Diksha Polymers Limited

1. Overview

Diksha Polymers Limited (DPL) is a Madhya Pradesh-based rigid plastic packaging manufacturer, incorporated on March 3, 1998 and headquartered in Gwalior, Madhya Pradesh. The Company is engaged in the manufacture of PET (Polyethylene Terephthalate) bottles, PET containers and PET preforms, supplying rigid packaging primarily to industrial B2B customers across lubricants, food & beverages, consumer goods, pharmaceuticals and agrochemicals. PET containers serve as storage vessels for liquids and oils, while PET preforms are the intermediate raw input used to form containers via blow moulding.

The Company operates from three contiguous manufacturing facilities at the Maharajpura Industrial Area, Gwalior, spread over a combined 26,879 sq. ft. As of March 31, 2026, aggregate installed capacities stand at 2,163 MTPA for PET bottles and 1,913 MTPA for PET preforms, with both lines running at ~94% utilisation. Operations are integrated end-to-end through injection moulding (preforms) and blow moulding (containers), with the Company moulding products ranging from 8 grams to 250 grams.

A defining strategic event was the acquisition of M/s. Diksha Packaging — a proprietary concern of promoter Anjana Mandelia engaged in PET preform manufacturing — via a Business Transfer Agreement dated September 18, 2024. This acquisition delivered backward integration into PET preforms, eliminating external sourcing of the Company's primary raw material and consolidating the Mandelia family's plastic packaging operations under one corporate entity.

2. Business Model and Revenue Streams

Operating Model

DPL operates a pure manufacturing-led B2B model. The Company does not engage distributors or agents — all sales are made directly to manufacturers and traders who use DPL's PET containers and preforms as packaging material for their own products. Order intake is largely repeat-customer driven, with customer relationships compounding over the years through regular follow-ups and product customisation by size, weight and shape (8 gm to 250 gm range).

Revenue Mix by Product (FY26)

PET preforms — previously almost zero in the revenue mix until FY24 (3.42%) — surged to 25.81% in FY26 following the Diksha Packaging acquisition.

Manufacturing vs Trading Split

Manufacturing sales: ₹51.18 Cr in FY26 (99.83% of revenue)

Trading sales: ₹0.09 Cr in FY26 (0.17%)

Trading revenue has collapsed from 4.02% in FY25 to negligible levels in FY26 as the Company has shifted entirely to in-house production post-acquisition.

Geographic Concentration

Operations are heavily concentrated in Madhya Pradesh, which accounted for 98.98% of FY26 revenue (₹50.75 Cr). Uttar Pradesh, Rajasthan and Delhi together contributed less than 2%. This is a single-state dependency risk as well as the rationale for the stated growth strategy of pan-India expansion.

Customer Concentration

Concentration risk remains a structural feature of the business.

Contractual Model

DPL operates on spot/short-cycle B2B sales rather than long-term offtake contracts. Pricing is negotiated per order, with the Company emphasising flexibility in credit periods to grow share-of-wallet with existing customers.

3. Products and Service Portfolio

Product Range

• PET Preforms — Injection-moulded intermediate plastic components manufactured from PET resin pellets. These are the raw input for blow-moulding PET bottles and containers. DPL produces preforms in multiple cavity configurations ranging from 8 gm to 250 gm. Used internally for bottle manufacture and sold externally to other PET converters.
• PET Bottles & Containers — Blow-moulded rigid containers manufactured from in-house preforms (or purchased preforms historically). End-use applications span beverages, edible oils, lubricants, agrochemicals, pharmaceuticals and other consumer goods. Containers are produced in multiple sizes and weights customised to client specifications.
• Caps and Closures — A negligible product line (0.17% of FY26 revenue), retained largely as a complement to the bottle line.
• Scrap & Wastes — Recovered as "Others" revenue (~2.72% in FY26), reflecting yield-loss recovery from the moulding process.

Manufacturing Process Flow

• PET Preform Process: Raw material preparation (PET resin pellets + additives such as colourants, UV stabilisers, flame retardants) → Drying → Heating to 250–300°C → Multi-cavity injection moulding with chilled-water cooling → Collection → Inspection → Packaging → Storage and despatch.
• PET Bottle Process: Preforms loaded onto a moving-chain heating unit → Preheating → Blow moulding to final shape → Cooling → Inspection → Optional labelling → Packaging → Despatch.

Installed Capacity vs Utilisation

Critical observation: Both lines are running at ~94% utilisation in FY26. The Company is approaching capacity exhaustion on both products, which materially constrains organic growth without further capex. Capacity expansion is not, however, an articulated use of the IPO proceeds — the Net Proceeds are earmarked for debt repayment and general corporate purposes rather than greenfield expansion.

4. Key Business Strengths

• Backward-integrated manufacturing setup — Post the September 2024 acquisition of Diksha Packaging, the Company manufactures both PET preforms and PET bottles in-house, insulating margins from preform price volatility and enabling end-to-end control over the value chain.
• Strategic concentration in Gwalior cluster — Three contiguous facilities at Maharajpura Industrial Area, Madhya Pradesh, totalling 26,879 sq. ft, provide proximity to raw material supply, logistics infrastructure, water/power utilities, and a captive local labour pool.
• High capacity utilisation — Both PET bottles (94%) and PET preforms (94%) lines are running near full capacity in FY26, demonstrating strong demand absorption.
• Diversified end-user industries — Customer base spans lubricants, F&B, consumer goods, pharmaceuticals and agrochemicals, reducing single-sector demand risk.
• Promoter-led management with two decades of plastic industry experience — Managing Director Vipin Mandelia and Chairman Vivek Mandelia each have 20+ years of experience in the plastics industry, with day-to-day operational involvement.

5. Future Growth Strategy

• Augment working capital base — The Company intends to deepen credit-period flexibility for customers to grow order book and capture better procurement pricing, requiring a substantially larger liquid working capital pool.
• Deepen wallet share with existing customers — Strategy is to grow share-of-business within the existing customer book (which already delivers 92.46% of revenue) by widening the product offering and emerging as a preferred B2B vendor for specific PET formats.
• Geographic expansion beyond Madhya Pradesh — With 98.98% of FY26 revenue concentrated in MP, the stated strategy is to penetrate untapped domestic markets across India where demand for quality PET packaging exists.
• Debt reduction via IPO proceeds — ₹13.75 Cr of the ₹16.00 Cr Net Proceeds (~86%) will be deployed to repay/prepay outstanding Axis Bank borrowings (cash credit + term loans aggregating ₹14.20 Cr outstanding as of April 30, 2026). This will materially de-lever the balance sheet and improve the D/E ratio from 1.77x.
• Capture margin via integrated value chain — Continued in-house preform manufacture allows the Company to flex product mix and pricing in response to raw material and end-market conditions, supporting margin maintenance as scale grows.