B&B Triplewall

B&B Triplewall Containers Ltd Management Discussions

NSEBSE

₹185.64

(-4.25%)

Oct 14, 2025|12:00:00 AM

B&B Triplewall Containers Ltd Share Price Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Corrugated Packaging Industry in India continues to witness steady growth, driven by increasing demand across key sectors such as FMCG, pharmaceuticals, electronics, textiles, and e-commerce. As businesses increasingly adopt sustainable packaging solutions, corrugated boxes have emerged as a preferred choice due to their recyclability, cost-effectiveness, and versatility.

The industry is gradually shifting towards automation, standardized processes, and high-performance machinery to meet rising quality expectations and delivery timelines. Additionally, government initiatives promoting sustainability and the ban on single-use plastics are further encouraging the use of eco-friendly packaging alternatives. Despite challenges related to raw material price volatility and logistics costs, the long-term outlook for the industry remains positive, supported by robust consumption trends, organized retail growth, and a surge in digital commerce.

COMPANY OVERVIEW

Established in 2011, B&B Triplewall Containers Limited has grown to become a recognized industry leader in the manufacturing of high-quality corrugated boxes and boards. With over a decade of expertise, we have built a strong foundation based on innovation, operational excellence, and a customer-centric approach.

Our advanced manufacturing facilities are equipped with state-of-the-art technology, enabling us to deliver a diverse range of corrugated packaging solutions tailored to the unique requirements of major multinational corporations and packaging companies. Our product range spans across various sectors including FMCG, pharmaceuticals, textiles, electronics, distilleries, toys, and e-commerce.

In a significant strategic move during the Financial Year 2024-25, the Company commenced the manufacturing of kraft paper, marking a key step toward backward integration. This initiative enhances our supply chain efficiency, ensures better control over input quality, and supports our long-term cost optimization strategy.

Our state-of-the-art manufacturing facilities, coupled with a skilled and dedicated workforce, enable us to deliver tailored, high-performance, and environmentally responsible packaging solutions. Notably, we were the first company in Indias corrugated segment to adopt the sheet feed model, underscoring our commitment to innovation and operational excellence.

With consistent growth in key sectors—especially e-commerce and FMCG, each expanding at approximately 15% annually—we are well-positioned to leverage emerging opportunities. Additionally, untapped markets such as fresh fruits and vegetables, along with increasing demand in the electronics and household appliance sectors, present strong avenues for future growth.

OPPORTUNITIES AND THREATS

OPPORTUNITIES

Your Company is one of the largest manufacturers of corrugated boxes in the country. It is equipped with state-of-the-art machinery. With industry experience scanning decades, healthy business relationships with existing customers and constant additions of new customers to the portfolio, the Company is consistently growing year on year.

Along with onboarding prospective customers, the Company also sees an opportunity to add value to customers packaging needs by using high graphics while printing corrugated boxes, since these arts and graphics act as a medium of advertising for end consumers.

Key areas of growth and opportunity include the following:

• Sustainability -Driven Packaging Trends: Increasing environmental

awareness and regulatory push against single-use plastics are creating significant opportunities for recyclable and biodegradable corrugated packaging.

• E-commerce Growth: The boom in e-commerce creates demand for secure, efficient, and attractive packaging solutions, opening new avenues for growth.

• Export Market: Expanding to international markets presents a substantial growth opportunity, especially in regions where demand for innovative packaging is high.

• Untapped Segments: Emerging opportunities in packaging for fresh fruits and vegetables, household appliances, and regional retail markets remain largely underpenetrated and offer scope for future expansion.

• Technological Advancements: Automation and digitization in manufacturing processes can improve productivity, consistency, and scalability, helping to meet large-volume, time-sensitive customer demands.

• Backward Integration through Kraft Paper Manufacturing: The

commencement of kraft paper production enhances supply chain efficiency, cost control, and quality assurance, positioning the Company for improved margins and faster response to market needs.

THREATS

While the corrugated packaging industry offers significant growth potential, it is not without its challenges. Various external and internal factors can impact the Companys operations, profitability, and competitive positioning. Identifying and proactively managing these threats is essential to sustaining long-term performance and mitigating potential risks.

Key challenges includes following:

• Raw Material Costs: Fluctuations in the cost of raw materials, can impact profitability.

• Regulatory Compliance: Adherence to stringent environmental and safety regulations can increase operational costs.

• Competitive Pressures: The industry is highly competitive, with numerous players offering similar products, making differentiation crucial.

• Supply Chain Disruptions: Global supply chain issues, exacerbated by geopolitical tensions and pandemics, pose risks to timely delivery and cost management.

• Economic Slowdowns: Any slowdown in consumer-driven sectors or global trade could directly impact packaging demand and customer order volumes.

We are easily replaceable as a supplier of a generic product, but to counter this we have setup a technically advanced facility and we provide unparalleled service to the satisfaction of the dynamic requirements of the customers.

SWOT Analysis

> Opportunities:

1. Indian FMCG industry is growing at a faster rate

2. Shift towards sustainable packaging

3. Surge in the e-commerce sector

> Strength:

1. Experienced and efficient management team

2. Technically advanced and large capacity plants

3. Diverse customer portfolio

4. Satisfied customers

5. Company reducing Debt

6. Company with Zero Promoter Pledge

> Weaknesses:

1. Extremely competitive market

> Threats:

1. Easily replaceable as a supplier of generic product

2. Highly flammable products

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company is engaged in the business of Manufacturing and Sale of Paper & Paper products. In the context of IndAS-108 —Operating Segments, Paper and Paper Products constitute the only reportable segment of the Company.

The Company manufactures and sells following products under this segment:

• Kraft Paper

• Corrugated Boxes

The performance of each product for the financial year 2024-25 is outlined below:

1. Manufacturing of Corrugated Boxes

This segment continued to be the key contributor to the Companys overall revenue and profitability. Revenue from corrugated box manufacturing stood at Rs. 46,009 Lakhs during the financial year, representing approximately 95.43 % of the total revenue.

During the financial year, the Company focused on improving operational efficiency, reducing waste, and expanding customer reach. Continued investment in automated machinery and quality enhancement measures has further strengthened the Companys competitive position in the market. Additionally, the commencement of in-house kraft paper manufacturing contributed to improved raw material availability and cost stability, which positively impacted revenue performance.

2. Manufacturing of Kraft Paper

The Kraft Paper operations commenced during the financial year 2024-25, marking a significant step towards backward integration. This strategic move aims to ensure consistent quality, control over raw material supply, and improved cost efficiency in the production of corrugated boxes. In addition to supporting internal requirements, the Company has also commenced supplying kraft paper to third-party customers, thereby establishing an additional revenue stream.

In its first year of operation, the Kraft Paper unit contributed Rs. 2,208 Lakhs to the overall revenue.

OUTLOOK

Continuing with the system of benchmarking the manufacturing processes against industry best practices, upgradation of real time quality assurance systems and induction of state-of-the-art technology for its products and achieved higher levels of productivity and product excellence.

The Company implemented several initiatives encompassing cost management, supply chain optimization, smart procurement, long term coal linkages and productivity improvement through automation which helped in absorbing escalation in input costs, product development etc.

The state-of-the-art manufacturing facilities along with market leadership in value added corrugated boxes, world class product quality, established supply chain system strategically positions your Company to further enhance its leadership status in the Indian corrugated boxes in coming years.

Investment in R&D, coupled with a strong emphasis on customer satisfaction and operational efficiency, will continue to drive growth and enhance shareholder value.

RISKS AND CONCERNS

In todays challenging business environment, companies operating in a global market are faced by uncountable numbers of risks. Below are some key risks faced by our Company:

• Raw Material Costs: Increases in the prices of basic raw materials, such as Kraft paper and glue, could elevate manufacturing costs and negatively impact profitability.

• Market Demand: A significant decline in demand for our products, due to introduction of alternative technologies, shifts in consumer habits, or an industry slowdown, may adversely affect profitability and business prospects.

• Geographical Concentration: A substantial portion of our sales is generated from operations in Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu. Any adverse developments in these regions could impact revenue and operational results.

• Fire Risk: Our primary products are corrugated boards and boxes which are manufactured from highly flammable corrugated paper sheets, the risk of fire, could adversely affect our business. However, the Company has implemented necessary fire safety measures and secured adequate insurance coverage as required by the Tamil Nadu Fire Service Act of 1985.

• Regulatory Changes: Changes in government policies could pose additional challenges to the Companys operations.

Risks	Mitigation
Impact of pandemic may continue for an extended period of time and this could materially affect revenue growth and profitability	• Expand presence in segments that are relatively unaffected by the pandemic • Diversified revenue mix covering different segments and geographies • limiting the exposure to a single customer to 10%
Inability to innovate and develop new services and solutions to keep up with customer expectations and Inability to co-op with new technologies which could result in lower growth traction	• Focus on innovation and development of solutions and accelerators to reduce time-to-market for customers • Continuous competency and capability building in leading edge technologies supported by investments in state-of-the- art machines and production equipments.
Loss of market due to emergence of more competitors and clients going towards a more cost-efficient solution	• Increase in the level of automation around the whole production process • Deployment of additional work force towards market penetration • Deploying more efficient machines to mitigate the rising cost of inputs and deployment of funds in other factors.
Reduction of top line and bottom line and insufficiency to generate enough margins	• Constantly focusing on large corporates to improve top line. Targeting mid-size corporates to improve bottom line • Increasing the production capacity as to cater to more number of customers and achieve higher level of efficiencies
Impact on supply chain by any external factor in the area around existing manufacturing facilities	• Development of new facilities in different location • Further developing warehousing facilities at various location and capturing larger geographies.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has an adequate and effective Internal Control Mechanism in place to ensure efficient conduct of its operations, security of assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records and the timely preparation of reliable financial information as per its Management Information System (MIS). These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations and protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

Apart from strong internal control, your Company has also appointed Internal Auditor for periodical checking and monitoring the Internal Control Measures.

Internal Auditors are present at the Audit Committee Meetings where Internal Audit Reports are discussed alongside of management comments and the findings and observation of the Internal Auditors. The Terms of Reference of the Audit Committee inter alia includes reviewing the adequacy of the internal control environment, monitoring implementation of the action plans emerging out of Internal Audit findings including those relating to strengthening Companys Risk Management Systems and discharge of statutory mandates.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year 2024-25, your Company continues to see marginal growth in its overall performance in the driven by the performance of the segment in which the Company operates.

Revenue: In the Financial Year 2024-25, Revenue from operations was 49,175.92 Lakhs as against 37,539.43 Lakhs in the previous year on a consolidated basis and 48,217.82 Lakhs as against 37,451.51 Lakhs in the previous year on a standalone basis.

Net Profit/ Loss: Despite the growth in top-line revenue, the Company has incurred a net loss of Rs. 426.58 lakhs in Financial Year 2024-25, as against a net profit of 11,886.03 lakhs in Financial Year 2023-24.

The decline in profitability was primarily due to investment in newly established kraft paper manufacturing unit which resulted in increased depreciation, finance costs, and associated operational expenses. The management remains optimistic that this strategic expansion will contribute positively to the Companys long-term growth and profitability in the coming years.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

In compliance with the requirement of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as Listing Regulations), the key financial ratios along with explanation for significant changes (i.e. changes of 25% or more as compared to the immediately preceding financial year) has been provided hereunder:

Particular	Ratio as on March 31,2025	Ratio as on March 31,2024	% Change	Explanations
Debtors Turnover	5.93	5.57	6%	NA
Inventory Turnover	6.77	5.60	21%	NA
Interest Coverage Ratio	2.54	5.44	-53%	Due to increase in finance cost.
Current Ratio	0.99	1.20	-17%	NA
Debt Equity Ratio	1.85	1.49	24%	NA
Operating Profit Margin (%)	0.02	0.08	-77%	Due to reduction in earnings on account of increase in depreciation, finance and other cost of the Company.
Net Profit Margin (%)	-0.01	0.05	-116%	Due to reduction in earnings on account of increase in depreciation, finance and other cost of the Company.

RETURN ON NET WORTH

Details of change in Return on Net Worth as compared to the immediately preceding Financial Year are as follows:

Particular	As on March 31,2025	As on March 31,2024	% Change	Explanations
Return on Net Worth	-0.04	0.17	-122%	Due to reduction in earnings on account of increase in depreciation, finance and other cost of the Company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT

Highly capable and skilled human resources with strong motivation and dedication is the backbone of your Companys success and growth. From its foundation, Companys employment philosophy and practices have been based on the recognition that its people are the primary source of its competitiveness.

During the financial year 2024-25, the Company continued its efforts to strengthen its human resource capabilities and foster a supportive, performance-driven work environment. The Company recognizes its employees as a key pillar of sustainable growth and remains committed to their well-being, development, and engagement.

Human Resources Initiatives

Several initiatives were undertaken during the year to attract, retain, and develop talent across functional areas:

• Capacity Building: Structured training programs, both technical and behavioral, were conducted to enhance employee skills and align them with evolving operational requirements.

• Talent Acquisition & Retention: The Company focused on recruiting skilled professionals, especially in the new Kraft Paper division, while also implementing employee retention strategies such as internal growth opportunities and performance-linked incentives.

• Employee Engagement: Regular communication forums, feedback sessions, and employee welfare activities helped maintain high levels of motivation and morale.

• Digital HR: Automation of HR processes through digital platforms continued, enabling better efficiency in payroll, attendance, and performance management.

The industrial relations environment during the year remained cordial and stable across all manufacturing units. There were no significant disruptions or disputes during the period under review. The management maintained an open and constructive dialogue with employees and their representatives to address issues proactively and ensure a harmonious workplace.

The commencement of the Kraft Paper manufacturing unit was successfully supported by timely recruitment and onboarding of the required workforce, in close coordination with local authorities and stakeholders.

Your Company consistently abides by human resources policy that is found on a set of following principles:

• equality of opportunity,

• continuing personal development,

• fairness,

• mutual trust

• teamwork

Your Companys employees have collectively envisioned the future with commitment to realise your Companys vision of creating enduring value for the Company as well as for the society at large.

The total permanent staff strength of the Company as on March 31, 2025, was 760.

The Company does not engage in any form of child labour/forced labour/involuntary labour and does not adopt any discriminatory employment practices.

DISCLOSURE OF ACCOUNTING TREATMENT

The Financial Statement of the Company have been prepared in accordance with the Indian Accounting Standard (IND-AS) Specified under Section 133 of the Companies Act, 2013 and the applicable Rules, as amended from time to time and other provision of applicable laws.

In preparation of Financial Statements, the Company has not followed a treatment different from that prescribed in the Accounting Standards.

CAUTIONARY STATEMENT

Statement in this report on Management Discussion and Analysis describing the Company objectives, projections, estimates, exceptions or predictions may be forward looking statement and are based on certain assumption and exception of future events. Actual result could however differ materially from those express or implied. Important factors that could make a difference to the Companys operation including global and domestic demand- supply condition, finished goods process, raw material cost and availability, change in government regulations and tax structure, economic development within India and the countries with which the Company has business contract and other factors such as litigation and industrial relation.

The Company assumes no responsibility in respect of forward-looking statement herein which may undergo changes in future based on subsequent development information and event.

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