Shilp Gravures Limited is India’s pioneer in gravure roller manufacturing, providing high-precision engraving solutions for the global printing and packaging industries. An **ISO 9001** certified organization, the company integrates advanced **electronic**, **laser**, and **chemical etching** technologies to serve a diverse clientele ranging from flexible packaging giants to decorative laminate manufacturers. --- ### **Strategic Ownership Transition & New Leadership** The company is currently navigating a transformative phase following a significant change in corporate control in **June 2025**. After three decades of leadership, the original founder-promoters retired, transferring a controlling stake to **Aikyam Sampati Management LLP**. **Key Acquisition Metrics:** * **Principal Acquirer:** Aikyam Sampati Management LLP. * **Controlling Stake:** **60.75%** (via Share Purchase Agreement for **3,736,207** shares). * **Transaction Pricing:** SPA price of **₹159.35** per share; Open Offer price of **₹213.00** per share. * **Potential Ownership:** Up to **86.75%** post-Open Offer, with a commitment to align with the **25% Minimum Public Shareholding (MPS)** requirement within statutory timelines. The new management, led by **Mr. Pranav Bhalara** (who brings over **18 years** of industry experience), is focused on aggressive growth through **forward and backward integration**, technological modernization, and expanding the company’s footprint in the flexible packaging and lamination sectors. --- ### **Core Business Segments & Revenue Performance** Shilp Gravures operates through three primary reportable segments. While the core engraving business remains the dominant revenue driver, the company has diversified into renewable energy to bolster its operational sustainability. **Consolidated Revenue Breakdown (FY 2024-25):** | Segment | Primary Activities | Revenue (FY25 - ₹ in lacs) | Revenue (FY24 - ₹ in lacs) | | :--- | :--- | :---: | :---: | | **Engraved Copper Rollers** | Manufacture of electronic, copper, and chrome-plated rollers. | **8,658.89** | **8,254.40** | | **Power Generation** | Wind and Solar energy production for captive use and sale. | **332.26** | **416.62** | | **Others** | Specialized rollers, photopolymer plates, and related services. | **492.66** | **493.57** | | **Total Consolidated** | | **9,483.81** | **9,164.59** | --- ### **Technological Capabilities & Product Ecosystem** The company’s infrastructure is built to handle high-volume, high-precision requirements for both **Gravure** and **Flexographic** printing processes. **Manufacturing Infrastructure:** * **Advanced Machinery:** Utilizes industry-leading tech including **KODAK Flexcel NX 5080** and **ESKO Spark 5080**. * **Subsidiaries:** Operations are supported by a wholly-owned material subsidiary, **Etone India Private Limited**. * **Workforce:** Employs a total of **421** personnel (**262** on-roll and **159** contract workers). **Product Portfolio & Applications:** * **Gravure Cylinders:** High-speed components for labels, cartons, and precision coatings. * **Photopolymer Plates:** Catering to the flexographic segment’s shift toward **non-toxic and water-based inks**. * **Specialized Rollers:** Includes **Anilox**, **Embossing** (for PVC flooring/wallpapers), **Ceramic**, and **Security Printing** rollers. * **Substrate Versatility:** Products enable printing on plastic films, **laminated tetra packs**, corrugated board, textiles, and **metalized films**. --- ### **Energy Sustainability & Operational Efficiency** To mitigate rising manufacturing costs and reduce its carbon footprint, Shilp Gravures has invested heavily in captive renewable energy. * **Solar Power:** **2,424.66 KW** total capacity across three plants, generating **~35,00,000 Kwh** annually. * **Wind Power:** Five windmills with a total capacity of **2.8 MW**, generating **~36,50,000 Kwh** annually. * **Impact:** These installations provide substantial offsets to the electricity consumption required for heavy plant and machinery operations. --- ### **Financial Health & Shareholder Returns** While the company achieved a **4.62%** growth in consolidated revenue for FY 2024-25, profitability faced significant headwinds. **Financial Summary (Consolidated):** * **Revenue from Operations:** **₹9,151.55 Lacs** (up from ₹8,747.57 Lacs in FY24). * **Profit After Tax (PAT):** **₹371.21 Lacs** (a **67.49%** decline from ₹1,141.84 Lacs in FY24). * **Dividend Policy:** Despite the profit dip, the company maintained a consistent dividend of **₹2.10 per share** (**21%** on face value), resulting in a total payout of **₹129.14 Lacs**. --- ### **Market Outlook & Growth Drivers** The Indian packaging market is projected to undergo significant expansion through **2030-2035**, driven by changing consumer lifestyles and the rise of **Quick-commerce**. | Segment | Projected Market Size | CAGR | Strategic Focus | | :--- | :--- | :--- | :--- | | **Gravure Printing** | **USD 8,808.8 Mn** (by 2035) | **6.8%** | High-quality furniture and flexible packaging. | | **Flexo Printing** | **USD 26.28 Bn** (by 2030) | **5.83%** | E-commerce, automation, and corrugated board. | **Strategic Initiatives for Growth:** * **Sustainability:** Developing solutions for **aseptic**, **retort**, and **biodegradable** packaging to meet global decarbonization targets. * **Rural Adaptation:** Creating pack formats suitable for **cold-chain gaps** and multilingual labeling in rural markets. * **Automation:** Utilizing capital to fund **advanced analytics** and automated converting operations. --- ### **Risk Profile & Mitigation Strategies** Shilp Gravures manages a complex risk environment involving commodity prices, currency fluctuations, and regulatory shifts. **1. Market & Operational Risks:** * **Raw Material Volatility:** Fluctuations in **recycled/virgin fiber** and **aluminum** prices impact margins. * **Sustainability Costs:** The transition to **bio-based packaging** involves high R&D costs that the market is not yet fully prepared to absorb. **2. Financial Risk Exposure (as of March 31, 2025):** * **Investment Risk:** The company holds **₹32.27 crore** in Mutual Funds; a **10%** change in NAV impacts income by **₹3.23 crore**. * **Currency Risk:** Exposure to **USD, CHF, and EURO**. The company holds **77.51 units** of USD assets against minimal liabilities. * **Interest Rate Risk:** Exposure to floating rates on long-term debt was reduced to **₹9.66 Lacs** in 2024 (from ₹54.80 Lacs). * **Liquidity Risk:** Managed through rolling forecasts; lease liabilities total **₹77.07 Lacs**, with **₹41.00 Lacs** due in the 1–5 year bracket. **3. Credit Management:** The company utilizes a **provision matrix** for trade receivables based on historical loss data. Counterparty risk is mitigated by dealing primarily with **high-credit-rated** financial institutions.