RAJ PACKAGING INDUSTRIES (530111) - PORTFOLIO BUILDER

Today I am expressing my view on one Packaging stock.

RAJ PACKAGING INDUSTRIES (530111)

Raj Packaging is pioneers in Multilayer Co-extruded Packaging film in southern India and is one of the largest suppliers of Multilayer films. Company is equipped with Three advanced film lines using sophisticated technology from PAUL KIEFEL, GERMANY, ensures consistently good quality film for wide variety of applications.

Raj Packaging has more than 18 years of experience and is able to provide wide variety of films for various specialized applications. Company is providing comprehensive solutions to meet the various packaging needs of the customers. 

The company was incorporated in June, 1987 as Raj Packaging Industries Pvt. Ltd., and it was converted into Public Limited company in may 1992 and changed the name as Raj Packaging Industries Ltd. The company has commenced its commercial production in June 1989 by installing very sophisticated, imported co-extrusion machines from M/s Paul Kiefel, Gmbh of Germany. The Installed capacity was 600 MTs p.a and soon achieved this full capacity utilization. The company had gone for expansion and put up another plant in the year 1995. The company has added another co-extrusion machine in the year 2005. Today company’s having total capacity of 2400 Mts. P.a consisting of two three layer machines and one five layer machine.

Company is a leading manufacture of co extruded film for edible oil packaging. Film made on sophisticated plant & machinery with the use of new age advance raw material offers High seal strength, good Hot tack properties combined with excellent dart impact to with stand the rigors of transportation. That is why company is able to supply its film to almost all the oils packers in the state of AP.

The company is one of the first in manufacturing FIVE LAYER co-extruded barrier film with Nylon or EVOH as barrier material. The versatility of our Five Layer equipment enables us to make a barrier film with excellent range of properties suitable for a wide variety of applications. The diversity of our co-extrusion capabilities allows us to customize package where in we have a balanced property of Adhesion Vs Bonding / COF Vs seal strength and maintaining barrier property without loosing the basic properties at the same time. 

Special features of 5 layer films.

• Excellent Barrier Properties: This will help the packed product to have better shelf llfe, retains aroma and act as barrier to oxygen, dust, moisture, etc • Superb Sealing: Thereby elimates the leakages and machine losses • Tougher and Puncture Resistance Film: Nylon imparts better impact and drop resistance which helps in safer and longer shipments • Better Machinability: It is a versatile film and can run on any type of FFS and other machines • Attractive Printability: Film offers better printability • Economical: Cost wise and Weight wise. Main applications includes: • Edible Oil: Best suited for oils which require better shelf life viz., Gingelly, Soyabean oil etc., • Ghee, Cheese bags and other Dairy Products • Poultry bags, Meat and Marine Products • Processed and Snack Foods • Vacuum pouches for Cashew Nuts, Dry Fruits and Spices etc., • Aromatic and Beverage products like Tea, Coffee • Medical ApplicationsThe company is engaged in manufacture of Multilayer Co-extruded plastic film and flexible packaging material. It is part of plastic packing material industry. The packaging material is important to several products, so this industry is growing very rapidly not only at its own but also because of growth of several industries which are using packaging material. The company is a leading supplier of film in South India for the packaging of Vanaspati, Oils and laminators and other food products. Major clients icludes » Ruchi Soya Industries Ltd. » Ruchi Infrastructure Ltd. » Andhra Pradesh Co-operative Oil Seeds growers Federation. » Heritage Foods India Ltd. » Ushodaya Enterprises Pvt. Ltd. » The Paper Products Ltd. » Acalmar Oils & Fats Ltd Company shares are trading in BSE. Promoter holding in the company is 35% ( Increase from Dec qtr) Company posted 9 Cr top line with over 8% operating margin & Net profit is 0.21Cr in the Dec qtr. Stock is trading low PE of 13 against its peers. Stock is trading at Rs 32. As the food industries are growing in a good phase and more and more bussines are developing  in this segment, company will perform better in years to come. This stock will make investors portfolio much better in near future. NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.  Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”