Huhtamaki India Limited is India's leading manufacturer and supplier of sustainable, flexible, and innovative solutions in packaging and labelling products. The company was originally incorporated as Paper Products Limited on June 12, 1950, founded by Sardari Lal Talwar as a partnership concern in 1935. It later became a 51% subsidiary of Huhtamaki Van Leer, a European Packaging major, in 1999.
The company has undergone several name changes, notably changing from Huhtamaki PPL Limited to Huhtamaki India Limited in November 2020. This transformation reflects its growth from a local player to becoming part of the global Huhtamaki ecosystem, headquartered in Thane, India, and operating as a subsidiary of Huhtavefa BV.
Huhtamaki India Limited specializes in the manufacture and sale of flexible consumer packaging and labelling solutions. Its product portfolio includes:
- Flexible Packaging Solutions: For various products such as food and beverages, pet food, home and personal care, healthcare, and industrial applications.
- Labelling Technologies: Offering heat transfer, in-mould, pressure-sensitive, shrink sleeves, and wrap-around labels for food and beverages, personal care, and pharmaceuticals sectors.
- Specialized Products: Pouching solutions, specialized cartons, packaging machines, tube laminates, promotional, holographic, and security solutions, cylinders, and specialized films for high barriers.
With 15 state-of-the-art, fully integrated manufacturing plants, five customer support centres, and a dedicated team, Huhtamaki India is committed to its purpose of protecting food, people, and the planet, merging innovation with design for its marquee clients.
Huhtamaki India is the largest manufacturer of finished flexible packaging in terms of volume in the continent of Africa, India, and Asia Pacific (excluding Japan). The company commands a significant 65% market share in the high-end flexible packaging segment in India. Its extensive clientele includes heavyweights of Indian FMCG players like HLL, Colgate, and Nestlé, as well as overseas clients, including subsidiaries of Unilever in Sri Lanka and Bangladesh.
Q1 FY2025 Financial Results: Huhtamaki India Ltd. announced its quarterly results for Q1 FY2025 on April 23, 2025.
- Revenue: ₹521.89 crore
- Net Profit: ₹16.26 crore
Despite a profit surge, total revenue from operations dipped 1.48% to ₹609.93 crore in Q1 CY25 from ₹619.11 crore posted in Q4 CY24. However, on a year-on-year basis, the company's net profit increased marginally by 0.46%, despite a 0.03% drop in total revenue from operations in Q1 CY25 over Q1 CY24.
- Revenue: ₹2,521 Crore
- Net Profit: ₹88.1 Crore
- Market Capitalization: ₹1,732 Crore
- P/E Ratio: 18.08
- P/B Ratio: 1.33
- Dividend Yield: 0.95
Huhtamaki India Ltd's share price has experienced fluctuations. The 52-week high share price is ₹451.50, and the 52-week low share price is ₹170.40.
Recent Performance:
- Last 1 Month: Share price moved up by 7.54% on BSE.
- Last 3 Months: Share price moved up by 14.77% on BSE.
- Last 12 Months: Share price moved down by 38.21% on BSE.
The company has delivered poor sales growth of -0.61% over the past five years and has a low return on equity of 8.08% over the last three years. However, the company has been maintaining a healthy dividend payout of 19.0% and has successfully reduced its debt, strengthening its financial health.
The promoter of Huhtamaki India Ltd is Huhtavefa BV, which holds 67.73% of the total equity. Promoter holding has remained stable at 67.73% as of March 2025 (from June 2024). The company is led by Murali Sivaraman as Chairman and Dhananjay Salunkhe as Managing Director.
In a challenging market characterized by muted consumer sentiment and shifting demand dynamics, Huhtamaki India has managed to maintain stable revenues while improving profitability through effective cost management and a strategic focus on a more profitable product mix. Despite a decline in sales from ₹3,000 crores in CY 2022 to ₹2,500 crores in CY 2023, operational efficiencies and a commitment to sustainability have led to a notable increase in gross margins. The management's proactive engagement with stakeholders and emphasis on digital transformation reflect a dedication to long-term growth, even as they navigate the complexities of a competitive landscape.
Huhtamaki India has received an upgrade in its long-term credit rating to CRISIL AA-/Stable (upgraded from CRISIL A+/Positive) for bank facilities of ₹88 crore. The rating of CRISIL A1+ on commercial paper has been withdrawn. This upgrade signifies an improvement in the company's financial health and creditworthiness.
The company continues to focus on sustainability and innovation while maintaining its leadership position in the flexible packaging industry. Despite facing headwinds in sales growth, Huhtamaki India's strong market position, improved profitability metrics, and strategic initiatives position it well for future growth in India's expanding packaging market.
