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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 1515.00 | ACUITE A | Stable | Upgraded | - |
| Bank Loan Ratings | 760.00 | - | ACUITE A1 | Upgraded |
| Total Outstanding | 2275.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has upgraded its long-term rating of 'ACUITE A' (read as ACUITE A) from 'ACUITE A-' (read as ACUITE A minus) and short-term rating of 'ACUITE A1' (read as ACUITE A one) from 'ACUITE A2+' (read as ACUITE A two plus) on the Rs. 2275.00 crore bank facilities of Chiripal Poly Films Limited (CPFL). The outlook is ‘Stable’.
Rationale for rating upgrade The rating upgrade factors in the improvement in operating performance of the group in H1FY26 driven by better realisations and increased volumes supported by supply constraints in the industry and commencement of operations for biaxially oriented polypropylene (BOPP) and Aluminium Foil line in Jammu & Kashmir in July 2025. Further, rating factors the continued growth momentum in balance of FY26 resulting into generation of healthy cash accruals. The rating continues to draw comfort from the established track record of the operations of the group over the years with a leading market share along with the extensive experience of the management in the polyfilms industry. Further, the rating also factors the moderate financial risk profile of the group marked with a healthy net worth and comfortable gearing. However, these strengths are partly offset by the moderate working capital operations of the company marked by the moderate Gross Current Asset (GCA) days. The rating continues to remain constrained on account of industry related risk, which is highly susceptible to volatile operating margins, driven by mismatch in demand-supply dynamics and intensive competition. |
| About the Company |
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Incorporated in 2009 in Mumbai, Chiripal Poly Films Limited is engaged in manufacturing of biaxially oriented polypropylene (BOPP) films, biaxially oriented polyethylene terephthalate (BOPET) films, coated films and polyethylene terephthalate (PET) chips. The company currently has three manufacturing plants each located at Ahmedabad, Hyderabad and Jammu & Kashmir. The current installed capacity for the company stands at 1,33,000 TPA for BOPP, 82,000 TPA for BOPET, 2,20,000 TPA for Chips, 14,000 TPA for Coating, 18,000 TPA for CPP, 25,000 TPA for Aluminium Foil and 36,000 TPA for R-PET chips.
The directors of the company include Ms. Purviben Anant Anand Pokhariyal, Mr. Jyotiprasad Devkinandan Chiripal, Mr. Neeraj Kakkar, Mr. Jaiprakash Devkinandan Chiripal and Mr. Ajay Vyas. |
| About the Group |
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Chiripal Polyfilms Group (group) includes domestic and foreign entities (based in Dubai and Netherlands) engaged in manufacturing of BOPP films, BOPET films, Coated films and PET chips. The group also has an equity investment of 31.2% in a renewable power generation entity in the name of Renew Green (GJ FIVE) Private Limited as on March 31, 2025. Furthermore, the company is part of the larger Chiripal Group, a diversified conglomerate with business interests spanning petrochemicals, textile parks, renewable energy (solar), and education.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has consolidated the business and financial risk profiles of Chiripal Poly Films Limited along with its wholly owned subsidiaries and associates. This consolidation is in view of common shareholding, similar line of business and operational linkages.
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| Key Rating Drivers |
| Strengths |
| Established track record along with experienced management
Established in 2009, CPFL specializes in flexible packaging solutions, focusing on BOPP films, BOPET films, and PET resin chips and is one of the leading industry players in the country. Further, the expansion of company’s operations with recent establishment of BOPP, Aluminium and R-PET in Jammu & Kashmir is expected to further enhance the market share of the company. The company also has presence in export market which accounts for ~20% of revenue. The current management is led by Mr. Sumant Singhal who has an experience of more than 25 years in flexible packaging industry. Further, the company operates under the Chiripal Group, which brings over four decades of expertise in diverse domains and adds healthy credibility. Acuite believes that the extensive experience of the management in the flexible packaging business is expected to continue benefit the group in growing its business going ahead. Improving operating performance driven by capacity expansions The group’s operating performance further improved in H1 FY26, reaching Rs. 1,840.5 crore compared to Rs. 1,560.26 crore in H1 FY25, driven by higher BOPP volumes and realizations. This growth momentum is expected to continue with the full commencement of operations at the new Jammu facility, where the BOPP and Aluminium foil projects began in May 2025, followed by the r-PET project in July 2025. Moreover, the company’s operating margins have shown a significant improvement at ~14% in H1 FY26 over the FY25 level of 9.33%, supported by supply constraints in the industry; however, margins are anticipated to normalize over time. Moderate financial risk profile The net worth of the group improved and stood healthy at Rs. 1369.13 crore as on March 31, 2025 as against Rs. 1,293.17 crore as on March 31, 2024 owing to accretion of profits to reserves. Therefore, while the debt levels elevated by Rs.634.1 crore in FY25 owing to the expansion capex, the gearing remained comfortable at 1.29 times as of March 31, 2025, compared to 0.88 times as on March 31, 2024. Moreover, the debt protection metrics remained moderate with debt service coverage ratio and interest coverage ratio standing at 1.29 times (1.12 times) and 2.83 times (2.47 times) respectively as on March 31, 2025 (March 31, 2024). Acuite expects the financial risk profile of the company to improve going ahead backed by healthy cash accruals and no further significant debt funded capex. |
| Weaknesses |
| Moderate working capital
The working capital operations of the group remains moderate marked by GCA days of 120 days in FY25 as against 113 days in FY 2024. The GCA days comprise of moderate inventory and debtor along with other current assets consisting of advances to suppliers and receivables from government authorities. The debtor days stood at 44 days in FY25 as against 42 days in FY 2024. The inventory for the group stood at 51 days in FY25 as against 41 days in FY24. However, the creditors days stood at 88 days in FY 2025 as against 76 days in FY 2024. Around 80-85 percent of the creditors are backed by letter of credit. Susceptibility to volatile operating margins driven by demand-supply dynamics and competition The packaging films industry has long grappled with a persistent demand-supply imbalance. The landscape remains intensely competitive, driven by aggressive capacity expansions by a few dominant players, resulting in downward pressure on product realisations. Moreover, with key raw materials like polyethylene terephthalate (PET) resin being crude oil derivatives, profitability remains vulnerable to fluctuations in global crude prices. This volatility, coupled with an oversupply scenario over the past two years, significantly impacted margins, leading to a notable decline in FY24. |
| ESG Factors Relevant for Rating |
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The group is committed to taking initiatives for environment conservation during plant operations and product composition. Some of the materials used are recycled and the waste generated is not hazardous in nature. Additionally, the group is developing Oxo-Biodegradable films for BOPET and BOPP applications.
The group also contribute to the society and the betterment of the community, through its established charitable trust which promotes education, health, and social development. Further, CPFL has an established risk governance framework that includes risk management committee responsible for business risk and opportunities. On the governance front, CPFL's board comprises mix of experienced and knowledgeable members which includes three executive directors and two independent directors. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The liquidity position of the group is marked adequate basis sufficient net cash accruals (NCA) against repayment obligations. The group generated NCA of Rs.163.63 crores in FY25 as against Rs.102.33 crore of repayment obligations in the same year. Furthermore, net cash accruals are projected to remain sufficient in the range of Rs. 180–280 crore, against the scheduled repayments of Rs.110–150 crore over the same period. The group is also eligible for subsidy under the Central Sector Scheme for Industrial Development of Jammu & Kashmir, expects to receive approximately Rs. 2,200–2,300 crore over a 10-year period, including around Rs. 450 crore during FY26–27. The timely receipt of these subsidies will remain a key rating sensitivity.
Further, cash and bank balance stood at Rs.3.6 Crore as on March 31, 2025. Moreover, the average fund-based bank limit utilisation for last 6 months ended January 2026 stood low at 36% on closing basis. The current ratio of the company stood at 1.09 times as on March 31, 2025. |
| Outlook : Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 3209.49 | 3089.02 |
| PAT | Rs. Cr. | 74.64 | 39.35 |
| PAT Margin | (%) | 2.33 | 1.27 |
| Total Debt/Tangible Net Worth | Times | 1.29 | 0.88 |
| PBDIT/Interest | Times | 2.83 | 2.47 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||
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