Date : 19/05/2018

IncorporationHead Office

1942Andheri, Mumbai

About • Engaged in processing of polymers and resins into finishedplastic products

• One of the largest plastic processor in India, processing over3.7lakh MT annually

• Presence in the Indian plastic industry for over 50 ears underpresent management

EXECUTIVE SUMMARY

1942 1966 199219891985 20091998-031994-95 20152014 2018

Founded

by

Kantila

modi

Taken

over by

Taparia

family

Start of new plant for industrial product

Formed JV with

Raheja

investments to

establish Supreme

petrochem

Introduces

plumbing

& fittings

product

Ties up with

International

players for

technology

upgradation

Enters Flexible

packaging division

and merged with

Sitlap chemicals

Ltd

Signs

MoU with

Ultrabatch

of Italy

Expanding to

eastern and

southern

Markets by

establishing

Plastic Piping

Plants

Introduces

composite

LPG cylinders

Entered into an

agreement to

form JV with

Kumi Kasei co.

Ltd, Japan

`

MILESTONES

LOCATION ACROSS INDIA

Areas of

Operation

Plant : Chennai Plant | Durgapur |

Guwahati | Gurgaon | Gadegaon |

Hosur | Halol | | Jalgaon Unit - I

|Jalgaon | Khopoli | Khushkera |

Kharagpur | Kanpur | Lalru |

Malanpur |Noida |

Pondicherry|Silvassa | Talegaon |

Urse

|

Office : Ahemadabad| Bangalore |

Bhubaneswar | Ahmednagar |

Jaipur | Chennai | Hyderabad |

Indore | Kolkata | Kanpur | Noida |

Pune| Narimanpoint | Veera Desai

SHAREHOLDING PATTERN

50%

18%

32%

Promoters

MFs/ FIIs

Others

KEY MANAGERIAL MEMBERS

• Chairman : B L Taparia

• Managing Director : M P Taparia

• Executive Director : 1. S J Taparia

2. V K Taparia

• CFO : P C somani

MANUFACTURING PROCESS IN A

PLASTIC INDUSTRY

• Extrusion process

• Injection molding process

• Rotational molding process

• Blow molding process

• Thermoforming process

• Reaction injection molding

• Compression molding

• Transfer molding

APPLICATION OF PLASTIC

SEGMENTS PRODUCTS

Plastic Piping System uPVC Pipes, Moulded fittings, Handmade fittings, HDPE Pipe

Systems, CPVC Pipes Systems, Inspection Chambers, Water

Tanks, Septic Tanks, Bath Fittings, Solvents

Consumer Products Plastic moulded furniture

Industrial Products Industrial components, Material handling products

Packaging Products Specialty Films , Protective Packaging products, Cross

Laminated film products, Cross Line Bonded Film Products

Composite Products LPG Cylinders

BUSINESS SEGMENT

PLASTIC PIPING SEGMENT

• Indian plastic pipes industry size is estimated at around 2.8 million tonnes in volume and

more than INR 28,000 Crores in value.

• SIL holds 15% share in the organised plastic pipe segment and 9% in the total pipe

segment in India.

• Supreme provides innovative and cost-effective piping solution

• The current product portfolio comprises around 7300 diverse products of pipes and

fittings totaling manufactured as per various national and international standards.

• SIL has 914 channel partners with more than 25,000 retail touch points

• Export to more than 20 countries

CONSUMER PRODUCTS

• Second-largest player in the plastic moulded Furniture with current Processing Capacity-

30,000 MT

• One stop solution for all furniture needs, made from 100% virgin polymers, using computer

designed moulds at ISO certified Plants

• Products in various categories eg upholstered, Premium monoblock chairs, Monoblock

chairs, Armless chairs, Centre tables & trolley, Dining tables, Baby chairs, Stools etc.

• Customers: home usage, office usage, commercial usage like restaurants, hospitals

parlours, shops, public places etc.

Plastic moulded furniture

INDUSTRIAL SEGMENT

• Industrial product are used in Home appliances, cabinets for electronic items, automotive

products, water purifier, EVMs and ATM Machine parts

• First to launch the Injection Moulded Plastic Pallets

• Approved source to numerous multinational clients, as well as India’s leading names

in Automotive, Consumer Durables, other Industrial applications

• Hitachi, Panasonic, Samsung, Tata Chemicals, Videocon, Whirlpool, Ashok

Leyland, Denso, Exide, Hindustan Motors, Kinetic Engineering, Mahindra, Maruti

Udyog, Subros, Tata Motors

1. Industrial Product

• SIL’s hold a prominent place in the industry

• Material Handling & Storage Products range from small bins to Super Jumbo

Crates, Injection moulded and Roto moulded Pallets, Injection moulded and Roto

moulded Garbage bins.

• Products are manufactured using computer designed moulds at company's six

technologically advanced plants across India.

• Lightweight yet highly durable, food grade , weather proof and UV resistant.

• Electronics industry, Engineering industry, Auto-motive industry, Textile

industry, Fisheries, Fruits & Vegetable Handling, Soft drinks Handling, Dairy

products Handling and many more.

• Major Supplier to the Soft Drinks Industry

2. Material Handling Product

1. XF Films

• 100% recycleable

• Weatherproof

• Waterproof

• Light in weight which makes it easy to transport and handle

• Tear and puncture resistance

• Specially UV treated

• Customisation possible

• An acknowledged leader in the Plastic Tarpaulin (Tarps) industry and sells this product under

the brand name Silpaulin, Rigidex-f, Silproof, Xlbond.

PACKAGING SEGMENT

2. Performance Films Division

Thermoforming Film

•Dairy Products

•Bakery Products

•Process Meat and Sea food, Poultry

• Medical Devices

Lamination Grade Film

• Beverages • Lamitubes

• Medical Devices • Gels and cosmetics

• Retail coffee Pack

VaccumPouches /

MAP

• Cheese & Paneer • Meat , Sea foods

•Spices, Tea/Coffee Bags • Dry Fruits

•Snack Foods • Rice & Staples

UHT Milk and oil film

•Milk • Fruit Juices •Yogurt • Sauce

•Fruit Concentrates

• Edible Oil • Ghee •Lubricant Oil

Industrial Application

• Bulk Bags for hygroscopic materials

•Liner for Windmill Blades

• SMC Compound

Lidding Film

• Dairy Products • Meat and Sea foods

•Bakery Products • Medical Devices

•Jelly Cups • Fresh Vegetables

• SIL is among the market leaders with 25% market share

• Dust covers, bubble wrap, corner pads, support pads, PE packaging buffers, encapsulation

blocks, display usage etc

• SIL mainly caters to packaging, Construction, automobile, industrial goods, consumer

durable, sports , toys, healthcare, defense, marine and exports

3. Protective Packaging

COMPOSITE CYLINDER

Features Of LPG Composite Cylinders

• Less than half the weight of conventional Steel cylinders

• Wall transluscency provides visible gas level.

• Explosion proof

• UV resistant - Outer Casing

• Beautiful outer design

• Facility to put customer logo with name embossed on it.

• Easily Stackable and Housing recyclable

• Rust and moisture proof

2453

978

623

313

9

2695

1010

771

348

20

500

1000

1500

2000

2500

3000

PLASTIC PIPING CONSUMER INDUSTRIAL PACKAGING COMPOSITE

2017 2018

SEGMENT WISE REVENUE

(in cr)

Y-o-Y 9.86% 3.27% 23.75% 11.18%

14.25%

20.41%

13.65%

20.55%

00.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Plastic PipingConsumer ProductsIndustrial ProductsPackaging ProductsComposite Products

OPERATING PROFIT MARGIN

OPERATING PROFIT MARGIN

56%

21%

16%

7%

0%

SALES

Plastic Piping System Consumer Products

Industrial Products Packaging Products

Composite Products

CAPACITY CONSUMPTION

402000

29000

69000

65000

3000

Plastic Piping

Consumer Products

Industrial Products

Packaging Products

Composite Products

Total Capacity 5,68,000MT

3,404

3,962

4,255

2,975

4,462

4,966

sales

SALES

Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18

(in Crs)

268274

312

205

377

397

PAT

PAT

13-Jun 14-Jun 15-Jun 16-Mar 17-Mar 18-Mar

(in Crs)

TECHNICAL COLLABORATIONS

• Rasmussen Polymer Development, Switzerland - Cross-laminated Films

• Wavin, Netherlands - Plastic Piping Systems

• Foam Partner, Switzerland - Reticulated PU Foam

• Sanwa Kako,Japan - 2 stage Foam

• PE Tech, Korea - Cross Linked Foam

• Kumi Kasai Co. Ltd. Japan -Automotive Components

• Kautex GMBH - Composite LPG Cylinder

• Spears Mfg. Co. Los Angeles - Fire Sprinkler Pipes from Cpvc

• Calcamite Sanitary Services (PTY) - Septic Tanks

BUDGET 2018• MSP (Minimum support price) to farmers.

• Organic farming and cluster development model for agriculture will be encouraged.

• Allocation of Rs.500 crore is provided to Operation Green.

• Agricultural segments of bamboo farming, fisheries, and animal husbandry will be

encouraged.

• Rs.11 lakh crore will be offered as credit to the farming sector.

• The Swachh Bharat Mission will be extended to offer 2 crore toilets to rural houses.

• Mission Bhagiratha, Telangana government’s initiative to provide piped water supply to every

household in the state has given impetus to the pipe industry here.

• ‘Housing for All by 2022’.

• 51 lakh houses will be constructed in the rural areas

• 37 lakh houses built in urban areas by end of FY18-19

PLASTIC INDUSTRY

The entire chain in the Plastic industry can be classified into:

(A) Upstream sector: Manufacturing of polymers and

(B) Downstream sector: Conversion of polymers into plastic articles

• The Indian plastics industry offers

excellent potential in terms of

capacity, infrastructure and skilled

manpower.

• Among the industry’s major strengths

is the availability of raw materials in

the country. Thus, plastic processors do

not have to depend on imports. These

raw materials are manufactured

domestically.

PLASTIC CONSUMPTION PER PERSON (in kgs)

WAY FORWARD

GLOBAL

• Global plastic market to grow at 7.03% CAGR from 2017-2025 and composite cylinder at

7.20% from 2017-2022

• Composite cylinder segment to reach at an estimated $968million by 2022

INDIA

• By 2020, plastics consumption of the country is expected to increase from the current 12

million metric tonnes per annum (MMTPA) to 20 MMTPA.

• The export of plastics finished goods is expected to nearly double from $ 7.9 billion currently

to $15 billion in next 5 years.

• The Indian plastic pipes industry is expected to grow at a CAGR of 10%.

MARKET SIZE V/S SUPREME'S SHARE

ProductsEstimated Market Size (in

cr)Supreme’s Share

Plastic Piping System 28,000 8.80 %

Consumer Products 3100 10.50%

Industrial Products 1800 13.50%

Packaging Products:1. EPE foam

2. Air Bubble Film3. Cross Linked Foam

4. Cross Linked Foam Rolls

75034046090

29 %18 %17 %53%

STRENGTHS• Track of developing new products

• Most of the Plants and machinery are certified

• Diversified product portfolio with established Brand Equity

• Automation of activities

• Manufacturing facilities spread across the country.

• Significant Market Share in each of the verticals

• Cost efficient raw material procurement capability

• User of diverse material of plastics

• Invulnerable from import substitutes.

RISKS

• CRUDE OIL PRICE : Major raw materials consumed by the company are poly vinyl

chloride (PVC), polyethylene (PE) and polypropylene (PP), which are linked to crude

prices.

• NEW ENVIRONMENTAL POLICY : 1. Health hazardous 2.Lead free pipe

• COMPETITION FROM UNORGANISED PLAYERS : The company has to

continuously spend on a brand building exercise and technological innovations to improve

its market share.

• FOREIGN CURRENCY RISK

Source: fernfortuniversity research report

FUTURE OUTLOOK

• The transaction of transfer of Automotive Component manufacturing facility into Kumi

Supreme India Private Limited (JV) is likely to be completed in Q1FY19.

• The company ecpects to commision two new greenfeild plants in production this year at

Telangana and Rajasthan .

• To start new plants in Assam and Andhra Pradesh.

• Estimated revenue to reach at 5400-5600cr for the Fy 2018-19.

• Margins in all the segment to be around 12-15.5% for Fy 2018-19

• New orders are expected to receive from different countries for composite cylinders

JUN-13 JUN-14 JUN-15 MAR-16 MAR-17 MAR-18 CAGR

Sales 3403.99 3962.23 4255.19 2974.84 4462.26 4966.29 7.85%

Operating

Profit535.63 588.81 666.24 461.14 761.87 787.11 8.00%

EBITDA 535.47 592.02 668.67 462.09 767.00 791.86 8.14%

EBIT 453.76 490.47 529.68 357.52 612.71 624.71 6.60%

Profit

before tax

(PBT)

401.41 414.33 471.72 329.95 582.45 602.79 8.47%

PAT 268.42 274.35 311.71 204.51 376.67 397.09 8.15%

(In crs)

JUN-13 JUN-14 JUN-15 MAR-16 MAR-17 MAR-18

Operating Profit

Margin15.74% 14.86% 15.66% 15.50% 17.07% 15.85%

EBITDA Margin 15.73% 14.94% 15.71% 15.53% 17.19% 15.94%

EBIT Margin 13.33% 12.38% 12.45% 12.02% 13.73% 12.58%

Net Profit Margin 8% 6.92% 7.33% 6.87% 8.44% 8.00%

EPS 22.84 22.31 25.38 18.02 33.88 33.99

JUN-13 JUN-14 JUN-15 MAR-16 MAR-17 MAR-18

ROCE 37.37% 34.26% 34.27% 23.83% 33.25% 30.87%

ROA 13.21% 12.60% 13.22% 8.46% 13.37% 13.52%

ROE 30.54% 26.40% 25.73% 15.55% 22.21% 20.96%

Debt/

Equity0.47 0.37 0.27 0.17 0.14 0.12

JUN-13 JUN-14 JUN-15 MAR-16 MAR-17

Cash from Operating

Activity 404.61 325.20 600.82 298.46 635.51

Cash from Investing

Activity 362.75 133.75 185.98 219.92 -202.20

Cash from Financing

Activity 32.41 190.28 259.63 231.97 210.37

Free Cash Flow to Firm 34.83 180.69 407.25 65.03 425.66

(In crs)

PEER COMPARISON

PEERSCURRENT

PRICEPE

MARKET CAP(in cr.)

ROEEPS DEBT/

EQUITY

Sintex Plastic 49.10 17.21 3017.33 13.47% 2.18 1.31

Finolex Inds 650.10 26.82 8067.74 17.95% 24.24 1.43

Jain Irrigation 106.25 26.17 5395.93 4.57% 4.06 0.97

Time Technoplast

143.10 19.25 3236.16 11.87% 7.43 0.55

Astral Poly 960.20 69.08 11501.94 18.65% 13.84 0.27

Nilkamal Ltd 1680.60 21.41 2507.46 18.51% 78.49 0.12

Supreme 1330.05 39.13 16895.21 28.47% 33.99 0.16

source: Screener.in

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