All Time Plastics Ltd (ATP), a household name in the global plasticware manufacturing space, has stepped into the limelight with its ₹400 crore IPO. The public issue, which opened today, has caught investor attention not only because of its scale but also because of ATP’s unique positioning—long-time supplier to global giants like IKEA and Walmart, while also nurturing its modest but growing in-house brand, “Alltime.” Yet, beneath the surface, this listing poses an important question: can ATP balance its legacy B2B-heavy model with the market’s growing demand for diversification and sustainability?
The IPO Structure
The IPO comprises a fresh issue of ₹280 crore and an offer-for-sale worth ₹120 crore by promoters. At the upper band of ₹275, ATP is valued around ₹1,800 crore. Fresh proceeds will be used primarily for debt reduction (₹143 crore), new equipment (₹114 crore), and general corporate purposes. The balance sheet cleanup is expected to boost earnings, but for investors, the long-term story lies in how ATP handles its growth ambitions and risk profile.
Business Model and Revenue Concentration
ATP functions largely as a white-label manufacturer of plastic household goods for global retail giants. While its in-house “Alltime” brand has visibility in India, it contributes only 7.6% of revenue. Nearly 92% of ATP’s income comes from B2B contracts with IKEA, Walmart, Asda, Tesco, and Michaels. In India, it supplies to Vishal MegaMart, Lifestyle, and Zepto.
However, this model comes with concentration risks. IKEA alone contributed 59% of FY25 revenue, while Asda, Michaels, and Tesco accounted for another 19%. With no long-term contracts in place, the loss of a major client could seriously disrupt revenue.
Product Portfolio and Limitations
Despite operating across 1,848 SKUs in eight product categories, ATP’s revenue is dominated by just two—prep time tools and containers, together contributing 71% of sales. Other categories like organisers, hangers, meal-time products, and cleaning tools remain relatively small. Such reliance on a narrow portfolio limits pricing power and makes ATP vulnerable to shifts in client demand.
The Sustainability Challenge
Unlike peers such as Cello and Milton, which have diversified into glass and steel, ATP’s portfolio is still entirely plastic-based. With growing consumer preference for eco-friendly materials, this dependence is a clear risk. ATP has started to address this by:
- Increasing recycled plastic usage from 18% (FY23) to 27% (FY25).
- Piloting bamboo-based products, with commercial rollout expected by Q3 FY26.
- Entering newer categories like silicone kitchenware, baking solutions, and hydration products.
How quickly ATP can scale these initiatives will be crucial to its long-term relevance.
Capacity Expansion and Raw Materials
ATP’s current installed capacity is 33,000 MTPA with 79% utilisation in FY25. Plans are underway to more than double capacity to 71,000 MTPA by FY28. On the sourcing front, 65% of raw materials are procured domestically, with the rest imported. While this hedges some supply chain risks, dependency on top suppliers (73% of raw material purchases) remains a factor.
Export Dependence
Exports form the backbone of ATP’s business—85% of revenue comes from 29 countries, with the EU, UK, and US accounting for most of it. However, high dependence on markets without trade agreements, particularly the US, exposes ATP to tariff risks.
Financial Performance and Peer Comparison
ATP has demonstrated steady growth, with revenue rising from ₹443 crore in FY23 to ₹558 crore in FY25, and PAT improving from ₹28 crore to ₹47 crore. Ebitda margins, however, stood at 18% in FY25, trailing Cello’s 24%. PAT margin is also lower at 9% versus Cello’s 16%.
On efficiency, ATP shines with faster inventory turnover (7.6x vs. Cello’s 4x) and solid return ratios (RoCE 17%, RoE 19%). Post-IPO debt reduction will further strengthen its financial profile.
Valuation and Investor View
At a P/E of 38x, ATP is priced on par with Cello. The pre-IPO investment of ₹70 crore by Sunil Singhania’s Abakkus Fund adds credibility, but the valuation leaves limited room for near-term upside. For investors, the crux lies in ATP’s ability to:
- Diversify beyond IKEA and other concentrated B2B clients.
- Successfully scale its own brand “Alltime” in India.
- Adapt to sustainability trends and broaden its material mix.
- Execute capacity expansion without margin dilution.
Conclusion
ATP’s IPO offers a mix of promise and caution. Its long-standing relationships with global retailers, improving financial metrics, and ambitious capacity expansion provide a solid growth story. Yet, risks remain from client dependence, plastic-heavy product lines, and limited consumer brand visibility.
For long-term investors, ATP could be a rewarding bet—if it can deliver on diversification and sustainability while maintaining profitability. Short-term investors, however, may find upside capped at current valuations.
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Disclaimer
This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.