1. Polyurethane capacity expansion on existing land - IVP plans to expand its Polyurethane business using unutilised land at its 12-acre Tarapur site and Bengaluru facility, bypassing greenfield capex and lifting combined capacity beyond the current 50,000 tonnes per annum. This raises fixed-asset turnover and adds volume headroom without the debt or delays of a new site, directly improving returns on the ₹65 cr debt base already reduced in FY26.
2. Flexible-packaging adhesive scale-up - The non-foam PU flexible-packaging vertical already contributes 5-7% of revenue at a 10% margin and counts Amcor and Constantia Flexibles as clients, with management targeting faster growth and higher margins than the legacy foam business. As this mix shift progresses, it lifts the blended PU margin above the 5-7% currently earned in footwear-led volumes.
3. Balance-sheet deleveraging and cash-flow turn - Short-term borrowings fell from ₹104 cr in FY25 to ₹65 cr in FY26, working-capital days improved from 114 to 86, and operating cash flow swung from a ₹2 cr outflow to a ₹53 cr inflow. Lower interest cost and freed-up cash directly support the self-funded capacity expansion and improve the 0.42x D/E ratio further.
4. Foundry Chemicals value-added shift and import substitution - IVP is targeting value-added foundry chemicals and import-substitution grades to lift the segment’s 3-5% margin profile, with marquee clients including Tata Steel and Ashok Leyland. Even a modest margin recovery in this 35-40% revenue segment would materially move group operating profit, given the low base.
5. Low-density PU footwear formulations gaining volume - Proprietary low-density PU formulations that reduce sole weight while retaining durability have already captured additional volumes despite demand erosion in FY25. With footwear contributing 55-60% of revenue, volume-led growth in this core vertical stabilises the top line while the non-foam PU business scales.
6. Export push for Polyurethane products - Management is focusing on export opportunities for PU products, leveraging a client base of over 500 organisations across India and international markets. Exports open a demand channel beyond domestic cycles and can improve realisations, though no signed contracts or timelines are yet disclosed.