The company possesses a rated capacity of 7 million FIBCs per annum; with woven PP fabric, the aggregate capacity is 14,000 MTPA.

The company is also one of the few in India to offer ‘clean room bags' for food packaging with all international certifications.

The company has a fully integrated facility and is operating from three locations all within half a mile of each other in Kanpur. The company is BRC and ISO 22000 certified for Food Grade and Clean room bags. It is one of the few ones who offer a full range of products and services under one roof.

Its FIBCs and big bags division is doing over 5 million bags per annum and has an installed capacity for over 7 Million bags

KPL is a respected global manufacturer of world-class flexible intermediate bulk containers.

Kanpur Plastipack introduced research-based engineering innovation in a typically undifferentiated product space. The Company was among the first FIBC companies in India to manufacture stiff loops out of polypropylene (PP) that strengthened product durability and transportability; the company produced special bags for packaging extremely fine powder that eliminated leaks.

It's a first stop for a number of demanding customers who seek a compressive solution for their bulk packaging needs.

A growing number of large, global customers are turning to Kanpur Plastipack for these dependable packaging solutions.

The company has managed to retain all its customers and improve volumes with some of its principal customers in Europe. The inroads made into North America have started to become steady business with a significant improvement in sales from South America. The company continues to lay emphasis on value added products and is creating the infrastructure towards that goal.

For the quarter ended June 2018, sales grew 9% to Rs 72.70 crore. OPM improved 80 bps to 10.8% which took OP up 18% to Rs 7.86 crore. Other income grew 9% to Rs 45 lakh and interest cost fell 24% to Rs 1.41 crore. As depreciation jumped grew 3% to Rs 1.13 crore, PBT went up 40% to Rs 5.77 crore. Taxation grew 8% (to Rs 1.65 crore). Thus finally net profit jumped 59% to Rs 4.12 crore.

For FY 2018, sales grew 16% to Rs 283.66 crore. OPM fell 130 bps to 12.1% which took OP up 4% to Rs 34.33 crore. Other income jumped 22% to Rs 1.52 crore and interest cost fell 6% to Rs 6.40 crore. As depreciation fell 2% to Rs 4.11 crore, PBT grew 10% to Rs 25.34 crore. Taxation fell 3% to Rs 8.43 crore. Thus finally net profit grew 17% to Rs 16.92 crore.

Its users are wide range of industries

Kanpur Plastipack's products are used across a range of applications that include fertilizers, cement, animal feed and pet food, seeds, chemicals and minerals, sugar and flour, among others.

The company prides in enduring associations with repeat customers, a number of whom have been working with the company for more than 20 years. The company has been providing packaging goods for 45 years.

Is a pioneer in export from India

The company is a pioneer in export from India having started this activity since 1987. It enjoys tremendous brand equity in West Europe & USA as one of India's leading exporters.

Its major export sales come from Europe, USA and South America.

The recovery of the North American Economy has thrown up new opportunities in the market which the company is gearing up to handle. Fresh efforts in South America have yielded some very positive results and opened up a huge market for fabrics which has been successfully catered this year.

The company is increasing its exposure to the American market. The inroads made into North America have started to become steady business. The acquisition of the BOPP bags unit has helped it in expanding its product portfolio.

The company continues to scale new landmarks in achievements having been awarded the prestigious AIB Certification for food grade bags. This will help it in making inroads in the American market.

Over the past few years it has have expanded its presence in several international markets with currently being present in over 40 countries, generating 80% of total revenue.

Continues to lay emphasis on value added products

The company continues to lay emphasis on value added products and is creating the infrastructure towards that goal

The company continues to expand its manufacturing facilities. Technological upgradation in its plant and machinery is an ongoing process which will further improve the performance of the company.

Major expansion

The company offered 2387774 equity shares of Rs 10 each at Rs 75 per share (premium of Rs 65 per share) under the rights issue.

The rights issue was to finance setting up of a new facility in Uttar Pradesh for consolidating certain existing operations and expansion of capacity for manufacturing FIBC, Fabric, MFY & Liner. This will be a new manufacturing facility located 13 Km from the existing factories at a cost of Rs 94.64 crore.

The above project will further add 8400 MT per annum of Fabric and FIBC in the existing capacity of 14600 MT with additional manufacturing plans of Liner having a capacity of 1200 MT per annum. The benefits of this expansion will accrue in FY 2019.

Encouraging outlook

The outlook for the current financial year looks robust and positive. The management is hopeful of improving its profitability.

The company continues to work on technological upgradation and innovation. The company has undertaken a massive project towards Operation Excellence and Lean management in its facilities which has started bringing in results As an ongoing process all such initiatives will further improve its performance. The management continues to lay emphasis on exports of value added products and expanding the geographical reach of its export market is the company's priority.

Packaging industry continues to gain prominence, as manufacturing companies continue to get traction buoyed by positive growth sentiments. Being among the leading bulk packaging companies in the world, the management is excited with future prospects.

During the quarter construction of the new factory moved at a faster pace. It plans to fully implement phase-I of the Greenfield project in the FY19.

It aims to stabilize operations and consolidate production activity.

Valuation

The scrip trades at Rs 136.