Aaradhya Disposal IPO

Established in January 2014, Aaradhya Disposal Industries Limited is a manufacturer and exporter of a wide range of paper products, including paper cup blanks, ripple paper, and coated paper rolls. The company specializes in sustainable, high-performance paper solutions such as PE, PLA, and barrier-coated paper cup blanks, as well as various food-grade papers like greaseproof paper, wet strength greaseproof, OGR paper, vegetable parchment, and TDL poster paper. Aaradhya provides customized paper products tailored for sectors like retail packaging, foodservice, and commercial printing, with a focus on quality, performance, and environmental responsibility.

With two manufacturing facilities located in Dewas, Madhya Pradesh, spanning a combined 55,151 square feet and an annual production capacity of 12,000 metric tonnes, Aaradhya Disposal Industries serves both domestic and international markets, particularly in Asia and the Middle East. Its strategic central India location supports efficient logistics and distribution. As of November 25, 2024, the company employed 33 permanent staff members.

Aaradhya Disposal IPO Strengths

• The company manufactures a wide range of products including biodegradable poly-coated paper cups, paper blanks, paper bottoms, PE-coated papers, and uncoated papers, catering to various sectors and customer needs.
• Equipped with advanced technology and modern machines, the company’s facilities are capable of producing up to 1.5 crore cups per month and sizeable volumes of paper blanks, supporting bulk orders and scalability.
• The company’s manufacturing units in Dewas, Madhya Pradesh feature state-of-the-art equipment, ensuring high efficiency, consistent quality, and competitive cost structures.
• Aaradhya Disposal serves clients across India and exports to other countries, reducing regional dependency and enabling diversified revenue generation.
• Adhering to statutory regulations such as GST and import/export codes, the company maintains high standards in product quality and legal compliance, supporting customer confidence and repeat business.
• With existing infrastructure and growing demand for paper-based disposables, the company is well-placed to scale up operations, introduce new products, and tap further market opportunities.

Aaradhya Disposal IPO Risks

• The company’s operations are working capital intensive, with a lengthy cash conversion cycle exceeding 120 days. Large sums are tied up in receivables and inventory, which could impact liquidity and necessitate more borrowing.
• A portion of revenue comes from exports. Changes in global market conditions, exchange rates, and overseas demand can lead to revenue volatility and impact profitability.
• Depends on select customers and suppliers for raw materials heightens the risk that loss of major accounts or disruptions in supply chain relationships could negatively affect business performance.
• Price volatility in key inputs like paper and polyethylene can impact production costs. Inability to pass on such increases to customers may compress profit margins, especially in a price-sensitive market.
• Compared to larger industry competitors, Aaradhya Disposal Industries has a smaller scale of operations. This could limit bargaining power, increase sensitivity to industry downturns, and make it more difficult to compete on price or technology.
• As a manufacturer of disposable products, the company faces evolving regulatory norms and environmental standards. Non-compliance or heightened requirements may increase compliance costs or restrict certain business activities.