Creative Graphic

Creative Graphics Solutions India Limited operates through three main arms: Creative Graphics (flexographic printing plates), Wahren India Private Limited (pharmaceutical packaging), and CG Premedia (mock-ups and artwork solutions). The company, listed on April 9th last year, leverages common client bases across these verticals, particularly in the pharmaceutical sector. This integrated approach allows for cross-selling and deeper market penetration.

The company is undergoing significant capacity expansion, with all major capex largely completed. This includes new flexography units in Oman and Bangalore, strategically positioned for market access. In pharmaceutical packaging, a new Italian machine has been acquired to increase Alu-Alu capacity from 8,000 tons to 20,000 tons, with commercial sales anticipated in Q1 FY27. Additionally, a new PVDC/PVC line, acquired at a low cost of ₹2 crores (vs. ₹20 crores new), has been commissioned and is expected to reach 10-15% utilization next month.

Wahren, soft-launched in 2023, has rapidly grown, achieving 80% capacity utilization within 2.5 years. The expanded Alu-Alu capacity is projected to generate ₹700-750 crores in revenue at full utilization. The new PVDC/PVC line has a potential of ₹200-250 crores, offering a less competitive product line. The specialized tandem line is expected to add ₹100 crores annually at full capacity, enabling the production of specialized products like CR foils and contraceptive films.

Flexography is highlighted as a safe, sustainable, and versatile printing process, applicable to labels, flexible packaging, and corrugated boxes. Creative Graphics benefits from its nine units across India, enabling high-quality, timely delivery to large clients like Emami, Tata Chemicals, Unilever, P&G, and PepsiCo. The company maintains high teens to low 20s EBITDA margins in this segment, emphasizing its technical expertise and robust infrastructure.

For H1 FY26, the company reported a consolidated revenue of ₹175 crores and a PAT of over ₹12 crores. FY25 saw a revenue of ₹250+ crores and a PAT of ₹20+ crores, with a revenue CAGR of 51%. Management aims to double revenue annually and achieve ₹1000+ crores annual turnover in the next couple of years, with 75-80% contribution from the pharma packaging business. This growth is expected to be driven by new capacities and product diversification.

The company faces working capital intensity due to the 90-day credit period prevalent with large pharma clients, which is standard in the industry. To address this, management is actively seeking additional debt and off-balance sheet solutions, with a resolution expected within the next month. Major capex is largely complete, and future funding needs are primarily for working capital, with no immediate plans for equity dilution.

Management acknowledges volatility in raw material prices, particularly aluminum, but states it can largely pass on price changes to buyers using an N-1 pricing basis. Despite analyst concerns about oversupply in the aluminum packaging sector, management sees strong demand and export traction. The company is not hedging due to prohibitively high costs, which exposes them to price volatility but avoids high hedging expenses.