Management

• Kailesh Punamchand Shah (Chairman and Managing Director)
• Bhupesh Punamchand Shah (Whole-time Director)
• Nilesh Punamchand Shah (Whole-time Director)
• Belur Krishna Murthy Sethuram (Independent Director)
• Lakshmi Nadkarni (Independent Director)
• Shrinivas Damodar Joshi (Independent Director)
• Manish Gattani (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 400.60 cr, which comprises of fresh issue of Rs 280 cr and offer for sale (OFS) of Rs 120.60 cr. The company intends to utilize a portion of the net proceeds towards Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company. (Rs 143 cr), Purchase of equipment and machinery for the Manekpur Facility (Rs 113.71 cr), and the rest for general corporate purposes

Competitive Strengths

Strategic and Integrated Manufacturing The company operates three fully integrated manufacturing facilities located in Daman, Silvassa, and Manekpur, Gujarat. These facilities are strategically situated in western India, close to key ports such as Nhava Sheva and Hazira, which are approximately 200 km and 150 km away, respectively. This proximity allows for efficient product exports and timely receipt of raw materials from foreign suppliers. The facilities are also near the Tumb inland container depot and various petrochemical plants, ensuring easy access to essential raw materials. Upcoming infrastructure projects like the Delhi Mumbai Industrial Corridor are expected to further reduce lead times and lower transportation costs.

Advanced Technology and Quality Control The manufacturing facilities are designed for high-volume, low-cost, and high-quality production. They feature seamless integration of "all electrical" machines, robotics, and automated assembly systems. As of March 31, 2025, over 70% of the injection molding machines were advanced "all electrical" models from Japanese manufacturers, which offer faster cycle times, increased output, and power savings. The facilities also utilize modern machinery like pad printing and automatic packing machines. A barcode labeling and ERP system tracks product movement, and real-time production monitoring and warehouse management systems optimize efficiency. All three facilities are certified under the ISO 9001:2015 Quality Management System.

Wide Product Range and In-house Design The company offers a wide and growing range of plastic consumerware products, with 1,848 SKUs across eight categories as of March 31, 2025. It leverages its in-house product and mould design teams to launch new products and cater to evolving customer demands. The product design team, established over 20 years ago, creates customized designs and prototypes based on customer requests and global trends, which helps attract repeat orders. The in-house mould design team also facilitates innovation and customization, ensuring high-quality control by tailoring moulds to precise specifications. This capability allows the company to develop new product lines and improve existing ones.

Strong Relationships with Key Retailers The company has built long-standing relationships with major global and Indian retailers. It has supplied products to IKEA, its largest customer, for over 27 years and to Asda for more than 14 years. Other key customers include Tesco for over 17 years and Michaels for more than four years. The company distributes products to IKEA through 40 distribution centers, supplying 464 stores in 58 countries. These long-term partnerships with leading retailers like IKEA, Asda, Michaels, and Tesco demonstrate the company’s reliability and strong market position. The company also supplies products to Indian retailers such as Spencer’s Retail Limited.

Experienced Leadership and Financial Performance The company is led by an experienced management team, including promoters Kailesh Punamchand Shah, Bhupesh Punamchand Shah, and Nilesh Punamchand Shah, who each have over 40 years of experience in the consumerware industry. Their expertise spans all facets of the business, from design and manufacturing to distribution and customer relationships. Their leadership has been instrumental in the company’s growth. This is reflected in the company’s financial performance, with revenue from operations, EBITDA, and profit for the year showing strong compound annual growth rates (CAGR) from Fiscal 2023 to Fiscal 2025. The company’s Return on Equity (ROE), EBITDA Margin, and Return on Capital Employed (ROCE) are among the highest in the industry.

Peer Comparison

Key Risks & Concerns

• The company's business relies heavily on a small number of customers, particularly its top four. In the last three fiscal years, the largest customer alone accounted for roughly 60% of the company's total revenue. Combined, the top four customers made up over 78% of the revenue. Losing any of these key customers, or seeing a significant drop in their orders, would have a major negative impact on the company's finances and overall business operations.
• Another risk is that the company does not have long-term sales agreements with most of its customers. This means that if customers decide to stop buying products from the company, it could severely affect the company's business, financial health, and cash flow.
• To secure better prices, the company purchases a large volume of its raw and packing materials from a limited number of suppliers. The top supplier alone accounted for over 21% of these costs in the most recent fiscal year, while the top 10 suppliers made up more than 73%. If any of these top suppliers were to stop providing materials in the necessary quantities, and the company could not find a replacement, it would have a significant negative effect on the business, financial condition, and cash flow.

Outlook and Valuation

The global consumerware market is poised for significant growth, with the plastic houseware segment projected to reach a value of $41.2 billion by 2029. This presents a substantial opportunity for the company, especially as it plans to increase production capacity at its Manekpur facility to 16,500 tonnes per annum by the end of fiscal 2026, and eventually to 22,500 tonnes. The Indian consumerware export market is also expected to grow, boosted by the "China Plus One" strategy, which encourages companies to diversify their supply chains. The company is strategically positioned to capitalize on these trends through its ambitious expansion plans.

The company is actively investing in advanced technology and digital innovation to enhance its manufacturing capabilities. It plans to adopt Industry 4.0 standards at its Manekpur facility with new software tools, which will streamline mould design, reduce testing times, and lower product rejection rates. The company is also enhancing its in-house mould development capabilities to improve efficiency and reduce reliance on third-party suppliers, which will help accelerate product launches. Furthermore, it intends to upgrade its existing facilities and gradually replace older machinery with new, all-electric machines to drive digital innovation and optimize operational efficiency.

To capture new market opportunities, the company is expanding its product offerings into new categories like hydration products, which are projected to see strong growth in India. It is also exploring silicon-based parts for its "Junior" product range and expanding into the baking products category. Additionally, the company is diversifying into sustainable bamboo homeware products to meet rising consumer demand for eco-friendly goods. It has launched a pilot project for bamboo manufacturing in Guwahati, Assam, with a plan to begin commercial production in the third quarter of fiscal 2026 if the project is successful. Shailly Engineering Plastic commands a high margin on account of its exposure in high-margin Pharma packaging & devices business. In contrast, ATPL functions within a high-volume plastic houseware sector, characterized by stable yet structurally limited margins. Shailly Engineering Plastic is a more innovation-driven business. ATPL is a commodity-driven business. The company is valued at a P/E multiple of 38x for FY25, based on the upper price band. We believe that the IPO is fully priced. Manekpur expansion and bamboo diversification are already factored into the valuation. At present, we suggest avoid rating for the issue, we will assess the stock after its earnings following the listing.