Paramount Printpackaging Limited, a company operating fully automated manufacturing plant at Navi Mumbai, proposes to enter capital markets on 20th April, 2011 with a public issue of 1, 30,94,175 equity shares of Rs. 10 each through a book building process. The Issue closes on 25th April 2011 and the Price Band has been fixed at Rs 32 to Rs 35 per equity share of Rs 10 each. The issue will constitute 49.04% of the fully diluted post issue paid-up capital of the Company. The equity shares will be listed on the NSE and the BSE. Onelife Capital Advisors Limited is the Book Running Lead Manager to the Issue and Sharepro Services (India) Pvt Ltd is the Registrar to the Issue. ICRA Ltd has graded the Issue at 2/5.
The Paramount Printpackaging proposes to deploy the net proceeds of the Issue for setting up new facilities for manufacturing of high end duplex board cartons, shippers and printed corrugated boxes at Gujarat as well as augment its long term working capital requirements. The Gujarat project is expected to be completed in Q3 of FY 2011-12.
The company at present has the capacity to convert approximately 500 tons of paper board every month, which in terms of finished products works out to an average of 20 lac cartons a day. It has diversified further by offering innovative packaging solutions to its clients. Paramount Printpackaging caters to over 100 clients in various sectors such as FMCG, Pharma, Electricals, Auto Ancillary and Food and Beverages. The proposed Gujarat plant will add high end duplex board carton capacity by 15 lac cartons per day, along with 5 tonnes per day of shippers and 7 lac tones per day of printed corrugated cartons.
The company offers a packing solutions consisting of a wide range of cartons, which is complemented by print finishes such as stamping, embossing, complex varnishing and security features. The company has executed orders for clients in Maharashtra, Goa, Gujarat, Karnataka, Himachal Pradesh, Madhya Pradesh and UK, in the recent years. It intends to grow in the business continuously by adding new customers. With the growth in the retail, pharma, food and beverage sectors, opportunity for growth in packaging industries have increased. Paramount Printpackaging wants to capitalize the growth of these sectors.
The total income of the Paramount Printpackaging Ltd was Rs 46.94 crore and profit after tax (PAT) of Rs 1.65 crore for FY 2009-10. The total income for the first 9 months of FY 2010-11 ended 31st December 2010 was Rs 43.58 crore and PAT was Rs 1.71 crore.
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The Company is promoted by members of the Sukhadia family in 1941 through its facility at Dalal Street, Fort, Mumbai. They gradually shifted from stationery printing to packaging in 1982. The Company’s manufacturing processes today is automated to an optimum level which gives it the ability to execute high quality and large volume printing jobs, efficiently in lead times. In addition, with a view to gain a competitive advantage the Company has set up its own pre-press and ink matching centre.
These in-house facilities are a key differentiator in comparison to other packaging solutions provider as it reduces the Company’s dependence on third party suppliers and also helps in increasing efficiency in terms of delivery times. As part of the pre-press facility, the Company has modules from ESKO Graphic software for the packaging activity and star proof for the proofing needs from BODHI Professional Its business strategy now is to enhance existing customer base which comprises of a large number of Indian and international companies, invest in high quality machinery and equipments to ensure efficient production and quality products.
