Mandviwala Mauser Plastic Industries Limited recorded earnings per share of PKR 3.76 in FY24, as compared to earning per share of PKR 1.42 in FY23. Production began in July 2020 with 210-liter plastic drums as the main product. In 2023, the company added a 260-liter product and has since introduced more.
The company focuses on large blow-molded containers. It initially entered the chemical sector, then expanded into the food sector, and is now looking to enter the lube oil sector. The company started as the eighth or ninth producer in the 210 liter market. By introducing lighter-weight drums produced with their German plant, they have become the second-largest market shareholder in the chemical and food sectors within three to four years.
Their current market share in the 210-liter sector is approximately 25-30%, with the potential to reach 50% in the future. The company found that its competitors struggle to produce similar lightweight drums due to limitations in their machinery, which is often sourced from China and compromises quality for price. It currently manufactures 160-liter and 120-liter open-top drums, which are primarily used in the chemical, textile, and food industries. The company also plans to diversify into industrial crates, made from injection molding, for the food, automotive, and textile industries.
The company commands a price premium and high margins due to the strategic sourcing of polyethylene through larger contracts and volumes, which secures better pricing. Competitors often rely on local traders for their supply, losing these price benefits.
Going Forward, The company is looking at decent growth in the lubricant and ethanol sectors, as well as continued growth in the chemical business with new companies emerging. Despite recent regional conflicts that affected businesses, things have picked up since July.
The company is considering further capital expenditure (CAPEX) investments to increase capacity. They anticipate reaching 70-80% capacity utilization within two years due to expected market growth.
Important Disclosures
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