Time Technoplast

Company Overview

• Started as a manufacturer of polymer-based industrial packaging solutions in India.

• Over the years, evolved into a multi-product, multi-geography player across rigid packaging, composite cylinder, infrastructure plastics, and auto components.

• Operates a diversified product portfolio catering to industries such as chemicals, lubricants, FMCG, healthcare and mobility.

• Operates across 10+ countries with strong local manufacturing in Asia, MENA and India, serving 900+ clients globally.

• Actively developing future-ready solutions such as hydrogen fuel cell cylinders, composite fire extinguishers, and E-rickshaw batteries.

Industry

1. Rigid Industrial Packaging

   1. Rigid containers made of HDPE or composite materials.

   2. Used to store and transport chemicals, lubricants, and food-grade liquids in bulk.

   3. Global market ~$40–45 billion, growing at 4–6% CAGR.

   4. Dominated by players like Greif, Schutz, and Mauser.

   5. Indian market is highly fragmented, strong demand from chemical clusters (Gujarat, Maharashtra).

   6. Growth drivers:

      • Rising chemical exports from India.

      • Global shift from metal drums to plastic (lighter, corrosion-free).

2. Intermediate Bulk Containers (IBCs)

   1. Large (~1000L) containers for bulk transport of liquids and semi-solids in chemicals, paints, and food additives.

   2. Global market ~$5–6 billion, growing at 6–8% CAGR.

   3. High compliance and quality barrier.

   4. Time Technoplast has presence in UAE, Malaysia, Vietnam.

   5. Indian market is still nascent (~₹500 crore), with shift from drums to IBCs in organized sectors.

3. Composite LPG/CNG Cylinders

   1. Lightweight, corrosion-resistant, fiber-wrapped plastic cylinders (vs. traditional metal).

   2. Used to store LPG, CNG, and specialty gases.

   3. Fast-growing global market with demand from MENA, South America, and Asia.

   4. Applications: households, industrial kitchens, boats.

Business Segments

1. Established Products - 75% of Revenue

   1. Industrial Packaging (Polymer drums, Jerry Cans, Conipack Pails): 64%

      • Indian market leader.

   2. Infrastructure (Polyethylene Pipes, Energy storage devices): 7%

   3. Technical + Lifestyle (Turf & Matting, Disposable Bins, Auto products): 4%

2. Value-Added Products - 25% of Revenue

   1. Industrial Packaging (Intermediate Bulk Container): 12%

   2. Composite Products (LPG, CNG, Oxygen): 10%

   3. MOX Film (Techpaulin): 3%

      • High-strength, multi-layered plastic film used for durable waterproof coverings in industrial, agricultural, and infrastructure applications.

Growth Drivers

• Specialty Chemicals and FMCG (60% of business) expected to grow 11–13% in FY25.

• Shift toward value-added products under development:

  • Hydrogen Cylinder for fuel cells

    • Carbon-wrapped, lightweight (90% reduction).

    • Better fuel economy, suitable for hydrogen cars, power generation towers.

  • Composite Fire Extinguisher

    • HDPE inner liner, lightweight, carbon neutral, 100% recyclable.

    • Corrosion-free, low maintenance, higher strength.

  • Type-III Composite Cylinder (Medical Oxygen/Breathing Air)

    • First locally manufactured cylinder to receive PESO approval.

    • Applications: fire-fighting, diving, hospitals, ambulances.

    • 60% lighter than metal, no rust/corrosion, explosion-proof.

  • Drone Application

    • 50% lighter than battery variant.

    • Offers 3x flying hours.

• E-Rickshaw Batteries

  • Prototype completed, ready in 3–6 months.

• ₹28,000 crore market potential for CNG cylinders from upcoming CBG plants (Reliance, Adani).

• 13–15% targeted volume growth and EBITDA ~15% with value-added product shift.

Management Guidance

• Revenue Growth: Targeting 15% annual revenue growth for the next two years, driven by value-added products.

• EBITDA Margin: Aiming to maintain margins in the range of 13.5% to 15.5%.

• Product Strategy:

  • All value-added and established products are manufactured in India.

  • Overseas facilities focus only on packaging products for local markets; no exports from India.

• Capex: Projected ₹175 crore CAPEX for FY25, focused on regular replacements (e.g., machine molds), not expansionary.

• Debt Reduction: Plan to become debt-free in 2.5 years.

Valuation

Risks

1. Raw Material Volatility

   • Dependent on polymer prices (HDPE, PP), which are crude oil derivatives.

   • Pass-through of costs takes 25–30 days, causing potential margin variability (~50 bps).

2. Currency Risk

   • 20–25% of revenues from exports.

   • Exposure to FX fluctuations due to MENA and Southeast Asia operations.