Creative Graphics: India’s Fastest-Growing Packaging Disruptor

Company Overview:

Creative Graphics Solutions India Ltd was formally incorporated in 2014 and operates out of Noida, with business roots going back to 1998. Over time, the company has expanded to become India’s largest flexographic plate processor, holding a dominant organized market share of about 15-17% in a segment that remains over two-thirds unorganized. The company’s business model revolves around two core verticals. In flexo plate processing, CGSIL enables high-resolution packaging and labelling for FMCG, dairy, beverage, and pharmaceutical clients, running a network of eight manufacturing plants, including recent expansions into Oman for regional exports.

In pharma packaging, CGSIL has made major advances through its subsidiary Wahren India Pvt Ltd, focusing on high-barrier Alu-Alu foil and PVDC-coated films, which have become the packaging formats of choice for regulated pharmaceutical companies as well as India’s burgeoning CDMO sector. The company’s structure supports scalable growth, over 400 employees work in roles ranging from pre-press, manufacturing, quality assurance, and R&D to business development and client support.

Industry Structure and Competitive Position:

The flexographic plate processing market in India is fragmented, valued around ₹600-₹700 crore and growing 7-8% annually. More than 50 major unorganized players compete for 65-70% of market share, while the remaining 30-35% is divided among leaders including Creative Graphics, Veepee Graphics, and Numex. CGSIL stands out by offering deep pan-India reach, rapid turnaround, advanced equipment (Kodak/Esko imaging), and proprietary knowledge assets such as India’s largest press fingerprint database, a customer-specific calibration that ensures “first-time-right” plate delivery. Strategic acquisitions (Color Dot Madras and Bwin Digiflex) have helped CGSIL build its presence across southern and northern India, driving revenue expansion and operational leverage.

On the pharma side, Wahren India occupies a unique position in the highly consolidated cold-form Alu-Alu foil and PVDC segments. While legacy players, especially Svam Toyal (JV with Japan’s Toyo Aluminum), Bilcare, and ACG, dominate with high-spec offerings and established pharma relationships, Wahren’s success is marked by rapid capacity ramp-up and new account wins. The company’s product quality, led by technical hires from Svam and other sector leaders, has enabled impressive audit passes and improved margins despite competitive pricing. Unlike most new entrants that stagnate, Wahren managed to break into accounts traditionally monopolized by incumbents and has begun supplying major brands such as Torrent and Intas, with audits underway at tier-1 pharma exporters.

Manufacturing, Technology & Expansion Strategy:

Creative Graphics Solutions’ plant network is second to none amongst organized flexography players in India. Noida serves as the national hub, with satellite plants strategically sited in Vasai (Mumbai), Chennai, Baddi (Himachal), Hyderabad, Ahmedabad, Pune, and a JV in Kolkata. Oman’s recent entry reflects management’s ambition to serve MEA and African markets and aligns with anchor client-driven demands. New builds in Bengaluru and Oman are scheduled for FY26, providing fresh capacity and export potential.

Flexographic plate manufacturing is a nuanced, multi-step process beginning with pre-press design (Esko, CorelDRAW, Adobe Illustrator). Plate imaging with high-power lasers engraves photopolymer plates with micron-level precision. Subsequent steps include UV curing, water/thermal washout, hot-air drying, and secondary UV exposure to guarantee plate durability. CGSIL leverages advanced equipment, process optimization, and deep client calibration databases to achieve unmatched quality and consistency, proprietary value-adds that drive client stickiness.

Pharma packaging processes at Wahren begin with raw material curing, multi-pass lamination (BOPA, imported high-purity aluminum foil, PVC), and industry-best delamination and blister-machine testing. The acquisition of a distressed PVDC line from Radha Madhav Corporation (at a fraction of the market price), when fully refurbished, is expected not only to expand product basket but also drive competitive pricing with superior yields. Facility certifications (USFDA, HACCP, ISO 22000, BRC) reinforce the company’s export readiness.

Market Dynamics: Regulatory and Sustainability Tailwinds:

The shift from gravure to flexographic printing in India is powered by both cost and sustainability mandates. The revised EPR regime will require packaging producers to use recycled content and meet mechanical recycling targets, leading many FMCG brands to prefer flexo-printed, monolayer films over multi-layer, less-recyclable structures. Flexo’s water-based/UV-curable inks also offer lower VOC emissions and fit regulatory moves favoring eco-friendly solutions.

In pharmaceutical packaging, regulatory changes (anti-dumping duties on Chinese foil, stricter client audits for regulated exports) will continue to reshape vendor choices and margin dynamics. Wahren’s recent move to import higher-micron aluminum foil via select domestic rolling mills further insulates the company from import volatility and improves cost structure in a market where high-grade inputs are critical for compliance and exports.

Financial Analysis:

The financial performance of CGSIL demonstrates strong growth, asset efficiency, and operational scale. For FY25, total net sales reached ₹251 crore, EBITDA hit ₹32 crore, with a sector-leading ROE of 29.1% and ROCE of 25.3%. The FY25 TTM PE was 24.2, with a market cap in August 2025 at ₹503 crore.

Income Statement & Key Ratios

Comparative analysis shows CGSIL outpacing flexographic and pharma packaging peers in ROE and asset utilization. Inventory and receivable days (FY25: 49 and 103, respectively) are noticeably lower than competitors.

*Veepee’s gross margin is offset by high other expenses reducing overall returns.

Wahren India’s pharma division is scaling rapidly. Alu-Alu foil revenue is expected to jump from ₹39.4 crore in FY24 to over ₹139 crore in FY25, with EBITDA margin increasing to 10.7% by H2FY25. PVDC coatings, set to start commercial output in Q2FY26, could add ₹45 crore in revenue at modest initial utilization, with asset turnover potentially exceeding 45x as process stability is further tuned.

Balance Sheet Details

The company’s capital structure remains prudent, with controlled debt supporting both ongoing capex and working capital expansion. Management has guided no material deterioration in debt ratios thanks to improved cash flows and land sale proceeds earmarked for balance sheet strength.

Client List, End Market Penetration, and Go-to-Market Strategy

CGSIL’s historical presence with FMCG clients has now expanded to major pharma manufacturers and exporters. While accounts like PEARLS Atta, Tom Pom foods, and Medemp Stand BUP Pouch demonstrate strength in consumer packaging, the pivot to pharma packaging is marked by account wins with Torrent, Intas, and audit processes underway with Aurobindo and Sun Pharma. The company’s expertise in handling both branded players (premium product, stringent quality) and CDMO clients (cost-sensitive, high-volume) provides flexibility to exploit multiple industry growth vectors.

As technical expertise and quality assurance have stabilized, particularly in Alu-Alu and PVDC coatings, CGSIL is positioned not only to take market share from legacy incumbents but also to break into exports, which bring better receivables profiles and margin stability (100% LC discounting) as per management commentary.

Forward Guidance and Expansion Outlook

Management forecasts steady capacity addition, with installed Alu-Alu foil capacity expanding to 20,000 TPA by H2FY26 and the PVDC line adding 12,000 MTPA capacity. Realization rates for Alu-Alu remain strong (₹380/kg), while PVDC entry is expected at competitive price/quality threshold. With further plant stabilization, client diversifications, and export triggers planned, the base-case scenario points to total revenue of ₹303–330 crore for FY26, with significant upside in a bull-case scenario as utilization rates rise and margins converge with sector leaders.

Peak utilization could unlock as much as ₹1,060 crore annual revenue at sector-leading asset turnover ratios.

Management, Governance, and Strategic Capabilities

The success of Creative Graphics is anchored in experienced leadership and tight capital allocation. Deepanshu Goel’s strategic latitude, reflected in acquisition-driven growth, decisive internationalization, and differentiated asset picks (e.g., PVDC distressed asset buy), stands out in industry benchmarks. Professional management across finance, operations, and technical domains has enabled CGSIL to scale organically and via focused M&A, beating industry growth rates by several percentage points.

Management systems emphasize clear delegation, agility, and data-driven performance monitoring—traits increasingly valued by institutional investors. CGSIL’s ability to optimize resource deployment, achieve consistently high ROE, and maintain low working capital days relative to peers marks its governance strength.

Segment-Specific Risks and Mitigants

Risks exist in capacity ramp-up, commercial success of PVDC films, input volatility following anti-dumping import duties, and aggressive competition especially from small, unorganized players and digital printing for certain SKUs. Managing long credit cycles in pharma packaging and export regulatory nuances will require ongoing attention. CGSIL’s mitigant strategies include dynamic sourcing, technological upgrades, cross-segment client penetration and vigilant working capital management. The planned Noida land sale is expected to further strengthen liquidity.

Peer Comparison:

A sector rerating appears plausible as CGSIL proves margin resilience and leverages its unique technology and asset strategy.

Conclusion:

Creative Graphics Solutions India Ltd is a rare example of a mid-sized packaging company successfully transforming itself from a domestic flexographic plate market leader to a high-barrier packaging exporter positioned to benefit from India’s CDMO boom. With disciplined execution, innovative manufacturing, diversified product offerings and prudent financial management, CGSIL is well-placed to capture accelerating growth in FMCG and pharma packaging. Strategic triggers in capacity addition, export penetration, and new technology adoption underpin long-term earnings visibility and sector leadership potential.