S.V.J. Enterprises is a paper packaging manufacturer that is deliberately turning itself into a diversified industrial group by buying its way into unrelated businesses. Founded in 2009 and listed on the Bombay Stock Exchange’s small-business platform in March 2023, the company operates a single factory in Bihar while its boardroom in Mumbai orchestrates a series of acquisitions - two of them announced on the same day in April 2025 - to bolt on machinery manufacturing and food-and-beverage brands. The recurring pattern is a company that runs a modest, domestic manufacturing operation and then uses its listed-company status to acquire small private firms, often from its own promoters, in pursuit of new revenue streams. # Business segments Two engines at very different stages - a paper-packaging factory that generates today’s cash, and a pair of freshly announced acquisitions that are still on the drawing board - each meant to open a revenue stream the company does not yet have. ## 1. Paper and paperboard packaging: the factory that pays the bills **A single-plant operation in Bihar making packaging-grade paper products for the Indian market, running on contract labour and working-capital-intensive cycles.** - **Makes the material that wraps the economy** - the company manufactures paper and paperboard packaging, the kind used to box and protect goods across industries, from a factory in Donar, Darbhanga. Packaging-grade paper accounts for roughly 55% of all paper produced in India, so the company sits inside the largest and most essential slice of the country’s paper market. - **Operates in a market that is still growing** - the Indian paper and paperboard packaging market was estimated at about US$ 13.2 billion in 2024 and is projected to cross US$ 15.69 billion by 2027, growing at a compound annual rate of 5.8%. That steady expansion provides a tailwind for even a small domestic supplier. - **Runs lean, with no permanent staff** - as of March 2025 the company reported zero permanent employees on its rolls, down from five the year before, which means factory production is carried out by contract or outsourced labour. Employee benefits expense for the year was just Rs. 25.77 Lakhs, a fraction of the Rs. 334.67 Lakhs spent on raw materials. - **Ties up cash in inventory and receivables** - the business model is working-capital-heavy: inventories stood at Rs. 239.17 Lakhs and trade receivables at Rs. 413.25 Lakhs as of March 2025, meaning the company must fund a significant gap between buying raw materials and collecting payment from customers. - **Purely domestic, with no technology imports** - the company earned no foreign exchange and spent none, has not imported any technology, and uses only electricity as its energy source with no investment in energy-conservation equipment. It is a straightforward, low-complexity manufacturing operation serving local demand. ## 2. Acquired subsidiaries: two diversification bets, not yet operational **The company has signed deals to buy two tiny private firms - one making machinery, the other in food and beverages - but neither has contributed a rupee of revenue yet.** - **A machinery subsidiary bought from the promoters** - on 2 April 2025 the board agreed to acquire 100% of TWOGETHER INDUSTRIAL SOLUTIONS PRIVATE LIMITED, a company with a paid-up capital of just Rs. 1,00,000, from shareholders who are also promoters of SVJ Enterprises. Its industrial classification code points to the manufacture of special-purpose machinery, and the stated reason for the deal is to enter a new business segment and open a new revenue stream. - **A food-and-beverage subsidiary bought from outsiders** - on the same day, the board approved the acquisition of 100% of BAR KRAFT ESSENTIALS PRIVATE LIMITED, a firm with paid-up capital of Rs. 2,00,000, in a transaction that is not with related parties. Its classification covers soft drinks, soft-drink concentrates, frozen foods, energy drinks, and brand development - a consumer-goods play far removed from paper packaging. - **Price and payment still undecided** - for both acquisitions, the final cost will be set by a valuation report from a registered valuer, and the board has yet to decide whether to pay in cash or through a share swap. The board has also authorised management to negotiate further investments in other private companies, signalling that the acquisition spree is not finished. # Group structure and partners **A promoter-led small-cap with no operating subsidiaries yet, governed by a compact board and supported by loans from directors and related group companies.** - **No subsidiaries, associates, or joint ventures as of the last annual report** - the company is a standalone entity, though the acquisition announced in April 2025 will change that once completed. - **A four-person board with three key executives** - the board includes Suresh Ramchandra Jha, two independent directors, and Managing Director Saanvi Chanorahas Kargutkar; the key managerial personnel are the MD, CFO Veena Jha, and Company Secretary Monika Maheshwari. - **Funded partly by director loans and group-company borrowings** - the company has received unsecured loans from its directors, and in the prior year carried loans payable to group companies Swarnim Global Services Pvt. Ltd. and Sarvagya Capital Pvt. Ltd.. Current borrowings stood at Rs. 483.67 Lakhs as of March 2025. - **Compliance infrastructure is in place but has gaps** - the company maintains a risk-management policy, internal financial controls, an audit committee, and a code of conduct for insider trading, yet its secretarial audit flagged a delay in filing the annual return for 2023-24, a missing website upload of the 15th annual return, and a former company secretary’s name still appearing in government records.