Manika Plastech Ltd. IPO

Manika Plastech

• Manika Plastech is coming out with a 100% book building; initial public offering (IPO) of 3,07,99,418 shares of face value Rs 2 each in a price band Rs 40-43 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 11, 2026 and will close on September 16, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 20.00 times of its face value on the lower side and 21.50 times on the higher side.
• Book running lead manager to the issue is Pantomath Capital Advisors.
• Compliance officer for the issue is Karishma Himatbhai Waghela. 

Profile of the company

Manika Plastech is a design-led, precision engineered, rigid polymer packaging manufacturing company, catering to diversified critical industries such as energy storage, dairy and edible food products, paints, and chemicals. The company’s products are designed and developed in-house, with 30 designs registered as unique intellectual property, under the Designs Act, 2000 and the Designs Rules, 2001.

With focus on application specific performance, durability, product safety and efficiency, the company has its product portfolio built around precision engineered solutions such as high-performance battery casings, pail & thinwall containers, each tailoring to serve industrial and consumer use cases. These products and services cater to a broad spectrum of industries, including automotive, energy storage, telecommunications, paints, lubricants, agrochemicals, construction chemicals, food, and dairy, among others. The company undertakes production in injection moulded, rigid polymer components, such as precision battery casings that are integral to the performance and durability of energy storage systems. It also manufactures pails and thin wall containers. While pails serve packaging needs across paints, lubricants, and industrial chemicals, the food grade thinwall containers are used for secure packaging and distribution of dairy and edible products. The packaging is designed to align with the shelf life of the product it holds, ensuring that its structural strength, ability to protect, and ease of handling are maintained throughout the product’s expected lifecycle, across different end use environment.

The company provides RPP solutions to its customers, starting from design to development, sourcing raw materials, manufacturing, heat sealing, labelling, quality assurance and to delivery. Over the years, it has developed the capability of providing its customers with customized packaging products. Its facilities are equipped to design automotive battery casings compliant with Japanese and German technical standards developed and published by Japanese Industrial Standards (JIS) and Deutsches Institut Fur Normung (DIN), respectively which enables it to align its products with the final product specifications and quality requirements of its customers. JIS and DIN ensure compatibility with existing filling and labelling lines and providing consistent performance characteristics.

Proceed is being used for: 

• Funding the capital expenditure towards purchase of plant and machinery
• Repayment and/or pre-payment, in part or full, of certain borrowings availed by the company
• General corporate purposes

Industry overview

The India's packaging industry spans a variety of materials, formats, and applications, serving multiple industries. From major food & beverage companies to pharmaceutical firms, battery manufacturers to e-commerce businesses, effective and innovative packaging solutions are essential for product protection, preservation, branding, and enhancing consumer convenience. Additionally, government initiatives aimed at promoting organized retail and food safety are driving the need for high quality, standardized packaging solutions. In FY 2025, the Indian packaging market was valued at Rs 7,274.69 billion, marking a growth of 2.70% CAGR from Rs 6,204.18 billion in FY 2019. Further, the market is projected to expand at a CAGR of 6.00%, reaching Rs 9,195.36 billion by FY 2029. Meanwhile, rigid plastic packaging, made from durable materials like polypropylene (PP), polyethylene terephthalate (PET), high-density polyethylene (HDPE), and polyvinyl chloride (PVC), holds a significant 34.20% share of the plastic packaging market in FY 2025. The Indian RPP market has a large Total Addressable Market (TAM), with a market size of Rs 1,066.65 billion in FY 2025. It is projected to grow at a CAGR of 6.75%, reaching Rs 1,385.22 billion by FY 2029.

The sector is divided into two main segments: Consumer and Industrial. In FY 2025, rigid plastic packaging for the consumer segment accounted for 70.45% of the market, focusing on visually appealing containers, tubs, and bottles that are designed to attract consumer attention at the point of sale. Industries that utilize consumer rigid plastic packaging include paint & lubricants, energy sector, food and beverages, personal care, consumer goods, ecommerce, pharmaceuticals, agrochemicals, construction chemicals etc. On the other hand, the industrial segment of rigid plastic packaging includes durable, functional solutions like drums and stackable bins, designed to safely transport and store bulk materials throughout the supply chain. Key industries using industrial rigid plastic packaging include chemical and petrochemical, automotive, agriculture & agrochemicals, construction, electronics, medical & laboratory etc.

Meanwhile, the battery casing sector in India is gaining momentum alongside the rapid growth of battery storage systems and renewable energy integration. Battery casings are critical components that ensure the safety, structural integrity, and thermal management of battery packs. The battery casing market in India is valued at Rs 39.00 billion in FY 2025 and is expected to grow at a CAGR of 12.00% in the next four years to reach a market value of Rs 61.00 billion by FY 2029. India's battery storage sector is witnessing significant growth, fuelled by the country’s focus on renewable energy, the rising adoption of electric vehicles (EVs), and the increasing use of distributed energy systems. As India advances toward a sustainable energy future, battery storage is becoming essential for maintaining grid stability, enhancing energy efficiency, and enabling decarbonization.

Pros and strengths 

Customer proximity and operational efficiency: The company has a customer focused manufacturing strategy, wherein most of its operating facilities and warehouses are situated in close proximity to its customers, with an intent to offer enhanced customer service, convenience and accessibility to its customers by facilitating their effective and reliable sourcing, flexible production planning and inventory management. The company’s widespread operational network gives it a competitive advantage as it facilitates integration of its products into its customers’ manufacturing workflows by reducing overall delivery time, inventories and related costs and infrastructure.

Strong entry barriers in the RPP industry: The RPP industry requires manufacturing infrastructure that can scale with the demand and growth strategy of the leading end-product manufacturers. For instance, over the years it has established six Manufacturing Facilities across northern, western, and southern regions of India, out of which four Manufacturing Facilities and two warehouses have been established in proximity to its customers to increase their accessibility and to enable it to offer targeted solutions and improved customer service. The company’s customers generally prefer working with a limited number of suppliers to ensure consistent quality, reliable quantities, and streamlined procurement processes, which creates a barrier to entry for others. The company’s association with key customers for over two decades gives it a competitive edge over new entrants in the industry. Market knowledge, financial resources, and the time involved in developing a stable customer base present significant entry barrier for competition.

Integrated design-to-delivery solutions: To meet evolving customer demands, the company has launched new products either independently or on their request, by leveraging its experience, market insights, and in-house design and development team. Its manufacturing infrastructure is equipped to offer RPP products to its customers, right from design to delivery. It provides one-stop-shop services to its customers, which starts from product design and development, mould design, product manufacturing, quality testing, packing, and delivery. Once the designs of its products are finalised, the corresponding moulds are manufactured through third parties specialised therein. As part of its new product development initiative, it takes full ownership of the entire process, from in-house design and development to coordinating with mould makers, reviewing and approving their designs, and ultimately procuring the required moulds and then manufacture the end product, ensuring the delivery of a high-quality final product to its customers.

Strong quality assurance and customer approvals: The company has implemented quality assurance systems and standard operating procedures in all of its Operating Facilities, which enables it to meet the requirements of its customers and maintain its track record of reliability. The company has gone through its customers’ internal supplier approval and audit processes of its key customers across its product divisions. Such audit exercise included quality certifications, inspection of records of training, customer complaints, corrective action taken pursuant to the complaints, infrastructure inspection, review of standard operating procedure and traceability of products, among others. Obtaining such approvals is time consuming, which constitutes barrier-to-entry for new players.

Risks and concerns

High customer concentration risk: About 58%-69% of its operating revenue came from its top five customers, though it served between 168 - 242 customers during the three months ended June 30, 2026, and the prior three Fiscals. The loss of any of its top customers, or the loss of revenue from these top customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

High revenue dependence on battery casings: Out of the company’s diversified product portfolio, about 54% - 68% of its revenue from operations was derived from the sale of battery casings during the three-month period ended June 30, 2026 and the preceding three Fiscals. Any significant loss of sales in its battery casings could have an adverse effect on its business, financial condition, results of operations and cash flows.

Reliance on repeat customer relationships: The company has derived about 93%-98% of its revenue from operations from repeat customers in the three-month period ended June 30, 2026 and the preceding three Fiscals, and any loss of, or a significant reduction in the repeat customers or revenue generated from them could adversely affect its business, results of operations, financial condition and cash flows.

Risk of loss of longstanding customers: The company has longstanding relationship with several of its customers. It has entered into long term supply agreements with only a few of them. Customers who have partnered with the company for over a decade contributed 43.75%, 42.34%,42.15% and 31.30% to its revenue from operations during the three-month period ended June 30, 2026, and in Fiscal 2026, 2025, and 2024, respectively. If these customers stop or reduce buying from it, the company may not have any recourse against them and it may have an adverse effect on its business, financial condition, cash flows and results of operations.

Outlook

Manika Plastech is engaged in the manufacturing of rigid polymer packaging products, including battery casings, pails and thinwall containers. The company manufactures battery casings, pails and thinwall containers, which cater to various industrial and consumer applications. The company operates 6 manufacturing facilities and 1 painting facility across India. Its manufacturing units produce battery casings, pails, thinwall containers and automotive components, while the painting facility is used for painting automotive components. On the concern side, while the company has maintained relationships with several key customers for over a decade, only a few of these are backed by long-term supply agreements. If these customers stop or reduce buying from it, the company may not have any recourse against them and it may have an adverse effect on its business, financial condition, cash flows and results of operations.

The issue has been offering 3,07,99,418 shares in a price band of Rs 40-43 per equity share. The aggregate size of the offer is around Rs 123.20 crore to Rs 132.44 crore based on lower and upper price band respectively. Minimum application is to be made for 348 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operation increased by Rs 294.80 million i.e. 7.25% to Rs 4,359.82 million in Fiscal 2026 from Rs 4,065.02 million in Fiscal 2025. The increase was primarily attributable to volume growth in Pail, Thinwall and Paint business. Moreover, the company recorded a profit of Rs 224.02 million in Fiscal 2026 compared to profit of Rs 193.31 million in Fiscal 2025.

Meanwhile, the company focuses on delivering precision-crafted RPP solutions that meet the specific requirements of customers engaged in industries such as automotive, fertilizer, railways, renewable energy, food, paint, lubricants, construction chemicals amongst others. It presently caters to select sectors in the FMCG industry, with ISBM products it shall foray into new industry segments such as, personal care, cosmetic, beverage and pharmaceutical applications, among others. ISBM is used for producing high-quality PET bottles, jars for water, juices, edible oils, dairy products, personal care & cosmetics containers like shampoo bottles, lotions, and creams etc. with superior strength and clarity. It intends to leverage the proposed technology to widen its products and end use applications.