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Mold-Tek Packaging Ltd

Mold-Tek Packaging Ltd Q3FY24: Navigating Challenges, Unveiling Opportunities

Mold-Tek Packaging Ltd Q3FY24: Navigating Challenges, Unveiling Opportunities

In the dynamic world of packaging, Mold-Tek Packaging Ltd has charted a mixed quarter, marked by ups and downs that delve into financial nuances and operational strategies. Let’s dissect the key highlights that shaped Mold-Tek’s Q3FY24 performance.

1. Revenue Resilience

Mold-Tek Packaging Ltd demonstrated resilience with a commendable 6.4% Year-on-Year (YOY) revenue surge. However, a slight 3% Quarter-on-Quarter (QOQ) dip warrants a closer examination of market dynamics influencing this fluctuation.

2. Profit Performance

The company faced headwinds in its Profit After Tax (PAT) figures, witnessing a 12.5% decline both QOQ and YOY. A detailed analysis of the profit margins at 8.4% versus the previous 10.3% unveils the intricate financial landscape Mold-Tek is navigating.

3. Volume Surge and Strategic Collaborations

In the midst of challenges, Mold-Tek celebrates a substantial 14% volume growth. The company’s commitment to delivering on its Q3 volume guidance underscores its dedication to customer satisfaction. Notably, commercial supplies to Grasim’s Unit at Cheyyar commenced in January 2024, with plans for Panipat unit initiation on the horizon.

4. Innovations Unveiled

January 6, 2024, marked a significant milestone for Mold-Tek as its Sultanpur, Hyderabad plant was inaugurated. The plant initiated the production of innovative In Mold Labelling (IML) effervescent tubes, garnering positive responses. Commercial production is anticipated to commence within the next 4 to 6 weeks, adding a fresh dimension to Mold-Tek’s product portfolio.

5. Legal Vigilance

Mold-Tek Packaging Ltd has taken a stand against design theft, filing a case to protect its square pack patent. The remarkable 106% YOY growth in square packs underscores the significance of this legal maneuver in preserving the company’s intellectual property.

6. Paints Segment Challenges and Triumphs

The paints segment faced sluggish growth due to rework in the Satara plant, undergoing maintenance for the past three-quarters. Despite this, the addition of Grasim, ABG as a new client brings optimism. With an order for 4000 Tons and an additional 1000 Tons in October, Mold-Tek anticipates a 6-7% growth in the paints segment, contributing significantly to the company’s overall performance.

7. Diversifying Product Portfolio

Mold-Tek Packaging Ltd unveils plans to introduce In Mold Labelling (IML) and cannister packaging in the pharmaceutical space, projecting increased revenue from Q1 onwards. The Iodex project is slated to kick off in March or, at the latest, by Q1.

8. Expansion and Capacity Enhancement

With an eye on future growth, Mold-Tek is set to increase its capacity from 48,000 tons to 57,000 tons by the middle of the year. Additional machinery in Panipat and Cheyyar is under consideration, aligning with ABG’s growth trajectory and the traction in the Food and FMCG sectors.

9. Performance Snapshot

This quarter witnessed impressive volumes across various segments: Paint – 3,800 tons, Lubes – 2,270 tons, Food and FMCG – 1,022 tons, and Qpack – 1,510 tons. The total of 8,600 tons reflects a robust 14.3% growth, translating into a total value of INR 165 crores.

10. Qpacks Revolutionizing the Market

Qpacks, boasting multiple molds and an expanded product range, emerge as a growth catalyst. The addition of 2, 5, 10, 15, and 17-liter Square Packs demonstrates Mold-Tek’s commitment to providing diverse packaging solutions. The production setup expansion in Daman, Hyderabad, Cheyyar, and Panipat positions Mold-Tek strategically to cater to regional players across India.

Outlook: A Glimpse into the Future

Mold-Tek Packaging Ltd envisions mid-teen volume growth in the next fiscal year. With a capacity increase to 57,000 tons in FY24-25, the company anticipates a diversified revenue stream, with paints contributing 50%, lubes 20-23%, and Food and FMCG each at 15%.


Mold-Tek Packaging Ltd, despite encountering challenges, remains resilient and forward-focused. The strategic initiatives, innovative product offerings, and legal vigilance position the company for sustained growth in the competitive packaging industry.


  1. How has Mold-Tek addressed the challenges in its paints segment? Mold-Tek Packaging Ltd has navigated challenges in the paints segment by initiating rework in the Satara plant and strategically adding Grasim, ABG as a new client.
  2. What milestones did Mold-Tek achieve in January 2024? January 6, 2024, marked the inauguration of Mold-Tek’s plant in Sultanpur, Hyderabad, and the commencement of commercial supplies to Grasim’s Unit at Cheyyar.
  3. What legal steps has Mold-Tek taken to protect its intellectual property? Mold-Tek has filed a case against individuals stealing designs for its square pack patent, reflecting the company’s commitment to preserving its innovative contributions.
  4. How does Mold-Tek plan to enhance its capacity and machinery in the coming months? Mold-Tek aims to increase its capacity from 48,000 tons to 57,000 tons by the middle of the year. Additional machinery in Panipat and Cheyyar is under consideration, aligning with ABG’s growth trajectory and market demand.
  5. What is the outlook for Mold-Tek in terms of volume growth and revenue distribution in the next fiscal year? Mold-Tek anticipates mid-teens volume growth in the next fiscal year, with a diversified revenue stream: 50% from paints, 20-23% from lubes, and 15% each from Food and FMCG.

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