SEL-80 · Confidential

Plastic Reprocessing Plant Manufacturer

Confidential Information Summary · Full sale of an owner-held manufacturing business

Prepared by CA Dhiraj Ostwal & Co. — Transaction Advisory · Pre-NDA · Blind

100%
Capacity utilisation
40%
EBITDA margin (reported)
₹4.99 Cr
Reported sales
₹25 Cr
Asking price
01

Executive summary

An established manufacturer of plastic reprocessing plants is offered for full sale. The plants are sold to plastic scrap recyclers across India and to export customers in Africa. The owners are planning an exit, and the business has no borrowings.

The business builds complete reprocessing lines in several throughput sizes, including 90–100 kg/hr units. It reports 20–25 plants a year at full utilisation, each order worth ₹20–30 lakh.

Reported sales are ₹4.99 Cr at a 40% EBITDA margin, which gives EBITDA of about ₹2.00 Cr. The owned plant and equipment are valued at ₹8.93 Cr.

At a glance
BusinessPlant manufacturer & exporter
Operating historyFour decades plus
StructureOwner-held proprietorship
Workforce10–50
Reported sales₹4.99 Cr
EBITDA margin40%
EBITDA (derived)₹2.00 Cr
BorrowingsNil
Transaction100% sale

Basis of preparation. All financial figures are as reported by the owner for the latest year. They are unaudited and have not been verified by the adviser. Amounts reported in US dollars are converted at ₹96 per US dollar. Multi-year accounts will be released in the data room.

02

Investment highlights

1

Operating record of four decades plus

The business has built and sold recycling plants for over forty years, through several plastics and recycling cycles.

40+ years
2

Capacity fully used

Output is reported at 20–25 plants a year with no idle capacity. Growth beyond that level needs added capacity.

100% utilisation
3

Wide installed base

More than 200 industrial customers across India, drawn from plastic scrap recycling, create reference sales and a service and spares base.

200+ customers
4

Debt-free and asset-backed

The business is self-funded and carries no loans or liabilities. Plant and equipment account for about 36% of the asking price.

₹8.93 Cr assets
5

Export-ready

The business holds GST, Udyam and import-export registrations and already ships plants to customers in Africa.

Exports to Africa
03

Business overview, model & operations

The business designs and builds machinery that turns plastic scrap into reusable material. Customers are recyclers who buy a plant to add or expand processing capacity.

Reprocessing plants

Complete lines in several throughput sizes, from about 90–100 kg/hr upwards. Each is built to order.

Owned manufacturing plant

One owned facility with machinery and equipment and 1,983 sq m built-up area.

Plastic scrap recyclersPan-India salesAfrican export marketsBuild-to-order
₹20–30 L
Average order value

One plant is one order. Revenue depends on units shipped.

20–25
Plants per year

Reported output at full utilisation of the current plant.

10–50
Employees

A lean team working from a single owned site.

Raw materials are sourced from several domestic vendors, and no single-vendor dependence is reported. The capacity cross-check below ties the order data to the reported sales.

Capacity cross-check · derived
Case Plants Order value Implied sales
Low 20 ₹20 lakh ₹4.0 Cr
High 25 ₹30 lakh ₹7.5 Cr
Plants × average order value, from reported ranges. Not an audited revenue figure.
04

Customer mix & concentration

Customers are plastic scrap recyclers who buy a plant to add capacity. A repeat order follows when a recycler expands a line or opens a new unit.

The base, in numbers
Industrial customers200+
Domestic coveragePan-India
Export marketsAfrica
Top-20 account scheduleData room

Concentration cannot be assessed yet. Customer-level billings, repeat share and export split are not in the summary. They will be provided in the data room as a masked top-20 schedule.

05

Financial snapshot

One reported year is available at this stage. A multi-year profit and loss account follows in the data room.

The table shows reported sales, the reported margin and the EBITDA derived from them.

Reported figures · ₹
Measure Reported
Sales ₹4.99 Cr
EBITDA margin 40%
EBITDA (derived) ₹2.00 Cr
Derived EBITDA = 40% × reported sales. Converted from US dollars at ₹96 per US dollar.
Balance sheet position
Physical assets (plant & equipment)₹8.93 Cr
BorrowingsNil
Other liabilitiesNil
FundingSelf-funded

Weakest metric: the margin. A 40% EBITDA margin is high for a capital-goods maker and rests on one unaudited year. Whether the owner's own time is costed will decide how much of it a buyer accepts.

Recency. The reporting period of the latest figures is not stated and will be confirmed with the accounts.

06

The proposition

The owners are offering 100% of the business, including the owned plant, machinery and goodwill. They are planning an exit.

Transaction parameters
Stake offered100%
Asking price₹25 Cr
Asset value included₹8.93 Cr
Asset value as share of ask36%
StructureTo be discussed

Valuation basis

The ask combines physical assets, goodwill and the operating history. It is the owners' figure and is open to discussion on the evidence in the data room.

Owners
Why now

Planned owner exit creates the sale window.

Full
Capacity

Added capacity is the first lever for a new owner.

Debt-free
Balance sheet

No loans to refinance at completion.

Likely buyer profile

A recycling or plastics machinery group, an engineering manufacturer adding capital-goods lines, or an investor with an operator to run the plant.

07

Risks & mitigants

Owner dependence
The business is a proprietorship run by its owners, so relationships and know-how sit with them. A handover period and documented drawings should be agreed as deal terms.
One unaudited year of data
Margin and sales rest on a single reported year. This will be tested against filed accounts and bank statements in diligence.
No spare capacity
Output is at its ceiling, so growth needs capital. Debt-free ownership and an owned plant give room to finance it.
Customer concentration unknown
No customer-level data is yet available. The masked top-20 schedule will show it before any offer is made.
Single end-market
Demand depends on plastic recycling investment, which is cyclical. Customers across 200+ accounts and several geographies spread the exposure.
Single site
All production is at one location. Insurance cover and the site's operating record will be reviewed.
Export collections and currency
African sales bring payment-term and currency risk. The export share and receivable ageing are not yet disclosed and will be provided.
Entity conversion
A proprietorship has no share capital to transfer, so licences and contracts must be re-papered. The structure will be fixed with legal advisers.
08

Process & next steps

Four steps

01Expression of interestShort profile of the buyer and rationale.
02NDAMutual non-disclosure signed with the adviser.
03Data room & visitAccounts, customer schedule and a site visit.
04Offer & closingNon-binding offer, diligence and completion.

All enquiries are routed through CA Dhiraj Ostwal & Co. — Transaction Advisory. The business, its owners and its location are disclosed only after an NDA is signed.

Disclaimer. This summary is confidential and for the named recipient only. It is based on information supplied by the owners, which has not been audited or independently verified by CA Dhiraj Ostwal & Co. No representation or warranty is given as to its accuracy or completeness, and nothing here is an offer or a recommendation. Recipients must carry out their own due diligence and must not identify or approach the business, its owners, customers or employees.

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