Three M Paper

Product Diversification.

Innovation.

Plan to use waste generated.

Sustainability Initiatives.

Customer Focus.

Strategic Partnerships.

Marketing.

Market Expansion.

34-year-old strong brand in Duplex Paper.

Experienced promoters and a proven track record.

Diversified product portfolio focused on various consumer segments and markets.

Plan to utilize waste for power generation for captive use.

Extensive network connecting diverse customers and dealers alongside collaborations with raw material suppliers.

Effective procurement and supply chain management through bulk purchasing, leveraging economies of scale, and strategic importation, enhancing cost efficiency and competitiveness.

Consistent track record of profitable growth and strong financial performance.

The company uses 100% waste paper as raw material in the manufacturing process.

Its products are used in FMCG and pharmaceutical sectors that are non-cyclical in nature

There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.

There have been some instances of non-filing/ delays / incorrect filings in the past with certain statutory authorities. If the authorities impose monetary penalties on it or take certain punitive actions against the Company in relation to the same, its business, financial condition and results of operations could be adversely be affected.

Its historical revenues have been significantly dependent on few customers. The loss of one or more of its significant customers or significant reduction in production and sales or demand for its product from the company`s significant customers may adversely affect its business, financial condition, result of operations and cash flows.

The Company is yet to place orders for 86% of its plant & machinery for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machinery may delay its implementation schedule and may also lead to increase in price of these plant & machinery, further affecting its revenue and profitability.

The company generates its major portion of sales from its operations in certain geographical regions especially Maharashtra, Karnataka, Goa and Delhi and internationally also. For the year ended March 31, 2024 and March 31, 2023 the Company generated 87.53% and 82.04% from Domestic Sales and 12.47% and 17.96% from International Sales respectively of its revenue from operation cumulatively. Any adverse developments affecting its operationsin these regions could have an adverse impact on its revenue and results of operations.

Any significant decline in the demand for its products i.e., coated duplex paper boards or introduction of alternative technology or consumer habits may adversely affect its profitability and business prospects.

The company is mainly dependent on imports for supply of its major raw material; i.e., waste paper.

Certain documents filed by it with the Registrar of Companies and certain corporate records and other documents, are not traceable."

The Company is dependent on third party transportation providers, with whom the company has no formal arrangements, for the delivery of its raw materials and goods and any disruption in their operations or a decrease in the quality of their services or an increase in the transportation costs could adversely affect the Company`s reputation and results of operations.

The company has experienced negative cash flows from operating, investing and financing activities in the past.

The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failures to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failures to obtain or retain them in a timely manner or at all may adversely affect its operations.

Exchange rate fluctuations may adversely affect its results of operations as the company import a significant value of raw materials from various countries internationally. Exposed to foreign currency exchange rate fluctuations may adversely impact its results of operations, cash flows and cause the company financial results to fluctuate.

The company does not have long term agreements with suppliers for its raw materials. The company inability to obtain raw material in a timely manner, in sufficient quantities and / or at competitive prices could adversely affect its operations, financial condition and / or profitability.

The company has certain contingent liabilities that have not been provided for in the Company`s financials which if materialized, could adversely affect its financial condition.

The shortage or non-availability of power and water facilities may adversely affect its coated duplex paper boards manufacturing process and have an adverse impact on its results of operations and financial condition.

The industry in which the company operates is labour intensive and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.

The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company`s business and financial condition. Further, its may not be able to avail the requisite amount of financing or obtain financing at competitive interest rates for its growth plans and cannot assure that the company will obtain the desired credit ratings of the Company, in the future, which could have a material adverse effect on its business, results of operations and financial condition.

Volatility in the supply and pricing of its raw materials may have an adverse effect on the company`s business, financial condition and results of operations.

The Company has availed unsecured loans from promoters / Directors which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its cash flows.

The company does not own its Registered Office from where its operations are being conducted and have been taken on lease. Also, the factory premises is availed on long term lease of 95 years from MIDC. Any difficulty in seeking renewal or extension of such lease terms may cause disruption in its operations.

The Company`s name and logo are not registered trademark.

Industry information included in this Red Herring Prospectus has been exclusively derived from an industry report commissioned and paid for by it in connection with the Offer. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

The company does not have long term agreements with any of its raw material suppliers and the company purchase such raw materials on spot order basis.

The company has not entered into any long term or definitive agreements with its customers. If its customers choose not to source their requirements from the company, its business, financial condition and results of operations may be adversely affected.

Changes in technology may render its current technologies obsolete or requires the company to make substantial capital investments.

Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.

Its business is dependent on the company single manufacturing facility, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations could have an adverse effect on its business, financial condition and results of operations.

Information relating to its production capacities and the historical capacity utilization of the company manufacturing facility included in this RHP is based on various assumptions and estimates and future production and is certified by third party and capacity utilization may vary.

The company has in the past entered into related party transactions and may continue to do so in the future, subject to relevant compliances under applicable laws and rules as amended, which may potentially involve conflicts of interest with the equity shareholders.

Its operations are subject to environmental and workers` health and safety laws and regulations. Its may have to incur material costs to comply with these regulations or suffer material liabilities or damages in the event of an incidence or non-compliance of environment, health and safety and other similar laws and regulations which may have a material adverse effect on its reputation, business, results of operations and financial condition.

The company is subject to various laws, regulations, approvals and licenses required in the ordinary course of business. Any failures to obtain or retain them in a timely manner may materially adversely affect its operations.

Its may be subject to labour unrest, slowdowns and increased wage costs, which may adversely affect its business, results of operations and financial condition.

The success of its business and growth depends substantially on the company management team and operational workforce. Its inability to retain them could adversely affect the company businesses.

Its insurance coverage could prove inadequate to satisfy potential claims or protect it from potential operational hazards and losses which may have a material adverse effect on its business, results of operations and financial condition.

After the completion of the Offer, its Promoters along with the Promoter Group will continue to collectively hold substantial shareholding in the Company.

Its ability to pay dividends in the future will depends on the compay earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

Its funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency. Its management will have broad discretion over the use of the Net Proceeds.

Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

The average cost of acquisition of Equity Shares by its Promoters is lower than the issue price.

The company does not have long term agreements with suppliers for its raw materials. The company inability to obtain raw material in a timely manner, in sufficient quantities and / or at competitive prices could adversely affect its operations, financial condition and / or profitability.