Sillverton Industries IPO

India’s packaging industry grew at a 15.6% CAGR from ₹1,567 billion in FY21 to ₹2,421 billion in FY24 and is projected to reach ₹3,600–3,800 billion by FY29, growing at 8–10% CAGR.  

Food accounted for 54% of packaging demand in FY25E, while the beverage segment is expected to grow at around 21% between 2024 and 2029, supporting packaging consumption.  

The paper industry is gradually moving capacity from declining newsprint and mature writing and printing segments towards packaging paper, paperboard, and specialty grades.  

The packaging paper and board segment is projected to grow from 14.7–15.1 MT in FY25 to 20.1–20.6 MT by FY30, implying a 6–7% CAGR. 

Specialty paper is expected to grow at 6–7% CAGR through FY30, with cupstock growing at 6–8% and tissue paper benefiting from rising hygiene awareness at 8–10%.  

Rising online shipments of around 1.2–1.5 million per day are expected to support paperboard consumption, projected to grow at 6–8% CAGR between FY25 and FY27.  

The July 2022 ban on several single-use plastic items has supported the adoption of paper-based alternatives such as bags, cups and trays.  

Rising urbanisation, disposable incomes and organised retail are expected to support packaging demand. India’s urban population is projected to reach around 40% by 2030, while organised retail is expected to grow at 17–19% CAGR through FY29.  

Wood pulp and wastepaper account for a substantial share of operating costs, making paper manufacturers sensitive to fluctuations in raw material prices.  

High freight costs, supply-chain disruptions and tighter environmental and ESG requirements may affect operating costs and industry margins.  

The continued shift towards digital media is expected to keep pressuring demand for newsprints and writing and printing paper, increasing the industry’s reliance on packaging and specialty grades. 

Diversified Product Portfolio: Offers over 265 paper varieties across writing and printing, kraft, cupstock and specialised grades, including interleaving kraft and steel mill kraft papers.  

Established Dealer Network: Has 191 active dealers across 22 states, with repeat orders from its top 10 customers reaching ₹2,138.93 million in 9M FY25.  

Integrated Manufacturing Facility: Operates a 251,502 sq. metre facility in Muzaffarnagar with automated DCS and QCS systems and an onsite PCC supply arrangement with Gulshan Polyols Limited.  

Focus on Sustainability: Uses wastepaper for 55.48% of non-stock-in-trade purchases and operates waste-to-energy and biogas facilities.  

Improving Financial Performance: Revenue and PAT recorded CAGRs of 19.24% and 70.66%, respectively, between FY22 and FY24.  

Specialised Capacity Expansion: Adding 90,000 MTPA capacity to reach 360,000 MTPA, focused on higher-value paper grades.  

Manufacturing Modernisation: IPO proceeds will support upgrades to sheeter and rewinder capacities and additional warehouses.  

Waste-to-Energy and CBG: Planned 14 MW waste-to-energy plant and CBG facility could support captive energy requirements, CBG sales and EPR credit generation.  

Export Expansion: Plans to expand into markets such as Australia, Europe and the UAE, supported by export incentives including RoDTEP.  

Government Incentives: Its status as a Mega Unit in Uttar Pradesh provides access to incentives such as SGST reimbursement, capital investment and interest subsidies.  

Shift from Plastic to Paper: The single-use plastic restrictions continue to support demand for paper-based products such as cupstock, bags and trays. 

Dependence on Writing and Printing Paper: The W&P segment has contributed around 43%–64% of revenue historically and faces pressure from digitisation and declining print media consumption.  

Geographic Concentration: Uttar Pradesh, New Delhi and Haryana contributed 66.57% of revenue in 9M FY25, exposing the company to regional economic and regulatory risks.  

Customer Concentration: The top 10 customers accounted for 38.92% of revenue in 9M FY25. Loss of a key customer or dealer could affect sales and cash flows.  

Raw Material Price Volatility: The company remains exposed to fluctuations in wood pulp and wastepaper prices, which can affect production costs and margins.  

Dependence on Imported Wastepaper: Imported wastepaper accounted for 32.43% of total purchases in 9M FY25, exposing the company to freight costs, currency movements and global shipping disruptions.  

No Long-Term Supplier Contracts: Raw materials are largely procured through spot purchases, which may affect supply certainty and input costs.  

Single Manufacturing Facility: Paper production is concentrated at the Muzaffarnagar facility, making operations vulnerable to breakdowns, accidents, power disruptions or other localised events.  

Past Fire Incident: A fire at the manufacturing facility in May 2025 damaged imported raw materials. The related ₹467.32 million insurance claim remains under assessment.  

Dependence on Group Company: Cupstock manufacturing operates on premises and machinery leased from Garg Duplex and Paper Mills Private Limited, with certain key licences held in its name.  

Environmental and Regulatory Risks: The company faces environmental compliance requirements and has received regulatory action relating to fly ash disposal and alleged discharge of untreated sewage.  

Legal and Corporate Compliance Matters: Pending litigation, tax disputes and past Companies Act filing-related non-compliances could result in financial penalties and additional management attention.  

High Borrowings: Outstanding borrowings stood at ₹2,743.01 million as of June 20, 2025, with certain loan agreements containing restrictive covenants.  

Foreign Exchange Risk: Unhedged exposure to foreign currency borrowings, imported raw materials and export receivables could affect costs and financial performance when exchange rates fluctuate. 

Sillverton Industries IPO DRHP  

Pantomath Capital Advisors Limited 

Contact Number: 8657578989/8069219065 

Email Address: ipo@bigshareonline.com