Banganga Paper - Banganga Paper

📊 BSE: 512025 🏢 Diversified Commercial Services 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Standalone turnover grew 14,682% from INR 0.39 Cr in FY24 to INR 58.24 Cr in FY25 following the company's pivot from steel trading to paper manufacturing. The subsidiary, Banganga Paper Mills, reported revenues of INR 37.60 Cr, up 81.4% from INR 20.72 Cr YoY.

Geographic Revenue Split

100% of operations and revenue are concentrated in Nashik, Maharashtra, where the primary manufacturing facility is located.

Profitability Margins

Net Profit Margin for the operational subsidiary is approximately 2.34% (INR 0.88 Cr profit on INR 37.60 Cr revenue). Standalone operations reported a cash loss of INR 15.58 Lakhs in FY25 compared to a loss of INR 2.19 Lakhs in FY24.

EBITDA Margin

EBITDA margin for the paper operations was 7.5% (INR 2.82 Cr) in FY25, a slight compression from 8.1% (INR 1.69 Cr) in FY24 due to increased raw material and employee costs.

Capital Expenditure

The company made a strategic investment of INR 10.20 Cr in its subsidiary, Banganga Paper Mills Limited, to operationalize and modernize the Dindori manufacturing facility.

Credit Rating & Borrowing

Not Applicable as the company reported zero loans or borrowings from financial institutions, banks, or debenture holders during the financial year.

⚙️ Operational Drivers

Raw Materials

Recycled paper is the primary raw material, accounting for 90.08% of total operational expenditure (INR 33.87 Cr out of INR 37.60 Cr).

Import Sources

Raw materials are sourced locally within Maharashtra, India, to support the Nashik-based manufacturing unit.

Capacity Expansion

The company operates a modern facility in Dindori, Nasik, producing corrugated and craft paper; specific installed capacity in MTPA was not disclosed.

Raw Material Costs

Raw material costs reached INR 33.87 Cr (90.08% of revenue) in FY25, up 81.5% from INR 18.66 Cr YoY, highlighting high sensitivity to waste paper pricing.

Manufacturing Efficiency

High efficiency achieved through 90-95% water and chemical recycling and consistent 6-day-a-week production schedules.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by the pivot to the paper industry, focusing on high-demand segments like food-grade packaging and corrugated boxes. The strategy involves maximizing capacity utilization at the Dindori plant and leveraging eco-friendly recycling practices to attract sustainability-conscious clients.

Products & Services

Craft paper, corrugated papers (various GSM ranges), and food-grade papers used for packaging fruits, vegetables, and consumer goods.

Brand Portfolio

Banganga Paper Industries.

New Products/Services

Food-grade papers designed for agricultural and food packaging, expected to contribute to higher-margin revenue streams.

Market Expansion

Targeting industrial and agricultural hubs across Maharashtra for packaging paper supply.

Market Share & Ranking

Positioned as a leading regional manufacturer of craft paper in the Nashik district.

Strategic Alliances

100% ownership of Banganga Paper Mills Limited, which serves as the primary operational arm.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable, recycled-content packaging due to plastic bans and environmental regulations; the company is well-positioned with its 90-95% water recycling and 100% recycled feedstock.

Competitive Landscape

Competes with regional paper mills in Maharashtra; market dynamics are driven by raw material procurement efficiency.

Competitive Moat

Moat is based on cost leadership through localized sourcing in Nashik and high resource recovery (water/chemicals), which is sustainable as long as environmental compliance remains a barrier to entry.

Macro Economic Sensitivity

Highly sensitive to e-commerce growth and FMCG demand, which drive the requirement for corrugated packaging.

Consumer Behavior

Increasing consumer preference for eco-friendly and biodegradable packaging in the food and retail sectors.

Geopolitical Risks

Low, as the business model relies on domestic sourcing of recycled paper and domestic sales of packaging materials.

⚖️ Regulatory & Governance

Industry Regulations

Subject to pollution control board norms for paper mills and food-grade standards for packaging materials.

Environmental Compliance

High focus on ESG through 90-95% water recycling to comply with industrial discharge norms.

Taxation Policy Impact

Effective tax rate of 28.8% (INR 0.36 Cr tax on INR 1.25 Cr PBT) for the operational subsidiary.

Legal Contingencies

INR 0 (The company disclosed that it has no pending litigations as of March 31, 2025).

⚠️ Risk Analysis

Key Uncertainties

Significant governance risks including the resignation of statutory auditors due to 'preoccupation', the non-appointment of an internal auditor (violating Section 138), and failure to operate audit trail features in accounting software.