Cmp-:1127
About
Founded in 1942, Supreme is an acknowledged leader of India’s plastics industry. Handling volumes of over 3,20,000 tonnes of polymers annually effectively makes the country’s largest plastics processors. Not surprisingly, the company also offer the widest and most comprehensive range of plastic products in India. Supreme Industries Limited has seven business divisions. Supreme Industries limited offers wide range of plastic products with a variety of applications in Moulded Furniture, Storage & Material Handling Products, XF Films & Products, Performance Films, Industrial Moulded Products, Protective Packaging Products, Composite Plastic Products, Plastic Piping System & Petrochemicals.
Supreme Industries has 25 advanced plants which are powered by technology from world leaders, and complement its extensive facilities for R & D and new product development. In fact, Supreme is credited with pioneering several products in India. These include Cross- Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems and more.
The company has forayed into different types of plastic processing in Injection Moulding, Rotational Moulding (ROTO), Extrusion, Compression Moulding, Blow Moulding etc.
The company has Strengthened and revamped channel partners and increase the distribution network, which at present is over 3,500 channel partners.
Plan to increase current Export Turnover of around 3.00% of total turnover, significantly over next five years.
The supreme Group
Engaged in processing of polymers and resins into finished plastic products
Has 30.01 per cent stake in Supreme Petrochem Ltd.
Supreme Industries Overseas (FZE) – A wholly owned subsidiary, in the United Arab Emirates. Supreme Petrochem Ltd.
Manufactures Polystyrene, Expanded Polystyrene (normal and food grade), Extruded Polystyrene Foam, Speciality Polymers Compounds & Masterbatches, Styrene Methyl Methacralate(SMMA).
The Supreme Group turnover cross a projected Rs.125 billion (USD 2billion).
Business Verticals
Plastic Piping System
- Leading Quality Player with 8314 products for 31 different application systems and only Company to supply pipes and fittings from major polymers like PVC, CPVC, PE & PPR.
- 15.00 % per cent of the organised domestic plastic piping market
- High Quality Raw Materials, structural accuracy and perfect designing techniques resulting in Light Weight , Durable, Non-Corrosive and cost effective solution alternative to conventional products
- Market serviced by organized & unorganized players. The organized players service around 65 % of the market. Their share is growing faster than players in unorganized market.
- Custom Designed products to suit Specific Applications
- Meets the specifications of various National & International standards.
- Has 1214 channel partners .
Against the estimated market size of rs 34000 cr for this segment Supreme Industries has 10% market share.
Consumer Products – Furniture
- Second-largest player in the plastic moulded Furniture with current Processing Capacity-30,000 MT
- One stop solution for varied furniture needs, made from 100% virgin polymers, using computer designed moulds at ISO certified Plants
- First in the Industry to use the Gas Injection technology in moulding process
- Range of Indoors and outdoors high quality furniture tested for ergonomic comforts, resilience and environmental resistance
- First in the industry to make Blow moulded furniture for varied new usage.
Against the estimated market size of rs 3100 cr for this segment Supreme Industries has 10% market share.
Protective Packaging Products
- It includes Specialty Films, Protective Packaging Products & Cross Laminated Films products.
- Product Range: Thermoplastic PE foam sheets and profiles, cross-linked and blended PE foams (block & extruded), air bubble films and composites and Customized products include anti-static, UV resistant and aluminum foil laminated foam & bubble films, besides EPDM blended and other specialty rubber foams. Composites – aluminium, Metalized PET, Speciality film & Cross Laminated Film Products.
- A turnkey packaging solutions provider –oversees the actual packaging operations at the customer’s site, sourcing and incorporation of other materials in the process
- Access to latest technologies and innovations – tie ups with global industry leaders.
Cross Laminated Film & Products
- Only Indian company to have the technology to manufacture Patented Cross Laminated film Products under Brand name Silpaulin & Silpaulin STAR. It is one-seventh the weight of conventional cotton tarpaulin, but has a high strength-to-weight ratio
- Acquired worldwide rights for Cross Laminated Film and Cross Line Bonded Film
- Acquired worldwide rights for new generation and patented Cross Plastic Film
Multilayer Performance Packaging Film
- Multilayer Co extruded Film upto seven layer from well known German Make Machines for varied applications ranging from oil Films to Thermoforming Films, Vacuum Pouches, Bulk Bags and B&W UHT Milk Films etc.
- Equipped with latest state of the Art eight colour printing capabilities
- To increase share of Value Added Products,Installed latest Lamination Capabilities to Laminate Co Ex Film with other substrates like PET, Mat Pet, BOPP, Alluminium Foil etc.
Industrial Products
Major player in the industrial products segment manufacturing Industrial components:
- Ability to provide cockpit assemblies for the Auto Segment
- Presence in water purification segment
- Presence in Electronic Voting Machine Material-handling products:
- Major Supplier to the Soft Drinks Industry
- First to launch the Injection Moulded Plastic Pallets
Financials
Net Sales stood at Rs 1,430.42 crore in March 2020 down about 6.56% as compared to same quarter previous year.
Quarterly Net Profit at Rs. 153.11 crore in March 2020 was up 35.41% as compared to same quarter previous year.
Supreme Ind EPS has increased to Rs. 12.05 in March 2020 from Rs. 8.26 in March 2019.
Against the estimated market size of rs 2100 cr for this segment Supreme Industries has 11.75% market share.
New Products Introduced in last Three Years
- Light Hazard Fire Sprinkler System
- Bath Room Fittings
- DWC HDPE Pipe System
- HDPE Pipes above 315 MM Dia & upto 800 MM Dia
- CPVC Pipe System – 6” & above for Industrial Use
- Water Tanks & Septic Tanks
- Sewrage & Drainage System
- Industrial Valves
- XL Bonded Film – 35 GSM to 250 GSM
- 30 & 35 GSM Cross Laminated Film & Cross Laminated Film – 400 GSM
- Varieties of Insulation Products in Protective Packaging Division
- Various Floor Protection & Sound Proofing Products in Protective Packaging Division
- Retail Product Range in Protective Packaging Division
- Blow Moulded Furniture
- Several varieties of new Furniture Products
- Several varieties of Crates, Pallets & Dust Bin
- Composite LPG Cylinder
- Roto Moulded Furniture
GOING FORWARD
- The company Aims to be Debt free
- The company to remain focussed on Core business of Plastics and related products
- The company aims to remain on the path of Cost optimization
- The company aims to increase current Export Turnover of around 3.00% of total turnover, significantly over next five years.
Conclusion
With variety of products and strong presences across many business verticals the company has consistently growing year on year. Debt levels are expected to increase and a small hit is also expected to the company sales on account of the lockdown from march to may 2020. However given its strong presence and continuous innovation via introduction of the new products Supreme Industries is worth Exploring for long term.
Notable Update
Axis Mutual Fund has bought 12,25,000 equity shares in the company at Rs 1,080 per share, as per the bulk deals data available on the BSE which is nearly equivalent to 1% .
There has been slight increase in Promoters stake as which is about 0.24% that is From 49.70% to 49.94% during the 4th quarter end.
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sir, analysis of stock is good but for Plastic Piping System and Consumer Products – Furniture market share is given whereas for other three verticals market share is not given. Moreover u told company aims to become debt free. How much is debt, how much is cash flow
We have tried to get the information from the company, as information relating to the share of the segment for other three verticals was not available therefore the same has not been mentioned.
Current debt to equity ratio is around 0.15 however the same is expected to increase due to this lockdown.
Cash flow from operating segment is almost equivalent to the profit. The same has been showed via Graphs given in the report.
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