According to the Hindu business line, India’s plastic products industry is a significant player in the global market, with exports reaching $11.55 billion in FY24, despite a 3.5% decline from the previous year. The sector is projected to grow at a CAGR of 12-14%, aiming for a market value exceeding Rs 500 billion by the end of FY24.
With a market capitalization of Rs 9,059.94 crore, the shares of Garware Hi-Tech Films Ltd were trading at Rs 3,899 per share, increasing around 1.23 percent as compared to the previous closing price of Rs 3,852.20 apiece.
Market Leader:-
The company is a prominent player in the polyester film industry, particularly recognized as the market leader in shrink film manufacturing in India, holding a 70% market share in this segment.
Shrink film is a versatile packaging material made from polymer plastic, which shrinks tightly when heat is applied. It is widely used for bundling products, providing protection, and improving shelf appeal. Commonly used in industries like food, beverages, and retail for secure packaging.
Financial Condition:-
Looking forward to the company’s financial performance, revenue magnified by 25 percent from Rs 380 crore in Q1FY24 to Rs 474 crore in Q1FY25, but during the same period, net profit magnified significantly by 100 percent from Rs 44 crore to Rs 88 crore.
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New development:-
The company is expanding its product range with new high-end lidding films for meat and dairy packaging, Titanium PPF with a lifetime warranty, and a complete PPF range. It also launched architectural films like DecoVista and Spectra Pro, while continuing growth in the Rooftop Series.
The PPF network is growing in tier-2 cities, expanding to over 120 channel partners. The company has increased its presence at expos, such as Plex Council Expo 2024 and D-Arc Build. Its digital reach has grown to 172 million, gaining traction with influencers and industry experts.
Product Lines Performance:-
The company’s Solar Control Films (SCF) segment saw strong revenue growth, driven by high-end products and market expansion. New launches like Spectra Pro and DecoVista were well-received, with global demand for both automotive and architectural films expected to remain strong.
The Paint Protection Film (PPF) division introduced a complete product range, including the titanium series, boosting momentum and exceeding capacity. Plans are underway to establish a new PPF production line with a 300 lakh square feet capacity, supported by ₹125 crores, set to begin by Q2 FY26.
Margin guidance:-
In Q1 FY25, the company achieved gross margins of 60% and EBITDA margins of 27%, marking a record performance. High-end value-added products offer 20%-30% higher margins than standard lines. Management remains confident in sustaining margins, focusing on product mix and seasonal demand trends.
Management comment:-
The company faces challenges in the automotive sector due to stagnant U.S. market growth, influenced by rising interest rates. To mitigate risks, it is focusing on geographical diversification, expanding into tier-two Indian cities, and strengthening the architectural segment through targeted marketing efforts.
Company profile:-
Garware Hi-Tech Films Limited is a manufacturer and supplier of tensile polyester films. It produces a variety of goods, including biaxially oriented polyethylene terephthalate (BOPET)/polyester films, sun control films, thermal lamination films, specialized polyester films, and premium quality heat rejection films.
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Written by:- Abhishek Singh
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