Millworks Technologies Ltd. IPO

Millworks Technologies 

• Millworks Technologies is coming out with an initial public offering (IPO) of 48,44,000 shares in a price band of Rs 315-331 per equity share.
• The issue will open on July 14, 2026 and will close on July 16, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 31.50 times of its face value on the lower side and 33.10 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance officer for the issue is Srivathsan K N.

Profile of the company

Millworks Technologies is a precision engineering company engaged in the manufacture of machined components, sheet metal parts, and integrated assemblies used in mission-critical applications across the railways, aerospace, defence, and semiconductor sectors. Its operations are undertaken under Build-to-Print (BTP) and Build-to-Spec (BTS) engagement models and include both full-scope manufacturing as well as job-work arrangements. Under the BTP (Build-to-Print) model, manufacturing is carried out in accordance with customer-provided drawings and technical specifications, while under the BTS (Build-to-Spec) model, customers specify functional and performance requirements and it undertakes manufacturing to meet such specifications. This dual model enables it to support a diverse array of customer needs from strict adherence to design intent to more collaborative, performance-driven development. 

Incorporated in 2021, the company has developed into a multi-sector engineering enterprise with manufacturing capabilities spanning precision machining, sheet metal fabrication, sub-assembly, and related processes. It primarily supplies to Original Equipment Manufacturers (OEMs). Its quality systems and process controls are designed to meet rigorous industry standards, ensuring that every component and assembly it supplies performs reliably in the most demanding environments. 

Its manufacturing operations are supported by structured quality management systems. It has implemented and maintains a Quality Management System certified under AS9100D and ISO 9001:2015 on a multi-site basis. Unit I and Unit II are certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications. Unit III is certified for the manufacture, supply and assembly of precision machined components and sheet metal parts for aerospace, defence, rail and other industrial applications. Unit IV is certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications, and manufacture and supply of springs and wire forms for engineering applications. Its quality assurance infrastructure includes coordinate measuring machines (CMMs), video measuring systems, hardness testers, and calibrated measuring instruments. Quality records, inspection reports, and material traceability documentation are maintained in accordance with customer and applicable regulatory requirements. 

Proceed is being used for:

• Funding capital expenditure of the company to purchase plant and machinery
• Funding the working capital requirements of the company
• General corporate purposes

Industry overview

The civil aviation industry in India has emerged as one of the fastest-growing sectors of the economy, playing a vital role in connectivity, trade, and tourism. It encompasses scheduled air transport services (domestic and international airlines), non-scheduled services such as charter flights and air taxis, as well as dedicated air cargo services for transporting goods and mail. India is currently the third-largest domestic aviation market in the world, supported by rising disposable incomes, urbanisation, and increasing preference for air travel. Passenger traffic (domestic + international) stood at 35.50 million during FY26 (April-January 2026), while freight traffic reached 3.29 MMT in the same period. In 2023, the contribution of India's travel and tourism sector to India's economy was worth Rs 21,00,000 crore ($245 billion). By 2035, the contribution is poised to be doubled reaching Rs 42,00,000 crore ($490 billion).

Meanwhile, India is home to one of the strongest military forces in the world and holds a position of significant strategic importance. The Indian defence sector comprises several key market segments, with military fixed-wing aircraft, naval vessels and surface combatants, and missiles and missile defence systems representing the top three. To modernise its armed forces and reduce dependency on imports, the government has implemented several initiatives under the ‘Make in India’ programme, providing policy support to encourage domestic defence manufacturing. Foreign investment in the sector has also seen steady growth, with cumulative FDI equity inflow in the Defence industry is Rs 207 crore ($27.78 million) during the period April 2000-December 2025. Looking ahead, the government has set an ambitious target of achieving defence manufacturing worth Rs 3,00,000 crore ($34.7 billion) by FY29. Strengthening its technological edge, India plans to deploy a constellation of 52 satellites by CY30 to enhance space-based surveillance for the Army, Navy, and Air Force.

Further, India's semiconductor end-demand revenues are anticipated to double from 2025 to 2030, increasing from Rs. 4,64,940 crore ($54 billion) to Rs 9,29,880 crore ($108 billion). The revenue from localisation opportunities will remain around Rs 1,11,930 crore ($13 billion) in 2030. India's semiconductor end market to grow by 15% compound annual growth rate (CAGR) from 2025 to 2030, with annual revenues reaching Rs 9,29,880 crore ($108 billion) in 2030. This 15% CAGR estimate is higher than the global semiconductor end market forecast, driven by India's favourable demographics, strong electronics demand, rising enterprise adoption of advanced semiconductors, and supportive government policies. However, India currently accounts for only 0.1% of global wafer capacity, around 1% of annual equipment spending, and 6.5% of semiconductor end-demand share. Meanwhile, the Indian railway system is regarded as the foundation and lifeblood of the economy. Indian railways span thousands of kilometres practically covering the entire nation, making it the fourth largest in the world after the US, China, and Russia. The Railways Board, which has a monopoly over the provision of rail services in India, oversees the whole infrastructure. Indian Railways’ gross revenue stood at Rs 2.79 trillion ($31.57 billion) for FY26, reflecting the continued strength of its freight-led earnings model and steady growth in passenger revenues. Indian Railways plans to invest Rs 16,70,000 crore ($193.98 billion) by 2031 to modernise 1,309 stations, expand freight corridors, develop high-speed rail projects, and electrify tracks, aiming to boost operational efficiency and reduce logistics costs.

Pros and strengths

Certified quality management systems supporting process discipline and documentation control: It has implemented and maintains a Quality Management System certified under AS9100D and ISO 9001:2015 on a multi-site basis. Unit I and Unit II are certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications. Unit III is certified for the manufacture, supply and assembly of precision machined components and sheet metal parts for aerospace, defence, rail and other industrial applications. Unit IV is certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications, and manufacture and supply of springs and wire forms for engineering applications. Inspection activities are carried out in designated inspection areas equipped with coordinate measuring machines (CMMs), surface finish testers, and profile projectors. Each measuring instrument and inspection equipment is maintained under a defined calibration schedule. It maintains material traceability records, inspection reports, process sheets, non-conformance records, and rejection logs in accordance with customer and applicable standard requirements. Quality records are retained through controlled documentation systems with restricted access. Internal audits are conducted periodically to assess compliance with quality procedures and approved quality plans.

Global customer relationships and export-oriented business operations: It caters to both domestic and international customers, including Original Equipment Manufacturers (OEMs), Tier-1 and Tier-2 suppliers operating in the aerospace, defence, railways, and semiconductor sectors. Its export operations extend to 9 countries, including Canada, United States of America, Israel, Germany, France, North Macedonia, Italy, United Kingdom, and Czech Republic. Customer engagements are typically supported through recurring purchase orders and rate-based supply arrangements. All export transactions are executed in compliance with applicable export control regulations, including Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) requirements, where applicable, and are supported by defined internal processes for export documentation, regulatory filings, and payment realisation.

Structured research and development function focused on process improvement and electronic integration: Research and Development (R&D) plays an important role in its manufacturing operations by supporting innovation and continuous process improvement. It undertakes R&D activities focused on live process improvement initiatives aligned with Industry 4.0 applications to enhance productivity and operational efficiency. It has developed in-house capability for designing and building electronic boards used in battery management systems and auto pilot applications. It is strengthening its technical capabilities through ongoing investments in infrastructure and training aimed at developing advanced avionics-related competencies among its engineers. Through these initiatives, it supports improved process control, consistent product quality, and faster delivery timelines across its manufacturing operations.

Risks and concerns

Reliance on third-party suppliers for raw materials: It relies on third-party suppliers for raw materials, plant, machinery, and components on a purchase-order basis. Any failure or delay in supplier performance, supply disruptions, or price volatility may materially adversely affect its business, results of operations, financial condition, cash flows, and future prospects. In Fiscal 2026, 2025, and Fiscal 2024, the cost of raw materials procured from its top 10 suppliers represented 84.31%, 60.61%, and 57.00% of total purchase of raw materials, respectively. Any loss or disruption in supplies may adversely impact its inventory procurement, revenue, and results of operations.

Substantial portion of its revenue derived from key customer: Its business is significantly dependent on a key customer, Quick Pay, which contributed 47.02% of its total sales amounting to Rs 6992.76 lakh for the period ended March 31, 2026. Its key customer primarily operates in the business of providing drone-based solutions. Since it derives a substantial portion of its revenues from this customer, the loss of such customer or any reduction in demand from them, whether due to loss of contracts, delays in execution of existing orders, unsuccessful commercial negotiations, disputes, reduction in their business operations, loss of market share, downturn in their industry, or any change in their procurement strategies, including increased in-house execution of services, could materially and adversely affect its business operations, revenues, profitability, cash flows, and financial condition, particularly if such business is not replaced by revenues from other customers in a timely manner.

Dependency on certain business partners for Defense sector project execution: The company is dependent on certain business partners, including Big Bang Boom Solutions (BBB and Quick Pay, for execution of certain defence sector projects involving time-sensitive assembly, integration and delivery requirements. Due to limited project timelines and the need to avoid logistical delays, partial assembly and integration of drones are undertaken at business partners facility by its personnel along with their team. Further, under a ‘Bill-to Ship-to’ arrangement, materials/sub-assembled products were directly dispatched from Supplier Facility to Customers to ensure timely execution of project requirements. Accordingly, its execution of such defence sector projects is dependent on supplier ‘Big Bang Boom Solutions’ for sub assembly of products including availability of infrastructure, logistics support and timely operational execution. Any disruption, delay or termination of such arrangements, or failure in coordination between the parties, may adversely affect its ability to execute projects within stipulated timelines and may have an adverse impact on its business operations, revenues, cash flows and overall financial performance.

Outlook

Millworks Technologies is a precision engineering company specializing in manufacturing machined components, sheet metal parts, and integrated assemblies for mission-critical applications across the railways, aerospace, defence, and semiconductor sectors. Its operations follow both Build to Print (BTP) and Build to Spec (BTS) engagement models, covering full-scope manufacturing and job-work assignments. It caters to both domestic and international customers, including Original Equipment Manufacturers (OEMs), Tier-1 and Tier-2 suppliers operating in the aerospace, defence, railways, and semiconductor sectors. On the concern side, its high level of trade receivables relative to its revenue from operations indicates elongated working capital cycles and exposes it to collection risks, which may adversely affect its liquidity and financial condition.

The company is coming out with a maiden IPO of 48,44,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 315-331 per equity share. The aggregate size of the offer is around Rs 152.59 crore to Rs 160.34 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for FY25-26 was Rs 14,876.70 lakh as against Rs 2,210.01 lakh for FY24-25, an increase of 573.15%. Profit after tax for the FY25-26 was at Rs 3,706.39 lakh against profit after tax of Rs 524.90 lakh in FY24-25, a surge of 606.11%.

Meanwhile, it intends to pursue strategic alliances with domestic and international entities for co-development, joint manufacturing, and technology collaboration, subject to applicable approvals and commercial arrangements. Such collaborations are proposed to support execution of customer programs within its core business sectors of aerospace, defence, railways, and semiconductor. Its approach is to engage with partners where complementary technical capabilities or process expertise can enhance execution of customer requirements under Build-to-Print (BTP) and Build-to-Spec (BTS) models. Going forward, it intends to strengthen its presence within existing customer ecosystems by expanding the range of components and sub assemblies supplied to OEMs, Tier-1 and Tier-2 suppliers operating in its core sectors. This strategy involves increasing participation in approved vendor programs and supplying additional components under existing customer relationships, subject to qualification and approval processes.

Ashutosh Fibre 

• Ashutosh Fibre is coming out with an initial public offering (IPO) of 61,24,800 shares in a price band of Rs 87 - 92 per equity share.
• The issue will open for subscription on August 31, 2026 and will close on September 02, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 8.70 times of its face value on the lower side and 9.20 times on the higher side.
• Book running lead manager to the issue is Mefcom Capital Markets.
• Compliance officer for the issue is Sonal Bankim Bhansali.

Profile of the company

Ashutosh Fibre commenced operations in the trading of textile yarns and fabrics. In 1995, the ownership changed through transfer of shares to the current promoter group and manufacturing activities began in 2000. Until 2006-07, trading continued to contribute significantly to operations, after which manufacturing became the primary focus. In 2010, additional shareholders with relevant industry experience joined the company, supporting the expansion of manufacturing capabilities. It is presently engaged in the manufacture of various technical and synthetic yarns from its facility located at Petlad, Gujarat. Technical textiles are textile materials and products manufactured primarily to deliver specific technical performance and functional properties, rather than for aesthetic or decorative purposes. These products are engineered to meet defined performance requirements such as durability, tensile strength, flame resistance, thermal insulation, or moisture control, depending on the intended use. They are applied across various industrial, protective and specialised end uses, where functional attributes are more important than appearance.

It operates in four categories of technical textiles i) Indutech, ii) Protech, iii) Hometech and iv) Mobiltech. In the Indutech segment, its products cater to industrial applications such as filtration, geotextiles and process industry textiles. One of its key products in this segment is polypropylene spun yarn, manufactured from polypropylene fibres that are lightweight, chemically resistant, have low moisture absorption and provides good abrasion resistance. These properties make it suitable for use in filter cartridges, filter cloths, ropes, webbings and other industrial applications where chemical stability and dimensional integrity are required. In the Protech segment, it manufactures yarns and fabrics with inherent properties such as strength, flame retardancy and heat resistance, used in personal protective equipment, safety apparel and industrial thermal barriers. In the Hometech segment, its yarns are used in home furnishing textiles, carpets and home filtration media. In Mobiltech segment, it manufactures friction resistant yarns that are primarily used in the production of automotive friction materials such as brake pads, clutch facings and transmission components.

It operates on a business to business (B2B) business model. It supplies its yarns and fabrics to industrial manufacturers, processors and institutional buyers. Its products are used as raw material inputs across industries such as filtration and pollution control (gas and liquid filter media, filter cartridges, filter cloths), construction and infrastructure (geotextiles, ropes, webbings), automotive (friction materials, thermal insulation, seat fabrics), packaging (antistatic FIBC), safety and protective equipment (flame-retardant clothing, industrial protective wear, PPE kits) and home furnishing (carpets, upholstery, curtains and home filtration media). It customizes products based on client requirements and supply in accordance with technical specifications. Its business model emphasizes recurring supply to industrial clients rather than direct sales to retail consumers. Its product range includes specialised yarns such as para-aramid yarn (high strength and heat resistance), meta-aramid yarn (flame retardancy), modacrylic-blended yarns (thermal stability and flame resistance), peroxidised PAN yarn (heat insulation), antistatic polypropylene yarn (to reduce static build-up in sensitive environments), FR Viscose blends (protective fabrics) and DREF-spun yarns with glass filament cores or aramid sheaths (industrial and protective uses). These products are manufactured either as part of its own product range or on a job work basis, depending on client requirements.

Proceed is being used for:

• Funding capital expenditure requirements towards funding of new equipment and machinery.
• Repayment/pre-payment, in full or in part, of certain borrowings availed by the company.
• General corporate purposes.

Industry overview

Technical textiles refer to textile materials and products manufactured primarily for their functional performance and technical properties rather than for aesthetics or decorative characteristics. These products are specially designed to meet specific performance requirements across various industrial sectors such as agriculture, healthcare, construction, transportation, defence, Industrial, packaging, and environmental protection. Depending on their end use, technical textiles offer benefits such as high tensile strength, thermal resistance, flame retardancy, chemical stability, durability, and lightweight characteristics making them indispensable in both industrial and consumer applications. As industrial activity continues to grow, the demand for high-performance technical textiles particularly in transport, industrial and defence use cases has steadily increased. 

India's technical textile industry is expected to witness sustained growth in the coming years, not just due to industrial applications but also because of broader structural and policy-level shifts. One of the key drivers will be the integration of technical textiles into public infrastructure mandates, such as mandatory use of geotextiles in road construction, landfills, and water conservation projects. Several state governments are incorporating technical textile components into urban development and irrigation schemes, which is expected to generate stable, institutional demand. Additionally, the use of technical textiles in large-scale government programs like Jal Jeevan Mission, PM Gati Shakti, and Smart Cities will open new markets and ensure consistent utilization. 

India’s technical textile industry is expected to grow from $28.5 billion in FY 2025 to $50 billion by FY 2030, registering a strong CAGR of 11.9%. This growth reflects a transition from limited adoption to widespread industrial use, driven by rising demand for high-value segments like smart textiles, bio-based materials, and defence-grade fabrics. Regulatory measures such as Quality Control Orders (QCOs), increasing investment in domestic manufacturing, and state-level policy support are further strengthening the ecosystem. Additionally, India's cost advantage and improving compliance with global standards position it as a preferred sourcing destination in the post-COVID global supply chain realignment. As a result, export-oriented categories like Indutech, Meditech, and Packtech are expected to play a larger role in driving the sector’s expansion.

Pros and strengths

Recycling and sustainable fibre solutions: It has developed capabilities in recycling and re-engineering para-aramid fabrics, which are difficult to process due to their high tensile strength, thermal resistance and non-biodegradable nature. Para-aramid yarns, widely used in safety and protective applications such as bulletproof vests, are imported by it at the end of their usable life. It processes these expired materials through its proprietary recycling system and convert them into high-quality secondary raw materials.

Strong focus on quality control and product consistency: It maintains a strong emphasis on quality control across its manufacturing processes, which are aligned with stringent standards required for technical yarns. Its production facility is equipped with advanced testing and monitoring equipment, including the Mesdan Evenness Tester for real-time measurement of yarn uniformity, tensile strength and other performance parameters. It also employs the Pinter Hard Core attachment system, which enhances core yarn strength and enables the production of specialty and high-torque yarns. Its focus on quality control enables it to deliver yarns with consistent technical performance, reducing wastage and ensuring compliance with customer specifications. This capability is particularly important in industries such as filtration, automotive friction materials and protective textiles, where reliability and safety are critical.

Positioning in polypropylene spun yarns: It is engaged in the manufacture of polypropylene (PP) spun yarns, which form a key part of its product portfolio and are used in both household and industrial applications. Polypropylene fibres are valued for their properties of light weight, high strength-to-weight ratio, resistance to chemicals and low moisture absorption, making them well-suited for filtration media, geotextiles, insulation products and protective technical textiles. Its polypropylene yarns are manufactured using advanced spinning technologies that enable it to offer a wide range of counts and plies in both single and multiple-end formats. This flexibility allows it to cater to varied customer specifications across industries that demand durability, consistency and technical performance. It has developed a presence in the polypropylene yarn segment in India, supported by its production capabilities and customer relationships. The polypropylene yarn segment contributes materially to its revenues, particularly from customers in the filtration and technical textile sectors. For the Financial Years ended March 31, 2026, 2025 and 2024, sales of polypropylene yarns accounted for around 22.95%, 22.64% and 21.27% of its revenue from operations, respectively.

Risks and concerns

Dependent on third-party suppliers for procurement of raw materials: The company is dependent on third-party suppliers for the procurement of key raw materials, including polypropylene fibre, high-tenacity polyester, modacrylic fibre, para-aramid fibre, flame retardant (FR) viscose fibre and specialised blends such as melamine and peroxidised PAN. These are the primary inputs used in the manufacture of its technical yarns across the Indutech, Protech, Mobiltech and Hometech products. It sources majority of its raw materials from its top 10 suppliers. For the Fiscals 2026, 2025 and 2024, its top ten suppliers accounted for 64.73%, 70.31% and 78.10% of its total raw material purchases, respectively. A significant portion of its raw materials is procured from a limited number of key suppliers and any disruption in the supply of raw materials from such suppliers could adversely impact its operations if it is unable to replace them or have alternative in a timely and cost-effective manner. 

Significant dependence on exports: It derives a portion of its revenue from exports. During the Fiscal 2026, Fiscal 2025 and Fiscal 2024, export sales accounted for 38.99%, 38.05% and 43.59% of its revenue from operations, respectively. During the same periods, its revenue from China amounted to Rs 2,558.93 lakhs (i.e. 21.80%), Rs 2,252.65 lakhs (i.e. 19.75%) and Rs 2,804.77 lakhs (i.e. 25.53%), respectively. It also exports to other countries including Germany, Hungary, Brazil, Russia and Italy. Its dependence on export markets exposes it to risks associated with international trade and cross-border business, including foreign exchange rate fluctuations, variations in demand, import and export regulations, customs and documentation processes, international logistics and freight availability.

Significant portion of revenue comes from key customers: It relies on a limited number of high-volume customers for a substantial portion of its revenues. For the Fiscals 2026, 2025 and 2024, its top ten customers contributed around 68.85%, 67.40% and 72.11% of its revenue from operations, respectively. This dependence on a few key customers exposes it to several risks, including the potential reduction, delay, or cancellation of orders, as well as challenges in negotiating favourable terms. Any loss of these customers or failure to renew orders on similar terms could materially affect its business, financial condition, cash flows and future prospects.

Outlook

Ashutosh Fibre is engaged in the business of manufacturing and trading of techincal textile yarns. Its polypropylene yarns are manufactured using advanced spinning technologies that enable it to offer a wide range of counts and plies in both single and multiple-end formats. This flexibility allows it to cater to varied customer specifications across industries that demand durability, consistency and technical performance. It has developed a presence in the polypropylene yarn segment in India, supported by its production capabilities and customer relationships. On the concern side, its revenues are entirely derived from the spinning of technical textile yarns, including para-aramid based yarns, polypropylene yarns, meta-aramid/viscose blends and other specialty fibres. Unlike companies with diversified operations across multiple business segments, it does not have alternate lines of business to mitigate the impact of downturns in this segment. Any reduction in demand for technical textile yarn, adverse changes in industry trends, increasing competition, regulatory developments, changes in customer preference, or pricing pressures could directly impact its revenues and profitability.

The company is coming out with a maiden IPO of 61,24,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 87 - 92 per equity share. The aggregate size of the offer is around Rs 53.29 crore to Rs 56.35 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 2.93% from Rs 11,403.40 lakh in Fiscal 2025 to Rs 11,737.14 lakh in Fiscal 2026. Net profit after tax increased 88.53% from Rs 850.92 lakh in Fiscal 2025 to Rs 1,604.23 lakh in Fiscal 2026.

Meanwhile, the company aims to scale up its production capacity by expanding operations within its existing facility in Petlad, Gujarat. As a manufacturer of technical yarns in India, it currently caters to diverse end-use industries such as defence, filtration, protective clothing, automotive and composites. To meet growing demand, especially in the technical and high-performance yarn segments, it plans to deploy additional compact spinning systems and high-value yarn attachments such as the Pinter Hard Core system, which will allow for the manufacture of core-spun and specialty yarns. Going forward, to further improve efficiency and competitiveness, it intends to expand the adoption of automation and digital tools across manufacturing and administrative processes. It aims to incorporate solutions such as integrated planning systems, automated inventory management and data-driven monitoring and analytics to optimise production visibility and operational control.

Phychem Technologies 

• Phychem Technologies is coming out with an initial public offering (IPO) of 19,38,000 shares in a price band of Rs 51-54 per equity share. 
• The issue will open for subscription on August 31, 2026 and will close on September 02, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 5.10 times of its face value on the lower side and 5.40 times on the higher side.
• Book running lead manager to the issue is Hem Securities.
• Compliance officer for the issue is Pooja Sharma. 

Profile of the company 

The company is engaged in the manufacturing of rotational molding (roto molding) compounds, which serve as a key raw material for producing a wide range of hollow plastic products through the rotational molding process. Its product portfolio primarily comprises customized polyethylene-based compounds, formulated using Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), and other specialty additives. These compounds are supplied in powder or granulated form to rotational molding manufacturers, enabling them to produce durable and application-specific plastic products across diverse end-use industries. Roto molding compounds form a critical input in the manufacturing of plastic products such as water, fuel and chemical storage tanks, portable sanitation units, furniture, industrial containers, and other customized hollow plastic parts. Its manufacturing process involves blending, pelletizing and pulverization, followed by quality control to ensure uniform particle size, optimal melt flow, and consistent performance in end-use applications. 

The company caters to a diverse base of customers across various industries such as building and construction, water management, agriculture, automotive, and consumer products etc. Its formulation and manufacturing capabilities enable it to deliver foam compound, stone effect, flame-retardant, anti-static and custom-colored compound depending on client needs. Additionally, it also undertakes the production of custom-moulded tanks catering to diverse end-use applications. Further, it provides jobwork services such as rotolining (internal lining of tanks and equipment for enhanced chemical resistance and durability) and toll pulverising (custom grinding of polymers into powder form as per client specifications). Its manufacturing facility is situated at Nashik, Maharashtra, India. 

The company is exporting to countries like: Bahrain, Bangladesh, Cameroon, Guinea, Guinea-Bissau, Iraq, Kuwait, Lithuania, Mauritius, Nepal, Nigeria, Oman, Poland, Russia, Saint Lucia, Saudi Arabia, Slovenia, South Africa, Taiwan, Thailand, Turkey and U.A.E. etc. The company also generates revenue from distribution of various products and chemicals used in rotational moulding industry. It is authorized distributor of specific type of chemicals and compounds like: paints and coatings imported from UK, Polypropylene Compound imported from Thailand and speciality release agents imported from USA. Similarly, it is authorized distributor of various tools and equipment used in rotational moulding industry like: Rotational Moulding process control equipment imported from Northern Ireland, plastic welding machine imported from Canada and Flash-It Ancillary Tools imported from Derbyshire, UK.

Proceed is being used for:

• Repayment in full or in part, of certain of the company’s outstanding borrowings
• Funding the capital expenditure towards procurement of plant and machinery
• Funding to meet working capital requirements
• General Corporate Purpose

Industry overview

The Indian plastic industry is one of the leading sectors in the country’s economy. The history of the plastic industry in India dates to 1957 with the production of polystyrene. Since then, industry has made substantial progress and has grown rapidly. The industry is present across the country and has more than 2,500 exporters. It employs more than 5 million people in the country and constitutes 30,000 processing units; among these, 85-90% belong to small and medium enterprises. India manufactures various products such as plastics and linoleum, houseware products, cordage, fishnets, floor coverings, medical items, packaging items, plastic films, pipes, raw materials, etc. The country majorly exports plastic raw materials, films, sheets, woven sacks, fabrics, and tarpaulin. The government aims to push the industry's economic activity towards a target of Rs 10,00,000 crore ($126 billion) in the next four-five years. The Indian plastic industry is currently a significant economic sector valued at approximately $26.61 billion in 2025, with projections to grow to $44.59 billion by 2030 at a CAGR of roughly 10.9%. 10 Plastic Parks have been approved in the country by The Department of Chemicals and Petrochemicals. Among these, six plastic parks have received final approval from the following states – Madhya Pradesh (two parks), Assam (one park), Tamil Nadu (one park), Odisha (one park), and Jharkhand (one park). These parks are intended to boost employment and attain environmentally sustainable growth. 

In FY26 (until August 2025), India’s plastic exports stood at $5.4 billion. During this period, the exports of FIBC woven sacks woven fabrics & tarpaulin and Packaging items - flexible rigid - grew by 24.1% and 10.2%, respectively, over the same period last year. India exports plastic to more than 200 countries in the world. The top five consumer and houseware product importing countries are the USA, Germany Japan, the UK, and France. India largely exports plastic and related products to the USA, the UAE, Nepal, China, Bangladesh, Germany, Vietnam, Saudi Arabia, Italy, etc. The Plastic Export Promotion Council (PLEXCONCIL) has set a target to increase the plastic exports of the country to $25 billion by 2027. There are multiple plastic parks that are being set up in the country in a phased manner that will help improve the plastic manufacturing outputs of the country. Under the plastic park schemes, the Government of India provides funds of up to 50% of the project costs or a ceiling cost of Rs 40 crore ($5 million) per project.

Pros and strengths 

Wide range of products finding diverse application in roto moulding industry: The company offers a wide range of roto moulding compounds like: Color Powders, Polyethylene (PE) Foam compound, ESF granuals, Stone effect compound, Permanent antistatic compound, Super Tuff HDPE Compound / Powder Flexible Compounds, Flame retardant compound and Rotolining Compound. These compounds add varied features in the roto moulded products such as enhanced UV stability and long-term outdoor durability, thermal or acoustic insulation, adding stiffness and structural rigidity to products, natural or stone-like aesthetic solutions, incorporating antistatic properties, flame-retardant properties etc. Its ability to manufacture colour compounds further provides it flexibility to customize the customer requirements to that extent. These compounds find applications in various product categories made out of plastic molding like: water, fuel and chemical storage tanks, portable sanitation units, furniture, industrial containers, and other customized hollow plastic parts like: playground equipment, pallets, fish tubs, nursery planters etc. Additionally, it also undertakes the production of custom-moulded tanks catering to diverse end-use applications. Further, it provides jobwork services such as rotolining (internal lining of tanks and equipment for enhanced chemical resistance and durability) and toll pulverising (custom grinding of polymers into powder form as per client specifications). Moroever, it is authorized distributor of specific type of chemicals and compounds like: paints and coatings, Polypropylene Compound and speciality release agents. Similarly, it is authorized distributor of various tools and equipment used in rotational moulding industry like: Rotational Moulding process control equipment, plastic welding machine, and Flash-It Ancillary Tools.

Long standing relationships with diversified customers across geographies: The company has developed long-term relationships with various companies that has helped it expand its product offerings, processes and geographical reach. The experience and strong client relationships built by its management plays a vital role in creating, maintaining, and expanding the company’s customer base. Its reputation of timely delivery and quality of products has helped it retain its clients and is instrumental in expanding its customers across diversified geographies. Its marketing team also plays an important role in the development of new products based on their study and feedback on latest industrial needs. During the Fiscal 2026, it sold its products to around 24 global customers and to around 265 domestic customers. 

In-house manufacturing facility with equipped machines and processes: The company’s manufacturing facility is equipped with compound manufacturing machines and rotational moulding and roto lining machines like: Air Receiver, Analytical Balance HR250A, Bag closing machine heavy, Color Mixer, Cooling Tower, Crane, Cutter Machine, Cutting Elements, Die Face Cutter Machine, Extruder, Feeder, Freezer Box, Gear Box, Hopper Loader, Hot air oven, Hydraulic ground level truck loader, Hydrulic hand pallet truck, Imact tester, Inverter with Battery, Melt Flow Index Tester, Mold m s for naca, Mould SS200Ltr, MS & SS Air Knife, Process filter, Pulverizer, Rmu Breaker, Ro Plant 500 Lph, Rotational Molding Machine, Rotor For SM Mill 300, Scale, Single Station Pressure Tester, Transformer 100KVA, Trolley, Vending Machine III TS, Welding Machine, Hopper Dryer to deliver quality products. The company currently operates three fully functional rotational moulding machines at its manufacturing facility located in Nashik, Maharashtra. Its production setup is supported by in-house quality control systems, ensuring that every batch meets quality standards. The plant is designed to handle a wide range of product types and volumes, offering flexibility to cater to both large-scale and customized orders. 

Risks and concerns 

Reliance on major customers: The company’s customer base currently comprises of a host of international and domestic companies. Its top 10 customers contributed approximately 52.99%, 49.30% and 50.83% of its revenue from operations during the FY2026, FY2025, and FY2024 respectively. Moreover, it derived 15.73%, 14.34%, and 13.43% of its revenue from operations from a single customer during the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Any failure to retain these customers and/or negotiate on terms that are commercially viable, with these select customers, could adversely affect its business, financial condition and results of operations. In addition, any defaults or delays in payments by a major customer or the insolvency or financial distress by a major customer may have an adverse effect on business, financial position and results of operations. Many of the purchase orders it receive from its customers specify a price per unit and delivery schedule. However, such orders may be amended or cancelled prior to finalization, and should such an amendment or cancellation take place, it may adversely impact its production schedules and inventories. 

Significant portion of revenue derived from exports: The company has historically derived a significant portion of its revenues from operations from export to countries like: Bahrain, Bangladesh, Cameroon, Guinea, Guinea-Bissau, Iraq, Kuwait, Lithuania, Mauritius, Nepal, Nigeria, Oman, Poland, Russia, Saint Lucia, Saudi Arabia, Slovenia, South Africa, Taiwan, Thailand, Turkey and U.A.E. During the Fiscal 2026, 2025 and 2024, its revenues from its exports amounted to Rs 1316.78 lakh, Rs 1418.82 lakh and Rs 1456.91 lakh respectively, which constituted 23.32%, 28.21% and 31.02% respectively, of its total revenues from operations. The company is not engaged in any foreign currency hedging. Therefore, any developments or unforeseen events in the global economy or the industries in which its customers operate could have an impact on its sales from exports.

Geographic concentration: The company manufactures and supplies its products to customers in different geographies within and outside India from its manufacturing facility located in Dindori, Nashik. Any disruption to its manufacturing facility may result in production shutdowns. While the company derives revenue from sales in various states of India like: Maharashtra, Karnataka, Gujarat, Bihar, Rajasthan and from export, its majority sales are derived from the state of Maharashtra. During the last three financial years, it derived 54.60%, 50.29% and 44.62% of its revenue from the state of Maharashtra. Due to the geographic concentration of its operations in Maharashtra, its operations are susceptible to local and regional factors, such as economic and weather conditions, natural disasters, demographic changes, and other unforeseen events and circumstances. 

Outlook 

Phychem Technologies is the manufacturer, supplier, exporter, services provider of Roto Compounds / Antimicrobial Powders, Foam Compounds / Foam Powders, Rotolining Compounds / Rotolining Powders, Stone Effect Powders, Roto Moulding Color Powders, Speciality Metallocene Grades, PP compound/ Powders, Flexible compounds, Special Purpose Custom Formulations, Rotolining, Chemical Tanks and Storage Solutions, Custom Molding, Plastic Fabrication, Toll Compounding and Pulverizing from Nashik, Maharashtra, India. It caters to a diverse base of customers across various industries such as building and construction, water management, agriculture, automotive, and consumer products etc. The company’s facility has its own laboratory and a quality control department that adheres to safety standards. On the concern side, the company is heavily reliant on few suppliers for the supply of its raw materials, with its single largest supplier contributing to more than 50% of its purchases during the last 3 financial years. Moreover, the company does not have long term agreements with these suppliers and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.

The company is coming out with a maiden IPO of 19,38,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 51-54 per equity share. The aggregate size of the offer is around Rs 9.88 crore to Rs 10.47 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 12.25% from Rs 5030.32 lakh in FY25 to Rs 5646.53 lakh in FY26. Net profit after tax increased by 43.89% to Rs 408.90 lakh in FY26 as compared to profit of Rs 284.17 lakh in FY25. 

Meanwhile, the company seeks to leverage its capabilities, including its manufacturing facilities and quality control practices, to further expand its product portfolio in the existing segments and also enter new product development. It also intends to focus on keeping its operating costs low, which is critical for remaining profitable. It intends to continue enhancing its operational efficiencies, to increase economies of scale, better absorb its fixed costs, reduce its other operating costs and strengthen its competitive position. In addition, the company plans to strengthen its market domestically to other Indian states and expand its exports and diversify geographically to mitigate risks. By solidifying its domestic presence and exploring international opportunities, it aims to enhance its market reach and customer accessibility.