Twinkle Papers Limited

Sector: Industrial Packaging / Polymer-Based Manufacturing

1. Overview

Twinkle Papers Limited is a Malerkotla (Punjab) based manufacturer of corrugated paper boxes and polymer-based molded packaging products, marketed under the proprietary "Twinkle" brand. The Company was originally incorporated on September 27, 1995 as a private limited company and was converted into a public limited company in May 2023. Over the last 28 years, the Company has evolved from a single blow-molding line into a multi-process manufacturing platform spanning blow molding, injection molding, and rotational molding technologies.

The Company operates as a B2B industrial packaging solution provider, supplying corrugated boxes, HDPE cans, poly jars, jerry cans, drums, plastic crates, plastic pallets, polythene sheets, poly bags, and plastic chairs to a diversified industry base that includes textile, paper, FMCG, food & beverage, healthcare, agro-chemicals, pharmaceuticals, paint, chemical, power & battery, and telecom. Manufacturing is concentrated at a ~4.57 lakh sq. ft. facility at Jitwal Khurd, Tehsil Ahmedgarh, Distt. Malerkotla, of which only ~2.61 lakh sq. ft. is currently utilised — leaving meaningful free capacity for the proposed expansion.

The Company has historically operated almost entirely in Punjab (~80–89% revenue share), which it intends to address through geographical expansion. The manufacturing facility is ISO 9001:2015 certified.

2. Business Model and Revenue Streams

Revenue Architecture

The Company runs a purely domestic B2B model with 100% sales routed through dealers/traders — no exclusive dealership arrangements exist. The Company makes customised products based on direct purchase orders specifying size, thickness, colour, capacity, etc.

Product-wise Revenue Mix

The polymer products business (Drums/Cans/Polyjars/Jerry Cans + Pallets + Crates) constitutes the majority of revenue (₹Cr):

Pallets is the fastest-growing vertical — from ₹2.65 Cr in FY23 to ₹24.91 Cr in FY25 (~9.4x), driven by the 2021 installation of an injection molding machine and 2022 entry into rotational molding for roto-pallets.

Polythene Sheets/Bags has compressed sharply from 15.77% of revenue in FY24 to 1.46% in the stub period, reflecting a deliberate mix shift toward higher-value rigid plastic products.

Geographic Concentration

Punjab contributes ~88.86% of Dec25 revenue and ~80% in FY25 — high single-state concentration is a key structural risk.

Other meaningful contributors: Haryana (3.34%), Uttar Pradesh (2.52%), Rajasthan (1.80%), Jammu & Kashmir (1.64%).

Cross-border export contribution is negligible.

Customer Concentration

Based on FY23 disclosure (most recent broken-out year), the top 10 customers contributed 66.48% of revenue, with the top single customer (Customer A) accounting for 25.27%. This level of customer concentration represents a material operational risk.

Raw Material Sourcing

Granules (HDPE/LLDPE) are the largest raw material — 85.28% of total purchases in the Dec25 (₹53.20 Cr).

Kraft paper is the principal input for corrugated boxes — 12.66% of purchases (₹7.90 Cr in Dec25).

The Company stopped importing granules (previously from Qatar) after 2024 and now sources from a Ludhiana-based supplier.

Raw material concentration creates direct linkage to crude oil price volatility, with no formal price pass-through mechanism.

3. Products and Service Portfolio

Manufacturing Technologies Deployed

The Company operates four distinct manufacturing processes:

• Blow Molding — Introduced 1999. Used for HDPE cans, poly jars, jerry cans, drums (open-top, wide-mouth, narrow-mouth) ranging from 1 litre to 250 litres.
• Injection Molding — Introduced 2021. Used for plastic crates, plastic pallets, lids, handles, clamps. Includes vertical and horizontal machine configurations.
• Rotational Molding — Introduced 2022. Used for roto-pallets with structural PUF (polyurethane foam) filling for heavy-load capacity.
• Film Blowing / Extrusion — Used for LLDPE polythene sheets and bags.
• Corrugation Line — Used for 5-ply corrugated boxes of customised dimensions.

Product-wise Capacity Utilisation

Capacity utilisation has improved steadily, reflecting demand absorption ahead of the planned expansion:

Manufacturing Footprint

• Total area of the manufacturing unit: 4,56,750 sq. ft.
• Area currently utilised: 2,61,360 sq. ft. (~57%)
• Free/available area: 1,96,020 sq. ft.
• Area proposed for new machinery: 43,560 sq. ft.
• Storage capacity: 20,000 standard pallets and 12,000 rack positions on a 60,000 sq. metre owned storage footprint.

Product Range and Capacity Endpoints

• Drums: Narrow-mouth bulk packaging up to 250 litres; open-top range 30–105 litres with removable lids; wide-mouth for viscous products.
• Jerry cans: 1 to 250 litres — used for edible oils, fuel, petroleum products.
• Plastic crates: Customised for food & beverage and dairy industries.
• Plastic pallets: Light-, medium-, and heavy-weight load bearing — serving pharmaceutical, textile, automotive, logistics, and F&B industries.
• Roto-pallets: PUF-filled, customisable, suitable for heavy-load industrial use.

4. Key Business Strengths

• Promoter Domain Experience — Promoter Mr. Amit Jain brings 30+ years of operating experience in the packaging and plastic industry, encompassing marketing, production, and process design.
• Differentiated, Multi-Process Product Portfolio — Capability across blow, injection, rotational, and extrusion processes positions the Company as a one-stop industrial packaging solution provider rather than a single-product manufacturer.
• Diversified End-User Base — Active customer relationships across textiles, paper, FMCG, F&B, healthcare, pharmaceuticals, chemicals, agro-chemicals, oil, telecom, and power & batteries reduce dependency on any single end-user industry cycle.
• Non-Perishable Raw Material Base — Plastic granules and kraft paper carry no spoilage risk, and plastic scrap is recycled back into granules — supporting near-zero raw material wastage.
• Underutilised Manufacturing Footprint — Only ~57% of total facility area is currently in use, providing immediate runway for capacity expansion without fresh land acquisition.
• Improving Capacity Utilisation Trend — Utilisation has expanded from 67.04% in FY23 to 79.40% in 9M FY26, signaling robust demand absorption.
• Customised Product Strategy — Specifications-based manufacturing (size, thickness, colour, capacity) allows the Company to serve heterogeneous customer requirements with shared base capacities and ingredients — minimising capital reallocation needs.
• ISO 9001:2015 Certified Operations — Quality systems certification supports access to institutional and regulated customer segments (pharma, F&B, agro-chemicals).

5. Future Growth Strategy

• Capacity Expansion via New Machinery — Of the IPO proceeds, ₹6.50 Cr is earmarked for purchase of HA 27000 Pegasus 62300 injection molding machine (Haitian Huayuan India) to manufacture automotive components — bumpers, door parts, and other auto parts at the existing facility. This represents a strategic pivot from pure packaging into the automotive parts segment.
• Geographic Diversification Beyond Punjab — Current Punjab concentration of ~80–89% is targeted via planned new manufacturing locations to reduce logistics costs, capture untapped demand, and create regional employment.
• Deepening of Roto-Pallet and Heavy Pallet Categories — Building on the 9.4x growth in Pallets segment from FY23 to FY25, the Company plans further product development in industrial heavy-load applications.
• Government Tender-Led Order Book Building — Active R&D and tendering effort to secure recurring government contracts, providing baseline revenue stability and reducing private-sector cyclicality.
• Working Capital Expansion — ₹8.00 Cr of IPO proceeds for working capital to support scaling of higher-volume operations across pallets, drums, and corrugated box segments.
• Debt Reduction — ₹7.00 Cr earmarked for repayment of secured loans (Punjab National Bank, HDFC Bank) and unsecured business loans (Kisetsu Saisons Finance, Yes Bank) — reducing finance costs and improving DSCR.
• B2C Channel Exploration — Identified as an opportunity to enhance brand visibility, diversify revenue, and establish direct end-user relationships beyond the existing B2B-only model.
• Cross-Selling to Existing Clients — Leveraging long-term customer relationships to push additional product lines (pallets, crates, polythene bags, blow-moulded containers) into existing accounts, raising wallet share without proportional customer acquisition costs.