Bai-Kakaji Polymers
- Bai-Kakaji Polymers is coming out with an initial public offering (IPO) of 56,54,400 shares in a price band of Rs 177-186 per equity share.
- The issue will open on December 23, 2025 and will close on December 26, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 17.70 of its face value on the lower side and 18.60 times on the higher side.
- Book running lead manager to the issue is HEM Securities.
- Compliance Officer for the issue is Dheerajkumar Pannalal Tiwari.
Profile of the company
Bai-Kakaji Polymers is primarily engaged in the business of manufacturing of PET preforms, Plastic caps and closures. These are important parts of packaging used in many consumer products. The company’s product portfolio includes specialized closures such as Alaska closures (Commonly used in packaged drinking water), Carbonated Soft Drinks (CSD) cap (1881 neck finish), and wide range of PET preforms designed for different bottling needs. The company’s products find diverse applications across various industries including packaged drinking water, carbonated beverages, juices and dairy products.
The company started its business in 2013 with a single machine for manufacturing of plastic closures. Over the years, it expanded its operations by adding more machines and increasing its production capacity. Currently, it uses modern machines such as SACMI Continuous Compression Molding, ASB Preform Molding and HUSKY Pet Injection Molding machines from globally renowned OEMs to make closures and PET preforms. All its products go through strict quality checks to make sure they meet the required standards. In recent years, the company has grown into a larger company focused on making PET bottle caps in different shapes, sizes, and colors, along with cap handles used in many applications. During the six months ended September 30, 2025, its sales were primarily concentrated in Maharashtra, Karnataka, Gujarat, Uttar Pradesh, Kerala, and Andhra Pradesh together contributing 92.94% of total revenue and highlighting its strong presence in western and southern India.
The company also offer shrink and adhesive films to support its existing customers with a complete packaging solution. These films are in high demand, especially in industries that need strong and reliable packaging. Shrink film, made from LDPE (Low-Density Polyethylene), is mostly used for wrapping products together like bottles of water, soft drinks, or energy drinks. It is commonly used for secondary or tertiary packaging and is a cheaper alternative to corrugated boxes. For the six months period ended September 30, 2025, its revenue from sale of products stood at Rs. 16,094.73 lakh of which revenue from Pet preforms, Plastic closures, Shrink film and other products contributed 65.28%, 26.27%, 7.27% and 1.17% respectively.
Proceed is being used for:
- Repayment and/or pre-payment, in full or part, of borrowing availed by the company
- Funding capital expenditure for the installation of additional plant & machinery
- Funding capital expenditure for setting up a solar power project
- General corporate purpose
Industry Overview
The Indian plastic industry is one of the leading sectors in the country’s economy. The history of the plastic industry in India dates to 1957 with the production of polystyrene. The consumption of plastics in India has significant regional variation, with Western India accounting for 47%, Northern India for 23%, and Southern India for 21%. The end-use sectors of automotive, packaging (including bulk packaging), plastics applications, electronic appliances, etc., account for the majority of consumption in Northern India and are located mostly in Uttar Pradesh and Delhi-NCR. However, other regions, including Rajasthan, Punjab, Haryana, Uttarakhand, J&K, and Himachal Pradesh, are anticipated to see growth in plastic processing due to increasing feedstock supply and a greater focus on the manufacturing sector. Plastic materials, which were almost unknown until the 1920s, are now found in almost every facet of contemporary life, from the microchips in computers to the bags used to carry groceries. Plastic is essentially a set of materials, not just one, which is why it seems that it may be utilised almost anywhere. There are a vast variety of plastic material types, and many of them, like polyethylene, PVC, acrylic, etc., have efficient and adaptable qualities.
Often known as Polyethylene Terephthalate (PET), is the primary material used to make plastics in category one. Because of its vast utility, it is ranked first. Due to its powerful ability to stop oxygen from getting in and tainting the goods within, it is mostly used for food and beverage packaging. The plastics industry is currently home to about 50,000 industries, most of which are micro, small, and medium-sized enterprises (MSMEs). These enterprises contribute Rs 3.5 lakh crore ($42.89 billion) to India's economy and employ more than 50,000 people. The country recycles plastic at a rate of 60%, which is higher than that of developed nations.
Under the plastic park schemes, the Government of India provides funds of up to 50% of the project costs or a ceiling cost of Rs 40 crore ($5 million) per project. Government initiatives like “Digital India”, “Make in India”, and “Skill India” will also boost India’s Plastic industry. For instance, under the “Digital India” program, the government aims to reduce the import dependence on products from other countries, which will lift the local plastic part manufacturers. The government also launched a program for building Centres of Excellence (CoEs) to develop the existing petrochemical technology and promote the research environment pertaining to the sector in the country. This will aid in promoting and developing new applications of polymers and plastics in the country. Additionally, about 23 Central Institute of Plastics Engineering & Technology (CIPET) have been approved to accelerate financial and technological collaboration for promoting skills in the chemicals and petrochemicals sector.
Pros and strengths
In-house manufacturing facilities: The company is an ISO 9001:2015 certified company engaged in the manufacturing of PP/HDPE caps and closures through compression and injection moulding, as well as manufacture of Pet preforms by injection moulding, packing & dispatch for use in food and beverage industry. All its manufacturing operations are currently carried out at its 33,000 square meter facilities located in Latur, Maharashtra. Its infrastructure is equipped to manage the entire production lifecycle starting from product design to production, testing of finished goods and packaging. Its dynamic setup enables it to maintain stringent quality control, ensure operational efficiency, and achieve cost benefits compared to competitors who relies on outsourcing or job work arrangements. Its in-house capabilities support faster turnaround times, greater flexibility in meeting customer specifications, and better control over consistency and output quality.
Widespread reach in domestic market: The company has built a strong and reliable presence in the domestic market, which remains its primary area of operation. Its deep understanding of local customer needs and market trends has helped it to maintain consistent growth and trust across the country. In addition to its domestic success, the company has also started exploring opportunities in international markets. Though its global presence is still growing, it reflects the quality and potential of its products on a wider scale.
Long standing association with customers: The company focuses on building sustained and long-term relationships with its clients and consistently strives to meet customer needs by offering products that are in demand. Since it primarily operates under a B2B business model, its existing clients often provide mandates for ongoing services. The company’s established relationships and goodwill serve as a competitive advantage in acquiring new clients and expanding business with existing ones. During the period ended September 30, 2025, it sold its products to 822 customers, out of which it received repeat orders from approximately 164 customers over the last four years.
Risks and concerns
Exposure to demand, pricing and competition risks in PET Preforms: The company has generated a significant portion of its revenue from its key product i.e. Pet Preforms which contributed 65.28% of its revenue from product sales for the six month period ended September 30, 2025 amounting to Rs 10,506.62 lakh, and 67.44% of its revenue from product sales in Fiscal 2025 amounting to Rs 21,933.04 lakh. Any decline in the sales of Pet Preforms on account of any reason including increased competition, pricing pressures or fluctuations in the demand for or supply of such products may adversely affect its business, results of operations and financial condition. It cannot assure that it will be able to maintain the same levels of sales for Pet Preforms product in the future. Any inability on its end to anticipate and adapt to technological changes or evolving consumer preferences and/or any decrease in the demand for its key product may adversely impact its business prospects and financial performance.
Exposure to regional risks due to revenue concentration in Maharashtra: The company generates its major turnover from the State of Maharashtra. For the period ended September 30, 2025 and for the financial year ended March 31, 2025, March 31, 2024 & March 31, 2023, it derived major portion of its revenue from the state of Maharashtra i.e. 65.23%, 75.58%, 76.44% and 73.65% of total revenue from operations, respectively. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
Dependence on key suppliers in limited geographic locations: The company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. For the period ending September 30, 2025 and financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, purchases from its top ten suppliers amounted to Rs 10,724.44 lakh, Rs 23,554.48 lakh, Rs 17,255.15 lakh and Rs 19,959.68 lakh respectively which represented 95.85%, 86.17%, 71.36% and 88.05% respectively of its total raw material purchases. Any disruption in the supply of the raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.
Outlook
Bai-Kakaji Polymers is an Indian company engaged in the manufacturing and trading of a wide range of plastic and polymer-based products. The company focuses on producing high-quality plastic granules i.e., PET preforms, Plastic caps and closures that cater to various industrial applications, particularly in packaged drinking water, carbonated beverages, juices & dairy products. In-house manufacturing facilities with widespread reach in domestic market. On the concern side, the company has generated its major portion of turnover from its operations in certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations. Moreover, the company derived a significant portion of its revenue from the sale of its key product i.e. Pet Preforms. Any decline in the sales of its key product could have an adverse effect on its business, results of operations and financial condition.
The company is coming out with a maiden IPO of 56,54,400 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 177-186 per equity share. The aggregate size of the offer is around Rs 100.08 crore to Rs 105.17 crore based on lower and upper price band respectively. On performance front, the revenue from operation of the company increased to Rs 32,592.92 lakh in FY25 as against Rs 29,481.45 lakh in the FY24, representing an increase of 10.55%. Moreover, the company reported restated profit after tax for the financial year 2024-25 of Rs 2,590.40 lakh in comparison to Rs 1,143.95 lakh in the financial year 2023-24.
The company is committed to making continuous investments to achieve higher levels of excellence in its products and to meet the diverse requirements of its clients. The company has upgraded its machinery and equipment with modern technology to enhance efficiency and quality. It intends to continue investing in the up gradation and modernization of its infrastructure and technology to support and sustain its growth in the future. Further, the company has acquired the business of Bai Kakaji Industries from its proprietor Kiran Mundada through a Business Transfer Agreement effective from March 1, 2025. This strategic acquisition creates significant synergies for the company, enabling it to expand its operational capacity and better meet the evolving needs of its clients. It also enhances its market presence and aligns with its long - term growth objectives.
