Breaking Down The Supreme Industries Limited Financial Health: Key Insights for Investors

Breaking Down The Supreme Industries Limited Financial Health: Key Insights for Investors

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From a modest plastic processor founded in Mumbai in 1942 to an industrial heavyweight operating over 30 manufacturing plants and processing close to 700,000 metric tonnes annually by 2025, Supreme Industries Limited has broadened its reach across PVC pipes, packaging, value‑added products and protective films while remaining listed on BSE (509930) and NSE (SUPREMEIND); with an authorized capital of ₹75.00 crore, paid‑up capital of ₹25.41 crore and a reported net worth of ₹4,498.50 crore in 2024, the company leverages advanced automation, R&D, energy‑efficient manufacturing and robust supply‑chain management to convert raw polymers into diversified revenue streams-delivering a net product turnover of ₹10,295 crore and selling 674,510 metric tonnes in FY2025, with value‑added products contributing ₹933 crore in Q1 FY2025-while strategic moves such as the August 2025 acquisition of Wavin's plastic pipe business and a seven‑year exclusive technology license with Wavin B.V. (Netherlands) underpin growth plans that analysts peg at a ~21% net earnings CAGR (FY2024-FY2026) and an anticipated turnover of about ₹12,000 crore in FY2026, all driven by a mission focused on innovation, sustainability, customer satisfaction and ethical governance.

The Supreme Industries Limited (SUPREMEIND.NS): Intro

History
  • Established in 1942 in Mumbai as a plastics processing company concentrating on a broad range of plastic products.
  • 1959: Expanded into PVC pipes and fittings, a diversification that became a core business line.
  • 1980s: Entered packaging - multilayer films and protective packaging materials - broadening downstream offerings.
  • 1995: Commissioned first manufacturing facility in Kharagpur, West Bengal, boosting production capacity and eastern India presence.
  • 2004: Acquired Parvati Agro Plast, enabling entry into the Oriented PVC (OPVC) pipe market and strengthening product portfolio.
  • By 2025: Operates over 30 manufacturing plants across India and processes close to 700,000 metric tonnes of plastic annually, positioning it among India's largest plastic processors.
Ownership & Corporate Structure
  • Publicly listed on the NSE and BSE as SUPREMEIND.NS, with a mix of promoter holdings, institutional investors and retail shareholders.
  • Promoter group retains a controlling stake (majority or substantial plurality), while domestic and foreign institutional investors hold significant minority stakes.
  • Organizationally split into product-focused business verticals (pipes & fittings, industrial molded products, packaging films, consumer goods, agri-products) with centralized corporate services for procurement, R&D and compliance.
Mission & Strategic Objectives
  • Mission: Provide durable, high-quality polymer-based solutions across infrastructure, packaging and consumer applications while scaling capacity and improving sustainability metrics.
  • Strategic priorities: capacity expansion, backward integration for polymer feedstock security, product diversification, geographic reach, and improving recycling/sustainability practices.
How It Works - Operations & Value Chain
  • Raw material sourcing: procures virgin polymers (PVC, PE, PP) and additives from domestic and global suppliers; works on backward-integration and long-term procurement contracts to stabilize costs.
  • Manufacturing footprint: over 30 plants with extrusion, injection molding, film-blowing and fabrication lines; facilities are regionally located to serve local markets and reduce logistics costs.
  • Product segmentation: dedicated lines for pipes & fittings, industrial molded components (auto/engineering), consumer products (houseware, crates), and packaging films (multilayer, barrier films).
  • Distribution & sales: combination of direct sales to institutional buyers (infrastructure, OEMs), a wide dealer/distributor network for retail channels, and growing B2B packaging contracts with FMCG and pharma clients.
  • R&D & quality: in-house formulation and processing R&D centers focus on product performance, cost reduction, and regulatory compliance (drinking water standards for pipes, food-grade packaging norms).
How The Supreme Industries Limited Makes Money
  • Product sales: primary revenue from sale of PVC/OPVC pipes & fittings, industrial molded components, consumer plastic products and packaging films.
  • Value-added solutions: higher-margin custom-engineered molding, specialty packaging and integrated product-supply contracts for institutional clients.
  • Scale & procurement arbitrage: large-scale polymer processing (close to 700,000 MT pa) enables lower per-unit costs and margin capture versus smaller players.
  • Aftermarket & services: fittings, installation accessories and replacement product sales via extensive distribution network.
Key Operational & Financial Metrics (operationally focused)
Metric Value / Note
Manufacturing sites Over 30 plants across India
Annual polymer processing Close to 700,000 metric tonnes (annual capacity/throughput)
Primary product lines Pipes & fittings, industrial molded components, packaging films, consumer products, agri-products
Distribution National dealer & distributor network + institutional / OEM sales
Revenue model Product sales (bulk & retail), engineered solutions, long-term supply contracts
Business Mix - illustrative revenue contribution (approximate)
  • Pipes & fittings: ~35-45% of sales
  • Industrial molded components (B2B/OEM): ~15-25%
  • Packaging films & specialty films: ~10-20%
  • Consumer & other products: ~10-15%
Capital Allocation & Growth Drivers
  • Capex focused on new plant debottlenecking, film lines, and polymer compounding to improve margins and reduce feedstock volatility.
  • M&A selectively to acquire technological capability or regional market strength (example: Parvati Agro Plast acquisition in 2004).
  • Investments in sustainability: recycling initiatives, energy efficiency, and adoption of higher-recycled-content formulations in select products.
Risk Factors (operational & market)
  • Feedstock price volatility (polymer prices linked to crude oil/ethylene/propylene cycles)
  • Regulatory changes on single-use plastics and environmental compliance
  • Intense competition from organized and unorganized players in certain product segments
  • Currency and input-cost pressures impacting margins
Additional resources Exploring The Supreme Industries Limited Investor Profile: Who's Buying and Why?

The Supreme Industries Limited (SUPREMEIND.NS): History

Founded in 1942, The Supreme Industries Limited evolved from a small plastics trading concern into one of India's largest plastic products manufacturers. Over decades it expanded through product diversification, capacity additions and geographic reach - moving from consumer goods into industrial packaging, pipes, and engineered components. Key milestones include the post-1990s modernization phase, entry into high-margin engineered solutions, and consistent capex to scale manufacturing and distribution networks.
  • Listed on BSE (509930) and NSE (SUPREMEIND) - providing broad market access and liquidity.
  • Promoter-led leadership: M.P. Taparia (Managing Director) and the promoter group retain a substantial stake, ensuring continuity in strategic direction.
  • Board composition: mix of executive and non-executive directors overseeing strategy, risk and governance.
Item Value / Detail
Authorized Capital ₹75.00 crore
Paid-up Capital ₹25.41 crore
Net Worth (2024) ₹4,498.50 crore
Stock Tickers BSE: 509930 | NSE: SUPREMEIND
  • Shareholding profile: diverse base with institutional investors, mutual funds and individual shareholders alongside the promoter group.
  • Governance: Board-led oversight with audit, nomination and remuneration practices consistent with listed-company norms.
Mission and business model
  • Mission: Deliver durable, cost-efficient plastic solutions across consumer, industrial and infrastructure segments while driving sustainable manufacturing practices.
  • How it makes money:
    • Manufacture & sale of plastic products - pipes & fittings, storage tanks, crates, material handling systems.
    • Value-added engineered products for automotive and industrial applications commanding higher margins.
    • Distribution network and exports that scale volume while optimizing fixed-cost absorption.
    • Aftermarket & replacement demand (long product lifecycles) providing recurring revenue.
Exploring The Supreme Industries Limited Investor Profile: Who's Buying and Why?

The Supreme Industries Limited (SUPREMEIND.NS): Ownership Structure

The Supreme Industries Limited (SUPREMEIND.NS) is a leading Indian plastics manufacturer known for product breadth across consumer, industrial and infrastructure segments. The company balances growth through innovation, diversified product mix and investments in sustainable manufacturing.
  • Mission and Values
  • Supreme Industries is committed to delivering high-quality plastic products that meet the evolving needs of its diverse customer base.
  • The company emphasizes innovation, continuously expanding its product portfolio to include value-added solutions across various sectors.
  • Sustainability is a core value, with Supreme Industries investing in energy-efficient technologies and sustainable manufacturing practices.
  • Customer satisfaction drives the company's operations, focusing on providing reliable products and exceptional service.
  • Integrity and ethical business practices are fundamental, guiding interactions with stakeholders and ensuring long-term success.
  • Supreme Industries fosters a culture of continuous improvement, encouraging employee development and operational excellence.
Metric / Item Data (approx., latest reported)
Promoter & Promoter Group Holding ~55% (Todi family and related entities)
Public & Institutional Holding ~45% (including Indian and foreign institutions)
Market Capitalisation ~INR 45,000-55,000 crore (range reported around mid-2024)
Annual Revenue (Consolidated) ~INR 9,000-11,000 crore (FY latest reported)
Net Profit (PAT) ~INR 800-1,200 crore (FY latest reported)
ROE / ROCE Return on Equity and Capital Employed typically in double digits (company targets operational efficiency)
How it works & makes money:
  • Product & Segment Mix: Revenue is generated from a wide portfolio-storage and material handling (crates, drums, tanks), piping & fittings, consumer products (moulded furniture, housewares), industrial components and engineered plastic solutions.
  • Value-Added Solutions: Higher-margin, value-added engineered products (custom moulding, multi-layer/ barrier solutions, specialty films and sheets) improve product mix and margins.
  • Manufacturing Footprint: Multiple plants across India enable scale, backward integration (raw material handling, compounding) and logistics efficiencies, lowering per-unit costs.
  • Innovation & R&D: Continuous development of polymer formulations, energy-efficient processing and product design reduces costs and opens new market segments.
  • Sustainability & Energy Efficiency: Investments in energy-efficient machinery and waste-reduction practices reduce operating costs and align with regulatory/market sustainability demands.
  • Distribution & After-Sales: Extensive dealer network and service orientation drive customer retention and recurring sales for replacement and repeat purchases.
Ownership breakdown (illustrative snapshot):
Owner Category Approx. Holding
Promoter & Promoter Group ~55%
Mutual Funds / Domestic Institutions ~20-25%
Foreign Institutional Investors (FIIs) ~10-15%
Retail & Others ~5-10%
Key performance and capital priorities:
  • Maintain profitable growth by shifting mix toward higher-margin engineered products and branded consumer items.
  • Continue capex on energy-efficient plants and backward integration to stabilize input costs and improve margins.
  • Focus on working-capital management and selective geographic/segment expansion to sustain ROE and free cash flow.
Mission Statement, Vision, & Core Values (2026) of The Supreme Industries Limited.

The Supreme Industries Limited (SUPREMEIND.NS): Mission and Values

The Supreme Industries Limited (SUPREMEIND.NS) positions itself as a diversified plastics engineering company focused on durable, value-added polymer solutions for packaging, industrial, consumer and infrastructure applications. Its mission emphasizes product reliability, sustainable manufacturing and customer-centric innovation, underpinned by core values of quality, integrity and continuous improvement. See the company's formal statements here: Mission Statement, Vision, & Core Values (2026) of The Supreme Industries Limited. How It Works
  • Manufacturing footprint: The company operates over 30 manufacturing facilities strategically located across India to optimize production, reduce logistics costs and ensure regional market responsiveness.
  • Advanced manufacturing technologies: Extensive use of automation, computer-integrated manufacturing and energy-efficient processes (heat recovery, variable-speed drives, centralised utilities) to enhance product consistency and reduce unit energy consumption.
  • Supply chain and procurement: A robust supply chain management system coordinates timely procurement of polymers, additives and ancillary inputs from domestic and global suppliers; centralized inventory planning and regional distribution hubs ensure faster delivery to customers across segments.
  • Research & development: Dedicated R&D teams (product, process and application development) focus on lightweighting, multi-layer formulations, recycled-content compounds and process yield improvements to maintain competitiveness.
  • Quality & compliance: The company maintains stringent quality control protocols across raw-material inspection, in-process monitoring and final testing, aligning with international standards for safety and performance.
  • Strategic partnerships and M&A: The Supreme Industries pursues strategic tie-ups and acquisitions to expand capabilities and reach - for example, the acquisition of Wavin's plastic pipe business in August 2025 to broaden its plumbing and infrastructure portfolio and consolidate market share in piping solutions.
Operations, Capacity & Key Metrics
Metric Detail / Estimate
Manufacturing facilities Over 30 plants across India
Product lines Plastic furniture, material handling crates, industrial & consumer moulded products, PVC/CPVC/uPVC & HDPE pipes & fittings, packaging films, sheets & containers
R&D centres Multiple dedicated teams for product & process innovation (central + regional labs)
Installed polymer processing capacity Industrial-scale extrusion & moulding capacity across facilities (multi-hundred thousand tonnes pa across product groups)
Workforce Thousands of employees across manufacturing, sales and R&D
Supply chain Central procurement with regional distribution hubs and dealer network
How It Makes Money
  • Product sales across diversified verticals - revenue derived from pipes & fittings, industrial moulded products, consumer goods (furniture & storage), packaging films and speciality engineered components.
  • Value-added custom solutions - higher-margin engineered products and OEM supply contracts for industrial applications.
  • Geographic & channel diversification - revenues via direct institutional sales, dealer/distributor network, retail and e-commerce channels.
  • Scale-driven cost advantages - centralized procurement of polymers and energy-efficient production lower per-unit costs, improving gross margins.
  • After-sales & services - targeted product warranties, technical support and solutions engineering for infrastructure and industrial customers.

The Supreme Industries Limited (SUPREMEIND.NS): How It Works

The Supreme Industries Limited (SUPREMEIND.NS) generates revenue by manufacturing and selling a wide range of plastic products across building and infrastructure, industrial, consumer, and packaging segments. Its business model combines high-volume commodity products with higher-margin value‑added offerings, backed by distribution networks, licensing, and strategic acquisitions to expand capabilities and market reach. For company background and broader context see The Supreme Industries Limited: History, Ownership, Mission, How It Works & Makes Money.
  • Primary revenue streams: sale of plastic piping systems, industrial & consumer products, packaging solutions, and related value‑added items.
  • Licensing & technology partnerships: exclusive technology license agreements (e.g., seven‑year exclusive license with Wavin B.V., Netherlands for piping systems in India and SAARC) that enable premium product offerings and royalty/licensing income.
  • Growth via acquisitions: inorganic expansion (for example, acquisition of Wavin's plastic pipe business) to add product lines, manufacturing capacity and distribution reach.
  • Exports & international sales: growing export footprint with a strategic target to raise export turnover to about 5% of total turnover over time.
Operational mechanics - how product flows to revenue:
  • R&D and technology licensing: develop or acquire formulations, pipe technologies, and value‑added product designs (via internal R&D and licensed tech from partners like Wavin).
  • Manufacturing scale: multiple plants producing thermoplastics, pipes, fittings, molded consumer goods, and packaging film - enabling large-volume cost efficiencies (FY25 product volume: 674,510 metric tonnes).
  • Product mix and pricing: basic commodity volumes provide cash flow, while value‑added products (higher-margin) drive margin expansion - value‑added segment reported turnover of ₹933 crore in Q1 FY2025.
  • Distribution & channel sales: pan‑India dealer network, institutional sales for infrastructure projects, OEM supply arrangements, and export channels.
  • After‑sales & services: warranties, installation services for piping, spares and fittings add recurring revenue and customer stickiness.
Key FY25 operational and financial metrics (year ending March 31, 2025):
Metric Value Notes
Net product turnover ₹10,295 crore Total product sales for FY ending Mar 31, 2025
Plastic goods volume sold 674,510 metric tonnes Aggregate plastic product volume across segments
Value‑added products (Q1 FY25) ₹933 crore Turnover from higher‑margin specialized products in Q1 FY2025
Export share (current) ~2% (company growing exports) Target to increase export turnover to 5% of total over time
Strategic licensing 7‑year exclusive license with Wavin B.V. Rights for plastic piping systems in India & SAARC; supports technology premium pricing
Notable acquisition Wavin's plastic pipe business (acquired) Expanded product portfolio, market presence and manufacturing footprint
Revenue split by core segments (FY25 estimates based on reported total turnover and company disclosures):
Segment FY25 Turnover (₹ crore) Share of Total
Plastic piping systems ₹5,662 ~55%
Industrial & consumer products ₹3,089 ~30%
Packaging solutions ₹1,030 ~10%
Others (incl. ancillary services/licensing) ₹514 ~5%
Total ₹10,295 100%
Revenue levers and margin drivers:
  • Product mix shift toward value‑added products (evidenced by ₹933 crore in Q1 FY25) improves gross and EBITDA margins.
  • Economies of scale from large volume (674,510 MT) reduce per‑unit cost for commodity lines like pipes and fittings.
  • Technology licensing (Wavin) and acquisitions expand premium SKUs and institutional project wins, enabling higher realizations.
  • Export growth target (5% of turnover) diversifies demand cycles and can smooth domestic cyclicality.
  • Distribution density and brand strength in retail/wholesale channels sustain pricing power and repeat business.

The Supreme Industries Limited (SUPREMEIND.NS): How It Makes Money

The Supreme Industries Limited generates revenue primarily by manufacturing and selling a diversified portfolio of engineered polymer products across consumer, industrial and infrastructure segments. Core revenue drivers include plastic pipes and fittings, industrial molded furniture, material handling crates, packaging films and sheets, and consumer products (housewares, storage solutions). Revenue mix is driven by volume sales, value-added products, licensing/technology collaborations and incremental margin from recent acquisitions.
  • Product-led sales: Pipes & fittings, molded furniture, crates, films, and consumer goods sold through dealer networks, retail and institutional channels.
  • Project and institutional supply: Large orders for infrastructure, irrigation and municipal projects enhance lump-sum revenue.
  • Value-added solutions: Engineering plastics, customized molding and new product lines (WRAS/pressure-rated pipes, composite products) command higher margins.
  • Technology & licensing: Agreements (e.g., Wavin technology license) and the acquisition of Wavin's plastic pipe business expand product portfolio and geographies, creating cross-sell and margin-improvement opportunities.
Market Position & Future Outlook
  • Market leader in India's plastic processing industry with wide product breadth and extensive manufacturing footprint across multiple plants.
  • Faces competition from organized peers and numerous unorganized local players, which can pressure pricing and margins in commoditized categories.
  • Strategic initiatives-capacity expansions, product diversification and the Wavin acquisition/licensing-are positioned to support sustained volume growth and higher value mix.
  • Analyst consensus projects a healthy net earnings CAGR of ~21% for FY2024-FY2026, reflecting positive demand, margin improvement and capacity ramps.
  • Management and analysts anticipate total turnover of approximately ₹12,000 crore by FY2026, driven by scale-up across pipes, consumer products and industrial segments.
Metric Value / Note
Projected Turnover (FY2026) ≈ ₹12,000 crore
Net Earnings CAGR (FY2024-FY2026) ~21% (analyst forecast)
Strategic Move Acquisition of Wavin's plastic pipe business + technology licensing agreement
Key Segments Pipes & fittings, Consumer products, Industrial products, Packaging films
Competitive Landscape Organized national players + large base of unorganized local manufacturers
Operational levers that convert these initiatives into profit include capacity expansions (new/augmented extrusion and molding lines), backward integration for polymer compounding and high-margin engineered product launches. The Wavin transaction and technology tie-ups are expected to improve product quality, broaden distribution and accelerate entry into premium and export markets, thereby lifting realizations and market share. Mission Statement, Vision, & Core Values (2026) of The Supreme Industries Limited. 0

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