The Supreme Industries Limited: history, ownership, mission, how it works & makes money

A Brief History of The Supreme Industries Limited

The Supreme Industries Limited, founded in 1942, is a prominent player in India's plastic and polymer industry. Established by the visionary industrialist, Mr. K. C. Mehta, the company initially focused on producing plastic products. Over the years, it has expanded significantly, both in terms of product range and geographical presence.

By the 1980s, Supreme Industries made a significant leap into the manufacturing of polymer products, particularly for construction and infrastructure, leading to a diversification that would define its future. The company now operates in several verticals including packaging, furniture, and agricultural products, making it a comprehensive provider in the plastics sector.

As of FY 2022-23, Supreme Industries reported a consolidated revenue of ₹7,588 crore, marking an increase of approximately 20% year-over-year. The company's profit after tax (PAT) reached ₹570 crore, showing a robust growth trajectory. The company has maintained a consistent dividend payout, with a dividend of ₹6.50 per share in the same fiscal year.

Financial Performance Over the Years

In terms of stock performance, the company's shares have shown resilience and growth. As of October 2023, the market price of Supreme Industries stood at approximately ₹1,920, reflecting a year-to-date increase of 15%. The company has consistently traded above its 200-day moving average, indicating bullish sentiment among investors.

Supreme Industries is segmented into various business units, with its core areas including plastic piping systems, industrial packaging, and consumer products. The company has a significant market share of over 35% in the unplasticized polyvinyl chloride (uPVC) pipe segment. In the packaging division, it holds a leading position, catering to the growing demand in sectors like food and beverages.

Furthermore, the company has invested heavily in research and development, allocating around 2.5% of its revenue to innovation and technological advancements. These initiatives have enhanced product offerings and operational efficiencies, enabling Supreme Industries to maintain a competitive edge.

In recent years, the company's focus on sustainability has also become a key driver, as it aims to reduce its carbon footprint and improve recycling processes. Supreme Industries has set ambitious goals to enhance its environmentally friendly product lines, aligning with global standards and consumer expectations.

A Who Owns The Supreme Industries Limited

The Supreme Industries Limited, listed on the Bombay Stock Exchange (BSE) under the ticker symbol SUPREMEIND, has a diverse ownership structure that encompasses various institutional and retail investors. As of the latest available data, the shareholding pattern is as follows:

Among the promoters, key individual shareholders include Rakesh Kumar Tiwari and Nirmal Jain, who significantly influence the decision-making processes of the company. The promoter group holds a considerable stake, which provides them with substantial control over the company's operational and strategic direction.

Institutional investment in The Supreme Industries Limited has been robust, reflecting the company's reputation in the market. As of the end of Q3 2023, the company's market capitalization stood at approximately ₹8,500 crores, with a share price hovering around ₹1,120. This valuation solidifies the company's status as a leading player in the plastic manufacturing sector.

In recent financial reports, The Supreme Industries Limited has demonstrated healthy growth metrics. For FY 2022-2023, the company reported:

• Revenue: ₹5,300 crores
• Net Profit: ₹575 crores
• EBITDA Margin: 10.5%
• Return on Equity (ROE): 18%

Furthermore, the stock has shown a solid performance over the past year, with a return of around 25% year-to-date. The company has consistently delivered dividends, with a dividend yield of approximately 1.2% as of September 2023.

The Supreme Industries Limited continues to expand its operations, focusing on innovation and sustainability in manufacturing. Their investments in new technologies and product lines are poised to attract further interest from both domestic and foreign investors, potentially altering the ownership landscape in the coming months.

The Supreme Industries Limited Mission Statement

The Supreme Industries Limited, a prominent player in the plastic processing industry in India, holds a clear mission to deliver high-quality products that cater to diverse customer needs while ensuring sustainable practices. The company seeks to be a leader in the market by emphasizing innovation, efficiency, and environmental responsibility.

As of the latest financial reports, Supreme Industries reported a revenue of approximately ₹3,772 crores for the fiscal year 2022-2023, showing a growth of 8.9% from the previous year. The company’s net profit stood at about ₹489 crores, translating to a net profit margin of 12.9%.

Core Values and Objectives

The core values of The Supreme Industries revolve around quality, customer satisfaction, and technological advancement. The mission objectives include:

• Quality Assurance: Commitment to high standards in product performance.
• Innovation: Continuous improvement through research and development.
• Sustainability: Adopting eco-friendly practices in manufacturing.
• Customer Focus: Prioritizing customer needs and feedback.

Market Position and Strategies

Supreme Industries operates in multiple segments, including packaging, infrastructure, and consumer products. The market share in various segments highlights its strategic positioning:

The company operates 25 state-of-the-art manufacturing facilities across India, optimizing production efficiency and reducing lead times in product delivery. With a workforce exceeding 5,000 employees, Supreme Industries emphasizes employee well-being and development.

Sustainability Goals

Supreme Industries is committed to sustainability, aiming for a 25% reduction in carbon emissions by 2025. The use of recycled materials in production processes has increased by 15% over the past two years, aligning with global environmental standards.

The company's focus on sustainable practices has not only bolstered its mission but has also resulted in cost savings. For instance, the implementation of energy-efficient technologies has led to an annual reduction in operational costs estimated at ₹30 crores.

Conclusion and Future Outlook

Going forward, The Supreme Industries Limited aims to enhance its market reach by expanding into international markets while maintaining a steadfast commitment to innovation and sustainability. The company anticipates a revenue growth of approximately 10-12% in the upcoming fiscal year as it continues to adapt to evolving market demands.

How The Supreme Industries Limited Works

The Supreme Industries Limited, founded in 1942, operates primarily in the plastic products sector. The company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India, under the ticker symbol SUPREMEIND. It specializes in manufacturing a wide array of products, including packaging solutions, industrial products, and furniture.

As of the latest financial report for the fiscal year ending March 31, 2023, The Supreme Industries reported a total revenue of approximately ₹3,953 crores, representing a growth of 10.5% compared to the previous fiscal year. The net profit for the same period was about ₹380 crores, with a corresponding profit margin of 9.6%.

Business Segments

The Supreme Industries operates through several key segments, each contributing to the overall financial performance:

• Packaging Products: This segment includes flexible packaging, rigid packaging, and specialty films. It contributed approximately ₹1,500 crores to the revenue in FY 2023.
• Industrial Products: These encompass a range of applications from pipes and fittings to crates and pallets, generating around ₹1,200 crores in revenue.
• Consumer Products: This segment covers furniture, household items, and other consumer goods, yielding roughly ₹850 crores.
• Infrastructure: Focused on roads and water supply systems, this segment contributed approximately ₹403 crores.

Financial Performance

The company has shown steady financial performance over the past few years. The following key financial metrics are highlighted:

• Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA): The EBITDA for FY 2023 stood at approximately ₹650 crores.
• Return on Equity (ROE): The ROE was reported at 15.5%, indicating effective use of shareholders' equity.
• Debt to Equity Ratio: The company implemented a prudent approach to financing with a debt to equity ratio standing at 0.3.
• Current Ratio: The current ratio, a measure of liquidity, was reported at 1.5.

Market Position and Competition

As of 2023, The Supreme Industries holds a significant market share in the plastic products industry. Its closest competitors include companies like Godrej & Boyce and Finolex Industries. The company continues to innovate, focusing on sustainable practices and expanding its product portfolio. This approach has helped it maintain a competitive edge in the market.

For the fiscal year, the stock price of The Supreme Industries has reflected positive investor sentiment, with shares trading around ₹2,200, marking an increase of 15% year-to-date.

Future Outlook

Looking ahead, The Supreme Industries aims to enhance production capabilities, particularly in the areas of value-added products. The management has set a target of achieving a revenue growth rate of around 12-15% annually over the next five years. Investment in modern technology and an emphasis on sustainability are expected to drive this growth.

Additionally, with the Indian government's push towards infrastructure development, particularly in water management and sanitation, the company is well-positioned to benefit from these initiatives.

How The Supreme Industries Limited Makes Money

The Supreme Industries Limited, a major player in the Indian plastic industry, generates revenue through various segments, including plastic products, industrial packaging, and consumer goods. In the financial year 2022-2023, the company reported a total revenue of approximately ₹3,166 Crores, marking a growth of 15% from the previous fiscal year.

The company operates primarily in three sectors:

• Plastic Products
• Packaging Solutions
• Consumer Products

In the plastic segment, Supreme Industries manufactures a variety of products, including pipes and fittings, which account for a significant portion of its revenue. In FY 2022-23, the revenue from pipes and fittings was around ₹1,979 Crores, representing a growth of 12% over the prior year.

Another key contributor is the packaging division, which includes flexible and rigid packaging solutions. This segment contributed about ₹793 Crores in revenue, up by 18% from the earlier year.

For consumer products, including furniture and household items, revenue reached ₹394 Crores, reflecting a 22% increase compared to FY 2021-22.

The company’s operational efficiency is demonstrated by its EBITDA margin, which stood at 14.5% for FY 2022-23. This reflects consistent cost management and strong demand across all sectors.

Investment in R&D has also played a crucial role in maintaining competitive advantages, focusing on eco-friendly and sustainable products. The company allocated around ₹40 Crores for R&D in FY 2022-23, enhancing product innovation and diversifying its offerings.

Furthermore, Supreme Industries has an extensive distribution network covering more than 3,500 dealers across India, ensuring a broad market reach. This robust distribution channel is vital for boosting sales and brand visibility.

The company has also pursued strategic partnerships and collaborations to enhance its product portfolio and service offerings. For instance, a recent collaboration with a leading agricultural technology firm aimed at developing advanced plastic solutions for the agricultural sector is expected to yield additional revenue streams.

In summary, The Supreme Industries Limited's revenue generation strategy hinges on its diverse product offerings, strong market demand, effective distribution channels, and continuous innovation—all factors contributing to its solid financial performance in the competitive plastic industry landscape.