Paramount Printpackaging Ltd - Stock Valuation and Financial Performance

Paramount Printpackaging was originally formed on November 13, 1985 in the form of a partnership firm under the name and style of “Paramount Printing Press”. Paramount Printing Press was converted into a private limited company, Paramount Printing Press Private Limited under Part IX of the Companies Act, 1956 for which a certificate of incorporation was issued on March 24, 2006 by the RoC. The name of the company was changed to “Paramount Printpackaging Private Limited” pursuant to fresh certificate of incorporation consequent upon change of name dated June 2, 2010 issued by the RoC. Further, the company was converted to a public limited company and the name of the company was changed to “Paramount Printpackaging Limited” pursuant to a fresh certificate of incorporation consequent upon change of name issued on July 21, 2010 by the RoC. Paramount Printing Press was registered with the registrar of firms in 1941 based on the records available with the Registrar of Firms. The firm was reconstituted several times and finally dissolved on June 7, 1982. Some of the promoters, namely Ashwin Babulal, Ketan Vipin Sukhadia, Anuj Vipin Sukhadia, Divyesh Ashwin Sukhadia, Vipul Ashwin Sukhadia were partners of Paramount Printing Press at the time of dissolution on June 7, 1982. Subsequently, a new firm in the name of Paramount Printing Press was formed on November 13, 1985 and was registered with the Registrar of Firms on June 4, 1990, which was later converted under Part IX of the Companies Act, 1956 to form the company.

Today the company operates out of a fully automated plant at Navi Mumbai, capable of supplying hundreds of different types of folding box cartons that suit the needs of its customers. The company’s plant has the capacity to convert approximately 400 tons of paper board every month. In terms of finished products, the company has the capacity to produce 20 lac cartons a day. The company developed business relations as a stationery printer with a variety of corporates such as banks, pharma and textile corporations. With a view to diversify its operations with its existing clients, the company forayed into publicity material printing. The company diversified further by offering packaging solutions to its existing clients. The company gradually moved from being a stationery printer to offering folding box carton packaging material which presently is its core area of operation. In the initial years, it acquired a single ADAST Dominant and a two colour SOLNA printing machine and for the post-press process of die cutting, it relied on Indian-made manual punching machines and performed the pasting process manually. The company currently runs an integrated facility that includes pre-press, procuring of raw material from various sources, cutting paper as per requirement, printing, hot foil stamping, varnishing, UV coating, lamination, embossing, punching and pasting. Their processes are automated to an optimum level which gives the company the ability to execute high quality and large volume printing jobs, efficiently in lead times. Their press uses Heidelberg printing machines, while the post-press is equipped with BOBST die cutting and pasting machines.

In addition, with a view to gain a competitive advantage the company has set up its own pre-press and ink matching centre. They believe that these in-house facilities are a key differentiator in comparison to other packaging solutions provider as it reduces the company’s dependence on third party suppliers and also helps in increasing efficiency in terms of delivery times. As part of the pre-press facility the company has modules from ESKO Graphic software for the packaging activity and star proof for the proofing needs from BODHI Professional. Their own ink matching centre gives the company the advantage of preparing special colour inks for printing jobs, which they believe further reduces their dependence on third party suppliers.

As on March 31, 2010, they had 78 full time employees. The company is an ISO 9001-2008 certified company for the “Manufacturing & Supply of Printed Duplex Board Packaging.” The company has also received Star Printers of India Award in 2009 from ‘The All India Federation of Master Printers’. The company offers a packing solutions consisting of a wide range of cartons, which is complemented by print finishes such as stamping, embossing, complex varnishing and security features.

Group companies:

• Trim Plastics - Trim Plastics Limited was originally incorporated on June 06, 1985 at Mumbai in the name and style of “Trim Plastics Private Limited” as a private limited company under the Companies Act, 1956. It was converted to a public limited company and its name was changed to “Trim Plastics Limited” on June 16, 2010. Trim Plastics Limited is engaged in the business of manufacturing toothbrushes.
• Paramount Nourishment Private Limited - Paramount Nourishment Private Limited was incorporated on November 23, 2005 as a private limited company with the Registrar of Companies, Maharashtra, Mumbai. Paramount Nourishment is currently engaged in retailing readymade food products.

Milestones:

• March 24, 2006 - The company was incorporated pursuant to the conversion of the partnership firm Paramount Printing Press, as a private limited company under Part IX of the Companies Act, 1956.
• November 16, 2009 - The company received the ISO 9001:2008 certificate.
• February 19, 2010 - The company received awards from the Paper and Foils Converters’ Association for recognition of excellence in the category of ‘Newer Forms/Innovations and Creativity-New Applications’ and ‘Enviro Products’.
• June 2, 2010 - The name of the company was changed from Paramount Printing Press Private Limited to Paramount Printpackaging Private Limited.
• July 21, 2010 - The company was converted from a private limited company to a public limited company.