Pyramid Technoplast Limited

Summary

Incorporated in 1997, Pyramid Technoplast Limited manufactures polymer-based molded products (Polymer Drums) used by chemical, agrochemical, specialty chemical, and pharmaceutical companies for their packaging requirements.

About Pyramid Technoplast

The company are an industrial packaging company engaged in the business of manufacturing polymer based olded products (polymer drums) mainly used by chemical, agrochemical, speciality chemical and pharmaceutical companies for their packaging requirements. We are one of the few manufacturers of Rigid Intermediate Bulk Containers (IBC) in India having the know-how, technology and equipment to manufacture 1,000 litre capacity IBC. IBC’s are industrial-grade containers engineered for the mass handling, transport, and storage of liquids, semi-solids, pastes, or solids. Rigid IBC’s are manufactured across a volume range which is in between that of standard shipping drums and intermodal tank containers, hence the title intermediate bulk container. We also manufacture MS drums made of Mild Steel (MS) used in the packaging and transport of chemicals, agrochemicals and speciality chemicals.

Company use blow molding technology to manufacture Polymer Drums and IBC. Injection molding technology is used for manufacturing caps, closures, bungs, lids, handles, lugs, etc. for in-house use. Our products are marketed and sold under our brand name “Pyramid”.

Company have started commercial production in the year 1998 in Unit I. Presently, we have six (6) trategically situated manufacturing units out of which four (4) are in Bharuch, GIDC and two (2) are situated at Silvassa. The seventh (7) manufacturing unit is under construction at the Bharuch, GIDC adjacent to the existing six units. The total installed capacity of our Polymer Drum manufacturing units is 18,837 MTPA. The total installed capacity of our IBC manufacturing unit is 3,240 MTPA and the total installed capacity of our MS Drums unit is 3,600 MTPA.

The Company At a Glance

Business Verticals and Overview

IBC Containers: Streamlining Logistics and Enhancing Efficiency

• Pyramid Technoplast is a leading manufacturer of rigid Intermediate Bulk Containers (IBCs), specializing in the production of 1000-
  liter capacity IBCs.
• With a strong focus on organization, mobility, and integration capabilities, our IBC containers offer numerous benefits.
• They significantly enhance logistic and handling timelines, improve efficiencies, and increase capacity by enabling the filling, moving,
  loading, transit, and dispensing of materials in a single container.
• IBCs provide a reliable and consistent solution for the safe handling and storage of various substances, offering convenience to the
  customers

Plastic Barrels: Versatile Solutions For Industrial Packaging

• Pyramid Technoplast is engaged in the manufacturing of all types of plastic barrels, containers, and HDPE drums that are widely used
  for industrial and commercial applications. Their plastic drums and containers are supplied to chemical, agrochemical, speciality
  chemical and pharmaceutical companies.
• The Company manufactures drums with capacities ranging from 20 LTR to 250 LTR and even higher according to the clients’
  specifications
• Key Features of Plastic Barrel: Easy to handle, Tamper proof design, Leak proof, Easy to fill, Easy to transport, Easy to unload.

MS Drums: Meeting Diverse Packaging Needs

• Pyramid Technoplast serves as a one-stop shop for all your packaging needs, offering a wide range of drum options such as GeneralPurpose Metal drums, Epoxy Coated/Lacquered drums, Composite drums, Galvanized drums, and Open top drums.
• The Company's IBCs and MS Drums have received UN certification, meeting the safety levels outlined by the United Nations Recommendations and conforming to the quality standards of IS 1783:2014.
• MS Drums are capable of storing and transporting both liquid and solid raw/finished goods of 18 gauge to 20 gauges with storage
  capacity of 200 L to 210 L.
• With the diverse selection, customers can find the perfect drum solution for their specific requirements, including various shapes,
  sizes, & dimensions

Product Wise Revenue Breakup

Product Wise Performance:

State Of The Art Manufacturing Facilities

Upcoming Project Updates

Precision, Quality, Innovation: Empowering Manufacturing Excellence with Advanced Technologies

• Fully automated machines with advanced blow molding technologies are utilized in the manufacturing process.
• National and international standard molds and dyes are used to ensure high-quality production.
• Air Dryers to eliminate the moisture in the plastic material before processing it.
• Injection Molding Machine that facilitates manufacturing of a wide range of products.

-------------------------

Industry Analysis

Growing Demand for IBCs in India

• Rapid IBC demand growth is expected in India’s end-use industries like chemical, pharmaceutical, and Food and beverage, fueled by
  efficiency, safety, and space optimization.
• India ranks fourth globally in agrochemical and specialty chemical production. This industry's growth along with export/import activities is further driving IBC demand for chemicals' transportation.
• The Indian chemicals market is projected to experience substantial growth with a forecasted CAGR of 9.3% from 2019 to 2025,
  contributing significantly to GDP growth.
• Government initiatives foster domestic production, attract investments, and ensure quality standards in the chemical sector.

The Rise of Polymer Drums in Industrial Applications

• High-density polyethylene (HDPE) usage for polymer drums is rising due to growing demand and the impact of plastic bans on certain polyethylene grades in India.
• Polymer drums are essential for storing and transporting various commodities such as chemicals, pharmaceuticals, and food products
• Despite COVID-19 disruptions, sectors like agriculture and pharmaceuticals display growth, while urbanization boosts food industry, creating opportunities for food grade polymer drums.
• Polymer drums are eco-friendly and recyclable, minimizing environmental impact and reducing carbon emissions. HDPE offers superior properties such as resistance to high and low pH contents, high tensile strength, and UV protection, making it ideal for polymer drum manufacturi.

Industrial Demand Drives Mild Steel Drum Sales

• MS drums serve as a versatile packaging option, providing safe and secure storage for various sectors such as pesticides, fuels,
  medicines, fragrances, food, resins, lubricants, coatings, chemicals, and metallurgy.
• With advantages including cost-effectiveness, reusability, and fire resistance, the expanding demand for MS drums in India presents
  growth opportunities for manufacturers and suppliers.
• Increasing focus on sustainability and recycling due to rising material costs contributes to environmental conservation in the MS drums industry.

---------------------------

Management Of The Company

Mr. Bijaykumar Agarwal - Managing Director & Chairman 

Experience in packaging industry over 3 decades. Looks after Finance, Raw material Procurement, Customer Servicing and Business Development.

Mr. Jaiprakash Agarwal - Whole Time Director & CFO

B.com Graduate from Mumbai University and Masters from ICFAI University, Dehradun. More than 19 years of experience in the packaging Industry. Look after Manufacturing, Finance, Accounts, Sales & Marketing and Business Development.

Shareholding Pattern

Company's Strength

• Experienced promoters and leadership team
• Diverse customer base
• Strategic locating of manufacturing units
• Quality standard certificated and quality tests

Capex Trend and Outlook

01 Organic Growth
Capex budget of Rs. 40-50 Cr for FY24-FY26 for proposed Unit 8 and Unit 9. Asset turnover expected of 5x.

02 Balance Sheet Strength
To fund capex from internal accruals and cash balance. To maintain net debt zero balance sheet

03 Strengthening Portfolio
Greater revenue share of high-margin product like IBC. Increasing automation in metal drums production. Optimising production at each site

Investment Thesis

Strong Macro Tailwind: for specialty chemical companies with China+1 strategy

Focusing on value-added products: such as IBC by expanding existing facilities; Pyramid has a 40% market share in India

De-risked, sustainable growth with robust order book.\

High return ratios: RoE of 29.6% and RoCE of 28.8% in FY23; Focus on efficiency, profitability and on time delivery of products.

Risk Factors

• Increasing geopolitical tensions
• Higher crude oil prices
• Increasing forex volatility
• High inflationary environment

Financial Overview

Profit and Loss Statement

Balance Sheet

Cashflow Statement