Mold-Tek Packaging limited - Q2FY2023 REVIEW

Mold-Tek Packaging Limited reported net revenue of ₹182.74 crores for the quarter ended September 30, 2022, compared to ₹159.76 crores for September 30, 2021. Profit After Tax was ₹19.42 crores for the quarter ended September 30, 2022, compared to ₹17.59 crores during the corresponding quarter of the previous year, respectively.

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Mold-Tek Packaging limited - OVERVIEW

• Mold-Tek Packaging produces injection-molded containers for lubricants, paints, food, and other goods.

• Mold-Tek Packaging Limited has been awarded a letter of recognition from Grasim Industries Limited's Birla Paints Division for the provision of packaging materials (PAILS). As a result, the company will establish a co-located plant at Cheyyar, close to Chennai, to meet their needs. The new plant would require an expenditure of about 30 crores to build up and be operational by the end of the calendar year 2025. To meet the demand for these items as well as serve customers who purchase PAILS in Southern India, the company also proposes to establish food and FMCG IML container production facilities in Cheyyar.

SHAREHOLDING PATTERN (%)

Mold-Tek Packaging limited - BENCHMARK COMPARISON

BUSINESS

• Mold-Tek Packaging Limited (MTPL), which was founded in 1986, is the industry pioneer in rigid plastic packaging in India.

• 1993 marked the year that MTPL was publicly listed.

• The business includes a fully integrated production plant where it can produce packaging products and apply various types of labels.

• The "In-Mold labeling" (IML) concept for decorating plastic containers using ROBOTS was originally introduced by Mold-tek as a company in India. IML makes it possible to produce containers for food and FMCG items that are completely clean and hands-free while also having photographic-grade ornamentation.

• In addition to producing IMl Labels in-house, Mold-Tek is the only packaging company in the world to develop and produce ROBOTS for IML decorating.

• 10 manufacturing facilities and 2 stocking locations are part of Mold-Tek Packaging Limited. Over 45,000 TPA of installed injection moulding capacity currently exists.

• Asian Paints, Castrol, Shell, Mondelez, Hindustan Unilever, and other significant clients are among those where MTPL has a prominent presence.

• Due to its cost advantage from backward integration, MTPL enjoys higher margins in the packaging sector.

• The business has a cutting-edge R&D facility in Hyderabad and a robust Tool Room on which to concentrate.

• one operating segment, namely Packaging Containers, has been determined based on the company's performance from a product perspective.

Mold-Tek Packaging limited - SWOT ANALYSIS

STRENGTH

• Annual Profit improving.

• Company with low debt.

• Diversified Product Portfolio.

• Strong customer base.

WEAKNESS

• Promoter share are pledged.

• Decline in net profit Q-o-Q basis.

• DIIs have decreased their shareholding.

• High customer concentration

OPPORTUNITIES

• backward integration, MTPL enjoys higher margins in the packaging sector

• In-house R&D facility.

THREAT

• Increasing global uncertainty.

• An increase in prices of raw materials costs could impact the profit of the company.

• High supplier concentration.

PACKAGING INDUSTRY ANALYSIS

• In the two years after the pandemic began, the packaging sector has undergone tremendous change.

• New patterns that have arisen during the various pandemic episodes have been embraced by several packaging businesses. In the food, pharmaceutical, beverage, cosmetic, and other FMCG industries, packaging trends have become increasingly prominent.

• These trends range from smart packaging to sustainable and safe packaging with innovation and aesthetic touch.

• From 2022 to 2027, the Indian packaging market is projected to grow at a CAGR of 12.60%.

• Growing population, rising income levels, and changing lifestyles are expected to increase consumer spending across a variety of businesses, which will increase the need for packaging product solutions.

• To control the scenario where the supply chain is disrupted, the government introduced the production-linked incentive (PLI) plan to incentivise businesses in 10 industries to promote local manufacturing and enhance exports. Atmanirbhar and structural changes are other factors that should improve India's packaging industry's development potential.

• In India, packaging consumption has surged by about 200% in the past ten years, from 4.3 kilograms per person per year (pppa) in 2010 to 8.6 kilos pppa in 2020, according to the Indian Institute of Packaging (IIP). In contrast to other industrialised nations across the world, this business still has a lot of room for expansion despite the rapid rise over the past ten years. India is also becoming a popular international location for organized retail. E-commerce is spreading quickly, bringing about a transformation in the retail industry, and raising the need for packaging.

Mold-Tek Packaging limited - FINANCIAL OVERVIEW

Mold-Tek Packaging limited - QUARTERLY SUMMARY

PROFIT AND LOSS STATEMENT (₹ IN lakhs)