Shree Tirupati Balajee Agro Trading Co. Ltd IPO

Diverse customer base.

Cost-Effectiveness of FIBCs.

Multi- product portfolio.

Integrated Manufacturing Facility.

Quality Standard Certifications & Quality Tests.

Experienced Promoter and senior management team.

Multi-market Company.

Product Development Capabilities.

Growing Demand for Sustainable Packaging Solutions.

The volatile fluctuations in crude oil prices, particularly during events like COVID-19 and the Russia-Ukraine war, can result in substantial changes in manufacturing costs and gross profit margins within the FIBC market, ultimately impacting the companys financial position.

All its manufacturing facilities are situated at Pithampur, Madhya Pradesh resulting in concentration in a single region. Any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.

There is an increased awareness towards controlling pollution and many economies including India have joined in the efforts to ban plastic product. In case any plastic packaging products manufactured by it are banned in India or in any of the markets where the company export its products, it could have a material and adverse effect on its business and results of operations.

The Companys name may suggest involvement in agro business, leading to misconceptions among investors.

The Company has negative cash flows from its operating, investing and financing activities in the past years, details of which are given below. Sustained negative cash flow could impact on its growth and business.

Increased revenue may not necessarily lead to higher margins, as they are affected by raw material costs, finance expenses, and other operational costs.

Poly Propylene granules, Poly Propylene (LDPE) and High-Density Polyethylene (HDPE) of different grades is its primary raw material constituting a significant percentage of the Companys total expenses. The business is susceptible to adverse impacts from fluctuations in crude oil prices affecting polymer costs, and risks associated with foreign exchange movements during polymer imports. Additionally, increases in raw material prices, supply shortages, and cost overruns pose potential adverse effects on its operations. Increases in the prices of raw materials, their availability, quality and cost overruns could have adverse effect on the company.

Heavy reliance on short-term raw material contracts, coupled with exposure to price fluctuations and lack of hedging policies, poses a significant threat. The Company is further subject to uncertainties in the supply of raw materials and there is no assurance that its suppliers will continue to sell raw materials to it as per the company requirements. This could impact the business and financial performance of the Company.

The Company has lapsed /delayed in making the required filings under Companies Act, 2013 and under the applicable provisions of Companies Act, 1956.

Majority portion of its domestic sales are derived from the western zone and any adverse developments in this market could adversely affect its business.