Plastic Reprocessing Plant Manufacturer
Confidential Information Summary · Full sale of an owner-held manufacturing business
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.
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.
Investment highlights
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+ yearsCapacity fully used
Output is reported at 20–25 plants a year with no idle capacity. Growth beyond that level needs added capacity.
100% utilisationWide installed base
More than 200 industrial customers across India, drawn from plastic scrap recycling, create reference sales and a service and spares base.
200+ customersDebt-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 assetsExport-ready
The business holds GST, Udyam and import-export registrations and already ships plants to customers in Africa.
Exports to AfricaBusiness 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.
One plant is one order. Revenue depends on units shipped.
Reported output at full utilisation of the current plant.
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.
| Case | Plants | Order value | Implied sales |
|---|---|---|---|
| Low | 20 | ₹20 lakh | ₹4.0 Cr |
| High | 25 | ₹30 lakh | ₹7.5 Cr |
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.
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.
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.
| Measure | Reported |
|---|---|
| Sales | ₹4.99 Cr |
| EBITDA margin | 40% |
| EBITDA (derived) | ₹2.00 Cr |
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.
The proposition
The owners are offering 100% of the business, including the owned plant, machinery and goodwill. They are planning an exit.
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.
Planned owner exit creates the sale window.
Added capacity is the first lever for a new owner.
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.
Risks & mitigants
Process & next steps
Four steps
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.