Aaradhya Disposal Industries Limited, a manufacturer and exporter of high-quality eco-friendly paper products, announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The company’s initial public offering comprises a fresh issuance of 36,96,000 Equity Shares, each with a face value of Rs. 10. Khambatta Securities Limited is the sole Book Running Lead Manager to the Issue, and Bigshare Services Private Limited is the Registrar.
The Dewas-headquartered company Aaradhya Disposal Industries Limited specialises in the manufacturing of high-quality paper products that cater to a wide range of industries, both domestic and international. With over a decade of expertise, the company offers an extensive range of paper-based solutions that are engineered for performance, sustainability, and versatility. It manufactures PE coated, PLA coated and Barrier coated paper cup blanks and food grade papers including Greaseproof paper, greaseproof 4K paper, greaseproof slip easy paper, wet strength greaseproof, Oil and grease resistant (OGR) paper, vegetable parchment paper and Titanium Di-oxide (TDL) poster paper.
According to DRHP, the objectives of the issue is as under:
- To meet the working capital requirements of the Company
- To fund the expansion plan of the Company i.e. Capital expenditure towards purchase of Plant and Machinery and Civil Work
- Prepayment of term loans to banks
- General Corporate Purpose
Aaradhya Disposal Industries intends to utilise ₹20 crore of the total IPO proceeds to fund working capital requirement including margin money, ₹16.56 crore to fund expansion of the company, that includes capital expenditure towards purchase of plant and machinery and civil work, ₹1.78 crore for prepayment of term loans to banks. The company will use the remaining funds for general corporate purposes.
Aaradhya Disposal Industries offers customised solutions tailored to the unique needs of its customers ensuring they receive products that meet their specific requirements for various purposes. The company’s products which are used for retail packaging, food service use, and commercial printing are trusted for their quality, performance and sustainability. It operates two manufacturing plants with a total installation capacity of 12,000 metric tons per annum spread over an area of 55,151 sq ft, situated at Dewas near Indore, Madhya Pradesh.
The company has exported its finished goods to 16 countries across the globe, including the United Kingdom, Abu Dhabi, Dubai, Qatar, Iraq, Oman, Lebanon and Ajman, etc., primarily in gulf region. It plans to continue diversifying and expanding its presence in these countries.
Aaradhya Disposal Industries was founded by Mr. Sunil Maheshwari in 2014. Its in-house research team led by Mr. Maheshwari plays a key role in driving innovation and ensuring the improvement of the company’s product range. By focusing on the development of new materials, coatings, and production techniques, the company will be able to offer customized products that meet the evolving needs of its customers. The company’s R&D’s efforts help to maintain industry leadership by staying ahead of the market trends and enhancing the performance and sustainability of its products.
With increasing global demand for eco-friendly products, the company has prioritised sustainability in both its products and manufacturing processes. It is committed to reducing the environmental impact of its operations by using non-toxic coatings, minimising waste, and ensuring energy-efficient production. The company’s PLA-coated, barrier coated and vegetable parchment papers cater to the growing demand for sustainable alternatives in the foodservice and packaging industries.
Aaradhya Disposal Industries registered Rs. 42.08 crore in revenue from operations with a profit (PAT) of Rs. 3.34 crore in the first five months of the current financial year ended August 2024. It clocked Rs. 73.93 crore in revenue from operations and a profit of Rs. 3.73 crore in FY24.
