Orient Press Limited is an integrated Indian printing and packaging solutions provider with over **35 years** of operational history. The company operates a multi-divisional business model spanning security printing, flexible packaging, and paper board cartons. Recently, the company has embarked on a strategic diversification into the consumer goods sector, specifically aroma products and candles, to mitigate volatility in its traditional printing segments. --- ### **Core Business Verticals & Manufacturing Infrastructure** The company operates five specialized manufacturing units across **Tarapur (Maharashtra)**, **Silvassa (Dadra & Nagar Haveli)**, and **Greater Noida (Uttar Pradesh)**. These facilities are supported by **in-house know-how** and high-tier certifications including **BRC, RBI (Restaurant Brand International), FSC, ISO 9001**, and **Sedex Audits**. #### **1. Printing & Security Division** This segment focuses on high-precision and high-volume requirements. * **Products:** Continuous stationery, security printing, commercial printing (textbooks, notebooks, annual reports, and IPO forms). * **Current Status:** Facing headwinds due to the digitalization of capital market stationery (IPO forms/annual reports), leading to a **27.41%** revenue drop in **FY25**. #### **2. Flexible Packaging Division** The largest contributor to the company's topline, providing multi-layer film laminates for various industries. * **Products:** Multi-layer film laminates and flexible packaging materials. * **Market Position:** Serves the **FMCG, Agriculture, and Pharma** sectors. #### **3. Paper Board & Sustainable Solutions** A high-growth vertical focused on replacing plastic with eco-friendly alternatives. * **Products:** Multi-colour mono cartons, linear cartons, rigid boxes, and corrugated boxes. * **Paper Bag Unit:** Operates **4 bag-making machines** and **2 flexo printing machines** with a capacity of **7.5 million bags per month** (**300,000/day**). * **Key Clients:** Major QSR brands including **KFC, Taco Bell, Kamaths Retails, Tea Post, and Tibbs Frankie**. #### **4. Consumer Goods: Candle & Aroma Division** Commenced on **June 1, 2024**, this new segment utilizes a **540 sq. meter** facility in Tarapur. * **Product Range:** Pillar candles, table-top dinner candles, votive candles, tea lights, scented glass jars, and floating candles. * **Strategic Intent:** Diversification into high-margin consumer products to offset declining demand in traditional printing. --- ### **Financial Performance & Credit Profile** The company has navigated a challenging financial period characterized by declining revenues and net losses, primarily due to the downturn in the Printing Division and high competition. **Three-Year Financial Summary** | Metric (₹ in Crore) | FY25 (Audited) | FY24 (Audited) | FY23 (Audited) | | :--- | :---: | :---: | :---: | | **Net Turnover** | **142.54** | **170.51** | **171.72** | | **Pre-tax Profit/(Loss)** | **(3.74)** | **(1.31)** | **(4.42)** | | **Total Borrowings** | **61.58** | **63.99** | **-** | | **Rental Income** | **3.04** | **2.25** | **-** | **Segment Revenue Breakdown (₹ in Crore)** | Division | FY25 | FY24 | FY23 | | :--- | :---: | :---: | :---: | | **Flexible Packaging** | **70.97** | **76.49** | **99.07** | | **Printing** | **52.68** | **72.57** | **53.27** | | **Paper Board Carton** | **17.60** | **21.45** | **19.38** | | **Candles** | **1.29** | **-** | **-** | **Credit Ratings (Reaffirmed March 2026 by CARE Ratings):** * **Long-term Bank Facilities:** **CARE BB; Stable** * **Short-term Bank Facilities:** **CARE A4** * **Fixed Deposits:** **CARE BB; Stable** (9.00% p.a. interest offered for 2-3 year tenures). --- ### **Strategic Pivot: Sustainability & Diversification** Orient Press is executing a dual-track strategy to align with modern market demands and regulatory shifts. * **Transition to Paper-Based Solutions:** To mitigate risks from the **Plastic Waste Management Amendment Rules, 2021**, the company has installed automatic **Board to Kraft fluting Lamination Machines**. This allows for the production of eco-friendly, value-added packaging for the e-commerce and FMCG sectors. * **Diversification into Aroma Products:** Following a **September 2023** MOA amendment, the company launched its candle and fragrance line to capture a share of the lifestyle consumer market. * **Asset Monetization:** The company leverages its real estate, specifically premises at **Lotus Corporate Park, Mumbai** (valued at **₹17.14 crore**), to generate steady rental income, which reached **₹3.04 crore** in **FY25**. --- ### **Market Dynamics & Growth Drivers** The company is positioning itself to benefit from several macroeconomic tailwinds in India: * **E-commerce Expansion:** The Indian e-commerce market is projected to grow from **US$ 29 billion (2020)** to over **US$ 100 billion by 2025**. * **Demographic Shifts:** The Indian middle class is projected to grow from **31% (2021-22)** to **63% by 2047**, driving demand for packaged consumer goods. * **Packaging Industry Growth:** The sector is expected to grow at a **CAGR of 26.7% (2022-2027)**. * **Consumer Preferences:** Approximately **60%** of consumers now prefer sustainable or socially responsible products, favoring the company’s **FSC-certified** paper bag and carton divisions. --- ### **Risk Management & Mitigation Framework** Orient Press operates in a fragmented industry of **1,20,000 units**, necessitating robust risk controls. * **Raw Material Management:** Imported materials constitute only **6.50%** of total consumption (down from **12.20%** previously). This indigenous substitution strategy buffers the company against global price volatility in wood pulp and petrochemicals. * **Foreign Exchange Exposure:** With exports making up **5.73% to 11.56%** of sales, the company employs a hedging framework to manage fluctuations in **USD, EURO, and GBP**. **Foreign Currency Exposure (Primary Currencies)** | Particulars (₹ in Lakhs) | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | **USD Assets (Receivables)** | **262.22** | **151.77** | | **GBP Assets (Receivables)** | **-** | **51.56** | | **USD Liabilities (Payables)** | **84.89** | **87.96** | * **Liquidity & Credit Risk:** The company manages **₹31.19 crore** in trade receivables through rigorous creditworthiness analysis. However, a significant portion of debt (**₹55.61 crore**) is short-term (maturity **<12 months**), requiring disciplined cash flow management. * **Technological Competition:** To combat low-cost competition from China and the unorganized sector, the company is focusing on **automation** and **3S packaging** (Safety, Security, Sustainability) to maintain its position in the organized segment.