June 2022
Sample Size: 30 Companies
Median Rating Value of sample size: BBB+
Individual Parameters Contributing to the Score
Moderate Over Supply
The demand had seen a negative impact due to the economic slowdown and thereafter the spread of the pandemic. As per CMIE data, the industry reported y-o-y 7.3% growth in sales from Rs.21.6 billion for March 2021 quarter to Rs.23.2 billion for March 2022 quarter. The recovery in demand is likely over the near term based on offtake from user sector.
Neutral
The industry is fragmented with usually modest scale of operations and high competive intensity.
Predictable Regulatory environment
The regulations governing use of plastic and plastic packaging will continue to influence the operating metrics of the players.
Largely predictable supply of inputs from diversified sources or Raw Materials with rare, occasional disruptions / fairly predictable price band
Input costs are susceptible to crude oil and polymer price volatility.