Manika Plastech Faces Up to 80% Supplier Purchase Concentration

Manika Plastech faces supplier purchase concentration because its five largest raw-material suppliers accounted for 79.85% of purchases in the three months ended June 30, 2026, without long-term purchase agreements. PPCP, the company’s identified key raw material, represented 89.41% of purchases during the same period.

What creates Manika Plastech’s supplier purchase concentration?

Manika Plastech’s supplier purchase concentration arises because a small group receives most of its raw-material spending despite a wider supplier base. The company had 120 suppliers in the three months ended June 30, 2026, but its top five suppliers accounted for Rs 93.613 crore of purchases, or 79.85% of the total. Its top 10 suppliers accounted for Rs 104.350 crore, or 87.90%.

The difference between the top-five and top-10 shares was 8.05 percentage points in the three months ended June 30, 2026. That means suppliers ranked sixth through 10th collectively accounted for 8.05% of raw-material purchases, leaving the balance spread among the remaining suppliers. Supplier count therefore does not by itself show how purchasing is distributed.

Manika Plastech procures PPCP from suppliers including one of the major producers in India, ExxonMobil Chemicals Asia Pacific, Haldia Petrochemicals Limited and Borouge Pte Ltd. It buys recycled polymers primarily from Gravita India Limited and terminal bushings mainly from Aquila Forged Metals S.P.A. The company says it has longstanding relationships with some key suppliers, but does not have long-term purchase agreements with them.

How did Manika Plastech’s supplier purchase concentration change?

Manika Plastech’s top-five supplier share ranged from 66.80% to 79.85% from Fiscal 2024 through the three months ended June 30, 2026. The latest partial-period share of 79.85% was 13.05 percentage points above the 66.80% reported in Fiscal 2025 and 1.56 percentage points above the 78.29% reported in Fiscal 2026.

The top-10 share was higher than the top-five share in each disclosed period, ranging from 77.09% in Fiscal 2025 to 87.90% in the three months ended June 30, 2026. The top-10 share fell to 77.09% in Fiscal 2025 from 86.60% in Fiscal 2024, then rose by 10.81 percentage points in Fiscal 2026. This comparison shows that concentration changed across periods, rather than following a single direction.

Why does PPCP increase Manika Plastech’s exposure?

PPCP increases Manika Plastech’s exposure because it accounted for 89.41% of total purchases in the three months ended June 30, 2026. PPCP’s share was 74.67% in Fiscal 2026, 73.79% in Fiscal 2025 and 79.29% in Fiscal 2024, making the latest disclosed share 15.62 percentage points above Fiscal 2026.

Manika Plastech says crude-oil price volatility influences India’s plastic-packaging industry because crude-oil derivatives, including polyethylene, polypropylene and polyethylene terephthalate, are primary inputs for plastic production. The company also identifies government restrictions, supply-chain disruptions, market pressures and the ongoing tariff situation as factors that may affect raw-material prices and procurement costs.

Manika Plastech says it has previously passed higher raw-material costs to customers, although the transfer is subject to a mutually agreed time gap from the date of an increase. Continued cost recovery therefore depends on customer agreement and the length of that gap. The company reported no difficulty in procuring polymers in the three months ended June 30, 2026 or the preceding three fiscals, while stating that future availability cannot be assured.

What supply safeguards has Manika Plastech disclosed?

Manika Plastech’s disclosed response to supplier dependency is to explore local and international raw-material suppliers. The company says this effort is intended to mitigate supplier dependency, rather than citing long-term contracts or committed alternative supply volumes. Its ability to use alternatives would depend on their ability to meet material-quality, volume, delivery and price requirements.

Purchases from repeat suppliers represented 94.38% to 99.32% of Manika Plastech’s total purchases during the three months ended June 30, 2026 and the preceding three fiscals. The company says buying from a limited number of suppliers helps it maintain quality and delivery consistency, but also says that supply reductions or disrupted relationships could affect its ability to procure material at negotiated prices or at all.

Manika Plastech also used recycled polymers, which represented about 13% to 30% of total polymer consumption in the three months ended June 30, 2026. That is a consumption measure rather than a share of purchase value. The company also states that it may not be able to continue incorporating recycled polymers at similar levels, so the disclosure does not establish recycled material as an assured substitute for PPCP.

What should readers monitor in later disclosures?

Readers should monitor whether Manika Plastech’s top-five and top-10 supplier shares move from 79.85% and 87.90%, respectively, reported for the three months ended June 30, 2026. The supplier base measured 143 suppliers in Fiscal 2024, 146 in Fiscal 2025, 146 in Fiscal 2026 and 120 in the latest three-month period, but the purchase shares remain the direct measure of concentration.

Readers should also monitor PPCP’s share of purchases and whether customer pass-through arrangements continue to address cost increases subject to the mutually agreed time gap. PPCP increased from 73.79% of purchases in Fiscal 2025 to 89.41% in the three months ended June 30, 2026. The unresolved matter is whether the company’s disclosed exploration of local and international suppliers changes purchasing concentration without affecting quality, delivery or procurement costs.

Conclusion

Manika Plastech’s supplier purchase concentration is defined by two connected measures: five suppliers accounted for 79.85% of raw-material purchases in the three months ended June 30, 2026, while PPCP made up 89.41% of purchases. The company’s 120-supplier base does not alter the concentration of purchase value, and its key supplier relationships are not covered by long-term purchase agreements.

The next relevant update is Manika Plastech’s stated plan to explore local and international raw-material suppliers. Later disclosures can show whether that plan changes the 94.38% to 99.32% repeat-supplier purchase range, reduces top-five concentration, or affects access to PPCP at prices that can be passed through after the disclosed agreed timing gap.