Interview With Mr. Manish Dedhia, Joint Managing Director And CFO Of Mitsu Chem Plast On The Company's Journey

New Delhi (India), April 8: The Indian Plastic Industry is playing a pivotal role in the growth of several key sectors of the national economy. Among the various segments of the Indian Plastic Industry, the packaging is emerging as the most important and rapidly expanding one. With changes in lifestyle patterns in society, the packaging segment is expected to witness significant growth in the coming years, primarily driven by end-user segments such as personal care, pharmaceuticals, and food products. Moreover, an increasing shift towards flexible packaging is expected, with polymers accounting for the majority of the share in packaging materials.
Globally, the plastic packaging market size was valued at $US 355 billion in 2021, and it is projected to grow at a compound annual growth rate of 4.2% from 2022 to 2030. Meanwhile, India's plastic packaging market is poised to reach $US 18.02 billion by 2027, expanding at a CAGR of 8.01% during the forecast period. The plastic packaging sector presents significant growth opportunities for the industry, and Mitsu Chem Plast is a leading company that has been manufacturing world-class plastic blow-moulded and injection-moulded products for over three decades, with customer success as its core focus.
The company's strong team of Dedhia brothers is well-positioned to take it to the next level and optimize the growth opportunities in these verticals. Today, we are privileged to have Mr. Manish Dedhia, Joint Managing Director and Chief Financial Officer, who will shed light on the company's vision and mission.

Mr. Manish, could you please provide us with an overview of Mitsu Chem Plast and its journey so far?
It has been an exhilarating journey for Mitsu Chem Plast, marked by a wealth of valuable experiences, remarkable achievements, and continuous growth. Our expedition began over three decades ago, in 1990, with a vision to offer exceptional packaging solutions. Over time, we have transformed into a top-tier manufacturer of high-quality Plastic Blow Molded and Injection Molded products, establishing ourselves as a key player in the burgeoning domestic market. Our three fully integrated plants, located in Maharashtra, boast a current manufacturing capacity of approx. 24,000 MT p.a., which includes pails.
As a leading manufacturer, we have a diverse product range featuring over 500 SKU's and cater to more than 30 Fortune 500 clients in India. Our strategy for growth involves both organic expansion and acquisitions, with the aim of broadening our product portfolio and increasing our market share.
We place a high premium on quality and ensure that our products meet the most stringent industry standards. Mitsu Chem Plast's plants are certified with CE Certificate, 5-S implementation certificate, and QC Methodology, qualifying our products for use in Pharma, Chemical, and Food applications.
Our product offerings include Molded Industrial Plastic Packaging products such as Drums, Jerry Cans, Bottles, Jars, and accessories; Pails, Infrastructural furniture parts such as chair shells; Hospital Furniture Parts such as Panels, Railings, Planks, Trolley Parts; Rescue & Safety Equipment such as Spine Board; and Automotive Components such as Washer Tanks and rainhood.
As a listed entity, we achieved a significant milestone in FY2020-21 by migrating to BSE Mainboard on May 27, 2020, after our successful IPO in 2016 on the SME platform.

With reference to four Product vertical of business – plastic packaging, hospital furniture, automobile components and Industrial infrastructure, which vertical looks more lucrative? Can you please brief us on the contributions from each of these verticals?
We operate in four distinct verticals - Molded Industrial Packaging, Hospital Furniture parts, Automotive Components, and Infrastructure Furniture. Among these, our Molded Industrial Packaging division is the most significant contributor, accounting for around 85% of our total revenues. The Hospital Furniture vertical comes next, contributing around 10%, while the Infrastructure Furniture and Automotive Equipment vertical together account for less than 5% of our revenues.
One of our key strengths is our ability to provide customized molding solutions to our customers, meeting their specific needs and staying ahead of market trends. We also prioritize the confidentiality of our customer's designs, protecting them from competitors. Overall, we believe that our Molded Industrial Packaging division holds the most promising prospects for our business.

Do we have any institutional buyers for our products? Can you throw some light on the Company's client profile?
Our company caters primarily to Original Equipment Manufacturers (OEMs) from diverse industries such as pharmaceuticals, chemicals, dyes, agro-chemicals, disinfectants, diagnostics, hospital and infrastructure furniture, and automotive manufacturers. With over 500 SKUs, we are proud to have over 30 Fortune 500 clients in India, reflecting our commitment to quality and customer satisfaction.
Our clientele is a testament to our commitment to quality and customer satisfaction, which has helped us expand our client base year after year. We are pleased to serve renowned brands such as Tata, BASF, Cipla, Castrol, Thermax, Parle, Venky's, Emcure, NPL, and Galaxy Surfactants, among others.

What are the future growth strategies of the Company? Where do you see the Company five years down the line?
Looking towards the future, Mitsu Chem Plast has identified various growth strategies that will fuel its expansion and enable it to capitalize on the significant market potential. The packaging industry in India has experienced rapid growth in recent years, with per-person annual packaging usage growing by 200% over the past decade, and we aim to capitalize on this trend by developing innovative products that meet the diverse needs of our clients across various industries.
The hospital furniture vertical has experienced significant demand during the COVID-19 pandemic, and we anticipate continued growth in this sector due to rising healthcare spending from both the government and private sectors. As a custom solution plastic molding company, we aim to cater to every requirement of our clients, and we have recently opened depots in Delhi and Hyderabad to better serve customers in the north and south of India, respectively.
We will continue to focus on enhancing our product portfolio, improving our product mix, and sustaining profitability while expanding our operations sustainably. Our success is directly linked to the growth of the food, pharmaceutical, healthcare, chemical, and automobile industries, and as these industries continue to expand, we anticipate significant growth for our products.
In the coming years, we envision Mitsu Chem Plast growing by leaps and bounds, and we remain committed to delivering innovative solutions and maintaining strong relationships with our clients. We are confident in our ability to capitalize on market trends and anticipate a bright future for our company.