Established in **1984**, Gujarat Raffia Industries Limited (**GRIL**) is an Indian manufacturer specializing in technical textiles and plastic sheeting. The company operates a centralized, integrated manufacturing model from its facility in **Gujarat**, strategically positioned near major sea ports to facilitate both domestic distribution and international trade. GRIL serves critical needs in the agricultural, infrastructure, and packaging sectors through the production of high-durability plastic solutions. --- ### **Integrated Product Portfolio & Industrial Applications** The company operates under a **single reportable segment**, primarily identified as **HDPE Tarpaulin products**. Its manufacturing capabilities cover a diverse range of industrial and agricultural applications: * **Protective Solutions:** PE Tarpaulin, Plastic Sheeting, Ground Sheeting, and Fumigation covers. * **Infrastructure & Agriculture:** Geomembranes, Pond Lining, Canal Lining, Vermibeds, and specialized solutions for the fertilizer sector. * **Packaging & Logistics:** HDPE/PP Woven Bags, Woven Sacks, and Fabrics. * **Shelter & Safety:** Tents, Shelters, and Ropes. --- ### **Strategic Growth Levers & Market Expansion** Following the completion of **plant capacity expansions** in the **2024-25** fiscal year, the company is pivoting toward higher-margin domestic markets and aggressive international trade. * **Global Export Push:** GRIL has initiated a strategic mandate to target over **40% of total production** for exports, capitalizing on global demand for synthetic alternatives to traditional packaging. * **Regulatory Catalysts:** Management expects significant tailwinds from the **relaxation of the Jute Mandatory Packaging Order**. This allows the **Food Corporation of India (FCI)** and other government agencies to utilize **HDPE/PP bags** for food grain packaging, opening a massive institutional market. * **Government Incentives:** The company leverages **PLI (Production Linked Incentive) schemes**, which have historically driven turnover and export growth within the broader Indian textile sector. * **Sector Diversification:** Increasing penetration into the **fertilizer and agriculture sectors** to provide a hedge against global economic volatility. --- ### **Operational Infrastructure & Asset Management** GRIL’s operations are concentrated at a single, modern plant located in **Santej, Gandhinagar (Gujarat)**. | Feature | Details | | :--- | :--- | | **Plant Location** | **Santej, Dist: Gandhinagar, Gujarat (10,821 sq. meters)** | | **Licensed Capacity** | **4,000 M.T.** (Unmachined/Machined Tarpaulin & Woven Sacks) | | **Factory License** | Valid until **December 31, 2030** | | **GPCB Consent** | Environmental clearance valid until **August 16, 2028** | | **Asset Verification** | Phased physical verification of PPE over a **three-year cycle** | To streamline administrative costs, the company successfully completed a **Voluntary Delisting** from the **Calcutta Stock Exchange (CSE)** in **2024**, while maintaining its primary listings on the **BSE** and **NSE**. --- ### **Financial Performance & Capital Structure** The company has experienced a contraction in performance over the last three fiscal years, attributed to a broader **economic slowdown**. Consequently, GRIL maintains a **zero dividend distribution** policy to conserve capital for operations. #### **Three-Year Financial Summary** | Metric (Rs. in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Sales** | **30.57** | **31.80** | **41.39** | | **Profit Before Tax (PBT)** | **0.62** | **0.67** | **1.28** | | **Profit After Tax (PAT)** | **0.52** | **0.54** | **1.03** | #### **Balance Sheet & Liquidity Highlights** * **Liquidity Position:** Current investments in mutual funds stood at a market value of **Rs. 6.02 Crore** (Cost: **Rs. 5.60 Crore**) as of March 31, 2025. * **Inventory Optimization:** Total inventory was reduced to **Rs. 3.06 Crore** in FY25 (from **Rs. 6.31 Crore** in FY24), largely due to a sharp reduction in **Work-in-progress** (from **Rs. 3.48 Crore** to **Rs. 0.59 Crore**). * **Receivables:** Totaled **Rs. 2.17 Crore**; **91%** of these are current (outstanding for **<6 months**). * **Debt & Security:** * **Cash Credit:** Secured by **Union Bank of India** via hypothecation of stock/book debts and an equitable mortgage on the Santej factory. * **Unsecured Loans:** Includes **Rs. 40.08 Lakh** from **Asian Gases Limited**. * **Personal Guarantees:** Credit facilities are personally guaranteed by directors **Mr. Pradeep Bhutoria** and **Mrs. Sushma Bhutoria**. --- ### **Risk Profile & Governance Challenges** Investors should note several operational and regulatory risks identified in recent audits. #### **1. Market & Operational Risks** * **Intense Competition:** The industry faces pressure from large petrochemical manufacturers who control raw material supply and benefit from economies of scale. * **Capacity Certification:** The **4,000 M.T.** capacity figure is based on **Director certification** and has not been independently verified by auditors. * **Reconciliation:** Balances for certain debtors, creditors, and loans remain subject to confirmation. #### **2. Regulatory & Secretarial Non-Compliance (FY 2024-25)** The Secretarial Auditor highlighted several lapses: * **MSME Compliance:** Failure to file **Form MSME-1** or maintain proper records of MSME creditors. * **Internal Audit:** Failure to appoint a **Qualified Professional** as an Internal Auditor. * **Governance Documentation:** Insufficient evidence/supporting documents for **Audit**, **Nomination & Remuneration**, and **Stakeholders Relationship** committee meetings. * **Independent Directors:** Lack of documentation regarding registration with the **Independent Directors’ Data Bank** or completion of mandatory exams. * **Insider Trading:** Failure to timely renew the **Structured Digital Database (SDD)** software for recording price-sensitive events. #### **3. Legal & Tax Contingencies** The company is contesting tax demands totaling **₹14.05 Lakhs** for **FY 2011-12** and **FY 2012-13** before the Deputy State Tax Commissioner. These amounts have not been provided for in the accounts as they are currently under appeal. --- ### **Leadership & Human Capital** The company recently updated its leadership team to strengthen financial oversight: * **Abhishek Bhutoria:** Appointed as **Whole Time Director & CFO** (Nov 2025). * **Rishi Jaithlia:** Appointed as **Company Secretary** (Nov 2025). * **Industrial Relations:** Management reports **cordial relations** with the workforce, with no strikes or lockouts in the last three years. Internal systems are currently being upgraded with **IT and MIS** integrations to enhance fraud prevention.