About Renol Polychem Limited

BUSINESS OVERVIEW

Established initially as M/s Renol Enterprise, a partnership firm in 2008, the company transitioned into a private limited entity under the name Renol Polychem Private Limited on January 09, 2024. Headquartered in Rajkot, manufacturing operations commenced in 2020.

Renol Polychem is engaged in the manufacturing of colour masterbatches, colour pigments, filler granules, anti-moisture powder, carbon noodles, superpack & onepack, impact modifiers, processing aids, and titanium dioxide. The company also specializes in customized masterbatches and pigment solutions, tailored to meet specific industry requirements.

The product portfolio includes all-in-one additive solutions—comprising stabilizers, impact modifiers, and color pigments—designed for UPVC and CPVC pipes, pipe fittings, and various other plastic product manufacturers.

Operating on a B2B model, the company supplies its products directly to industrial and commercial manufacturers that use them as raw materials. Manufacturing began in August 2020 with Superpack & Onepack, Anti-Moisture Powder, and Colour Pigments, followed by Impact Modifier, Processing Aid, and Titanium Dioxide in September 2020, and subsequently, Filler Granules, Carbon Noodles, and Colour Masterbatches in October 2020.

Products are sold under the company’s in-house brand ‘RENOL’, though trading activities are conducted on an "as-is" basis without branding.

The company emphasizes customer satisfaction and performance excellence, supported by continuous improvements, strong infrastructure, and a dedicated team. Strategic diversification and capacity expansion have contributed to sustained growth.

A strong focus on quality control is maintained across all production stages—from raw material sourcing to final packaging—to ensure high product standards and customer satisfaction. Employee health, hygiene, safety, and regulatory compliance remain a key operational priority.

The total strength of manpower as on 31st March, 2025, is 15 employees excluding directors & the promoters. The Banker to the company is IndusInd Bank Limited.

INDUSTRY ANALYSIS

India Masterbatch Market Industry Overview

Market Size and Growth Outlook

The India Masterbatch Market was valued at USD 12.4 billion in 2023 and is projected to grow at a CAGR of 4.8%, reaching approximately USD 17.22 billion by 2030. Masterbatch refers to a concentrated blend of pigments, additives, or modifiers used in plastic processing to enhance color, properties, and processability. Its wide application across sectors such as packaging, automotive, construction, and agriculture is driving consistent market expansion.

The sector has witnessed remarkable growth, fueled by rising demand for plastic products, evolving manufacturing technologies, and supportive government policies promoting domestic manufacturing. The market ecosystem encompasses production, distribution, consumption, and trade, shaped by supply chain dynamics and technological innovation.

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Market Drivers

1. Rising Demand in Key End-Use Industries

The increasing use of plastics in packaging, automotive, and construction is a primary driver of the masterbatch market in India.

• Automotive Sector: The surge in vehicle production has accelerated demand for masterbatches in both interior and exterior components.

• Construction and Infrastructure: Government-led initiatives like the Smart Cities Mission and increased infrastructure investments are spurring demand for masterbatch in applications like pipes, cables, and construction materials.

• Packaging Industry: Growth in packaged foods and beverages is prompting a surge in colorful, sustainable packaging, directly contributing to masterbatch demand.

2. Technological Advancements

Innovations such as bio-based, additive, and antimicrobial masterbatches are transforming the landscape. These technologies cater to evolving needs like improved hygiene in food packaging and increased product longevity.

3. Agriculture and Consumer Goods

• Agricultural Usage: Adoption of masterbatches in products like mulch films, greenhouse films, and irrigation systems is gaining traction.

• Consumer Goods: Growing demand for aesthetically appealing household items, toys, and appliances supports the use of specialized masterbatches.

4. Export Potential and R&D Focus

India’s cost-competitive manufacturing and emphasis on quality production have unlocked strong export opportunities. Additionally, significant investments in R&D for advanced formulations and tailored solutions are enabling further market penetration across global and domestic markets.

5. Government Support

Policies such as ‘Make in India’ and incentives for the plastics industry are fostering a favorable environment for manufacturers, enhancing overall industry growth.

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Segment Analysis: Polymer Type

The India Masterbatch Market is segmented by polymer type, with Polyethylene (PE) and Polypropylene (PP) leading:

• Polyethylene (PE): Dominates the market due to its high versatility, ease of processing, and extensive use in packaging, agriculture, and consumer goods.

• Polypropylene (PP): Gaining momentum, especially in automotive, electrical, and construction applications due to its strong chemical and thermal resistance.

• Other Polymers: Though smaller in share, polymers such as ABS, PVC, and engineering plastics are finding niche applications, supported by advancements in specialized masterbatch formulations.

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Regional Insights

1. Western India – The Market Leader

• Gujarat and Maharashtra lead due to their established industrial hubs, particularly in plastics, textiles, packaging, and automotive.

• Industrial zones such as Ankleshwar and Vapi, and manufacturing centers in Mumbai and Pune, significantly contribute to regional dominance.

2. Southern India – An Emerging Growth Hub

• States like Tamil Nadu and Karnataka are witnessing rapid growth in plastics, electronics, and automotive industries.

• Cities such as Chennai, Bengaluru, and Coimbatore are becoming key industrial clusters, providing a fertile ground for the masterbatch market to thrive.

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Emerging Opportunities

1. Sustainable and Biodegradable Solutions

Growing environmental concerns and stricter regulations on single-use plastics are creating demand for eco-friendly masterbatches, including:

• Bio-based

• Compostable

• Oxo-degradable

These alternatives are helping address sustainability goals, aligning with evolving consumer preferences and global standards.

2. UV Masterbatch Segment Poised for High Growth

The UV masterbatch segment is expected to experience the highest growth rate through 2030. Increasing awareness of UV damage to plastics, along with regulatory mandates for UV protection, are driving adoption in outdoor plastic applications.

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Conclusion

The India Masterbatch Market is on a strong growth trajectory, powered by diverse industrial applications, government policy support, export opportunities, and a shift toward sustainable solutions. With Western India leading current demand and Southern India emerging as a promising growth region, the industry is well-positioned to meet future challenges and capitalize on evolving opportunities.

BUSINESS STRENGTHS

1. Strong and Experienced Management
Led by Promoter Mr. Bhaveshbhai Mansukhbhai Harsoda, who brings over 15 years of expertise in the manufacturing and supply of color masterbatches and impact modifiers. The company is supported by a skilled management team with deep operational knowledge, enabling effective risk mitigation and strategic decision-making in a competitive market environment.

2. Diversified Product Portfolio
Offers a wide range of products, including color masterbatches, pigments, impact modifiers, and specialty additives, catering to a broad customer base across domestic and international markets. The transition from trading to manufacturing has expanded operational scope and positioned the company to meet evolving customer demands and launch future products within the same value chain.

3. Strong Vendor and Customer Relationships with Efficient Manufacturing
Maintains strategic vendor partnerships, emphasizes local sourcing, and operates an established manufacturing facility focused on cost efficiency and quality. Key initiatives include process optimization, reduced customer response time, and enhanced after-sales service—supporting long-term customer retention and operational excellence.

BUSINESS STRATEGIES

1. Geographic Expansion to Grow Clientele
Plans are in place to expand beyond the current base in Gujarat, aiming to enter new regional markets across India. This geographic diversification is expected to unlock new business opportunities and strengthen the client network.

2. Cost Reduction and Operational Efficiency
A continued focus on minimizing production waste, enhancing floor-level supervision, and optimizing processes is aimed at reducing operational costs and maintaining a cost-competitive edge in the market.

3. Technological Advancements for Improved Efficiency
With semi-automated manufacturing facilities and product-specific machinery, the company intends to upgrade technology infrastructure to improve asset productivity, streamline operations, and enhance its competitive position through the adoption of advanced equipment.

BUSINESS RISK FACTORS & CONCERNS

1. Client Concentration Risk
A substantial portion of revenue is dependent on a limited number of customers. As of May 31, 2025, the top ten clients accounted for approximately 34.36% of revenue. Loss of any major client may significantly impact business operations and profitability.

2. Regulatory and Environmental Impact
Operations involve the use of plastic-based raw materials, making the company vulnerable to stricter environmental regulations and potential bans on plastic usage. Regulatory changes aimed at reducing plastic pollution could necessitate increased capital expenditure or operational adjustments, potentially disrupting manufacturing activities.

3. Product Concentration Risk
Revenue is significantly derived from a limited range of products. Any decline in demand due to changing customer preferences, emergence of substitute products, or quality issues could adversely impact sales, profitability, and inventory management.

4. Geographic Concentration Risk
All operations are currently located in Gujarat. Any regional disruptions such as natural disasters, social unrest, or infrastructure strain due to rising competition could materially affect production and financial performance. Limited geographic diversification heightens exposure to localized risks.

Summary :
Renol Polychem faces risks associated with client concentration, environmental regulations, product dependence, geographic concentration, and shifting consumer preferences. These factors could significantly affect business continuity, profitability, and operational stability.