Phytochem Remedies (India)
- Phytochem Remedies (India) is coming out with an initial public offering (IPO) of 39,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 98 per equity share.
- The issue will open on December 18, 2025 and will close on December 22, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 9.80 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Mefcom Capital Markets.
- Compliance Officer for the issue is Namrata Paliwal.
Profile of the company
Phytochem Remedies (India) is one of the leading manufacturers of high-quality corrugated boxes including printed, rolls, pads, sheets etc., offering customized packaging solutions to meet the specific requirements of its clients. The company specialises in manufacturing corrugated boxes and supplies to various sectors. Incorporated in 2002, the company initially focused on development and planning, with manufacturing operations commencing in 2014. Since then, the company has grown significantly and leveraging its state-of-the-art manufacturing facilities.
The company operates from its strategically located manufacturing units in Bari Brahmana, Jammu, which provide significant logistical advantages. Over the year, the company has expanded its reach and built a strong regional presence in Jammu, India while also establishing a marketing and distribution network across multiple states.
With a strong focus on innovation and customer satisfaction, the company has built a reputation for delivering durable and cost effective packaging solutions. It operates in two units at Bari Brahmana, Jammu, with Unit 1 having a total allocated area of 43,360 Sq. Ft. and Unit 2 having an allocated area of 1,73,440 Sq. Ft. Currently, Unit 1 is utilizing approximately 12,000 Sq. Ft. and Unit 2 is utilizing approximately 55,000 Sq. Ft. of total area of respective units. Out of the total land area, approximately 15,000 Sq. Ft. in Unit 1 and around 75,000 Sq. Ft. in Unit 2 remain unutilized and shall be used for the construction and installation of new manufacturing machineries to accommodate both present and future expansion.
Proceed is being used for:
- Funding capital expenditure requirements for the purchase of equipment/machineries
- Funding capital expenditure requirements towards civil construction
- Repayment/pre-payment, in full or in part, of certain borrowings availed by the company
- General corporate purpose
Industry Overview
Corrugated boxes serve as an essential component of rigid packaging, widely adopted for secondary and tertiary packaging needs. Their importance lies not just in structural protection but also in cost-effectiveness, recyclability, and ease of handling. Corrugated boxes are indispensable in transporting goods across long distances, particularly in the context of India's growing e-commerce and organized retail landscape. Widely used across key industries including Fast-moving consumer goods (FMCG), pharmaceuticals, electronics, agriculture, food and beverages and retail for shipping and warehousing. They are used for packaging a variety of commodities including textiles, fruits, vegetables, potteries, electronics, chemicals and pharmaceuticals. Serve as the primary secondary and tertiary packaging medium, offering stackability, shock resistance, and branding flexibility. The procedure of lining, laminating or coating the boxes can assist them to withstand moisture and other harmful elements, protecting the quality and longevity of the product. Enable cost optimization in packaging and distribution, especially for mass-volume manufacturers and exporters.
India’s packaging industry is witnessing robust growth, driven by the rapid expansion of end-user sectors such as food processing, healthcare, fast-moving consumer goods, electronic-commerce, and beauty & personal care. Increasing urbanization, rising disposable incomes, evolving consumer preferences, and technological advancements are fueling demand for innovative, sustainable, and smart packaging solutions. The food & beverage segment, in particular, is benefiting from the growing popularity of ready-to-eat meals and eco-friendly packaging. Meanwhile, the healthcare sector is increasing demand for safe and compliant pharmaceutical packaging, and the fast-moving consumer goods (FMCG) and beauty sectors are pushing innovations in premium and functional packaging. The rise of e-commerce is further amplifying the need for secure and efficient packaging formats across the board.
The rapid growth of these end-user industries is directly driving the expansion of the corrugated boxes market in India. With the food processing industry projected to reach $700 billion by 2030 and the food & beverage packaging sector set for significant growth, the demand for cost-effective, recyclable, and sturdy packaging is rising sharply. Corrugated boxes, known for their durability and environmental friendliness, are increasingly preferred for the transport and storage of processed and ready-to-eat food products. Similarly, India's healthcare sector, reached $638 billion by FY 2025, is driving demand for reliable packaging solutions that meet regulatory and safety standards.
Pros and strengths
Well established manufacturing facility with a focus on sustainability and readiness for expansion and technology advancement: Over the past six months, ending September 30, 2025, there has been a notable improvement in the capacity utilization of its corrugated box production. The actual production on an annualised basis has increased from 50.54% in FY 23-24 to 68.98% till September 30, 2025. This marks a positive trend, indicating a more efficient use of its production capacity. More importantly, strength of the company lies in its ability to scale and expand its operations in line with growing market demand. The company currently has approximately 90,000 square feet of unutilized land across both its manufacturing units, providing it with ample space for future growth. This available land gives it the flexibility to expand production capacity and introduce new production lines. The land is strategically positioned for both operational and logistical efficiencies, allowing it to respond to changing market needs. The company’s readiness for expansion is backed by a robust growth strategy, ensuring that it can effectively capitalize on emerging business opportunities and meet the demands of a rapidly evolving marketplace. This forward-looking infrastructure investment positions it to continue on its path of growth while meeting the evolving needs of its customers.
Well-diversified product portfolio with wide industry applications: The company is confident in its ability to offer a comprehensive range of customized packaging solutions designed to meet the specific needs of its diverse customer base. The company’s product range includes corrugated boxes in a variety of flute combinations such as A, B, C, AB, AC, and BC. In addition to this, the company provides printed corrugated boxes, combining the protective qualities of regular boxes with custom branding, as well as corrugated rolls, which offer flexible and lightweight protection for wrapping and cushioning items during transit. Its corrugated pads and sheets offer additional reinforcement used by the industry for stabilizing products and preventing damage in shipping and storage. This wide selection allows it to cater to industries ranging from retail and electronics to food, pharmaceuticals, and more. It works closely with its clients to understand their unique packaging requirements, ensuring that each product is designed for optimal durability, strength, and cost-efficiency. Whether its clients are looking for robust, heavy-duty packaging or cost-effective, lightweight solutions, its ability to offer tailored products has established it as a trusted and flexible packaging partner across various sectors.
Strategic geographical location: Both the company’s manufacturing units are strategically located within the Bari Brahmana Industrial Complex, Jammu, India one of the most well-connected industrial hubs in the region. This prime location offers seamless access to key infrastructure facilities, including fire stations, police stations, water supply systems, telecommunication networks, and banking facilities. The proximity to essential services ensures that its operations run smoothly, with minimal disruptions, while providing it with immediate access to logistical support. Additionally, the location’s well-developed transportation infrastructure allows it to efficiently manage the supply chain, reduce lead times, and quickly fulfill customer orders. This logistical advantage is a key enabler of its ability to respond swiftly to market demands, enhancing its overall operational agility and efficiency.
Risks and concerns
Dependence on major customers for a substantial portion of revenue: The company derives 51.62% of its revenue from its top ten customers, 41.01% of its revenue is derived from its top five customers and further, its top three customers collectively accounted for approximately 31.18% of its revenue for six months ended September 30, 2025. Loss of such customers or reduction in business from such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows.
Reliance on a few key suppliers for raw material procurement: The company has relied on limited third-party suppliers and manufacturers for supply of materials required in its production process. The company’s suppliers are associated with it through purchase orders and it did not enter into any short term or long-term agreements. The company relies on such suppliers to perform their conditions and deliver adequate supplies and high quality materials and other material inputs in a timely manner. The company has procured 87.29%, 71.68% and 87.74% of its raw material from top 10 suppliers in FY25, FY24 and FY23 respectively. Any disruption in the timely procurement from its existing suppliers or a failure to source suitable alternatives on acceptable terms of material and other material inputs could adversely impact its production schedule, increase its costs and materially affect its business and financial condition.
Operational risks arising from concentration of manufacturing facilities: The company’s business is exclusively relied on its in-house manufacturing operation, which are conducted at two operational facilities located in Jammu, India. The geographic concentration of its manufacturing facilities expose it to regional risks unique to that state. These regional risks in Jammu, India include but not limited to state-specific labour laws, disruptions to infrastructure, environmental regulations, safety standard, significant natural disasters, workforce disruptions, changes in general economic conditions, civil unrest, the regulatory environment, and local government policies, among others. While it did not face any such disruptions to its manufacturing facilities that materially and adversely affected its results of operations during the Six Months ended September 30, 2025 and the last three Fiscals, any such disruptions in the future could adversely affect its business, results of operations, financial condition, and cash flows.
Outlook
Phytochem Remedies (India) is a manufacturer of corrugated boxes and corrugated board solutions, catering primarily to industries such as food & beverages, FMCG, pesticides, pharmaceuticals, and automotive, based in Jammu, India. The company has well established manufacturing facility with a focus on sustainability and readiness for expansion and technology advancement. It also has well-diversified product portfolio with wide industry applications. On the concern side, majority of revenue comes from top ten customers and loss of such customers or reduction in business from such customers, the deterioration of their financial condition could adversely affect its business, results of operations, financial condition and cash flows. Moreover, the company is significantly dependent on its customers located in a single geographical region i.e. Jammu and Kashmir. Loss of customers and revenue in Jammu, India could materially affect its business, results of operations, and financial condition.
The company is coming out with an IPO of 39,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 98 per equity share to mobilize Rs 38.22 crore. On performance front, the company’s revenue from operations surged by 11.28%, rising from Rs 3,283.23 lakh in FY 2023-24 to Rs 3,653.62 lakh in FY 2024-25. The company’s PAT increased 93.70%, from Rs 231.11 lakh in FY 2023-24 to Rs 447.67 lakh in FY 2024-25.
In response to shifting market demands and the growing emphasis on sustainable packaging, the company is significantly expanding its product portfolio to include eco-friendly and high-performance packaging solutions. It is proposing to further expand and set up its manufacturing capabilities, at same location, into oil and grease-resistant (OGR) paper, sublimation paper, technical textiles, and coated laminates. These new products provide innovative alternatives to traditional plastic-based packaging, offering superior protection while reducing environmental impact. As environmental regulations continue to tighten, and consumer demand for biodegradable options increases, its investment in water-based coatings and recyclable materials positions it as a forward-thinking leader in the packaging industry. The company is also increasing its manufacturing capabilities by installing high-graphic printing machines and automated paper bag manufacturing lines. These advancements enable it to offer customized, premium-quality printed corrugated boxes and recyclable paper bags that cater to industries such as FMCG, food services, e-commerce, and retail, where branding and sustainability are key market drivers. This strategic expansion not only meets the evolving needs of its customers but also ensures it remains competitive in the fast-changing packaging sector.
