Flexituff Ventures International Limited (formerly known as Flexituff International Ltd) is engaged in the business of technical textiles. It is a multi-product, multi-market and multi-location compan
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y headquartered in Pithampur, Madhya Pradesh. It is a 100% vertically integrated company that serves the demand for technical textiles, construction textiles, packaging textiles, transport textiles, industrial textiles and agrotextiles among others. The company manufactures Flexible Intermediate Bulk Container (FIBC), geotextiles, reverse printed BOPP (Biaxially Oriented Polypropylene) woven bags and NPC drippers.
The manufacturing units of the company are located at Pithampur in Madhya Pradesh and at Kashipur in Uttarakhand. The company has total 4 manufacturing facilities in India. The company has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastics. The company also has a Research and Development centre at Kashipur which is engaged in the research and development of various compounds for plastic products including engineering plastic, bio-degradable plastic and other new product developments.
The company is a major exporter of FIBC and woven products from India and have been receiving the Top Exporter Award from the PLEXCONCIL, Ministry of Commerce from 2005-06 to 2008-09 every year. They export to around 30 countries across the globe and are present in 4 continents with major thrust of exports being to USA and Europe.
During FY 2017-18, the Company has 3 direct subsidiaries, out of which 2 are based in India & 1 in Cyprus.
Flexituff International Ltd was originally constituted as a partnership firm on January 22, 1966 under the name and style of Saurabh Potteries & Ceramics with their principal place of business at Indore. Since then, the partnership was reconstituted from time to time by way of admission of new partners or resignation of the then existing partners. With effect from March 1, 1993, the name of the partnership firm was changed to Naviska Packaging and a fresh partnership deed was executed. Thereafter, Naviska Packaging was converted into a private limited company with the name, Naviska Packaging Pvt Ltd on April 8, 1993. Thus, the company was formally incorporated.
During the year 1993-94, the company commenced manufacture of HDPE / PP woven sacks. They set up the Domestic Tariff Area (DTA) unit with a capacity of 1,380 MTPA. In June 29, 2001, the company changed their name from Naviska Packaging Pvt Ltd to Giltpac International India Pvt Ltd. Again, they changed their name to Naviska Packaging Pvt Ltd with effect from January 01, 2003.
During the year 2002-03, the company expanded the manufacturing capacity at DTA unit to 2,700 MTPA. In April 25, 2003, the company was converted into public limited company and also changed their name to Flexituff International Ltd. During the year 2003-04, they commenced production at Special Economic Zone (SEZ) unit with a capacity of 7,800 MTPA.
During the year 2004-05, the company expanded the manufacturing capacity at the DTA unit to 5,200 MTPA. Also, they received BRC certifications for food grade packing. During the year 2005-06, they received AIB certifications for food grade packing.
During the year 2007-08, the company expanded the manufacturing capacity to 23,000 MTPA at SEZ and DTA units collectively. They incorporated a wholly owned subsidiary, Eco Polymers Limited in Bangladesh, from which the company disassociated in September 2010.
During the year 2008-09, the company incorporated a wholly owned subsidiary Flexiglobal Holdings Ltd in Cyprus to carry on the business of a holding and an investment company. Also, they acquired a majority stake in Satguru Polyfab Pvt Ltd, which is engaged in the business of manufacturing, process, produce etc. or deal in reprocess of plastic waste to use in polypropylene, polyethylene, PVC products, etc.
During the year 2009-10, the company established a new plant having production capacity of 16,000 MTPA at Kashipur, Uttarakhand. In October 7, 2009, Flexiglobal Holdings Ltd, Cyprus made investment on Lakshmi Incorporated and thus, Lakshmi Incorporated became a step down subsidiary of the company.
In December 1, 2009, the company's subsidiary, Flexiglobal Holdings Ltd, Cyprus acquired 100% holding in Flexiglobal (UK) Ltd and thus Flexiglobal UK became a step down subsidiary of the company.
In December 15, 2009, the company incorporated wholly owned subsidiary Nanofil Technologies Pvt Ltd in Kashipur, Uttarakhand, which is engaged in the business of carrying on research and development by using various technologies namely Nanotechnology, Chemical technology, Biochemical Technology & Polymer Technology to use in polypropylene, polyethylene, PVC products, etc.
The initial public offer (IPO) of Flexituff International was opened from 29th September 2011 to 4th October 2011 for QIB and 5th October 2011 for others. There was a fresh issue of 45 lakh equity shares and Offer for sale of 22.5 lakh equity shares from Clearwater Capital Partners (Cyprus) Ltd. of Rs.10/- each at Rs. 155/- per share. Credit Analysis & Research Limited assigned Credit Rating 3 out of 5 to company's IPO. Equity shares of the company were listed from 19th October 2011 at BSE and NSE.
During the year ended 31 March 2014, the company disinvested from M/s Satguru Polyfab Private Limited, Gandhidham.
The company issued and allotted 1902173 Equity Shares on Preferential Basis under Private Placement, at a price of Rs 230/- per Equity Share inclusive of premium of Rs 220/- per Equity Share to International Finance Corporation on 30 December, 2013. The company further issued 5.34% Foreign Currency Convertible Bonds (the FCCBs) amounting to USD 9 Million to International Finance Corporation. These FCCBs are convertible at the option of Bondholder into fully paid up equity shares of the Company at a price of Rs 230/- per equity share on or before 30 January, 2019.
During the financial year ended 31 March 2015, the company made investment in three limited liability partnerships. During the year under review, the company increased focus on proprietary products like barrier-force, geo-tube, 3D geo mattress and composite geo bags. During the year under review, the company bagged contracts worth Rs. 90 Crore from the Assam Government for 3-D Geo Mattress/Geo Bags. It also bagged a prestigious ABD Tender worth Rs. 5 crore for Geo Bags. During the year under review, the company bagged ICI Chemical Global Tender worth USD 3 Million per annum for supply of FIBCs to Europe, USA, Brazil, Mexico and Israel. During the year under review, the company completed geo project and commercial production started with an installed capacity of 16300 MT. During the year, the company added several prestigious clients from USA, Egypt, Germany, Belgium and Austria.During the financial year ended 31 March 2016, the company entered into a facility agreement with KKR India Financial Services Private Limited for debt fund raising upto Rs. 150 crores including issue of debentures, if any.
During the year under review, the company started manufacturing of proprietary products viz. Sand fill Tubular Mattresses, Barrier Force Pipe Sack & Geo Tube.
M/s Lakshmi Incorporated, USA was dissolved w.e.f. November 1, 2015 and ceased to be Subsidiary of the company.
During the year ended 31 March 2017, Flexituff Sailendra Kalita LLP, Ujjivan LUIT LLP, Budheswar Das Flexituff International Limited JV, Sanyug Enterprises Flexituff International Limited JV, Vishnu Construction Flexituff International Limited JV and Mayur Kartick Barooah Flexituff International Limited became Joint Ventures of Flexituff International Limited.
The Board of Directors of Flexituff International at its meeting held on 24 July 2017 approved separation of its FIBC business (Pithampur) into a wholly owned subsidiary company through process of slump sale of FIBC division (Pithampur) of the company including assets, liabilities/ obligations of whatsoever nature & employees which are specific to the FIBC division (Pithampur) on a going concern basis to a wholly owned subsidiary company. The company deals in major products i.e. FIBC & Technical textile/Geo Textile. The separation of two product businesses in 2 separate companies will result into unlocking of value of business & raising growth capital.
The FY 2017-18 was a challenging year for the company. Though the FIBC business continued to operate at healthy margins and strong order-book position, the main challenge came from the paralysis of the banking industry in India. Many of the consortium-bankers of the company faced the PCA issues. This resulted in curtailed working capital availability to the company. The curtailment of working capital led to reduction in geo-textile and other business. The stronger Indian rupee and fluctuating raw material prices further added to the problem.
5.44% Foreign Currency Convertible Bonds (the FCCBs) of USD 25 Million issued to TPG Growth SF II Pte. Ltd. (TPG), convertible at the option of Bondholder into fully paid up equity shares of the company at a price of Rs. 218/- per equity share were due on 26th April, 2018. On the request of the company, TPG extended the said repayment to 30th June, 2018 and thereafter for a period of Forty-Eight (48) Months from 30th June, 2018 on revised terms & conditions as mutually agreed between Company & TPG subject to due approval from RBI. Authorized Dealer has approved the same & approval from RBI is underway.
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