1. Substantial portion of its revenues come from the manufacturing of polymer based molded industrial packaging products.
2. Any change in government policies or quality norms by its customers for molded industrial packaging, which the company may not be able to adhere to, may affect its business growth, operations and financials.
3. The company is manufacturing polymer based hospital furniture and other healthcare products on a B2B basis. The demand for these products has been high due to geo-political issues and the COVID-19 pandemic. This growth in demand for these products may not sustain post the pandemic.
4. The company propose to enter into new products viz. pails supplied to the paint, lubricants, ink, food and the Food (FMCG) industry. Its may fail to generate new clients for these products and sell in these new industries due to competition and other commercial factors.
5. The company customers expect it to maintain high quality standards and any failure by the company to comply with such quality standards may have an adverse effect on demand from end customers and on its reputation, business, results of operations and financial condition.
6. The company may lose clients and their business if its products are not able to meet the durability and other industry standards.
7. The company has historically limited its inorganic growth strategy by way of acquisition of machines from existing units or businesses. Its may also consider inorganic growth opportunities by acquiring companies, businesses and assets to accelerate its growth in the future.
8. The company has recently seen a spike in import substitute products considering supply chain issues and high freight prices. This may not sustain once these issues are resolved.
9. The Company has not entered into any long-term agreements with its customers for purchasing the company products. Its subject to uncertainties in demand and there is no assurance that the company customers will continue to purchase its products. This could impact the business and financial performance of the Company.
10. Polymer including polypropylene and polyethylene is its primary raw material consumed by it and constitutes a significant percentage of the Company's total expenses. Polymer is a derivative of crude oil and any substantial increase in price of crude oil or decrease in the supply of polymer could materially adversely affect the Company's business.