### **Company Overview** XPRO India Ltd is a leading niche manufacturer in the polymer processing industry, specializing in high-technology biaxially oriented and coextruded polymer films and sheets. The company operates through three core divisions: 1. **Biax Division** – Produces dielectric BOPP (biaxially oriented polypropylene) films for capacitors, serving electric mobility, renewable energy, and industrial electronics sectors. 2. **Coex Division** – Manufactures coextruded multilayer sheets, thermoformed refrigerator liners, and specialty cast films for white goods, automotive, hygiene, and medical applications. 3. **Xpro Dielectric Films FZ-LLC (UAE)** – A wholly-owned subsidiary established in Ras Al Khaimah to expand global footprint and serve international markets. The company has manufacturing facilities in **Barjora (West Bengal)**, **Ranjangaon (Maharashtra)**, and **Greater Noida (Uttar Pradesh)**, with a new plant under development in the UAE. --- ### **Strategic Expansion & Capacity Growth (Key Development Focus: 2022–2026)** #### **1. Dielectric Film Capacity Expansion** - **Current Status (Nov 2025):** - XPRO is executing a **multi-phase organic expansion** to significantly increase dielectric film capacity in India and the UAE. - Targeted **nameplate capacity** will reach **~13,000 MT per annum** by end-2025, up from 4,000 MT in 2022 — a **tripling of output**. - This will be further expanded to **around six times the 2024 level (~24,000–26,000 MT)** over the next 3–4 years with two additional advanced lines: - **Fourth line in UAE (land secured)** - **Fifth line in India (site under evaluation)** - **Barjora Expansion (India):** - The second dielectric film line at Barjora is undergoing **final test runs** after delays due to equipment supply chain issues. - **Commercial production expected by September 2025**, with full capacity utilization anticipated in FY2026. - On completion, this will **double current Indian capacity** and generate **INR 120–150 crores** in annual revenue. - Production in FY2025 was **3,556 MT** (down from 3,629 MT in FY2024 due to commissioning downtime), with sales of **INR 136.34 crores**. - **Ras Al Khaimah Plant (UAE):** - **Xpro Dielectric Films FZ-LLC** was incorporated in **May 2024**; construction began on **November 8, 2024**. - Core equipment delivered, with implementation on schedule. First production expected in **H1 FY2026**. - Positioned as an **export-oriented facility** targeting the U.S., Europe, and other technically advanced markets. - Supports **global value chain integration** and aligns with **"China Plus One" de-risking strategies** of global buyers. #### **Strategic Objectives:** - Transition from domestic leader to **mid-to-upper tier global player** in dielectric films. - Focus on **high-value, technology-driven segments** (e.g., EVs, solar inverters, industrial electronics), avoiding low-margin commodity films. - Become a **key non-China supplier** of premium dielectric films for power and automotive applications. --- ### **Market Position & Competitive Advantage** #### **Dielectric Films – India’s Sole Producer** - XPRO is the **only Indian manufacturer of dielectric capacitor films**, capturing **over 30% of domestic demand** (up to 33% in earlier years). - The remaining **~67–70% is imported**, primarily from China, Japan, Korea, and Europe — a massive **import substitution opportunity**. - Products developed as **import substitutes meeting global standards**, serving critical applications in: - Electric vehicles (EVs): DC link capacitors, power control units, start-stop systems - Solar energy: Inverters and power conditioning units - Industrial electronics, lighting, and power transmission #### **Technology & Capabilities:** - Core dielectric film technology initially sourced from the **UK**, now **fully developed and enhanced in-house**. - **Advanced BOPP lines** supplied by European OEMs (e.g., Brückner, Germany). - **Ultra-clean room manufacturing** under highly controlled conditions. - R&D focus on **ultra-thin (2–12 microns), hazy, semi-rough, and high-temperature films**. - Commercialized **semi-rough films** for locomotive capacitors and **hazy films** for high-voltage applications. #### **Global Reach & Export Potential** - Currently exports dielectric films to **USA, Germany, and other advanced markets**, although capacity constraints limit volumes. - **Export sales: INR 14.20 crores (2.65% of total turnover)** in FY2024–25. - Once new capacity comes online, management expects **exports to grow significantly**, supported by ongoing long-term supply discussions. --- ### **Coex Division – Market Leadership in White Goods** #### **Operations & Capacity** - Supplies **coextruded sheets and thermoformed liners** to major refrigerator OEMs (e.g., LG, Whirlpool, IFB). - Facilities in **Ranjangaon and Greater Noida** with: - **8 sheet extrusion lines** - **5 thermoforming lines** - **2 coextruded cast film lines** (Ranjangaon) - **Nameplate capacity (Jul 2025):** - Coextruded sheets: **39,000 MT** - Thermoformed liners: **7,000 MT** - Cast films: **5,400 MT** #### **Market Trends & Growth Drivers** - **Indian refrigerator market:** - Reached **19 million units in FY2024–25** (16% YoY growth). - Penetration <50%, offering strong **long-term growth potential** (CAGR of **10–11% projected until 2030**). - Driven by rural electrification, premiumization, and PLI-linked localization. #### **Expansion & Optimization** - Acquired and integrated **additional sheet extrusion and thermoforming lines** to expand capacity. - At Ranjangaon, switched to **solar power via open access** from associate **TP Mercury Limited**, effective October 1, 2024 – generating **significant energy cost savings** under a **25-year agreement**. #### **Competitive Landscape** - Facing **pricing pressure from OEMs** and **selective vertical integration** (e.g., under PLI scheme). - However, XPRO retains **major clients due to operational flexibility, reliability, and multi-line redundancy**. --- ### **Financial & Operational Highlights** #### **Revenue & Performance** - **Q4 FY2025 revenue:** INR **158.21 crores** (up **23% YoY**). - **Consolidated turnover FY2024–25:** ~INR **537 crores** (estimated based on reported segments). - **EBITDA Margins (Q4 FY2024):** - **Biax Division (dielectric films): >40%** - **Coex Division (sheets & liners): 5–6%** - Coex Division contributed **>70% of total sales** in Q4, pulling down **consolidated EBITDA**, despite strong individual performance. #### **Profitability Outlook** - Management believes **EBITDA margins have bottomed out**. - Expected **significant improvement in H2 FY2025–26** as Barjora expansion reaches full commercial operation. #### **Funding Strategy** - **Primarily equity-funded expansions** — minimal long-term debt. - Raised **INR 150 crores via warrant issue (2023)** to fund organic growth. - Reinforces **low financial risk model** and long-term value creation focus.