June 2022
Sample Size: 15 Companies
Median Rating Value of sample size: A-
Individual Parameters Contributing to the Score
Moderate Demand
The demand was partly impacted in the first half of FY21 but showed improvement in the second half. As per CMIE data, the industry reported y-o-y 34.7% growth in sales from Rs.45.7 billion for March 2021 quarter to Rs.61.5 billion for March 2022 quarter. In FY22, the exports value increased by 31.4% to Rs.137.3 billion as compared to Rs.104.4 billion for FY21. The growth prospects of the flexible packaging sector are strong over the medium term.
Neutral
Due to fragmented industry, level of competition is intense. Also risk of imports.
The demand for packaging across various product categories is high. Government policies on domestic manufacture is expected to be supportive for the sector.
Largely predictable supply of inputs from diversified sources or Raw Materials with rare, occasional disruptions / fairly predictable price band
Input costs remain highly volatile and linked to oil prices but inputs are availble easily.