Uma Converter Limited is a prominent Indian manufacturer specializing in multifunctional **flexible packaging materials**. With a legacy spanning over **25 years**, the company provides end-to-end packaging solutions—from material sourcing and design to the production of finished pouches and bags. The company has successfully transitioned from a domestic player to an international supplier, leveraging advanced manufacturing infrastructure and a robust commitment to the circular economy. --- ### **Manufacturing Infrastructure & Strategic Locations** The company operates through two primary manufacturing units in Gujarat, supported by a global marketing network. These facilities are equipped with high-speed machinery for printing, lamination, and pouch-making. | Facility | Location | Key Details & Strategic Role | | :--- | :--- | :--- | | **Unit I (Registered Office)** | Santej, Gandhinagar | Established export operations in **2006**; features a **Solar PV Rooftop** for energy efficiency. | | **Unit II (Works)** | Timba, Ahmedabad | Commenced exports in **2019**; **BRCGS** certified; primary site for the planned **offset capacity expansion**. | | **Marketing Office** | Bodakdev, Ahmedabad | Central hub for commercial, sales, and administrative activities. | | **Branch Offices** | Domestic & International | Strategic presence in **Jaipur, Delhi NCR, Ahmedabad**, and an international office in **Taipei**. | --- ### **Product Portfolio & Material Science** Uma Converter utilizes a wide array of industry-approved substrates to manufacture high-performance packaging tailored for the food, beverage, e-commerce, and industrial sectors. * **Substrates & Raw Materials:** Polyethylene terephthalate (**PET**), biaxially-oriented polypropylene (**BOPP**), polythene, cast polypropylene (**CPP**), foil, paper, and advanced **bio-degradable films**. * **Finished Product Range:** * Multi-colour pouches and **stand-up pouches**. * **Zip-lock**, vacuum, and specialized e-commerce bags. * Paper bags and **recyclable flexible packaging** solutions. * **Sustainable Innovation:** The company has spent over a **decade** pioneering eco-friendly alternatives, utilizing **Biopolymers** and **Eco Coatings** to engineer packaging that meets global sustainability standards. --- ### **Operational Strategy & The Circular Economy** The company’s growth strategy is centered on scaling its manufacturing footprint while optimizing **capacity utilization** to meet rising demand. * **Waste-to-Value Model:** Uma Converter implements a **circular economy** model by manufacturing **Ropes** from **production trim wastage**, effectively turning a cost center into a revenue stream. * **Strategic Waste Disposal:** The company has signed a service agreement with **Ambuja Cements Limited** for eco-friendly disposal of non-recyclable waste via cement kiln co-processing. * **Energy Transition:** Installation of **Solar PV Rooftop** systems at both Unit I and Unit II reduces dependency on non-renewable energy and lowers long-term operational costs. * **Quality & Compliance:** The company is **ISO 9001:2015** and **22000:2018** certified. Unit II holds the prestigious **BRCGS Global Standard for Packaging Materials**, a critical requirement for high-end international food clients. --- ### **Financial Performance & Capital Structure** Uma Converter has demonstrated consistent growth in revenue and profitability. For **FY 2024-25**, the company reported a turnover of **Rs. 227.54 Crores**, a **25.7% increase** year-on-year. #### **Key Financial Metrics** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Turnover/Income** | **Rs. 227.54 Cr** | **Rs. 186.35 Cr** | **Rs. 177.97 Cr** | | **EBIDTA** | - | **Rs. 17.50 Cr** | **Rs. 13.55 Cr** | | **Profit After Tax (PAT)** | - | **Rs. 4.19 Cr** | **Rs. 1.07 Cr** | | **Reserves & Surplus** | **Rs. 270.32 Cr*** | **Rs. 4.18 Cr** | - | *\*Reflects total transfer to Reserves & Surplus for the period ending Oct 2025.* #### **Equity & Shareholding** * **Share Capital:** As of March 31, 2025, the **Authorised Share Capital** is **Rs. 22.00 Crores** (2.20 crore shares), with a **Paid-up Share Capital** of **Rs. 20.27 Crores**. * **Promoter Stability:** The company maintains strong promoter conviction, with major directors holding a combined **60.85%** stake: * **Mrs. Nirmala Lodha:** **27.87%** * **Mr. Sumer Raj Lodha:** **19.96%** * **Mr. Abhishek Lodha:** **13.02%** * **Dividend Policy:** The Board has **not proposed a dividend** for the recent fiscal years, prioritizing the reinvestment of profits into **capacity expansion** and **offset printing** technology. --- ### **Debt Profile & Credit Facilities** The company utilizes a disciplined mix of term loans and working capital facilities to fund its growth, secured by industrial assets in Santej, Timba, and Ahmedabad. * **Long-Term Debt:** * **HDFC Bank:** Rupee Term Loans totaling **Rs. 11.67 Crores** at **9.30% p.a.** * **Axis Bank:** Foreign Currency Term Loan of **Rs. 13.50 Crores** (**9.25% p.a.**) and Rupee Term Loans (EGCL) of **Rs. 4.50 Crores** (**9.50% p.a.**). * **Working Capital & Liquidity:** * **HDFC Bank:** Cash Credit limits of **Rs. 15.00 Crores** (**9.5% p.a.**). * **HSBC Bank:** Combined Working Capital and Fresh Term Loan limits of **Rs. 14.70 Crores**. * **ECLGS Facilities:** Loans from Axis and HSBC with competitive rates between **6.50% and 7.80% p.a.** --- ### **Risk Management & Mitigation Framework** The company operates a formal risk management framework overseen by the **Audit Committee** to address volatility in the global packaging market. #### **1. Market & Interest Rate Risk** The company is sensitive to shifts in borrowing costs. A **50 bps (0.50%)** change in interest rates impacts the **Profit Before Tax (PBT)** by approximately **Rs. 58.19 Lakhs** (based on FY 2023-24 figures). #### **2. Currency & Export Risk** With exports reaching **Saudi Arabia, Australia, Senegal, and the USA**, the company faces **Foreign Currency Risk**. * **Mitigation:** Use of **Foreign Exchange Forward Contracts** and rigorous cash flow forecasting. * **Credit Protection:** Overseas shipments are largely covered by **ECGC (Export Credit Guarantee Corporation)**. #### **3. Raw Material Volatility** The business is sensitive to price fluctuations in **paper, plastic granules, and chemicals**. While the company employs a pass-through pricing model, a **lag in price transmission** remains a primary threat to short-term margins. #### **4. Credit & Investment Risk** * **Domestic Credit:** Managed via an internal **credit rating scorecard** and strict individual limits. * **Investment Policy:** Adheres to the **"Protection Principle,"** restricting investments to **Fixed Deposits** and **Fixed Maturity Plans (FMPs)** to ensure capital preservation. --- ### **Future Growth Outlook** Uma Converter is positioned to capitalize on the global shift toward sustainable packaging. Key growth drivers include: * **Capacity Expansion:** Increasing **offset printing capacity** at the **Timba Plant** to handle higher-margin, complex packaging designs. * **Market Penetration:** Leveraging existing relationships with **tier-1 clients** to introduce **recyclable flexible packaging** lines. * **Operational Consolidation:** Focusing on **consolidating facilities** and optimizing **unutilized capacity** to improve EBIDTA margins as macroeconomic conditions stabilize.