TCPL strengthens its growth trajectory with a new Chennai plant; the China+1 Trend is driving opportunities in India

TCPL strengthens its growth trajectory with a new Chennai plant; the China+1 Trend is driving opportunities in India

- FY26 has commenced steadily for TCPL, with Q1 consolidated revenues of Rs. 424.7 crore, reflecting almost 5% year-on-year growth.

The Pulp and Paper Times

TCPL is one of India’s leading packaging companies, known for its commitment to sustainability, scale of operations, and customer-focused approach. As a market leader in folding cartons and the largest standalone converter of paperboard in the country, as well as an innovative player in flexible packaging, TCPL plays a critical role in supporting the consumer-packaged goods (CPG) sector in India and internationally.

FY26 has commenced steadily for TCPL, with Q1 consolidated revenues of Rs. 424.7 crore, reflecting almost 5% year-on-year growth. This performance, achieved amid subdued domestic demand and continued international uncertainty, highlights the resilience of its operating model, the strength of customer partnerships, and the stability of its diversified portfolio.

Addressing a conference call on Q1 FY26 results, Mr. Akshay Kanoria, ED of TCPL, said: “One of the significant strategic developments recently was the successful operationalization of our new greenfield manufacturing facility in Chennai. This state-of-the-art unit achieved production stability this quarter and is seeing encouraging engagement from customers across South India. The plant enhances our pan-India manufacturing footprint, strengthens our capabilities in high-performance and sustainable paperboard cartons, and is designed to scale quickly with growing demand. We believe this facility will become a key driver of future growth and deeper regional penetration.”

On exports, he said: “We have seen some slack in the last few months. We don’t see any fundamental issue or loss of share; it seems more to do with overall economic factors at the end-consumer level. While there has been a slight slowdown, we don’t expect a contraction for structural reasons. This should eventually recover.”

He added: “We expect domestic demand to improve in the coming months with the festive season ahead, and demand growth is already visible. There is still significant room for domestic consumption to rise, but compared to the sluggishness of the past one or two years, we are seeing improvement.”

On overseas operations, he noted: “We are encouraged by rising demand and strong turnover growth from a low base. Last year saw very high double-digit growth, and this year that trend is continuing. The unit is on a positive trajectory, showing improvements in job mix, and is expected to turn positive this year.”

On the Chennai plant:

“We are seeing a good uptick and are satisfied with the progress. Customer approvals and onboarding take months, followed by ramp-up. Some customers move faster than others. We don’t foresee further capex this year, but our goal is to fully utilize the plant within this financial year. Chennai also offers many complementary packaging opportunities, particularly in flexible packaging, where demand is growing. However, we will first maximize our existing flexible packaging facility before considering expansion, as the business requires very large scale.”

On capex:

“We don’t have a fixed number because it depends on demand and opportunities, but typically we spend Rs. 100–150 crore per year. Some years are higher, some lower, but on average, about Rs. 150 crore. Debt levels are stable, usually at or below 1:1, and we expect that to continue.”

On exports:

“We see significant opportunities, especially in the U.S. Until recently, prospects looked very positive, and we hope to resolve issues in the coming weeks. The China+1 trend has accelerated in the past six months, driving opportunities in India. While there are temporary challenges, we remain positive. Apart from the U.S., we are targeting Southeast Asia, the Middle East, Africa, and Europe. Currently, our penetration is very small, leaving substantial room for growth.”

On customer industry mix, he said:

“We don’t provide an exact breakup. However, FMCG and food & beverage combined form our largest segment, followed by tobacco. Other segments include pharma, electrical, and electronics. Liquor used to be significant but is now smaller. FMCG and food & beverage remain the biggest contributors.”
 

Web Title: TCPL strengthens its growth trajectory with a new Chennai plant; the China+1 Trend is driving opportunities in India