Manugraph India Limited is the largest manufacturer of **single-width web-offset printing presses** in India and a dominant global player in the niche **4-page newspaper offset printing press** market. Operating primarily within the **Engineering** segment, the company provides high-volume, cost-effective printing solutions for regional news, government institutions, and educational bodies. While the traditional print media industry faces digital disruption, Manugraph is currently executing a rigorous **turnaround strategy** centered on asset monetization, operational restructuring, and diversification into the high-growth packaging machinery sector. --- ### **Core Product Portfolio & Engineering Capabilities** The company’s revenue is driven by the manufacture of high-precision machinery, supplemented by after-sales services and contract manufacturing for overseas OEMs. * **Flagship Presslines:** * **Cityline Express:** High-speed machines recently upgraded with **13-head VDP systems** (for numbering/barcoding) and **Plow Fold** capabilities. * **Ecoline:** Features a **546 mm cut-off** and **700 mm web width**, utilizing specialized **Ink form oscillating Rubber rollers** to eliminate ghosting in book printing. * **Hiline:** Tower add-ons and machines with **533 mm cut-off** and **700 mm web width**. * **M360:** Specialized units specifically upgraded for the **Japanese market**. * **Diversification & Packaging:** * **CI Flexo Pressline:** Advanced machines modified to handle **ultrathin breathable and non-breathable films**, targeting the packaging industry (growing at **15-20% p.a.**). * **Packaging Machinery:** Leveraging technology sourced from **Italy** to enter new industrial segments. * **Ancillary & Custom Engineering:** * Manufactures **AP4050 Autopasters**, **F222 Folders**, and integrated drive/PLC panels. * Provides **Metco coating rollers** and shaftless drives based on bespoke customer requirements. --- ### **Strategic Asset Rationalization & Monetization** To address persistent cash losses and erode debt, the company is aggressively liquidating non-core and underutilized assets. | Asset / Unit | Location | Status / Action | Financial Impact / Purpose | | :--- | :--- | :--- | :--- | | **7 Acres Idle Land** | Shiroli, Kolhapur | Proposed sale by **Sept 2025** | Estimated **Rs. 4 Crores per acre**; for working capital and debt reduction. | | **Kolhapur Unit II** | Kodoli, Kolhapur | Closed; assets disposed of by **Sept 2025** | Realized gain of **Rs. 218.75 lakhs**. | | **Factory Land (Unit I)** | Kolhapur | **2 acres** held for sale | Valued at **Rs. 1,044.05 lakhs**. | | **Mumbai Office** | Colaba, Mumbai | Disposed of in **FY 2022-23** | Gain of **Rs. 6.98 crores**; used to repay liabilities. | | **Manugraph Americas** | USA | **Liquidated** Nov 29, 2022 | Gain of **Rs. 0.02 crore**; simplified corporate structure. | --- ### **Operational Restructuring & Workforce Optimization** A critical component of the turnaround is the reduction of high Employee Remuneration Expenses (ERE). * **Labor Settlement:** On **September 20, 2024**, the company signed consent terms with the **Manugraph Employees Union**. * **Headcount Reduction:** Permanent workmen reduced from **257 to 127**. Total permanent employees stood at **197** as of **March 31, 2025**. * **Financial Liability:** A total liability of **Rs. 11.79 crore** was booked for the retirement scheme in **FY 2024-25**. Total settlement obligations reach **Rs. 64.85 crore**, with final discharges scheduled through **February 2026**. * **Cost Savings:** The headcount reduction is expected to save approximately **Rs. 55 Lakhs per month** effective **October 2024**. --- ### **Financial Performance & Metrics** The company has faced significant headwinds, leading to a decline in revenue and the suspension of dividends. | Metric (Rs. in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Revenue from Operations** | **59.35** | **65.76** | **79.57** | | **EBIDTA** | **(11.61)** | **(16.40)** | **(13.88)** | | **Net Loss (Total Comprehensive)** | **(26.44)** | **(19.43)** | **(10.49)** | * **Tax Position:** As of **March 31, 2023**, the company held unabsorbed tax losses of **Rs. 98.27 crore**. No deferred tax assets have been recognized due to the uncertainty of future taxable profits. * **Customer Concentration:** High reliance on key accounts; **two customers** accounted for over **Rs. 15.06 crore** (approx. **10%+** each) of sales in **FY 2024-25**. --- ### **Research, Development & Sustainability** Recognized by the **DSIR, Ministry of Science and Technology**, the R&D wing focuses on **Import Substitution** and **Technology Absorption**. * **R&D Investment:** Expenditure of **Rs. 47.97 Lakhs** (**0.87% of net sales**) in **FY25**. * **Technical Innovations:** * Indigenization of **Pneumatic cylinders, Valves, and Sensors**. * Development of **Auto Register** and **Cut-off control systems** with remote support capabilities. * Integration of **UV curing systems** and **Spray dampening** interfaces. * **Environmental Initiatives:** * Transitioning to **ON GRID Solar power** and **LED High Bay** lighting. * **Water Conservation:** Drip irrigation saves **900–1,000 Cu. meters** monthly; an **ETP plant** treats **3 Cu. Mtr.** of waste water daily for landscaping. --- ### **Risk Profile & Market Challenges** * **Digital Disruption:** The shift toward **e-papers and online subscriptions** has caused a "deep cut" in traditional newspaper production and advertising revenue. * **Geopolitical Volatility:** Operations were recently hampered by the political crisis in **Sri Lanka** and trade/logistics disruptions in **Russia**. * **Financial Risks:** * **Currency Risk:** Exposure to **USD/EURO** fluctuations is managed via natural hedges; no derivative hedging is currently employed. * **Liquidity Risk:** Assets are currently charged as security to bankers; asset sales require **NOCs** from financial institutions. * **Labor Litigation:** Ongoing obligations to pay **40-50% salary** to retired/senior employees until age **60** under the 2024 Consent Terms. --- ### **Leadership & Governance** To ensure stability during the restructuring phase, the company has extended the mandates of its core leadership through **2028**: * **Sanjay S. Shah:** Re-appointed as **Chairman & Managing Director** (3-year term from April 1, 2025). * **Pradeep S. Shah:** Re-appointed as **Vice Chairman & Managing Director** (3-year term from April 1, 2025). * **Remuneration:** Basic salary fixed at **Rs. 550,000 per month** with annual increments up to **20%**, reflecting a commitment to leadership continuity during the turnaround.