Premium Plast

About the Company

Established in 1995, Premium Plast is a leading automotive components group specializing in the design, manufacturing, and supply of exterior plastic components, interior cabin components, and under-the-hood components directly to commercial vehicle OEMs. The company’s product portfolio includes automotive parts, plastic industrial components, and packaging solutions, serving a diverse range of industries. It has manufactured over 600 components across three facilities strategically located in India which has a total installed capacity of 1,975 MTPA.

Strengths

• The company is an IATF-16949, ISO 9001:2015, and ISO 14001:2004 specialized plastic injection and blow mould components manufacturer.
• It has established long-standing relationships with several well-known Indian and international customers.
• The company has developed a sustainable business model wherein it reuses the waste plastic material which helps it reduce plastic waste and raw material costs and also makes its manufacturing units ‘zero-discharge’ units.
• The company’s manufacturing units in Pithampur, MP, and Vasai East, Mumbai are strategically situated in industrial zones which are manufacturing hubs for various industries.

Risks

• Nearly 85% of the company’s revenues depend on VE Commercial Vehicles Limited and certain major customers. The loss of such customers and significantly reduced purchases could drastically impact the business prospects.
• Pricing pressure from customers may adversely affect the gross margin, profitability, and ability to increase the prices, which in turn may materially adversely affect the business and financial condition.
• The company is heavily dependent on the performance of the passenger vehicle market in India. Any adverse changes in the conditions affecting the passenger vehicle market can adversely impact its business.
• Any delays and/or defaults in payments by intermediaries could increase the working capital investment and/or a reduction of the company’s profits, thereby affecting its operations and financial condition.