Thread by @drprashantmish6

#HUHTAMAKI PPL LTD
CMP 200 Rs, MCAP around 1500 Cr , BV 92 , FY 19-30 ROE AND ROCE > 20%, Debt 273 Cr , CFO 19-20- 285 Cr , Promotor holding around 67%,

Parent company Huhtamaki oyj ( Finland ) is having 81 manufacturing unit and 24 sales office across 35 countries, Huhtamaki PPL have 18 manufacturing facilities and 2 R& D Centres ,Recently acquires Ajanta packaging in 2018 and Mohan mutha packaging in 2019

What they pack
1 - Food -Biscuits, snacks ,cereals ,Dairy and baby food , ice creams , confectioners , soups and sauces, ready meals
2-Beverages- Coffee,tea , juice alcoholic beverages
3- Healthcare-liquid , balms ,gel, dermatology products,medical device

4- personal and home care -Soap, shampoos, cream, cosmetics, tooth paste
5- Pet food
6-Agrochemicals, lubricants, seeds

Entire Business spectrum ( other then flexible packaging)

Indian flexible packaging industry is expected to reach Rs 640 billion by 2022-2023 ( 17-18 -Rs 375billion with CAGR of 10%)and Huhtamaki with its R&D introducing new products for flexible packaging

They working on circular economy means recyclable packaging-so they started packaging with mono materials ( many other companies are also started same idea )

Rigid materials are primarily monomaterial-based, flexible materials have traditionally been multi-material, consisting of several layers of different types of plastics and often also including aluminium, which makes recycling more difficult.

For example Till now Aluminum foil forms the innermost layer of a multilayered shampoo pouch.The foil is used because it is not porous, and it keeps the cleansing effects of shampoo intact for a longer period.

The next layer, covering the aluminum foil, is usually made from polyethylene terephthalate commonly known as “pet” or “poly pet” in industry .Poly pet is a thermoplastic – a kind of plastic that changes its shape under heat. It serves a dual function inside the shampoo sachet

. It provides strength to the plastic pouch and it works as glue that keeps the inner aluminum foil attached to the outermost layer which carries advertising and another layer of lamination.

The function of the outermost layer is to provide a physical barrier against environmental factors which can lessen the effectiveness of shampoo and decrease its shelf life. Another function of this layer is to carry company logo and product information.

so multi-layer composite material are difficult to recycle because of the need to separate the different film layers. What’s more, many countries do not have the necessary recycling systems and processes in place to recycle complex laminates.

In contrast, monomaterial films are fully recyclable as all layers are made of the same type of plastic, which makes sorting easier and leads to cleaner recycling strea

So now Packaging is changing from a linear one-time use model to a circular model where materials are collected, recycled and reuse- Circular economy

Huhtamaki PPL launched the first wave of recyclable solutions that use mono-material paper,
PP and PE or a combination of the two.. These include solutions for shampoo, air-fresheners, confectionery,snacks, bulk packaging and paper-based outer bags.

Recyclable solutions for coffee, detergent, jams, ketchup, soaps and dry soups have passed long-run trials and are ready for wider market adoption.

Disclosure- Huhtamaki ppl is in my long term portfolio because of MNC, Good R&D , Expansion, increasing flexibilie packaging demand , innovative ideas , reducing debt Gross debt 273 Cr(32% reduction YOY despite new acquisition) Net debt 167 Cr.

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Shree capital services limited-(promotors of shree cements) holding 925000 shares of Huhtamaki .

Huhtamaki- flat results, debt 273 to 199 Cr , CFO negative.

Huhtamaki ppl- Phillips capital

Thanx to @avprgoel

#Huhtamaki ppl - Good results ( Not Blasting )