, Japan, South Korea, USA, Mexico etc. It sells its products to various customers like: International Super Markets, retail stores, stockist promotional companies. These international customers generally pursue aggressive but systematic price reduction initiatives and objectives each year with their suppliers. It has in the past experienced and may continue to experience pressure from its customers to reduce its prices, which may affect its profit margins going forward. In addition, as any price reduction is the result of negotiations and factors that may be beyond its control, it, like other manufacturers, must be able to reduce operating costs and increase operating efficiencies in order to maintain profitability. However, it may not be able to spread such fixed costs effectively as its customers generally negotiate for larger discounts in price as the volume of their orders increases. If it is unable to offset customer price reductions in the future through improved operating efficiencies, new manufacturing processes, sourcing alternatives and other cost reduction initiatives, its results of operations and financial condition may be materially adversely affected.
Outlook
Ecoline Exim is primarily engaged in manufacturing of wide range of sustainable packaging and promotional bags made out of cotton and jute. With three cutting-edge production facilities in Kolkata and Ahmedabad, spanning over 250,000 square feet, the company has created a seamless system that allows it to produce over 60 million bags annually. From precision cutting on automated spreaders to high-performance stitching machines and vibrant, custom printing with its 8- and 12-color M&R machines, every step of its production process reflects its dedication to quality and sustainability. The company sells its products to various customers like: international super markets, retail store chains, stockiest, promotional companies. It has established long-standing relationships with few of these customers which has been possible due to years of association, delivery of quality products etc. On the concern side, the bag manufacturing industry is highly fragmented as there is competition from various national and international players. These domestic players include both - organised and unorganised players. The growth trajectory in the industry has encouraged new entrants to enter into this industry with new business models. Besides, the company relies on third party logistics provider for transportation services at multiple stages of its business activities, including for procurement of raw materials from its suppliers and for transportation of its finished products from its manufacturing facility to its customers.
The company is coming out with a maiden IPO of 54,20,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 134-141 per equity share. The aggregate size of the offer is around Rs 72.63 crore to Rs 76.42 crore based on lower and upper price band respectively. On performance front, total income for the financial year 2024-25 stood at Rs 27,306.76 lakh on a standalone basis as compared to Rs 28,058.89 lakh on a consolidated basis for the financial year 2023-24, representing a decrease of 2.68%. The company’s profit after tax for the year decreased by 16.67% from profit of Rs 2,258.90 lakh in financial year 2023-24 to profit Rs 1,882.25 lakh in financial year 2024-25.
Meanwhile, the company is currently exporting its products to more than 25 countries globally. It majorly exports to countries like European Union, USA, Japan, and South East Asia and Mexico, etc. Almost 100% of its revenue from operations is generated from exports. It intends to focus on penetrating further in existing markets with an appetite for increased demand and high growth potential. Further, the company would focus to strengthen its sales team in India to ensure that it is able to enter domestic market to mitigate the global economic risks and diversify revenue streams and market presence. The company is planning to set up an additional manufacturing unit at Ahmedabad wherein it is planning to set up manufacturing of bags along with weaving unit to manufacture cotton cloth from the yarn.
