Avro India has made a significant stride in sustainable manufacturing by commissioning India's largest flexible plastic recycling plant, marking a strategic diversification from its core plastic-moulded furniture business. The company's shares closed at ₹115.40 with a market capitalization of ₹154 crore, trading at a PE ratio of 39.00 compared to the industry PE of 38.40.

Major Infrastructure Investment

The company launched this recycling facility through its wholly-owned subsidiary, AVRO Recycling Limited, establishing a greenfield project in Ghaziabad with substantial financial commitment.

Advanced Recycling Technology

Avro India has developed proprietary in-house technology capable of processing challenging-to-recycle flexible plastics, including cement, salt, sugar, and putty bags. After more than three years of research and development, the company claims capability to upcycle waste on an industrial scale approaching 1 million metric tonnes annually in India. The recycled pellets produced through this process are utilized for manufacturing furniture, home appliances, automotive parts, and industrial objects, priced up to 40% lower than conventional plastic.

Financial Performance

The company's recent quarterly results demonstrate steady operational performance across key metrics.

Market Position and Distribution

Avro India Limited operates as a plastic moulded furniture company with over two decades of business experience, supported by an automated manufacturing division in Ghaziabad. The company maintains cost leadership through products priced 40% lower than national competitors while maintaining quality standards. The company has established extensive nationwide reach through presence on major e-commerce platforms and distribution across more than 20,000 outlets, positioning itself among the top five domestic players nationally and as the largest in North India.

Strategic Diversification

This recycling initiative represents Avro's strategic entry into the organized waste-to-wealth segment, addressing growing environmental regulations and sustainability demands. The facility focuses on processing flexible plastics that were previously handled by the unorganized sector or discarded entirely, creating value from waste materials while supporting circular economy principles.

Avro India has announced strategic plans to list its wholly-owned subsidiary Avro Recycling on stock exchanges by FY28, with the company targeting to raise up to Rs 300 crore through the public offering. The move represents a significant step in the company's expansion strategy for its recycling operations.

IPO Strategy and Fund Mobilisation

Managing Director Sahil Aggarwal revealed the company's plans for a standalone listing of Avro Recycling during a company event. The subsidiary currently operates under the umbrella of Avro India Limited, focusing on captive production of recycled plastic pellets for the parent company's furniture manufacturing business.

"We would do a standalone listing of Avro Recycling Limited as it is under Avro India Limited right now, and that is how we will be able to raise a lot of funds," Aggarwal explained. The fundraising amount is expected to range between Rs 200-300 crore in a single tranche, though this remains subject to prevailing market conditions at the time of listing.

Expansion Plans and Fund Utilisation

The proceeds from the proposed IPO will be primarily directed towards establishing additional recycling plants across India. This expansion strategy aligns with the company's focus on scaling up sustainable solutions in the plastic recycling sector. The funds will enable Avro Recycling to increase its processing capacity and geographical presence in the growing recycling market.

Current Operations and Capacity

Avro India's existing operations demonstrate substantial scale in both recycling and manufacturing segments. The company has established significant operational capacity across its business verticals, positioning it well for the planned expansion.

The integrated business model allows Avro Recycling to supply recycled plastic pellets directly to Avro India's furniture manufacturing operations, creating a sustainable circular economy approach within the company's operations.

Market Positioning and Business Model

Avro India operates primarily in the plastic furniture manufacturing sector, with Avro Recycling serving as a critical component of its supply chain sustainability strategy. The captive recycling operations ensure a steady supply of raw materials while contributing to environmental sustainability goals. The planned listing will provide Avro Recycling with independent access to capital markets, enabling accelerated growth in the recycling segment.

The timing of the IPO by FY28 provides the company with adequate preparation time to strengthen its operational metrics and market positioning ahead of the public offering, subject to market conditions and regulatory approvals.