Dhaval Packaging Limited

Sector: Rigid Plastic Packaging (Manufacturing)

1. Overview

Dhaval Packaging Limited was incorporated on November 02, 2015 at Sanand, Gujarat, and converted to a public limited company on October 08, 2025. The Company designs, manufactures and supplies rigid plastic packaging solutions to domestic and international markets, positioning itself not as a commodity moulder but as a solutions partner that aligns design, materials, labelling and tooling with customer production realities.

The business operates across two distinct product verticals. The first and dominant vertical is In-Mold Labelling (IML) containers, where a pre-printed label is placed inside the mould before injection, fusing the label with the container surface. This eliminates post-moulding labelling and yields a finish resistant to moisture, scratches and chemicals. The Company offers approximately 39 SKUs in this segment, serving sweets, dairy, ice cream, ready-to-eat foods, bakery, confectionery, pharmaceuticals and frozen foods. The second vertical is SAW Pipe Protection Plastic Caps (End Caps), entered in 2016, serving industrial end-markets including oil & gas, construction, infrastructure and heavy engineering.

Operations run from three manufacturing facilities in Sanand, Gujarat, spanning over 60,000 sq. ft., equipped with 21 injection moulding machines/lines for IML and 1 vacuum forming machine for End Caps, with combined capacity exceeding 8,000 kg per day

The Company holds ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO/IEC 17025:2017 certifications.

2. Business Model and Revenue Streams

The Company operates a direct B2B sales model with no distributor or channel intermediary layer. Leads are generated through B2B marketplaces such as IndiaMART and TradeIndia, and through food exhibitions, but all orders are negotiated and booked directly with customers.

Revenue by Customer Concentration

Client concentration is a material risk factor. The top 10 customers contributed 51.27% of revenue in FY 2025-26 — an increase from 46.37% in the prior year. However, single-customer dependency has improved markedly, with the largest customer falling from 18.05% (FY24) to 10.07% (FY26).

Revenue Quality — Repeat vs New Business

Repeat-order revenue actually declined slightly year-on-year (₹49.70 Cr → ₹47.92 Cr), meaning effectively all of FY26's revenue growth came from new customer acquisition (₹2.56 Cr → ₹17.11 Cr).

Vendor Dependency

Supplier concentration has steadily de-risked, with top-1 dependency falling from 42.90% to 19.50% over three years. The Company operates on an approved-supplier panel with no fixed-term contracts, purchasing competitively against specifications — flexible on price, but exposing it to polymer price volatility without contractual hedges. Custom moulds are imported from China.

3. Products and Service Portfolio

Segment 1 — IML Containers (Core Business, ~39 SKUs)

Named Indian customers include Keshavlal Sukhadia Foods, Vipul Dudhiya Sweets (Ambica), Das Superfood, Sumiran Foods (mithai & more), Mohanlal S Mithaiwala, Bhagwati Sweet Mart, Shree Maheshwari Confectioners (Maakhan Bhog), Kandoi Bhogilal Mulchand, Madhvi Dairy and Jaihind Sweets.

Segment 2 — SAW Pipe Protection Plastic Caps (End Caps)

Precision-engineered PE plugs and recessed caps covering pipe and tube ends to prevent edge damage, internal coating contamination and corrosion during storage and transit. Manufactured from polyethylene (PE), polypropylene (PP) and HDPE with specified additives (LLDP500M24A, LL010F18A, HDPE180M50). Produced under a hybrid job-work plus in-house model, giving flexibility across diverse pipe diameters — with competitive strength specifically in larger-size caps requiring rapid turnaround.

Manufacturing and Quality Metrics (Capacity Utilisation Proxy)

Scrap rate has improved consistently from 5.50% to 4.45%, indicating genuine process maturation. Note that fixed asset turnover has declined from 3.36x to 2.57x — consistent with heavy capex ahead of revenue, with CWIP standing at ₹9.47 Crore at FY26 close.

4. Key Business Strengths

• In-House IML Manufacturing with Automation — End-to-end control from pre-press through robotic take-out, eliminating vendor handoffs that introduce variability in bond integrity, surface finish and colour fidelity.
• Backward Integration via Octa Labels — Promoter Group label supply converts IML into a single governed workflow, enabling smaller batch releases, reduced obsolescence on artwork changes, and protection of brand IP within the group ecosystem.
• Tamper-Evident, Food-Grade Positioning — Products meet the tamper-evidence requirement that is effectively mandatory in dairy and food applications, creating a technical qualification barrier against sticker-label competitors.
• Dual-Segment Diversification — IML (food/FMCG) and End Caps (industrial/oil & gas) operate on uncorrelated demand cycles, cushioning sector-specific downturns.
• Comprehensive Certification Stack — ISO 9001, 14001, 45001 and ISO/IEC 17025 (testing laboratory competence) support entry into quality-audited multinational supply chains.
• Established Export Footprint — Shipments to Malaysia, Mauritius, Canada, Dubai, Qatar and Australia, providing currency and geographic diversification.

5. Future Growth Strategy

• Conversion Marketing Against Sticker Labels — Targeting food and FMCG brands still using sticker-labelled containers, positioning IML as a simultaneous brand upgrade and line-reliability improvement.
• Ice-Cream Portfolio Expansion — New moulds, coordinated size sets, premium finishes and seasonal variants to smooth year-round utilisation by balancing high-volume staples against short-cycle runs.
• Entry into Tin Containers for Liquid Foods — A new material adjacency targeting gulab jamun, rasgulla, edible oils, liquid dairy, mushroom, paint, nutraceutical and pharmaceutical applications, leveraging existing tin-lid customer relationships for cross-sell.
• Focused Export Scale-Up — Concentrating on dairy, dates and ice-cream categories in a small set of anchor countries before expanding to adjacent geographies once volumes stabilise.
• Pan-India Direct Sales Build-Out — Establishing a regional sales team with clear account ownership to improve sample and specification response times.
• Greenfield Capacity Addition — The new Sanand-II facility at Plot E-552 is the primary use of IPO proceeds, representing the principal capacity lever for revenue scale-up.