Company Profile
Overview:
3B Films Limited is an Indian manufacturer of cast polypropylene (CPP) and cast polyethylene (CPE) films used widely in the flexible packaging industry. Founded in 2014 and based in Vadodara, Gujarat, the company serves both domestic and international markets.
Products and Services:
The company specializes in producing various grades of CPP and CPE films, including transparent, white opaque, and metallized films. These products are commonly used in food packaging, medical applications, and other industrial uses.
Operations:
With an annual production capacity of approximately 9,000 metric tons, 3B Films operates a modern manufacturing facility. The company also recycles film scrap into reusable granules, supporting sustainable manufacturing practices.
Markets and Clients:
3B Films exports its products to several countries, including the UAE, Sri Lanka, and African nations. It supplies materials to well-known clients in India’s packaging and FMCG sectors.
IPO and Financials:
In 2024, the company launched an IPO on the BSE SME platform. As of the latest fiscal year, it reported a revenue of around ₹49 crore and a net profit of approximately ₹4.9 crore. The company has shown strong profit growth and a healthy return on net worth.
Vision:
3B Films aims to expand its footprint in the global packaging industry by delivering quality, innovation, and sustainability in its product offerings.
Business Model
Core Business:
3B Films Limited manufactures specialized plastic films, mainly Cast Polypropylene (CPP) and Cast Polyethylene (CPE) films, which are essential materials in flexible packaging industries such as food, pharmaceuticals, and consumer goods.
Revenue Streams:
- Sale of Films: The primary revenue comes from selling various grades and types of films to packaging manufacturers and converters.
- Value-added Products: The company also offers adhesive laminated films and customized film solutions, which command higher margins.
- Reprocessed Materials: They recycle manufacturing scrap into granules, which are sold as raw materials, adding a secondary revenue source.
Operations:
- Uses advanced extrusion and casting technology to produce films with different thicknesses and properties.
- Maintains quality control and R&D to innovate products for evolving packaging needs.
- Exports to international markets, broadening revenue sources beyond domestic sales.
Customer Base:
- Serves large packaging companies, FMCG manufacturers, and other industrial clients.
- Builds long-term relationships through product reliability, customized solutions, and timely delivery.
Growth Strategy:
- Expanding production capacity to meet growing demand.
- Diversifying product offerings to include laminated films and other value-added products.
- Enhancing exports to increase global market presence.
Sustainability:
- Focuses on recycling waste materials from production to reduce environmental impact and improve cost efficiency.
Product Portfolio
1. Cast Polypropylene (CPP) Films
- Transparent and white opaque films
- Used mainly in food packaging, medical packaging, and other industrial applications
- Available in various thicknesses from 15 to 250 microns
- Known for excellent clarity, heat sealability, and moisture barrier properties
2. Cast Polyethylene (CPE) Films
- Films with good toughness and chemical resistance
- Suitable for flexible packaging and lamination with other materials
- Available in different grades tailored to customer needs
3. Metallized Films
- Metallized CPP or CPE films offering enhanced barrier properties
- Used in packaging for products requiring better protection against moisture, oxygen, and light
4. Adhesive Laminated Films
- Laminated films combining multiple layers for superior strength and barrier performance
- Used in packaging applications where durability and product protection are critical
5. Reprocessed Film Granules
- Scrap generated during manufacturing is reprocessed into granules
- Sold as raw material for other industrial uses, promoting sustainability
Features Across Products:
High Clarity and Transparency
Most films offer excellent visual clarity, making them ideal for packaging that showcases the product inside.
Excellent Heat Sealability
Their films can be reliably sealed, ensuring product freshness and tamper resistance.
Moisture and Oxygen Barrier
Many films provide strong barriers against moisture and oxygen, protecting sensitive products from spoilage.
Durability and Strength
Films are tough and flexible, resistant to tearing and punctures during handling and transportation.
Chemical Resistance
Products withstand exposure to various chemicals, making them suitable for industrial and medical packaging.
Custom Thickness and Grades
Available in a wide range of thicknesses and formulations to meet diverse packaging requirements.
Sustainability Focus
Use of reprocessed scrap material reduces waste and supports eco-friendly manufacturing.
Financial Snapshot (as of March 31, 2024)
📊 Financial Highlights (₹ in Crores)
| Financial Metric | Value |
|---|---|
| Total Revenue | ₹76.40 crore |
| Net Profit (PAT) | ₹4.29 crore |
| Earnings Per Share (EPS) | ₹2.02 |
| Return on Net Worth (RoNW) | 13.88% |
| Net Asset Value (NAV) per Share | ₹14.57 |
| EBITDA Margin | 19.79% |
| Profit Margin (PAT Margin) | 5.67% |
| Debt-to-Equity Ratio | 3.45 |
| Interest Coverage Ratio | 2.32 times |
| Debt Service Coverage Ratio | 0.81 times |
| Total Assets | ₹144.84 crore |
| Total Liabilities | ₹70.64 crore |
| Equity Share Capital | ₹21.22 crore |
📈 Key Financial Ratios
| Ratio | Value | Description |
|---|---|---|
| Earnings Per Share (EPS) | ₹2.02 | Profit allocated to each share of stock |
| Return on Net Worth (RoNW) | 13.88% | Profitability relative to shareholder equity |
| EBITDA Margin | 19.79% | Operating profitability before interest, tax, depreciation, and amortization |
| Profit Margin (PAT Margin) | 5.67% | Net profit as a percentage of revenue |
| Debt-to-Equity Ratio | 3.45 | Proportion of debt compared to equity |
| Interest Coverage Ratio | 2.32 times | Ability to pay interest from operating income |
| Debt Service Coverage Ratio (DSCR) | 0.81 times | Ability to service debt obligations |
Initial Public Offering (IPO) Plans
3B Films Limited plans to raise funds by offering its shares to the public through an Initial Public Offering (IPO) on the BSE SME platform. The company filed the necessary documents with the regulatory authorities in November 2024 to proceed with this capital-raising exercise.
Key details of the IPO include:
- The issue will be a fixed-price offer.
- The total number of shares offered is approximately 69.7 lakh.
- Out of these, around 37.7 lakh shares will be newly issued by the company (fresh issue), and about 32 lakh shares will be sold by existing shareholders (offer for sale).
- Funds raised will be used for expanding manufacturing capacity, meeting working capital needs, and general corporate purposes.
The IPO aims to support the company’s growth plans by strengthening its financial base and expanding its product portfolio and market reach.
Objectives of the Issue
Capital Expenditure
To invest in expanding the company’s manufacturing facilities and enhance production capacity.
Working Capital Requirements
To meet day-to-day operational expenses and support business growth.
General Corporate Purposes
To fund other business needs such as marketing, research and development, and debt repayment.
🎯 Objectives of the IPO
Expand Production Capacity
Invest in new machinery and facilities to boost manufacturing output.
Strengthen Working Capital
Ensure smooth day-to-day operations and support growth initiatives.
Support Corporate Activities
Fund business development, marketing, R&D, and repay debts to improve financial health.
Future Outlook
3B Films Limited is well-positioned to grow by tapping into the increasing demand for flexible packaging, especially in food and consumer products. The company plans to expand its product range and boost manufacturing capacity to serve a wider market.
Key focus areas include:
- Expanding Adhesive Laminated Films Production
The company has started offering adhesive laminated films and intends to set up in-house production to capture more market share in high-barrier packaging solutions. - Sustainability and Recycling Initiatives
By recycling manufacturing scrap into reusable granules, 3B Films supports environmental sustainability and creates an additional source of revenue. - Investment in Technology and R&D
Continuous research and innovation help the company improve product quality and meet evolving industry needs. - Long-Term Growth Vision
3B Films aims to grow its presence nationally and internationally, focusing on compliance, safety, and environmentally responsible practices.
Overall, the company’s future strategy is built on diversifying its products, adopting sustainable practices, and leveraging technology to maintain a competitive edge in the packaging industry.
Key Growth Areas:
Expansion of Production Capacity
Increasing manufacturing capabilities to meet rising demand for flexible packaging films.
Adhesive Laminated Films Segment
Growing focus on producing high-barrier adhesive laminated films to cater to advanced packaging needs.
Geographical Market Expansion
Strengthening presence in domestic and international markets, including exports to new countries.
Sustainability Initiatives
Enhancing recycling processes and eco-friendly manufacturing to reduce waste and appeal to environmentally conscious clients.
Research & Development
Investing in innovation to develop new products and improve existing film properties for better performance.
🧭 Vision and Leadership
Vision:
To become a leading global provider of innovative, high-quality flexible packaging solutions, focusing on sustainability, customer satisfaction, and technological advancement.
Leadership:
The company is guided by experienced professionals with deep expertise in the packaging industry. The leadership team emphasizes innovation, operational excellence, and ethical business practices to drive long-term growth and stakeholder value.
Market Positioning and Growth Prospects
Market Positioning:
3B Films Limited holds a strong position in India’s flexible packaging sector, specializing in manufacturing high-quality Cast Polypropylene (CPP) and Cast Polyethylene (CPE) films. The company operates an advanced production facility with imported machinery, allowing it to offer a diverse range of products including transparent, metallized, and retort films. Its key customers span the food, FMCG, and pharmaceutical industries, both within India and abroad.
Growth Prospects:
- Expanding Product Range: The company is actively growing its adhesive laminated films segment by planning in-house production to meet increasing market demand.
- Sustainability Focus: By recycling manufacturing waste into reusable granules, 3B Films not only supports environmental goals but also opens new revenue avenues.
- Innovation and R&D: Continued investment in research helps the company enhance product quality and adapt to evolving packaging needs.
- Long-Term Vision: 3B Films aims to expand its global footprint, improve compliance and safety standards, and pursue listings on multiple stock exchanges to support future growth.
