KV Toys India Ltd. IPO

Vedant Poly Fabs

• Vedant Poly Fabs is coming out with an initial public offering (IPO) of 60,30,000 shares in a price band of Rs 88-94 per equity share.
• The issue will open on November 2, 2026 and will close on November 4, 2026.
• The shares will be listed on Emerge Platform of NSE.
• The face value of the share is Rs 10 and is priced 8.80 times of its face value on the lower side and 9.40 times on the higher side.
• Book running lead manager to the issue is Affinity Global Capital Market.
• Compliance Officer for the issue is Sourindra Nath Mukherjee.

Profile of the company

Vedant Poly Fabs is engaged in the manufacturing of flexible packaging materials and operate as a business-to-business (B2B) supplier to customers across India. The company’s product portfolio includes multilayer Low-Density (LD) films such as 3-layer and 5-layer films, shrink films, barrier films, printed laminates, and milk and oil pouches. These products are used for packaging applications across industries, including food and beverages and other consumer products.

The company manufactures products based on customer specifications, including size, thickness, material composition and printing requirements. Its operations are carried out through multiple stages such as extrusion, printing, lamination, slitting and pouching at its manufacturing facility. The company’s facility is equipped with the necessary machinery to undertake these processes within its premises, including multilayer extrusion machines and printing machines such as CI (Central Impression) flexo and rotogravure. This enables it to carry out manufacturing activities in an integrated manner and cater to varied product requirements.

The company’s products are supplied to customers for packaging and distribution of their products across various industries. Its business model involves direct interaction with customers to understand their packaging requirements. It generally receives orders through verbal communications from customers and undertakes manufacturing based on the specifications communicated by them, including product dimensions, material composition, printing requirements, quantities and delivery schedules. 

Proceed is being used for:

• Meeting the working capital requirements 
• Prepayment or repayment of all or a portion of certain secured or/and unsecured outstanding borrowings availed by the company 
• Funding capital expenditure for purchase and installation of plant and machinery at its existing manufacturing facility 
• General corporate purpose
• Meeting the offer expenses

Industry Overview

The India packaging market size is valued at $101.12 billion in 2025 and is forecast to reach $169.73 billion by 2030, advancing at a 10.73% CAGR. The India packaging market is shifting from commodity containers to technology-enabled solutions as Extended Producer Responsibility (EPR) rules demand 30% recycled content in rigid plastics by 2025 and 60% by 2029. Quick-commerce operators in tier-1 cities, rising exports of generic medicines, and consumer preference for sustainably sourced materials are expanding the India packaging market into new substrates, barrier coatings, and distribution models. Capital flows are accelerating as private equity groups finance consolidations that help converters fund automation, closed-loop recycling, and advanced analytics. Paperboard and compostable films are winning share as multinationals align procurement with global decarbonization targets, while domestic brands adapt pack formats for rural cold-chain gaps and multilingual labelling. Competition is also intensifying in bottle-to-bottle PET where joint ventures between global resin majors and local recyclers are scaling facilities close to Western and Southern manufacturing hubs.

The India Flexible Packaging Market size is worth $20.41 billion in 2025, growing at an 11.46% CAGR and is forecast to hit $35.11 billion by 2030. The increasing demand for lightweight and convenient packaging solutions is a primary driver, as consumers seek products that are easy to handle and store. Rising consumer awareness of sustainability issues has also led to a preference for eco-friendly packaging options. Technological advancements in the packaging industry have significantly improved shelf life and product protection, making flexible packaging more attractive to manufacturers. Flexible plastic packaging dominates India's plastic packaging market, comprising 75% of total usage. The FMCG sector prefers this packaging type for its versatility and cost-effectiveness. Small-scale manufacturers, focusing on cost, produce diverse multi-layered packaging compositions. This results in a wide range of non-recyclable flexible packaging entering the market.

In 2025, the global mono-material packaging market is valued at $4.9 billion and is likely to reach $7.8 billion by 2035, growing at a CAGR of 4.8%. This expansion underscores increasing demand for recyclable, low-complexity packaging formats. The mono-material packaging market is reshaping packaging systems globally, with current adoption rates reflecting changing priorities. In flexible packaging, mono-materials now account for 28-32% of the market, becoming the top choice for brands moving away from complex laminates. The food sector shows 22-25% uptake, especially for dry goods and dairy, while consumer goods reach 18-20%, driven by premium segments. Notably, mono-materials make up 35-40% of new packaging developments worldwide. Europe leads with 50-55% market presence, while North America follows at 35-40%. Asia’s 20-25% share is expanding quickly, supported by supply chain shifts. Growth continues at 14-16% annually, with mono-materials expected to dominate 60% of eco-friendly packaging by 2030. Advances in high-performance mono-material films and recycling technologies are accelerating this shift, alongside stricter regulations and corporate environmental goals. 

Pros and strengths

Integrated manufacturing operations: The company carries out its manufacturing operations at its in-house facility, where multiple stages of the production process are undertaken within its premises. These include extrusion of films, printing, lamination, slitting and rewinding. Undertaking these processes within a single facility enables it to coordinate production activities across different stages and align them with customer requirements. It also allows it to manage the flow of materials from initial processing to final finished products in a structured manner. The company’s integrated manufacturing setup supports monitoring and control across production stages and enables it to plan and execute production in accordance with customer specifications.

Quality control mechanism: The company’s manufacturing operations are supported by an in-house laboratory equipped with various testing instruments for evaluating the quality and performance of its products. It undertakes quality checks at various stages of the manufacturing process, including in-process checks and testing of semi-finished and finished products, in accordance with internal standards and applicable industry requirements.

Diversified product portfolio and product development capabilities: The company manufactures a range of flexible packaging products, including multilayer LD films, printed laminates and pouches, which are used across various packaging applications in industries such as food and beverages and other consumer products. The company’s product portfolio enables it to cater to varied customer requirements across applications and reduces dependence on any single product category. It undertakes product development based on customer specifications, including introduction of new designs and product variations in terms of size, thickness, material composition and printing.

Risks and concerns  

High dependence on key raw material suppliers: The company is dependent on its key suppliers for uninterrupted supply of Raw-Materials. The company has procured 77.03%, 49.06% and 26.46% of its raw material from top 5 suppliers in FY26, FY25 and FY24 respectively. Any shortfall in the supply of its raw materials, or an increase in its raw material costs and other input costs, may adversely affect the pricing and supply of its products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.

Dependence on limited number of customers: The company has derived a substantial portion of its revenue from a limited number of key customers. Its top ten customers have contributed 79.33%, 69.64%, 30.15% and 13.49% of its total sales for the financial period April 01, 2026- June 30, 2026 and for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 on Restated Standalone Basis. The loss of any significant customers may have a material and adverse effect on its business and results of operations.

Geographical concentration of revenue in West Bengal: Significant portion of the company’s revenue is concentrated in West Bengal. The company has garnered 95.81%, 96.80%, 97.90% and 98.64% of its total revenue from West Bengal for the financial period April 01, 2026- June 30, 2026 and for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively. Any factors relating to political and geographical changes, growing competition and any change in the demand for its service by customers of these states may adversely affect its ability to retain them. The company cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

Outlook

Vedant Poly Fabs is engaged in the manufacturing of flexible packaging materials for businesses across India. The company operates as a B2B supplier and offers a diverse range of packaging products, including 3-layer and 5-layer LD films, shrink films, barrier films, printed laminates, and milk and oil pouches, catering to industries such as food & beverages and other consumer goods. The company has integrated manufacturing operations and has diversified flexible packaging product portfolio. On the concern side, the company faces risks arising from its significant dependence on a limited number of key suppliers and customers, exposing it to potential supply disruptions, rising input costs and loss of revenue. Further, its revenue concentration in West Bengal exposes it to regional, political and competitive risks. Any adverse developments in these areas may negatively impact its business operations, financial condition and profitability.

The company is coming out with a maiden IPO of 60,30,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 88-94 per equity share. The aggregate size of the offer is around Rs 53.06 crore to Rs 56.68 crore based on lower and upper price band respectively. On performance front, the revenue from operations for Financial Year 2025-26 stood at Rs 11,513.91 lakh as against Rs 8,102.12 lakh in Financial Year 2024-25, representing an increase of 42.11%. Moreover, the company’s reported PAT of Rs 1,096.62 lakh in FY 2025-26, marking an increase of 140.45% compared to Rs 456.06 lakh in FY 2024-25.

Meanwhile, the company supplies its products directly to customers without reliance on intermediary distributors or agents. This enables it to engage directly with customers, understand their requirements and align its offerings accordingly. The company’s direct sales model supports better coordination in relation to product specifications and order execution, and enables it to respond to customer requirements in a timely manner. The company has developed business relationships with several of its customers over the years and receive repeat orders from such customers based on their packaging requirements. The company’s direct interaction with customers enables it to understand their requirements and support timely execution of orders.

The government approved an increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2027-28. The highest absolute increase in MSP has been announced for safflower at Rs 675 per quintal. Safflower MSP has been increased to Rs 7,215 per quintal from Rs 6,540 per quintal in previous year. This is followed by rapeseed & mustard MSP increased by Rs 413 per quintal to Rs 6,613 per quintal, lentil (masur) by Rs 390 per quintal to Rs 7,390 per quintal, and barley by Rs 136 per quintal to Rs 2,286 per quintal. 

Further, MSP for wheat has been increased by Rs 25 per quintal to Rs 2,610 per quintal for Marketing Season 2027-28 form Rs 2,585 per quintal in 2026-27. Also, gram MSPs has been increased by Rs 83 per quintal to Rs 5,958 per quintal compared with Rs 5,875 per quintal in the previous year.

In terms of returns over the cost of production, wheat records the highest estimated margin at 106%, followed by rapeseed and mustard at 96%, lentil (masur) at 92%, and gram at 59%. During the Rabi Marketing Season (RMS) 2027-28, an estimated Rs 90,962 crore is expected to be paid to farmers for 324 lakh metric tonnes (MT) of produce. The enhanced MSPs for rabi crops are intended to ensure remunerative prices for farmers while incentivizing crop diversification.