i. Mr. Bipin Nanubhai Panchal, aged 55 years, is the Promoter Chairman and Managing Director of the Company. He has completed his SSC from Maharashtra State Board of Secondary Education in the year 1985. He has completed Industrial Training in Tool and Die making from Industrial Training Institute of Bombay in the year 1988. He has more than 30 years of experience in the industry. He has been associated with the Company since incorporation. He looks after the management and operations of the company and is in involved in bringing about innovation in the operations and products of the Company. He is responsible for the entire management and administration of the Company and brings about innovation through creation of new capacities, development of products, exploring and evaluating ways of penetrating existing markets and developing new markets in India and abroad. ii. Ms. Nisha Bipin Panchal, aged 49 years, is the Whole Time Director of the Company. She has completed her HSC from Gujarat Education Board, Gandhinagar in the year 1991. She has been associated with the company as director since incorporation. She has an experience of around 10 years in industry in which we operate and she is currently responsible for looking after the Human Resource department of the Company. iii. Ms. Harmi Bipin Panchal, aged 20 years, is the Non-Executive Director of the Company. She has completed her HSC from Maharashtra State Board of Higher Secondary Education in the year 2021. She is Currently Pursuing Bachelors of Commerce from University of Mumbai.

A. Balance Sheet

Particular (In Lakhs)	Mar-20	Mar-21	Mar-22	9MFY23
Equity Share Capital	44.30	44.30	44.30	44.30
Reserves	402	544	660	816
Borrowings	24	0	0	0
Trade Payables	255	467	320	472
Other Liabilities	338	537	654	908
Total Liabilities	617	1,004	975	1,380
Net Block	176	160	140	77
Other Assets	20	19	23	18
Total NC Assets	196	179	164	95
Receivables	163	157	164	249
Inventory	164	506	525	918
Cash & Bank	340	490	512	347
Other Assets	199	261	314	631
Face value	10	10	10	10

B. Profit & Loss Statement

Particular (In Lakhs)	Mar-20	Mar-21	Mar-22	Mar-23
Sales	1,974	2,252	2,761	3,003
Raw Material Cost	1,246	1,661	1,929	2,608
Change in Inventory	5	-195	-48	-519
Employee Cost	401	409	475	519
Other Expenses	193	182	266	229
Other Income	28	34	40	71
EBITDA	157	228	178	237
EBITDA Margin	7.92%	10.12%	6.46%	8.35%
Depreciation	31	27	23	21
Interest	4	2	2	3
Profit before tax	122	199	154	275
Tax	27	56	38	67
Net profit	95	142	116	208
NPM (%)	4.72%	6.23%	4.14%	6.77%

C. Cash Flow Statement

Particular (In Lakhs)	Mar-20	Mar-21	Mar-22	9MFY23
Cash From Operating Activity
Profit From Operation	167	215	173	219
Receivable	41	6	-6	-86
Inventory	-29	-342	-19	-393
Payable	-1	213	-147	151
Loans And Advances	53	-38	12	-77
Other WC Items	-22	154	74	141
Working Capital Changes	42	-8	-87	-264
Direct Taxes	42	39	57	40
Gratuity paid during the year	0.2	1	0.3	0
Net Cash Inflow from Operating Activity	167	166	29	-85
Cash from Investing Activity
Fixed assets purchased	-11	-10	-4	-33
Fixed assets sold	0	0	0.3	80
Investments purchased	-100	0	-10	-134
Other investing items	5	20	9	8
Net cash inflow from investing activities	-106	10	-5	-78
Cash from Financing Activity
Proceeds from borrowings	4	0	0	0
Repayment of borrowings	0	-24	0	0
Intrest paid fin	-4	-2	-2	-2
Net Cash Flow	61	150	22	-166

 

* There are no listed companies in India and abroad that is engaged in developing a similar line of product solution to the Company.

Review and Recommendation of Global Pet Industries by IZ team is 6/10 Brief About Company? 1. Global Pet Industries Ltd is a leading manufacturer and exporter of Two Stage PET Stretch Blow Moulding Machines. The company is based in Mumbai, India​​. 2. The company has been in the industry for over 25 years, making it a reputable brand in India. It has operations in 40 countries across the globe, demonstrating its global presence​​. 3. The company is committed to maintaining high-quality standards, efficient delivery schedules, cost-effective rates, and excellent after-sales service. It prides itself on introducing new products to the Indian market​​. 4. The company was founded by Mr. Bipin Panchal, who started his career as a production manager in his mid-90s. He initially ventured into a business partnership from 1996 to 2000, which focused on the manufacturing of Manual Pet Stretch Blow Moulding Machines​. 5. From 2000 to 2006, Mr. Bipin Panchal served as a Technical Director, where he elevated the business to new levels on domestic stages. In 2006, he established his own manufacturing business, Global Pet Industries, as a proprietary business​​. In 2013, after running the business for seven years, the proprietary business was converted into a corporate entity under the name Global Pet Industries Ltd, with Mr. Bipin Panchal as the Managing Director. 6. Since then, the company has continued to grow and expand, becoming a leading exporter in 40 countries globally​. The company's growth and success can be attributed to the trust and support of its customers, who have shown significant faith and appreciation for the company's offerings​. What is the PET Stretch Molding Machines? PET stretch blow molding machines are used in the production of PET (polyethylene terephthalate) bottles and containers. PET is a type of plastic that is commonly used in the packaging of various products such as beverages, food, and other consumables because of its strength, thermal stability, and transparency. PET bottles are used in such as fridge bottles, packaged drinking mineral water bottles, carbonated soft drinks bottles, hot fill juice bottles, edible oil bottles, liquid detergent bottles, cosmetic products bottles, confectionery jars, Pharma bottles, liquor & distilleries bottles, pesticides bottles.

The main advantage of PET stretch blow molding is that it allows for the production of complex bottle shapes in a cost-effective manner, and the resulting products have excellent material properties such as clarity, strength, and barrier resistance. Clients of Companies? They have some prominent clients like Bisleri, Fosters, ITC, Parle, Priya Gold, Dalmia Bharat Group etc. Manufacturing Units They have two manufacturing units one in Vasai and another in Palghar in Mumbai. Unit -1 - It has a capacity of 127 machines. Unit-II is recently started in April 2023 which is having capacity of 96 machines. So, now total capacity will be 223 Machines from two units. Upto Dec-2022, they have sold 97 machines to the clients with total revenue of ~14.87 Crores. That means per machine average cost is ~15 lakh.

Sr No.	Product	9MFY22		Fy22		Fy21
		Units	Amount	Units	Amount	Units	Amount
1	Electra Series	12	682.96	9	510	3	136
2	Eco Series	12	155.48	21	278	30	370
3	Fully Automatic Machine	11	245.43	15	453	27	607
4	Semi-Automatic Machine	62	403.46	80	551	74	470
	Total	97	1,487.32	125	1,792.00	134	1,583.00
	Average Price		15 Lac		14.34 lac		11.81 lac

Export Sales and Domestic Sales In the first 9MFY23, the total sales from export is ~25% and rest ~75% from the Domestic market. Why Company is raising Funds from IPO?

Company is raising ~10 Cr from the IPO towards the Capex. To cater to the growing demand from the existing customers and to meet requirements of new customers, they intend to expand their manufacturing capacities for existing products that we are in the process of developing and commercializing. They are basically constructing three floors in the existing factory. Out of 10 Cr, ~4 Cr will be used in Fy23-24 and rest ~6 Cr will be used in Fy24-25. Risks in the Business? 1. Continuous modernisation of equipment is required as per changing demand in the industry. So, it is a capital intensive business. 2. The company operates in the very competitive sector where many small and large domestic and international players exists. Financial Performance of the Company ? 1. Revenue mainly comes from selling machines and providing after sales services such as providing spares, components, accessories and providing repairs and maintenance of the machines after delivery. Revenue has increased from 20 Crores in Fy20 to 28 Crores in Fy22. This show a CAGR growth of 18%.

As they have started new factory from April 2023, the revenue of that factory will also be added from hereon. 2. EBITDA margins in the business is around 8% which is decent. 3. Net-Profit has increased from 95 lac to 2.08 Crores from Fy20 to Fy23. 4. The Return on Equity (ROE) for FY20, FY21, FY22, and FY23 are 21%, 24%, 16%, and 9.6%, respectively. There's a noticeable decline in ROE, primarily due to the company raising 13 Cr through an IPO. However, with the new factory becoming operational and starting to generate profits by the end of FY24, the ROE is expected to rebound. Despite the temporary drop, the company continues to generate a solid ROE overall. 5. Company is debt free. They do not have short term or long term borrowings as on 31.12.2022. 6. Over FY20, FY21, and FY22, the company has managed to generate approximately 3.6 Crores in cash from its operations. A temporary cash flow deficit has occurred in 9MFY22, primarily resulting from inventory accumulation. Once this inventory, estimated around ~4 cr, is liquidated, it is anticipated that the company will return to positive cash flow in FY23. Valuation of the Company? Upon annualising the 9MFY23 figures, the company's Profit After Tax (PAT) is projected to be around 2 Crores. Given the outstanding shares amounting to 97.87 lakh post-IPO, the Earnings Per Share (EPS) would be 2.04 per share. With the share price at 49, this results in a Price-to-Earnings (P/E) ratio of 25x. This appears to be on the higher side.

Global Pet Industries Limited Unit No. 108 & 109, Karishma Industrial Estate, Hissa No. 5, Survey No. 36, Village Waliv, Dhumal Nagar, Vasai (East), Palghar – 401208, Phone: +91 8669621562 Email: investor@globalpetind.com Website: https://globalpetind.com/