Garware Hi-Tech Films Limited: history, ownership, mission, how it works & makes money

A Brief History of Garware Hi-Tech Films Limited

Garware Hi-Tech Films Limited, established in 1985, is an Indian manufacturer of high-tech, specialty films and textiles. The company has its headquarters in Pune, India, and operates multiple manufacturing facilities across the country.

The company began as a division of Garware Polyester Limited, primarily focusing on the production of polyester films. Over the years, it expanded its product line to include a variety of specialty films utilized in packaging, automotive, and industrial applications.

In the fiscal year 2023, Garware Hi-Tech Films reported a total revenue of ₹1,109 crore, a significant increase from ₹1,017 crore in the previous fiscal year. The net profit for the same period was approximately ₹143 crore, showing a robust growth trajectory.

Garware Hi-Tech Films is recognized for its innovation in developing eco-friendly products. The company launched its range of biodegradable films in 2021, which has captured market attention and aligned with global sustainability trends.

As of October 2023, the company's stock price hovered around ₹1,098 per share on the Bombay Stock Exchange (BSE), reflecting a year-to-date increase of approximately 28%. The market capitalization of Garware Hi-Tech Films stands at around ₹5,362 crore.

Garware Hi-Tech Films has also made strides in global markets, exporting products to over 75 countries. The company has established itself as a key player in the BOPP (Biaxially Oriented Polypropylene) film domain, catering to various industries including food, electronics, and textiles.

Research and development have been a cornerstone of the company's strategy, with over 5% of its annual revenue allocated to R&D efforts. This commitment has led to several patents and innovations that maintain its competitive edge within the industry.

In recent years, Garware Hi-Tech Films has also focused on strategic partnerships and collaborations to enhance its product offerings and market reach. The company has collaborated with several multinational corporations to develop cutting-edge solutions tailored to consumer needs.

As a publicly traded company, Garware Hi-Tech Films Limited continues to operate under the principles of transparency and corporate governance, maintaining compliance with SEBI regulations and ensuring accurate reporting of financial performance to stakeholders.

A Who Owns Garware Hi-Tech Films Limited

Garware Hi-Tech Films Limited is a publicly traded company listed on the Bombay Stock Exchange (BSE: 509557) and the National Stock Exchange of India (NSE: GARWAREHI). As of October 2023, the company's ownership structure consists of various stakeholders, including promoter groups, institutional investors, and retail shareholders.

The primary ownership of Garware Hi-Tech Films is held by the Garware family, particularly Mr. Sandeep Garware. The promoter holding stands at approximately 52.37% as per the latest filings. This significant stake illustrates the family's continued influence and operational control in the company.

The institutional investor segment includes major mutual funds and financial institutions. Some of the notable institutional shareholders are:

• ICICI Prudential Mutual Fund - 4.12%
• HDFC Mutual Fund - 3.58%
• Reliance Nippon Life Asset Management - 2.45%

In addition to these institutional holdings, Garware Hi-Tech Films also has participation from various foreign portfolio investors. Foreign ownership is approximately 15.67%, reflecting international confidence in the company's growth potential.

The current breakdown of ownership can be summarized in the following table:

The company has also seen a steady increase in its market capitalization, which stood at approximately ₹1,800 crores as of October 2023, an increase of about 12% year-to-date. This growth has attracted a diverse investor base, contributing to the stock's liquidity.

Garware Hi-Tech Films operates in a highly competitive market, producing a wide range of specialized films used in various industries, including packaging, agriculture, and industrial applications. The company's financial performance remains robust, with a reported revenue of ₹900 crores for the fiscal year ending March 2023, representing a year-over-year growth of 10%.

In conclusion, Garware Hi-Tech Films Limited showcases a diverse ownership structure characterized by significant promoter control, substantial institutional investment, and a growing base of international investors. This balanced ownership is pivotal in driving the company's strategic direction and operational success.

Garware Hi-Tech Films Limited Mission Statement

Garware Hi-Tech Films Limited (GHTF) operates with a clear mission to deliver innovative and sustainable polymeric products to contribute to the growth of packaging and industrial applications. Their focus lies in enhancing customer satisfaction through quality products, superior technology, and effective solutions.

As of FY2023, GHTF reported a revenue growth of 18%, reaching an impressive total revenue of approximately ₹2,200 million. Their product portfolio is geared towards providing advanced solutions which align with the sustainability goals of their clients across various industries.

The company emphasizes its commitment to environmental stewardship, evident in its goal to reduce carbon footprint by 20% by 2025. This commitment is backed by their ongoing investments in R&D which accounted for 5% of the annual revenue in FY2023, translating to around ₹110 million.

GHTF's mission also focuses on sustainable practices, with initiatives that include using recyclable materials in their manufacturing process. Approximately 30% of their products are now made from recycled materials, showcasing their dedication to a circular economy.

The company is also actively involved in various community-based programs. This includes partnering with local NGOs, where they have invested over ₹25 million in educational and health initiatives since 2021.

Through these efforts, Garware Hi-Tech Films Limited aims to strengthen its position in the market while fostering a robust corporate social responsibility (CSR) framework. Their mission supports not just market growth, but also community engagement and environmental sustainability, positioning GHTF as a leader in their sector.

How Garware Hi-Tech Films Limited Works

Garware Hi-Tech Films Limited operates in the specialty films sector, producing high-performance polyester film and other polymer-based products. The company is listed on the BSE and NSE with the ticker symbol "GARWARE." As of October 2023, Garware Hi-Tech Films has a market capitalization of approximately ₹1,800 crore.

Garware focuses on multiple applications of its films, including packaging, electrical insulation, and decorative solutions. The company exports a significant portion of its products, approximately 60% of total sales, to over 75 countries worldwide.

For the fiscal year ending March 2023, Garware Hi-Tech Films reported a consolidated revenue of ₹1,159.1 crore, a notable increase from ₹926 crore in the previous fiscal year. The EBITDA margin stood at 18%, which translates into an EBITDA of approximately ₹208.6 crore.

The net profit for FY 2023 was reported at ₹106.2 crore, showcasing a growth of 42% compared to ₹74.7 crore for FY 2022. The earnings per share (EPS) increased to ₹30.85.

Garware's operating strategy includes investing in innovative technologies and product development. The company has allocated approximately ₹50 crore for R&D in FY 2023, focusing on sustainable packaging materials and advanced film solutions.

In terms of production capacity, Garware Hi-Tech Films has an installed capacity of over 60,000 metric tons per annum as of 2023. The company’s operational efficiency is supported by manufacturing facilities located in Aurangabad, Pune, and a recently expanded facility in Wada, Maharashtra, which has increased output by 15%.

Garware Hi-Tech Films has established a robust supply chain network, allowing for efficient distribution across domestic and international markets. With a diverse product portfolio, the company caters to various industries, including food packaging, automotive, electronics, and construction.

The company's debt-to-equity ratio stands at 0.25, reflecting a conservative financial strategy. The return on equity (RoE) for the fiscal year 2023 is reported at 18%, indicating effective utilization of shareholder funds.

Garware also places a strong emphasis on sustainability, with initiatives aimed at reducing carbon emissions and enhancing waste management processes. In FY 2023, the company reported a reduction in energy consumption by 10% compared to the previous year.

Overall, Garware Hi-Tech Films Limited remains a significant player in the specialty films market, leveraging innovation, operational efficiency, and sustainability to bolster its competitive advantage.

How Garware Hi-Tech Films Limited Makes Money

Garware Hi-Tech Films Limited (GHTFL) generates revenue primarily through the manufacture and sale of a diverse range of specialty films. The company specializes in producing high-performance, multilayered, and value-added films for various applications, including packaging, labeling, and various industrial uses.

The company's revenue streams can be broadly categorized into several segments:

• Packaging Films: These films account for a substantial portion of GHTFL's revenue, primarily used in food packaging, which enhances shelf life and protects products. In FY 2023, packaging films contributed approximately 73% of total revenues.
• Industrial Films: This segment includes films used in various industries, including construction and automotive. GHTFL reported revenues of around INR 1,200 million from industrial films in FY 2023.
• Specialty Films: Specialty films are designed for niche applications, contributing around 10% of total revenues, with further growth projected in the coming years.
• Export Sales: GHTFL has a significant international presence, with exports comprising about 30% of total sales, targeting markets in North America, Europe, and Asia.

For the fiscal year ending March 2023, Garware Hi-Tech Films reported total revenue of INR 5,500 million. This marked an increase of 15% compared to the previous year’s revenue of INR 4,800 million.

Financial Performance

GHTFL's financial performance showcases strong cash flow generation and profitability. The company's operating profit margin stands at approximately 18%, reflecting its efficient production processes and cost management strategies. The net profit for FY 2023 was reported at INR 750 million, translating to a net profit margin of 13.6%.

Cost Structure

The company's cost structure is also designed to maximize profitability. Raw materials, primarily polymers and resins, comprise around 60% of the total cost of goods sold (COGS). In FY 2023, GHTFL's COGS amounted to approximately INR 4,200 million.

Operating expenses have also remained stable, with selling, general, and administrative (SG&A) expenses at about INR 600 million, reflecting effective management practices in controlling overhead costs.

Market Position and Trends

Garware Hi-Tech Films holds a competitive position within the specialty films industry, benefiting from increased demand for eco-friendly packaging solutions. The growing emphasis on sustainability has led the company to invest in R&D for biodegradable film alternatives. The market for specialty packaging films is projected to expand at a CAGR of 6.5% through 2025, providing GHTFL with significant growth opportunities.

As of October 2023, GHTFL's stock performance has been robust, with a year-to-date increase of 35%, reflecting investor confidence in the company's growth prospects and financial health.

In conclusion, Garware Hi-Tech Films Limited employs a well-diversified revenue strategy anchored in high-demand product lines, solid financial management, and a commitment to innovation and sustainability. These factors collectively drive the company's profitability and market resilience.