Shivam Plastic Industry Limited, which operates a manufacturing plant in Biratnagar producing polypropylene woven fabric and HDPE woven tarpaulin, has recorded notable growth in its business operations.
Established as a private company in 2000 and converted into a public limited company in 2021, the industry has expanded its trade volume by more than 27 percent over the past year. In fiscal year (FY) 2025, the company generated operating revenue of NPR 1.85 billion, with nearly 60 percent of its total annual sales coming from exports to India.
According to a report by ICRA Nepal, the company’s turnover stood at NPR 1.45 billion in FY 2024, compared to NPR 1.36 billion in 2023. During the first six months of the current FY 2026 alone, Shivam Plastic has already recorded business worth NPR 920 million, indicating a positive outlook for the full year as well.
Despite the increase in business volume, rising raw material prices have exerted pressure on profit margins. The operating profit margin declined from 4.94 percent in FY 2024 to 4.24 percent in FY 2025. During the same period, the company’s total debt-to-net-worth ratio increased from 2.12 times to 2.68 times, while the interest coverage ratio remained stable at 1.56 times. The current ratio, however, declined from 0.97 to 0.82 times.
Based on these financial indicators, satisfactory operational performance, and the promoters’ long-standing industry experience, CARE Ratings Nepal has reaffirmed the company’s credit ratings for total banking facilities amounting to NPR 1.58 billion. Accordingly, a ‘CARE-NP BB Plus’ rating has been assigned for long-term loans of NPR 243.5 million, while short-term loans of NPR 1.34 billion have received a ‘CARE-NP A4 Plus’ rating.
Backed by investments from the Golchha and Agrawal groups, the company exports around 60 percent of its production to India. Its location in Biratnagar and proximity to the Indian market provide a significant advantage by reducing transportation costs.
However, complete dependence on imported raw materials, fluctuations in the US dollar exchange rate, and high working capital requirements remain key challenges. Currently, Shivam Plastic has an annual production capacity of 11,125 metric tons of fabric and 4,620 metric tons of tarpaulin. The company is moving forward with a strategy to expand its market share by effectively managing raw material prices and leveraging trade policies with India.
