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TCPL PACKAGING Q3FY24 Concall: Navigating Challenges and Sailing Towards Growth

Navigating the intricate landscape of Q3FY24, TCPL Packaging faced a myriad of challenges and triumphs. This comprehensive article delves into the intricacies of the quarterly conclave, shedding light on key aspects that shaped TCPL’s performance.

1. Subdued Liquor Segment Demand: A Decartonization Dilemma

The first quarter highlight is the subdued demand growth within the liquor segment. This downturn is attributed to the decartonization trend, compounded by a significant decline in raw material pricing.

2. Flexible Segment and Export Growth: A Silver Lining

Despite challenges in the liquor sector, TCPL Packaging experienced growth in the flexible segment and export domain. This section explores the factors contributing to this positive trajectory.

3. Impact on Consolidated Margin: TCPL Innofilms and Creative Offset

A closer look at the performance of subsidiaries TCPL Innofilms and Creative Offset reveals adverse effects on consolidated margins. Despite this, the consolidated EBITDA stands at 15%.

4. Setbacks in TCPL Innofilms: Overcoming Challenges

TCPL Innofilms faced setbacks in their new blown film line. This section details the collaborative efforts between the team and machine vendors to address and resolve these challenges.

5. Milestone in Sustainable Packaging: MDO PE Film Adoption

Amid challenges, TCPL Packaging achieved a significant milestone in sustainable packaging with the adoption of MDO PE film. This innovative solution found favor with FMCG companies, particularly in tea pouch packaging.

6. Creative Acquisition and Future Outlook

TCPL Packaging acquired a 100% stake in Creative, a move that brings both challenges and opportunities. Post-festivities, demand in the domestic market dipped, but the company anticipates growth in the coming fiscal year.

7. Flexible Line Expansion: Silvassa Facility

The initiation of the third flexible line at the Silvassa facility marks a successful expansion. This section discusses the significance of this expansion and its potential impact on TCPL’s operations.

8. Flat Volume in Q3: Post-Diwali Demand Dynamics

Q3 saw flat volume, with demand remaining subdued post-Diwali. This section analyzes the factors influencing the demand dynamics and potential future trends.

9. Export Headwinds: The Red Sea Crisis

The export segment faced headwinds, primarily attributed to the Red Sea crisis. This section examines the potential impact on TCPL Packaging if this crisis persists.

10. Rising Employee Costs: A Multifaceted Challenge

Employee costs witnessed an upswing due to a 15% increase in minimum wages, expansion in headcount, and annual bonuses. This section explores the implications of this rise and its potential management strategies.

11. Decartonization Impact on Revenue Growth

The eleventh heading delves into the impact of decartonization on revenue growth. It scrutinizes the potential for normalization from Q1 onwards.

12. Optimizing Capacity: Balancing Act at 70-72%

With capacity hovering at 70-72%, TCPL Packaging is exploring avenues to optimize operations. This section explores the challenges and strategies associated with achieving the desired 85-90% capacity utilization.


In conclusion, TCPL Packaging’s Q3FY24 conclave showcases a delicate balance between challenges and growth opportunities. As they navigate through a dynamic market, the company’s resilience and strategic initiatives position them for a promising future.

IPO Sharma

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