Sillverton Industries IPO

Sillverton Industries Limited IPO Strengths

Diversified and Continuously Expanding Product Portfolio

Sillverton Industries Limited offers a comprehensive range of paper-based products including writing and printing, kraft, cupstock, and specialised grade papers, available in multiple grammages. With over 265 active varieties and expansion into packaged drinking water, the company effectively caters to diverse industries while reducing reliance on any single sector for business stability.

Strong and Widespread Distribution Network

Sillverton Industries Limited has built a robust dealer network of 191 partners, ensuring access to multiple industries across India. Longstanding relationships with reputed dealers support steady demand and repeat orders. The company’s focus on customer engagement, competitive pricing, and dealer incentives has strengthened its distribution reach and created a significant entry barrier for competitors.

Strategically Located Integrated Facilities

Sillverton Industries Limited operates an integrated manufacturing facility in Muzaffarnagar, Uttar Pradesh, strategically positioned near high-consumption markets of North India. With ISO-certified operations, automation technologies, and ample land for expansion, the facility offers scalability, efficiency, and quality. Plans to enhance capacity by 90,000 MTPA further strengthen its ability to meet evolving market requirements.

Commitment to Sustainability and Recycling

Sillverton Industries Limited emphasises sustainability by using waste paper as raw material and investing in renewable energy solutions. Its waste-to-energy boiler, biogas plant, and proposed additional captive power facilities reduce operational costs and environmental impact. These eco-friendly practices align with India’s regulatory push towards biodegradable packaging, positioning the company as a responsible industry leader.

Experienced Promoters with Proven Capabilities

Sillverton Industries Limited benefits from experienced promoters and senior management with expertise in manufacturing, procurement, operations, and business development. Led by industry veterans with deep domain knowledge, the company leverages its leadership team’s strategic insights and networks to drive growth, explore new markets, and strengthen its position in the competitive paper and packaging sector.

Financially Stable Business Model

Sillverton Industries Limited has consistently demonstrated financial growth, supported by operational efficiency and strategic expansion. With strong RoE of 26.74% in FY24 and PAT growing at a CAGR of 70.66% from FY22 to FY24, the company has built a resilient business model that balances profitability, scalability, and long-term sustainability in the evolving industry.

More About Sillverton Industries Limited

Sillverton Industries Limited is engaged in the manufacturing and marketing of eco-friendly speciality paper. With integrated operations, the Company caters to a wide spectrum of end-use industries, offering a diversified portfolio that reduces reliance on any single segment.

Product Portfolio

The Company manufactures and markets a broad range of paper-based products, including:

• Writing and Printing Paper

• Kraft Paper

• Cupstock Paper

• Specialised Grade Papers

These products are widely applied across:

• Retail, corporate, educational and government sectors

• Packaging, FMCG, and secondary packaging

• Food & beverage packaging and quick service restaurant solutions

• Labels, stationery, and pharmaceutical packaging

Between April 1, 2021, and December 31, 2024, the Company produced and supplied over 265 active paper varieties, reflecting the adaptability of its product range.

Market Position & Growth

India’s packaging industry grew from ₹1,567 billion in FY21 to ₹2,421 billion in FY24, registering a CAGR of 15.6%. The sector is projected to reach ₹3,600–3,800 billion by FY29, driven by demand across FMCG, pharma, and e-commerce (Source: CRISIL Report).

Sillverton has capitalised on this growth by leveraging its three-decade-long market presence. According to CRISIL, the Company recorded the second-highest PAT growth from FY22 to FY24, achieving a CAGR of 70.66%, with PAT rising from ₹304.27 million in FY22 to ₹886.20 million in FY24.

Strategic Diversification

Over the years, the Company has transformed from a traditional paper manufacturer into a multi-paper packaging solutions provider through strategic capital expenditure. Key developments include:

• Recognition as a ‘Mega Unit’ under Uttar Pradesh’s Industrial Investment and Employment Promotion Policy, 2017, owing to an investment of ₹1,697.50 million in expansion and modernisation.

• Installation of a 16 MW coal-fired boiler and a waste-to-energy captive power plant for self-sufficiency in energy.

• Setting up a packaged drinking water bottling plant with a capacity of 570 kilolitres per day (40,000 bottles/hour) in collaboration with Energy Beverages Private Limited for contract manufacturing.

Revenue Performance

The Company’s revenue from operations grew by 42.18%, rising from ₹6,186.54 million in FY22 to ₹8,795.85 million in FY24. Product diversification and new applications within existing portfolios have also contributed to higher realisations

Industry Outlook

Indian Paper & Packaging Industry Outlook

Industry Overview

The Indian paper and packaging industry has emerged as one of the fastest-growing sectors, driven by increasing demand from FMCG, e-commerce, pharmaceuticals, education, and food & beverage industries. The country ranks among the top paper producers globally, with consumption steadily rising due to economic expansion and lifestyle changes.

Market Size & Growth

• The packaging industry in India expanded from ₹1,567 billion in FY21 to ₹2,421 billion in FY24, marking a CAGR of 15.6%.

• It is projected to reach ₹3,600–3,800 billion by FY29, supported by growth in retail, exports, and digital commerce.

• India’s overall paper demand is expected to grow at a CAGR of 6–7% till 2030, with writing & printing paper, kraft paper, and speciality paper categories playing a key role.

Segment-wise Outlook

• Writing & Printing Paper: Although digitisation has reduced demand in developed markets, India continues to see steady usage in education, government, and corporate sectors. This category is expected to grow at 4–5% CAGR.

• Kraft Paper: Driven by e-commerce and FMCG packaging, kraft paper demand is forecasted to grow at 8–9% CAGR over the next five years.

• Cupstock Paper: Rising food delivery services, QSR chains, and eco-friendly packaging push this segment, expected to grow at 10–12% CAGR.

• Speciality Papers: Used in pharmaceuticals, labelling, décor, and security applications, speciality paper is witnessing high-margin growth with a CAGR of 9–10%.

Growth Drivers

• E-commerce Boom: Surge in online retail driving packaging-grade paper consumption.

• FMCG & Pharma Growth: Increasing packaged goods and regulated pharmaceutical packaging.

• Sustainability Push: Ban on single-use plastics boosting demand for eco-friendly paper-based packaging.

• Government Initiatives: Incentives under industrial policies and support for domestic manufacturing.

• Rural & Urban Demand: Expanding literacy and rising disposable income fuelling writing & printing paper usage.

Key Figures

• India produces over 25 million tonnes of paper annually.

• The country’s per capita consumption of paper is about 15–16 kg, significantly below the global average of 57 kg, indicating vast untapped potential

How Will Sillverton Industries Limited Benefit

• Rising demand for kraft paper from e-commerce, FMCG, and sustainable packaging will directly boost Sillverton’s volumes, as kraft remains one of its core offerings.

• Expansion of cupstock and food-grade specialty papers aligns with India’s booming QSR, food delivery, and plastic substitution drive, opening high-margin opportunities.

• Writing & printing paper continues to grow in India at 4–5% CAGR, supported by education and institutional demand, ensuring steady base revenues.

• The surge in specialty paper applications—labels, décor, pharma, and security—positions Sillverton to capture premium niches with higher realizations.

• Government policies banning single-use plastics and encouraging eco-friendly packaging will accelerate the shift towards paper-based alternatives, strengthening long-term demand.

• With India’s per capita paper consumption still well below global averages, Sillverton is poised to benefit from structural growth and increasing domestic penetration.

Peer Group Comparison

Name of the Company	Face Value (₹)	Revenue (in ₹ million)	EPS (₹)	NAV (₹)	Price / Earnings Ratio	Return on Net Worth (%)
Sillverton	5	8,795.85	3.61	113.50	[●]	26.74
Peer Groups
JK Paper Limited	10	66,592.30	66.22	299.26	6.00	22.35
Kuantam Papers Limited	1	12,112.97	21.07	128.79	5.39	16.36
Seshasayee Paper And Boards Limited	2	18,018.30	44.96	303.05	6.74	14.17
West Coast Paper Mills Limited	2	44,476.82	104.77	490.80	4.80	24.25
N R Agarwal Industries Limited	10	12,931.29	73.72	446.73	4.64	16.50

Key Strategies for Sillverton Industries Limited

Capturing Market Opportunities through Product Diversification and Capacity Expansion

Sillverton Industries Limited seeks to capture rising opportunities in India’s fast-growing paper packaging industry by diversifying its speciality product portfolio and expanding production capacity by 90,000 MT annually. With new investments in machinery and warehousing, the Company aims to deliver high-quality, customised, and sustainable packaging solutions.

Expanding Global Footprint and Client Base

Sillverton Industries Limited intends to strengthen its global presence by expanding exports across markets such as Australia, Europe, and the UAE. By leveraging its speciality portfolio, growing international demand, and export-related incentives, the Company aims to diversify revenue streams and mitigate regional economic risks.

Advancing ESG Practices and Sustainable Energy Investments

Sillverton Industries Limited continues to invest in ESG initiatives by adopting advanced wastewater treatment technologies and enhancing renewable energy use. With waste-to-energy and proposed CBG plants, the Company aims to reduce its carbon footprint, optimise costs, ensure energy security, and create sustainable revenue streams.

Leveraging Policy Incentives for Growth and Competitiveness

Sillverton Industries Limited strategically aligns with Uttar Pradesh’s Industrial Investment and Employment Promotion Policy, gaining ‘Mega Unit’ classification benefits. By capitalising on subsidies, tax reimbursements, and EPR credits, the Company strengthens cost efficiency, expands production capacity, and reinforces leadership in eco-conscious, resource-efficient, and profitable paper packaging solutions.