Jyoti Global Plast

• Jyoti Global Plast is coming out with an initial public offering (IPO) of 53,70,000 equity shares in a price band Rs 62-66 per equity share.
• The issue will open on August 4, 2025 and will close on August 6, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 6.20 times of its face value on the lower side and 6.60 times on the higher side.
• Book running lead manager to the issue is Unistone Capital.
• Compliance Officer for the issue is Shrutika Lalan Mandal.

Profile of the company

Jyoti Global Plast is engaged in the business of plastic & FRP (Fiber-Reinforced Polymer) moulding, providing custom solutions based on client-specific requirements for polymer-based products (HDPE-PP grade) such as drums, carboys, jerrycans, barrels, pail buckets, toys, automobile parts, etc. and FRP based products such as drone components and connectors. Its products are used in industries such as pharmaceutical, chemical, food & beverage, lube and industrial oil, adhesives, childcare, automotive, defence and aerospace, etc. It closely collaborates with its clients to understand their unique requirements, optimizing the manufacturing process to meet their individual needs, offering superior quality and cost-effective solutions. With a commitment to delivering value, its products are crafted using cutting-edge moulding technologies.

It leverages advanced blow moulding and injection moulding technologies to produce a wide range of packaging and non-packaging products, including HDPE drums, barrels, jerrycans, bottles, toys etc., and automobile components and defence & aerospace products such as drone components and connectors. Additionally, injection moulding technology is also utilized on a job-work basis for creating durable HDPP-based products such as pail buckets. Presently, it operates two strategically located state-of-the-art manufacturing units which two are located in Rabale, Navi Mumbai. It is proposed to start its proposed manufacturing unit III at Mahad, Raigad. It started commercial production in the year 2005. Its current combined production capacity is 7,416 MT p.a.

Its manufacturing units are equipped with latest technology, advanced automation, and an integrated conveyor system, boasting superior in-house facilities for extrusion, blow-moulding and injection moulding processes, cooling and solidification, quality inspection and product labelling and packaging, ensuring that the highest standards of quality, precision, performance and cost-effectiveness are met across all its products. Additionally, its in-house logistics network enhances the supply chain, enabling faster deliveries and more cost-effective operations. Furthermore, it utilizes specialised quality testing equipment for raw materials and finished goods to ensure compliance with recognized international and Indian quality standards.

Proceed is being used for:

• Part finance the cost of establishing new manufacturing facility to expand its production capabilities at Plot No. D-61/2, MIDC, Mahad, District Raigad, Maharashtra (Proposed new facility)
• Funding of capital expenditure requirements of the company towards set up of Solar Power Plant
• Repayment and/or pre-payment, in part or full, of certain borrowings availed by the company
• General corporate purposes

Industry Overview

Innovations in plastic manufacturing equipment have played a significant role in the growth and evolution of the plastics industry. These innovations have led to more efficient and cost-effective processes, increased productivity, and improved product quality. 3D printing technology has revolutionized the way plastic products are designed and manufactured. This technology uses a computer-controlled process to build plastic products layer by layer, allowing for highly complex shapes and geometries. 3D printing has the potential to reduce waste and energy consumption in the manufacturing process, as it allows for precise control of material usage. Moreover, Injection molding is a widely used process for manufacturing plastic products. Recent innovations in this process have focused on improving energy efficiency, reducing material waste, and increasing production speed.

Plastic manufacturing is a complex process that requires skilled and efficient labor. The success of a plastic manufacturing plant depends on the productivity and performance of its workforce. Labor and workforce management are critical factors that influence a plastic manufacturing plant's production output, quality, and profitability. This section will discuss the importance of labor and workforce management in plastic manufacturing and the strategies to optimize workforce productivity and efficiency.

Plastic is considered to be an unsustainable and non-environmental-friendly material. The governments of many nations have banned the use of plastic or advised to curb its usage and focus on more clean and low-impact packaging material. Innovation in the technologies and adoption of recyclable material is one of the primary factors contributing to market growth. According to research by the Organization for Economic Co-operation and Development, innovation for reusable plastic increased by 23% between 1970 and 2017. At the same time, innovation for repairing plastic has been raised by 12%. Plastic takes hundreds of years to decompose completely, and according to the Environmental Protection Agency of the U.S., the municipal solid waste of PET in the U.S. in 2012 was 4.1 million tons, and only 31% was recycled. Due to these factors, the demand for bioplastic is increasing. Bioplastic is compostable plastic derived from natural materials or petroleum plastic products that are degradable. The augmenting demand for bio-based PE, PET, PP, and other materials is fueling the market growth.

Pros and strengths

Diverse product portfolio: The company provides a range of HDPE and HDPP packaging solutions for various industries, producing drums, jerrycans, barrels, bottles and pail buckets. Its packaging solutions cover capacities from 250ml to 250 litres, supporting small-scale and bulk storage and transportation requirements. Its products serve sectors such as chemicals, pharmaceuticals, food and beverages, agrochemicals, and lubricants. In addition to packaging, it also produces toys (and its components), automobile components, connectors, and drone components to support different market needs. Its focus is on delivering functional and industry-specific solutions through plastic moulding technologies.

In-house logistics, testing, and stickering: It has a fleet of 6 company-owned trucks which enables it to maintain control over delivery schedules, optimize routes, have shorter lead time requirement and ensure on-time delivery of its products to its customers. Further, recognizing that certain situations may require additional support, such as high-demand periods, larger shipments, or deliveries at distant locations, it also collaborates with a network of trusted third-party logistics providers. It also has an in-house fully equipped laboratory with latest technology and equipment along with a dedicated team of personnel for conducting elaborate tests on the raw materials and finished goods to ensure adherence to established standards of safety and quality.

Certifications for quality and environmental responsibility: Its products are UN-approved and comply with safety standards for safe transportation by road, rail, sea, and air. Its manufacturing units are ISO 9001:2015 certified, adhering to quality, environmental, health, and safety management systems for the production and supply of blow-moulded plastic carboys, jerrycans, barrels, and other related products. Additionally, the company is fully EPR-compliant (Extended Producer Responsibility), ensuring that all products meet the required environmental and regulatory standards. Further, its products undergo rigorous quality testing to ensure they meet industry standards before being delivered to its clients. 

Risks and concerns

Majority of revenue comes from Maharashtra and Gujarat: The majority of its product sales is concentrated in the regions namely, Maharashtra and Gujarat. For the Fiscal 2025, 2024 and 2023 its revenue from sale of products in Maharashtra and Gujarat accounted for 98.50%, 98.70% and 97.39% of its revenue from operations, respectively any adverse developments affecting its operations in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows.

Substantial revenue comes from top 10 customers: The company is engaged into the business of Plastic Molding providing custom solutions based on the clients’ specific requirements for polymer-based packing containers. Although its customer base may vary each year, it is heavily reliant on the contribution of the Top 10 customers. As a result, it is dependent on certain major customers, representing 21.61%, 23.19% and 26.10%, respectively, of its total invoice for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The loss of such customers, a significant reduction in purchases by such customers, or a lack of commercial success of a particular vehicle model of which it is a significant supplier could adversely affect its business, results of operations and financial condition.

Geographical constrain: The company currently operates two manufacturing units in Maharashtra with commercial production of polymer based packaging containers. Any disruption in its manufacturing operations involving the shutdown of its plant in any of its manufacturing facilities resulting from any factors beyond its control, including socio-economic, regulatory, policy or political developments, force majeure, natural calamities, or civil disruption, could result in a material adverse impact on its business operations and financial performance, particularly due to the long period of time required for rebuilding to resume production. Further, there can be no assurance that equipment in its manufacturing facilities will not malfunction, resulting in discontinuation of production. Any malfunction or shutdown of any of the plant would adversely impact production and could result in it incurring significant losses from shutdown of operations, capital expenditure to replace any malfunctioning furnace or other equipment, and thereby materially and adversely affecting its business, results of operations, financial condition, and cash flows.

Outlook

Jyoti Global Plast specialises in plastic molding solutions. The company specializes in plastic moulding, offering custom solutions for polymer-based packaging containers (like HDPE-PP products: drums, carboys, jerrycans, barrels, pails) and toys for industries such as pharmaceuticals, chemicals, food & beverage, oil, adhesives, and childcare. The company offers HDPE packaging solutions, including drums, jerrycans, barrels, and bottles. It has in-house logistics, testing, and stickering. On the concern side, the company’s business is dependent on certain major customers, with whom it does not has firm commitment agreements. The loss of such customers, a significant reduction in purchases by such customers, or a lack of commercial success of a particular vehicle model of which it is a significant supplier could adversely affect its business, results of operations and financial condition. The majority of its product sales is concentrated in the regions namely, Maharashtra and Gujarat and any adverse developments affecting its operations in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows.

The company is coming out with a maiden IPO of 53,70,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 62-66 per equity share. The aggregate size of the offer is around Rs 33.29 crore to Rs 35.44 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations in the financial year 2024-25 amounted to Rs 9,348.49 lakh. This represents Rs 623.39 lakh or 7.14% increase compared to the previous financial year’s revenue from operations of Rs 8,725.10 lakh. Moreover, the company’s profit surged 68.19% to Rs 608.06 lakh in FY25 as compared to Rs 361.53 lakh in FY24.

The company has started manufacturing auto parts, connectors and drone components to cater to the automobile and defence & aerospace industries since April 2025. Its products were sent on a trial basis and got approval from the clients, post which it has received Purchase Orders for the same. With the necessary established capabilities, it is executing the Purchase Orders available on hand. Its expertise in manufacturing plastic and FRP drone parts provides innovative solutions to the challenges of weight reduction and aerodynamic resistance in aircraft. Its advanced manufacturing processes ensure the highest levels of accuracy and reliability. By utilizing lightweight yet durable materials, it is able to reduce operational costs while maintaining exceptional quality.