Content

  1. 1DALMIA LAMINATORS LIMITED Essentials
    1. 1.1 DALMIA LAMINATORS LIMITED ISIN
    2. 1.2 DALMIA LAMINATORS LIMITED Face Value
    3. 1.3 DALMIA LAMINATORS LIMITED Total Share
    4. 1.4 DALMIA LAMINATORS LIMITED Total Income
    5. 1.5 DALMIA LAMINATORS LIMITED Profit After Tax
    6. 1.6 DALMIA LAMINATORS LIMITED Promoter Holding
    7. 1.7 DALMIA LAMINATORS LIMITED EPS
    8. 1.8 DALMIA LAMINATORS LIMITED P/E
    9. 1.9 DALMIA LAMINATORS LIMITED P/B
    10. 2.0 DALMIA LAMINATORS LIMITED Market Capitalisation
    11. 2.1 DALMIA LAMINATORS LIMITED Enterprise Value
    12. 2.2 DALMIA LAMINATORS LIMITED Book Value
    13. 2.3 DALMIA LAMINATORS LIMITED Intrinsic Value
    14. 2.4 DALMIA LAMINATORS LIMITED Earnings Yield
    15. 2.5 DALMIA LAMINATORS LIMITED Dividend Yield
    16. 2.6 DALMIA LAMINATORS LIMITED Sector
    17. 2.7 DALMIA LAMINATORS LIMITED Sub-sector
    18. 2.8 DALMIA LAMINATORS LIMITED Category
    19. 2.9 DALMIA LAMINATORS LIMITED Cashflow - Operations
    20. 3.0 DALMIA LAMINATORS LIMITED Cashflow - Financing
  2. 2DALMIA LAMINATORS LIMITED Growth
    1. 2.1 DALMIA LAMINATORS LIMITED Compounded Sales Growth
    2. 2.2 DALMIA LAMINATORS LIMITED Compounded Profit Growth
    3. 2.3 DALMIA LAMINATORS LIMITED Return On Equity
  3. 3 About DALMIA LAMINATORS LIMITED
  4. 4 DALMIA LAMINATORS LIMITED IPO Details
  5. 5 DALMIA LAMINATORS LIMITED Funding
  6. 6 DALMIA LAMINATORS LIMITED Merger & Acquisition
    1. 6.1 DALMIA LAMINATORS LIMITED Merger
    2. 6.2 DALMIA LAMINATORS LIMITED Acquisition
    3. 6.3 DALMIA LAMINATORS LIMITED Investments
  7. 7 DALMIA LAMINATORS LIMITED Subsidiaries
  8. 8 DALMIA LAMINATORS LIMITED Business Model
  9. 9 DALMIA LAMINATORS LIMITED Revenue Segmentation
  10. 10 DALMIA LAMINATORS LIMITED Product & Services
  11. 11 DALMIA LAMINATORS LIMITED Assets
  12. 12 DALMIA LAMINATORS LIMITED Industry Overview
    1. 12.1 DALMIA LAMINATORS LIMITED Industry Statistics
    2. 12.2 DALMIA LAMINATORS LIMITED Future Prospects
    3. 12.3 DALMIA LAMINATORS LIMITED Government Initiatives
  13. 13 DALMIA LAMINATORS LIMITED Awards & Achievements
  14. 14 DALMIA LAMINATORS LIMITED SWOT
    1. 14.1 DALMIA LAMINATORS LIMITED Strengths
    2. 14.2 DALMIA LAMINATORS LIMITED Shortcomings
    3. 14.3 DALMIA LAMINATORS LIMITED Opportunities
    4. 14.4 DALMIA LAMINATORS LIMITED Government Threats
  15. 15 DALMIA LAMINATORS LIMITED Rating
  16. 16 DALMIA LAMINATORS LIMITED Detail Info

DALMIA LAMINATORS LIMITED Essentials

ISIN

INE791D01010

Face Value

₹10.00

Total Share

40,85,000

Total Income

₹372.03 Cr

Profit After Tax

₹10.15 Cr

EPS

₹24.85

P/E

13.28

P/B

0.85

Market Capitalisation

₹134.80 Cr

Enterprise Value

₹349.91 Cr

Book Value

₹386.98

Intrinsic Value

₹694.50

Earnings Yield

7.53 %

Sector

Materials

Sub-sector

Pakaging

Category

Micro Cap

Cashflow - Operations

₹19.34 Cr

Cashflow - Financing

-₹9.88 Cr

DALMIA LAMINATORS LIMITED Growth

Compounded Sales Growth

  • 36.31%

    1 Year

  • 7.94%

    3 Year

  • 7.90%

    5 Year

Pro Only

Compounded Profit Growth

  • 19.64%

    1 Year

  • 5.70%

    3 Year

  • 14.65%

    5 Year

Pro Only

Return On Equity

  • 6.42%

    2022

  • 7.54%

    2020

  • 5.12%

    2018

Pro Only

About DALMIA LAMINATORS LIMITED

  • Dalmia Laminators Private Limited is primarily engaged in manufacturing Plastic Woven Sacks (PWS), used for bulk packaging of Cement, fertilizers, Food grains & Sugar, Chemicals and other commodities and in the manufacture and cultivation of tea. The Group is a public company domiciled in India and was incorporated on 03, March 1986.
  • The company has a proven track record of supplying to some of the largest players in the cement (Ultratech), fertiliser and petrochemical industries. It is one of the largest players in the PWS industry with an installed capacity of 28,000 MTPA
  • The company has 2 manufacturing facilities compliant with international standards spread over an area of about 16000 sq. mt in Tamil Nadu, while another 1 in Andhra Pradesh spread over 24000 sq. mt.
  • The company is a subsidiary of Dalmia Group which deals in bought tea leaves segment.
  • Vijay Dalmia and Manish Dalmia hold 31.83% of the company through MANISH CO PVT LTD (U51909WB1979PTC032027). Other promoters include members of the ML Dalmia group. 


  • DALMIA LAMINATORS LIMITED IPO Details

  • The company has no plans for IPO as of now.

  • DALMIA LAMINATORS LIMITED Subsidiaries

  • The company do not have any subsidiary company. However, it has a 26% holding in Dalmia Tea Plantation & Industries Limited and a 26.5% holding in Bateli Tea Co Ltd.

DALMIA LAMINATORS LIMITED Business Model



  • DALMIA LAMINATORS LIMITED Revenue Segmentation

  • Revenue generated from sale of Merchandise (HDPE/PP Sacks)
  • Revenue generated from other sources
  • DALMIA LAMINATORS LIMITED Product & Services

  • The Company is engaged in the business of manufacturing Plastic Woven Sacks (PWS), normally known as Raffia bags. It is one of the leading producers of Woven sacks manufacturing both HDPE (High-density polyethene) and P.P (Polypropelene). Woven sacks are used for bulk packaging of Cement, fertilizers, Food grains & Sugar, Chemicals and other commodities. Depending on end use these are either laminated or supplied without lamination.
  • DALMIA LAMINATORS LIMITED Assets

The company has the following assets as of 31.03.2022: 



Particulars Amount (in ₹ Cr.)
Office Building
70.5
Land25.1
Factory1.0
Other Plant and Equipment32.8
Vehicles1.5
Furniture and fixtures1
Office equipment0.1
Cash5.4
Total137.4





  • DALMIA LAMINATORS LIMITED Industry Overview

Industry Statistics

Economic Overview:

  • According to the most recent IMF projections, the world economy would expand by 3.6% in 2022 and 2023. The Indian economy expanded by a robust 8.7% in the financial year 2021–2022, as opposed to a decrease of 6.6% in the financial year 2020–2021, according to the Central Statistical Office (CSO), indicating that pre-pandemic levels of economic activity have been surpassed in India. 
  • However, in the latter half of the FY 2021-2022, India’s growth prediction for 2022–23 (FY23) was reduced by 140 basis points to 6.8% by the International Monetary Fund (IMF), which cited less favourable external conditions and the central bank’s quickening of policy tightening. 2022 Projected Consumer Prices remained at 6.9%.
  • The Repo rate was hiked in a phased manner to 6.25% (December 2022) by the RBI adapting to the hawkish needs of the market and to counter rising inflation which cooled off to 5.88% (retail CPI) by November. An impending revival in demand, positive consumption pattern and rising disposable income makes India the most sought-after investment destination.
  • Already the fifth largest economy in the world, India is reasonably expected to take its place among the world’s top three economic powers in the next 10-15 years. It is also a global supplier, with India’s polymer exports totalling some 1.5 million metric tons in 2021.


Industry Overview:

  • Woven fabric is a textile formed by weaving. It is produced on a loom and made of many threads woven on a warp and a weft. Woven High-density polyethylene/HDPE bags or simply woven PP (Polypropylene)/HDPE bags are considered to be the toughest packaging bags, widely used to pack materials for grain, milling and sugar industries.
  • HDPE/PP-oriented strips are becoming increasingly popular in India & have caught the eye of many end users for their requirement for packing materials. PP/HDPE woven sacks laminated with LDPE/PP liner have wider applications. HDPE woven sacks are much stronger & can withstand much higher impact loads because of HDPE strip's elongation at break is about 15- 25% as compared to 30% of Jute. These sacks are much cleaner & resist fungal attacks. Jute prices are very unstable in the market since Jute is an agricultural product. These sacks have many advantages over other conventional sacks materials & are quite competitive in price.
  • By product type, The polypropylene woven bags and sacks market is segmented into laminated polypropylene woven bags and non-laminated polypropylene woven bags. The laminated polypropylene woven bags and sacks market is further sub-segmented into Kraft paper laminate and BOPP Laminate. On the basis of end users, the polypropylene woven bags and sacks market is segmented into building & construction, agriculture & allied industries, food, retail and shopping and others


Classification of Industry:

  • Polyethylene is a petroleum-based synthetic fibre widely used to make fabrics and materials in various industries, including fashion, similar to other plastic fabrics such as polyester, nylon, acrylic, and polypropylene. Polyethylene fibre is a common ingredient found in ropes, carpeting, upholstery, bags, packaging, apparel, textiles, wallpapers, draperies, curtains, and cosmetics. 


The various types of polyethylene fiber include:

TypeDensity (gm/cm3)Manufacturing Application
Very-low-density polyethylene (VLDPE)
0.880-0.915
packaging, stretch wraps, and plastic film applications.
Low-density polyethylene (LDPE)
0.910-0.940
rigid containers and plastic bags.
Linear low-density polyethylene (LLDPE)
0.915-0.925 
packaging, films, bags, and sheets.
Medium-density polyethylene (MDPE) 
0.926-0.940 
packaging, films, bags, and pipes.
Cross-linked polyethylene (PEX or XLPE)
High-Temperature Applications
High-density polyethylene (HDPE)
0.941
packaging, bottles, tubes, containers, and pipes.
Ultra-high-molecular-weight polyethylene (UHMWPE) 
3.5 and 7.5 million Atomic Mass Units
bulletproof vests and other high-performance equipment, including machine parts, bearings, gears, cables, and joints.
Market Size:

  • In the financial year 2021-2022, the total demand for major plastics (excluding engineering plastics and thermosets) across India was approximately 15 million tons, out of which polyethene types accounted for roughly six million metric tons.
  • The Indian Packaging market was valued at 323,417.8 million units in 2018. Polyethylene makes up 60% on an average of the total demand from the Indian plastic market. Packaging was the main application for polyethylene (PE) use in India in the financial year 2022.
  • Thermoplastic demand in India totalled 19.3 million tons in the financial year 2022.
  • Polypropylene (PP) had the largest share of demand that year at 24% or 6.1 million tons. High-density polyethylene (HDPE) and Linear low-density polyethylene (LLDPE) followed, with a combined share of 38%.



    The industry is dependent on the performance of core sectors like agriculture, fertilizer, cement and exports, hence it becomes imperative to understand the performance of these industries. The policy changes in infrastructure and good monsoons during the year have generally been an added contributing factor for the industry.


    Performance of the Cement industry:

    • India is the second largest cement producer in the world and accounted for over 7% of the global installed capacity. At present, the Installed capacity of cement in India is 500 MTPA with a production of 298 MTPA, which is expected to increase at a CAGR of 5.65% between FY16-22, driven by demands in roads, urban infrastructure and commercial real estate.
    • The consumption of cement in India is expected to grow at a CAGR of 5.68% from FY16 to FY22. As per Crisil Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the highest in the last 10 years, driven by increasing spending on housing and infrastructure activities.



    Performance of the Fertilizer industry:

    • The Indian fertilizer market size reached ₹ 898.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach ₹ 1,188.3 Billion by 2028, exhibiting a growth rate (CAGR) of 4.85% during 2023-2028.
    • In the financial year 2022, over 42 million metric tons of fertilizers were produced in India. Fertilizer production in India peaked in the financial year 2020 at over 46 million metric tons. During the last few years, there has been a favourable policy environment facilitating investments in the public, cooperative and private sectors. 


    Performance of the Agriculture industry:

    • India has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar.
    • The production of rice was the highest with over 127 million metric tons in the fiscal year 2022 across India among the other food grains.
    • The production of wheat saw the second-highest volume after rice. Further, as per industry body ISMA (Indian Sugar Mills Association), the country's sugar production is projected to be 36.5 million tonnes in the 2022-23 marketing season, an increase of 2 per cent compared to the year-ago period(Source: ET)



    Key Drivers:

    • Resource procurement: Among the industry’s major strengths is the availability of raw materials in the country. Thus, plastic processors do not have to depend on imports. These raw materials, including polypropylene, high-density polyethylene, low-density polyethylene and PVC, are manufactured domestically.
    • Pro-Industry Climate: India is ready to have 18 plastic parks and Government will be investing Rs 40 crore (US$ 6.2 million) to increase the domestic production of plastics. This will achieve environmentally sustainable growth and increase employment. 
    • Emerging Possibilities: The country is emerging as the most favoured destination for organized retail destination in the world. And also the presence of E-commerce is expanding rapidly and is bringing about a revolution in the retail industry. Retailers are now leveraging digital retail channels thereby enabling a wider reach out to customers with less amount of money spent on real estate.
    • Tailwinds: The technical textile sector will open up new growth opportunities. The Indian technical textiles market is expected to expand to US$ 23.3 billion by 2027, driven by increased awareness of goods and higher disposable incomes. Production-linked Incentive (PLI) Scheme for technical textiles and manufactured fibres worth ₹ 10,683 crores (US$ 1.44 billion) during a five-year period. The program’s incentives will be accessible for five years, from 2025–2026 to 2029–2030, based on the additional turnover reached between the year 2024–2025 and 2028–2029 The programme aims to promote MMF (manmade fibre) clothing, MMF fabrics, and ten categories of technological textile items. The overall budget for the textile industry for the Union Budget 2022–23 was ₹ 12,382 crore ($1.62 billion). Out of this,  ₹ 133.83 crores (US$ 17.5 million) is designated for the “Textile Cluster Development Scheme,” ₹ 100 crores (US$ 13.07 million) is designated for the “National Technical Textiles Mission,” and ₹ 15 crores (US$ 1.96 million) is designated for the “PM Mega Integrated Textile Region and Apparel Parks Scheme.”
    • Macro Weather Forecast: One of the biggest industries in India is the plastics market. More than 2,000 exporters work in the sector, which is widespread across the nation. In 4-5 years, the Indian government hopes to increase the economic activity in the plastic industry from its current level of  ₹3 lakh crores (US$ 37.8 billion) to ₹10 lakh crores (US$ 126 billion). India saw a significant increase in exports over 2020–21 in terms of value. Overall, the overall exports of plastics in 2021–22 saw a high increase and rose by 35.4% from the previous year. In comparison to 2020–21, the exports of FRP and composites, pipes and fittings, and human hair all climbed by 100%, 67%, and 48%, respectively. India’s Ministry of Commerce & Industry wants to double its plastic exports to $25 billion by 2025. To increase the nation’s output of plastic production, numerous plastic parks are being established in it gradually. 


    Hindrances: Jute is the chief competitor of HDPE/PP/other MMT(Man-made Textile) used in bulk packaging.


    JUTE PPIHDPE WOVEN SACKS
    Heavier as compared to PP and HDPE Light in weight
    Susceptible to insect infestation Not susceptible to insect infestation
    Mote cost as against PIVHDPE Cost-effective
    U.V degradation U.V resistant


    6. Peers: Following is a comparison of the company with respect to some of the listed players using widely used KPIs:


    Scrip Market Cap (₹ Cr.) 2022 Sales (₹ Cr.) 5yr Sales CAGR 5yr NPM CAGR Average yearly EBIT margin PE DE ROE
    Jumbo Bag 20 201.54 6% 9% 6% 17 1.3 14%
    Gujarat Craft Industries Ltd 45.7 170.8 12% 44% 8% 9.5 0.68 16%
    Dalmia Laminators 134.8 207.73 8% 15% 13% 13.3 1.24 6%
    Shree Tirupati Balajee FIBC Ltd 171 197.76 23% 18% 7% 10.46 0.88 14%

Future Prospects

  • Industry: The Indian Packaging industry is estimated to grow at a CAGR of 6.7% to reach 446,815.8 million units in 2023 (Source:https://www.globaldata.com/store/report/trends-and-opportunities-in-the-indian-packaging-industry).
  • Macro and Market: Higher disposable incomes, altered consumer behaviour, and other sector-specific development factors are anticipated to increase the Asia-Pacific region’s technical textiles market in India from US$ 14 billion in 2020 to US$ 23.3 billion in 2027.  Likewise, the Market growth for industrial textiles is anticipated to reach US$ 3.3 billion in 2027, rising at an 8% CAGR from US$ 2 billion in 2020.
  • Catalyst: Focus of the government on infrastructure projects will increase the demand for cement and thereby drive the demand for the product offered by the company.
  • Economy: Increasing demand for fertilizers in India will drive the demand for the product offered by the company.

Government Initiatives

  • The government has been entrusted with strengthening India’s technical textile industry by allocating 207 Harmonized System Nomenclature (HSN). 377 technical textile goods were created in accordance with the Bureau of Indian Standards as of November 2021. (BIS). Six extra technical textiles courses were added by the government to its Samarth skill development initiative. The Minister of Textiles provided an overview of her goals for the development of the technical textiles sector in India as part of the Atmanirbhar Bharat Abhiyan in April while addressing a webinar hosted by the Swarajya Magazine in collaboration with Vedanta Resources.
  • Result of government initiatives like “Digital India,” “Make in India,” and “Skill India.” For instance, as part of the “Digital India” programme, the government seeks to lessen the reliance on imports of goods from other nations, which will benefit domestic producers of plastic components. The government has started a programme to establish Centers of Excellence (CoEs) to advance the nation’s petrochemical research environment and develop the industry’s current technology. This will help the nation promote and create new uses for plastics and polymers. A total of 23 Central Institute of Plastics Engineering & Technology (CIPET) campuses have also received approval to expedite financial and technological cooperation for the promotion of skills in the chemicals and petrochemicals sector. (Source:https://www.ibef.org/exports/plastic-industryindia)

DALMIA LAMINATORS LIMITED Strengths

  • Marquee Clientele: The company has an excellent customer base with various blue chip Companies viz. Indian Oil, GAIL, Ultratech, etc. 
  • Operating Efficiency: The company enjoys a significant discount on one of the key input costs viz., consumption of electricity owing to its purchase agreement with Indian Energy Exchange.
  • Competence: The senior management team is well experienced in this industry and in the marketing and distribution initiatives in this sector.
  • Assets: The company has 3 state-of-the-art manufacturing facilities in Tamil Nadu and Andhra Pradesh cumulatively spanning over 56,000 sq. mt.

DALMIA LAMINATORS LIMITED Shortcomings

  • Volatility in Procurement: Price fluctuation of petroleum products in the international market affects the industry.
  • Bargaining Power: Domestic markets are more sensitive to price than quality. 
  • Seasonal Variations: The migratory workforce is a contributing factor to increased unreliability.
  • Operations: The company needs to work on its inventory management.

DALMIA LAMINATORS LIMITED Opportunities

  • Supply vs Demand: The shortage of supply coupled with high pricing power provides a massive opportunity for the company as a supplier of cost-effective and readily available packaging material for food grains. There is terrible potential for improvement of profitability margins via scaling up and upgrading technologies of production.
  • Gov-support: The pro-business Government’s thrust on implementing stuck infrastructural projects and initiating new projects is expected to drive the demand. 
  • Winds of change?: Limitations on jute packaging have led to the drastic expansion of its scope in retail, export, grains and ready-to-wear garments. (Source: Technology Information Forecasting and Assessment Council https://tifac.org.in/index.php/programmes/activities/8-publication/93-packaging-tech-hdpe-bags-vs-jute-bags?start=4 ) 

DALMIA LAMINATORS LIMITED Threats

  • Growing competition be it the threat of cheap import or from other similar manufacturers as well as other manufacturers of bags of different materials, i.e. Jute and Paper can affect profitability.
  • Changes in government policy towards eco-friendly alternatives like jute or paper bags may alter market dynamics unfavourably.


DALMIA LAMINATORS LIMITED Rating

  • RECOMMENDATION

    Buy

  • DALMIA LAMINATORS LIMITED Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

20/12/2022

Registered Date

03/03/1986

Planify Ticker

DL

Reg Office: 130, Cotton St, Raja Katra, Bara Bazar, Barabazar Market, Kolkata, West Bengal 700007

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