Incorporated in **1962**, Kaira Can Company Limited (**KCCL**) is a specialized manufacturer of metal packaging and ice cream cones. The company serves as a critical strategic partner to the **Gujarat Co-operative Milk Marketing Federation Limited (GCMMF)**, supplying approximately **90-95%** of the tin can requirements for the iconic **Amul** brand. Headquartered in **Mumbai**, KCCL operates high-tech manufacturing facilities in **Kanjari** and **Vithal Udyognagar, Gujarat**. --- ### **Core Business Segments & Production Capabilities** KCCL operates through two distinct divisions, each catering to the dairy, food processing, and FMCG sectors. #### **1. Metal Packaging Division (Kanjari, Gujarat)** This is the company’s primary revenue driver, specializing in **Open Top Sanitary (OTS) Cans**, **Lithographed/Plain Metal Containers**, and **Paint Containers**. * **Infrastructure:** Features a state-of-the-art **3-piece welded can making line** imported from **Switzerland**, operating at a high speed of **400 cans per minute (cpm)**. * **Integrated Technology:** The line includes a **Combination machine** for spin flanging, beading, and seaming, alongside an **Automatic Palletizer** that ensures "untouched" hygienic handling, strapping, and wrapping. * **In-House Processing:** The facility is equipped with its own **Printing and Coating Lines**. Recent expansions added **one additional printing machine** and **one additional coating machine** to enhance throughput. * **Capacity:** The division has an installed capacity of **18,000 MT** per annum. #### **2. Ice-cream Cone Division (Vithal Udyognagar, Gujarat)** Established in **2000-2001**, this division provides an integrated solution for the ice cream industry. * **Products:** Manufactures **Rolled Sugar Cones** and specialized **Paper Sleeves**, offering a "cone + sleeve" package to major dairies. * **Capacity Growth:** Annual production capacity has scaled from **15 crore (150 million)** cones to **18 crore (180 million)** cones following the addition of a new machine for small-sized formats. --- ### **Strategic Partnership & Revenue Concentration** KCCL’s business model is deeply integrated with **GCMMF (Amul)**, which accounts for **85-90%** of the company's total revenue. * **Stability vs. Margin:** While this partnership ensures high volume stability and consistent off-take, the cooperative nature of the client results in **low profit margins**. * **Sector Focus:** Beyond dairy, the company serves the processed food industry (fruit pulps, juices, ready-to-eat meals) and has recently diversified into **Paint Containers** and **15-kg cans** for the **ghee and edible oil** sectors. --- ### **Financial Performance Summary** The company maintains a moderate scale of operations with a focus on domestic sales, though it is actively pursuing export growth. | Metric (Rs. in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **233.11** | **225.00** | **254.63** | | **EBITDA** | **8.39** | **8.44** | **17.98** | | **Profit After Tax (PAT)** | **3.84** | **3.77** | **11.48** | | **Operating Profit Margin** | **3.20%** | **3.75%** | **7.06%** | | **Export Sales** | **5.26** | **2.28** | **4.12** | | **Dividend Per Share** | **Rs. 12.00 (120%)** | - | - | *Note: Q1FY26 revenue was reported at **Rs. 72.98 Crores** with an EBITDA margin of **3.45%**.* --- ### **Operational Infrastructure & Efficiency Initiatives** KCCL has transitioned toward automated and energy-efficient manufacturing to protect its thin margins. * **Supply Chain:** **Tinplate** is the primary raw material, representing **70%** of total input costs. Due to **BIS certification norms** implemented in **July 2021**, the company now sources tinplate primarily from indigenous suppliers. * **Modernization:** Recent upgrades include a **Sheet feed press** to reduce wastage, **LED smart fit lighting**, **daylight sensors**, and a new **firefighting system**. * **Quality & Compliance:** The company holds **ISO 9001:2015** and **ISO 22000:2018** certifications. It has also proactively addressed the **New Labour Codes** (effective **Nov 2025**), recognizing a provision of **Rs. 7.13 lakhs** for employee benefits. * **Sustainability:** Implementation of a **Sewage Treatment Plant (STP)** and regular **Energy Audits** to optimize load and reduce environmental impact. --- ### **Credit Profile & Liquidity** In **September 2025**, **CRISIL** revised KCCL’s credit ratings downward, reflecting a moderation in the business risk profile and operating margins that fell below previous projections. * **Long-Term Rating:** **CRISIL BBB/Stable** (Revised from **BBB+/Stable**) * **Short-Term Rating:** **CRISIL A3+** (Revised from **A2**) * **Total Rated Bank Facilities:** **Rs. 51.5 Crores** * **Liquidity Position:** As of March 31, 2025, the company maintained undrawn fund-based facilities of **Rs. 13.69 Crore**. The company has a clean track record with **no defaults** on debt obligations. --- ### **Strategic Growth Roadmap** KCCL is positioning itself to capitalize on the growth of the Indian middle class and the shift toward organized retail and online food purchases. * **Export Expansion:** Leveraging India’s low-cost manufacturing base to export **printed sheets and juice cans** to international markets, specifically targeting the Middle East. * **Product Diversification:** Moving into the **15-kg bulk packaging** market for edible oils and ghee to reduce reliance on the seasonal OTS can market. * **Cost Rationalization:** Continuous investment in **Body Makers** and **advanced ovens** to minimize manufacturing waste and align supply with fluctuating demand. --- ### **Key Risk Factors for Investors** * **Client Concentration:** The heavy reliance on **GCMMF** limits pricing power and exposes the company to the strategic shifts of a single entity. * **Seasonality:** Demand for **OTS cans** is intrinsically linked to the **mango harvest season**, leading to cyclical revenue patterns. * **Commodity & Regulatory Risk:** Volatility in **tinplate and steel prices**, combined with the inability to import cheaper materials due to **BIS norms**, creates persistent margin pressure. * **Competitive Landscape:** KCCL faces "fierce competition" from the unorganized sector and alternative packaging materials like **plastic, aluminum, and flexible pouches**, which often offer lower price points. * **Cyber Security:** As operations become more automated, the company faces risks from IT disruptions, mitigated by redundant data storage across multiple locations.