Mitsu Chem Plast - Mitsu Chem Plast

📊 BSE: 540078 🏢 Packaging 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations reached INR 332.28 Cr in FY25, representing a 5-year CAGR of 16.83%. For Q2 FY26, total income was INR 92.56 Cr, up 13.63% YoY, driven by broad-based demand across industrial packaging, healthcare furniture, and infrastructure segments.

Geographic Revenue Split

The company has an export presence in 17 countries including USA, UK, UAE, Germany, and Japan. Export revenues surged by 144% in FY25, though the majority of revenue remains domestic-focused across India with a dedicated depot in South India and a distributor network in North India.

Profitability Margins

Net profit margins have faced pressure, declining from 4.47% in FY21 to 2.18% in FY25 due to rising input costs. However, Q2 FY26 showed recovery with a net profit margin of 2.04% (INR 1.88 Cr), a 65.72% YoY increase in absolute profit terms.

EBITDA Margin

EBITDA for Q2 FY26 was INR 5.88 Cr with a margin of 6.37%, reflecting a 53 bps improvement YoY. FY25 annual EBITDA was INR 23.09 Cr (7.01% margin), which was a slight decline from 8.25% in FY23 due to raw material price volatility.

Capital Expenditure

The company has consistently expanded, including the acquisition of plant and machinery from Prince Multi Plast and the expansion of Unit III at Khalapur. Current installed capacity stands at 28,000+ MTPA, supporting the strategic goal to triple revenue to INR 1,000 Cr by 2028.

Credit Rating & Borrowing

As of April 2020, CRISIL assigned a Long Term Rating of CRISIL BBB-/Stable and a Short Term Rating of CRISIL A3. These ratings were reaffirmed and subsequently withdrawn in July 2021 at the company's request following the receipt of No Objection Certificates from lenders.

⚙️ Operational Drivers

Raw Materials

Polymers (High-Density Polyethylene/Polypropylene) are the primary raw materials. While specific cost percentages are not disclosed, management cited 'rising input costs' as the primary reason for a 33% drop in Return on Net Worth in FY25.

Import Sources

Not explicitly disclosed, but the company operates in polymer-based industries which typically source from major domestic refineries in Gujarat and Maharashtra or via global imports.

Key Suppliers

The company acquired business assets from NOCIL (a Reliance Industries related entity) and serves over 30 Fortune 500 India clients, suggesting a robust supply chain with major petrochemical players.

Capacity Expansion

Current installed capacity is 28,000+ MTPA across 3 manufacturing facilities in Maharashtra. The company operates 51 blow molding machines and 18 injection molding machines. Unit III at Khalapur is undergoing expansion to support the 2028 revenue target.

Raw Material Costs

Raw material costs are highly sensitive to global crude oil and polymer price movements. In FY25, rising input costs led to a margin drop, reducing ROCE from 18.35% in FY24 to 9.89% in FY25.

Manufacturing Efficiency

Capacity utilization was reported at approximately 70-71% for H1 FY26. The company focuses on 'Operational Excellence' to reduce waste and enhance production speed.

Logistics & Distribution

Distribution is handled through a combination of a dedicated depot for South India and a network of distributors for North India to ensure timely delivery of its 500+ SKUs.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

The 'Four Pillars of Transformation' strategy involves: 1) Scaling the 'Furnastra' healthcare furniture brand, 2) Expanding the industrial packaging portfolio (e.g., PAILS), 3) Driving 144% export growth through global trade fair participation, and 4) Operational excellence to triple revenue to INR 1,000 Cr by 2028.

Products & Services

Molded industrial packaging (drums, jerry cans), healthcare furniture parts (hospital bed head/foot bows, side railings, spine boards), infrastructure products (stadium seats, bus seats), and medical kits (pregnancy, malaria, HIV kits).

Brand Portfolio

Furnastra (Hospital Furniture), Mitsu (Corporate Brand).

New Products/Services

Launched 'PAILS' for packaging and the 'Furnastra' brand for healthcare furniture. Received design registrations for hospital bed side railings and CPR boards, targeting higher-margin specialized segments.

Market Expansion

Targeting a 3x revenue increase by 2028 through deeper penetration in 17 export countries and expanding the domestic distributor network in North India.

Market Share & Ranking

The company is a leading player in India's plastic-processing sector, specifically in blow molding and injection molding, though specific market share percentage is not disclosed.

Strategic Alliances

Acquired plant, machinery, and technical know-how from Shree Rubber Plast Co. Pvt. Ltd. and assets from Prince Multi Plast Pvt. Ltd. to expand manufacturing capabilities.

🌍 External Factors

Industry Trends

The rigid plastic packaging market is growing due to increased packaged food consumption and hygienic storage needs. The industry is shifting toward a circular economy, requiring Mitsu to invest in sustainable materials and recyclability.

Competitive Landscape

Competes with both organized and unorganized plastic molders. Competitive advantage is derived from specialized healthcare certifications (CE marking for spine boards) and large-scale 28,000 MT capacity.

Competitive Moat

Moat is built on 35+ years of technical expertise, a diversified portfolio of 500+ SKUs, and deep relationships with 30+ Fortune 500 clients. Sustainability is enhanced by ISO certifications (9001, 13485, 14001, 45001, 22000).

Macro Economic Sensitivity

Highly sensitive to the 'Make in India' initiative and GDP growth in the chemical and pharma sectors, which drive demand for industrial packaging.

Consumer Behavior

Rising demand for eco-friendly packaging and high-quality healthcare infrastructure is driving the company's shift toward sustainable materials and the 'Furnastra' brand.

Geopolitical Risks

Global trade barriers could impact the 144% export growth trajectory. The company monitors international regulations to ensure uninterrupted operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with EHS norms, UN certification for packaging, and CE marking for medical devices. Non-compliance risks financial and reputational damage.

Environmental Compliance

Certified to ISO 14001 (EMS). The company earned a bronze medal in the 'Together For Sustainability' framework and the Envirocare Green Award 2024.

Taxation Policy Impact

Subject to Indian corporate tax laws and GST. Changes in domestic tax policies are listed as a performance risk factor.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (high impact on margins), cyclical demand in end-user industries like agrochemicals, and the ability to scale to INR 1,000 Cr revenue organically.

Geographic Concentration Risk

Manufacturing is concentrated in Maharashtra (3 units), making it sensitive to regional industrial policies and logistics costs in Western India.

Third Party Dependencies

Dependent on polymer suppliers and global shipping for its 17-country export business.

Technology Obsolescence Risk

Risk of shifting away from plastics to alternative materials. Mitigated by R&D into sustainable materials and digital transformation in manufacturing.