Aten Papers & Foam offers a broad and multi-application range of paper products that cater to varied requirements such as packaging, printing, and export needs. The company further claims to process these papers in-house based on customer specifications.
The company claims to operate on an asset-light and order-driven business model. This approach reportedly enables the company to meet diverse customer needs while keeping overheads low and inventory cycles efficient.
The industry that the company operates in is very fragmented, where cash crunch is a common factor among small mills, and credit demand is high among end users. The company claims to leverage its liquidity position and existing lines of credit to bridge gaps in the supply chain, securing better margins and stronger negotiation power on both ends.
Aten Papers & Foam owns four commercial vehicles for in-house logistics. The company also supplements this with third-party transport when necessary.
The company has a current credit facility of Rs 9 crore. This supports the company's working capital needs and facilitates smooth operations in a credit-intensive sector.
For the period ending September 30, 2024, and FY24, FY23, and FY22, 97.90%, 99.18%, 99.86%, and 99.59%, respectively, of Aten Papers & Foam’s total revenue from operations were generated from Gujarat alone. Any adverse political, social or economic development in this region could hit the company’s business.
The top 10 suppliers of the company contributed 77.77%, 84.46%, 84.12% and 89.92% of the total purchases for the period ending on September 30, 2024, FY24, FY23, and FY22, respectively. Any disruption in the supply chain, such as delays, shortages, or substandard quality of raw materials, could significantly affect the company’s production capabilities, reputation, and profitability.
As of September 30, 2024, the company had outstanding trade receivables of Rs 34.71 crore, of which Rs 8.63 crore were overdue for more than six months. Delayed collections from customers could disrupt working capital management, increase dependence on external borrowings, and affect the company’s financial position.
The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The top 10 customers of the company contributed 36.68%, 34.62%, 28.00% and 28.20% to the total sales for the period ending September 30, 2024, FY24, FY23 and FY22, respectively. Any failure to retain these key customers, expand the customer base, or a loss of business from these clients could adversely affect the company’s business and financial standing.
As of September 30, 2024, the company had a financial indebtedness of Rs 10.95 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.