**Bandaram Pharma Packtech Limited** (formerly known as **Shiva Medicare Limited**) is an Indian listed entity that has undergone a significant strategic pivot. Following an **NCLT order in 2022**, the company transitioned from its legacy operations into the **trading of paper board and recycled waste paper**. Today, it operates as an integrated player in the paper and packaging value chain, leveraging a holding company structure to manage procurement, manufacturing, and distribution. --- ### **Integrated Operational Architecture** The company functions through a synergistic relationship between the parent entity and its subsidiaries, creating a circular supply chain focused on the high-growth packaging segment. * **The Holding-Subsidiary Loop**: Bandaram Pharma Packtech (the parent) primarily handles the procurement and trading of raw materials (recycled waste paper). It supplies these materials to its material subsidiary, **VSR Paper and Packaging Limited**, which converts them into finished paper products for the open market. * **Inter-company Dependency**: The operations are deeply intertwined. In **FY 2024-25**, the holding company sold **57.79%** of its total sales to its subsidiary and sourced **35.99%** of its total purchases from the same subsidiary. * **Book Entry Adjustments**: During **FY 2024-25**, the company adjusted **₹19.6 crore** in debtors and creditors via book entries (offsetting), reflecting the high volume of internal trade without immediate cash realization. --- ### **Strategic Group Structure & Equity Holdings** The group has expanded its footprint through aggressive inorganic growth and equity acquisitions to secure its supply chain. | Entity Name | Relationship | Stake | Core Function | | :--- | :--- | :--- | :--- | | **VSR Paper and Packaging Ltd** | Material Subsidiary | **55%** | Manufacturing of paper products | | **Craftsmart Products Pvt. Ltd** | Wholly Owned Subsidiary | **100%** | Raw material and product sourcing | * **Full Acquisition of Craftsmart (CMPPL)**: In **November 2025**, the company finalized the acquisition of the remaining **84.21%** stake in **CMPPL**. This was executed via a share swap at a ratio of **4:5** (4 Bandaram shares for every 5 CMPPL shares), involving the allotment of **59,71,920 Equity Shares** at **₹20 per share** (including a **₹10 premium**). * **Future Expansion**: Management is actively evaluating further acquisitions in the paper segment and plans to establish a **grading and bailing unit in Bangalore** to enhance material quality and sales volumes. --- ### **Financial Performance & Growth Trajectory** Since its pivot in 2022, the company has moved from a pre-revenue stage to a profitable consolidated entity. * **Consolidated Revenue**: Increased to **₹36.96 crores** in **FY 2024-25**, up from **₹34.11 crores** in **FY 2023-24** and **₹18.73 crores** in **FY 2022-23**. * **Profitability**: Reported a Net Profit After Tax (PAT) of **₹96.78 lakhs** in **FY 2023-24**, reaching **₹99 lakhs** in **FY 2024-25**. * **Subsidiary Contribution**: **VSR Paper and Packaging Ltd** remains the primary engine of growth, contributing **₹35.37 crore** to the consolidated income in **FY 2024-25** with a Profit Before Tax of **₹1.13 crore**. * **Shareholder Returns**: The company recommended a dividend of **₹0.10 per share** for **FY 2023-24**. --- ### **Capital Structure & Financial Backing** To fund its expansion and support its subsidiaries, the company has significantly scaled its financial limits and capital base. * **Equity Capital**: Following a Rights Issue in **July 2023** (allotting **90,00,000 shares** at **₹10**), the paid-up capital stands at **₹12 crore**. The **Authorised Share Capital** was recently increased from **₹12 crore** to **₹19 crore** in **July 2025**. * **Borrowing & Investment Limits**: Shareholders have approved a massive increase in borrowing limits to **₹150 crores** and investment/loan limits (U/s 186) up to **₹100 crores**. * **Subsidiary Support**: * **Corporate Guarantees**: Bandaram increased its guarantee limit for VSR Paper from **₹10 crores** to **₹50 crores** to secure bank funding. * **Direct Lending**: Provided an unsecured loan of **₹2 crore** to its subsidiary in **FY 2024-25**, a significant increase from the **₹50.00 lakhs** provided the previous year. * **Banking Facilities**: The subsidiary maintains credit limits of **₹8.16 crore** with AU Small Finance Bank and has transitioned other loans to **Axis Bank Ltd** under a **₹16.5 crore** guarantee. --- ### **Market Dynamics & Sector Outlook** The company’s strategy is aligned with macro-economic shifts in the Indian packaging industry. * **Regulatory Tailwinds**: Demand is heavily driven by the Indian government’s push to outlaw **single-use plastics**. As state governments implement these bans, the demand for recycled paper packaging from FMCG, F&B, and Pharma sectors is expected to rise. * **Supply Chain Management**: To combat the volatility of raw material prices and the impact of global geopolitical tensions (e.g., Russia-Ukraine), the company utilizes **fixed contracts** with suppliers to secure volumes during peak seasons. * **Seasonality**: Management mitigates seasonal fluctuations in paper board demand by procuring and storing recycled waste paper during non-peak periods, despite the associated **inventory costs**. --- ### **Risk Profile & Auditor Observations** Investors should note specific financial and operational risks identified in recent reports. * **Going Concern & Audit Discrepancies**: Auditors have issued an **Emphasis of Matter** regarding the company’s status as a **Going Concern**. Furthermore, discrepancies were noted in the maintenance of **proper books of account** specifically regarding **sales made through trading activities**. * **Financial Risks**: * **Credit Risk**: Managed via an **Expected Credit Loss (ECL) model** and dealing with creditworthy counterparties. * **Liquidity Risk**: The company relies on a **Risk Management Framework** to ensure earnings predictability and meet short-term obligations. * **Operational Volatility**: The business is sensitive to fluctuations in **crude oil and polymer prices**, which impact the broader packaging market. * **Related Party Transactions**: A significant portion of growth and trade is conducted through entities where promoters hold interests, necessitating rigorous internal oversight.