Captain Polyplast Limited (CPL) has emerged as a prominent player in India’s micro irrigation and solar EPC segments. With over two decades of presence, a wide distribution network, and deep industry know-how, the company is now looking to scale new heights.
Mr. Ritesh Khichadia holds a BTech in Mechanical Engineering from IIT Bombay and a PGDM in Finance and Strategy from IIM Lucknow. With prior experience as an investment advisor at Sanford Bernstein and an M&A consultant at Ernst & Young, he brings valuable expertise to his current role. His primary focus is on enhancing the brand value of the company, Captain, while developing and implementing strategies to accelerate its revenue growth.
Q1: Captain Polyplast has been in the micro irrigation space for over two decades. How do you differentiate yourself in this highly competitive segment?
We are among the few pan-India players with a strong presence across 16 states. We`re empanelled as an authorized supplier under various government schemes and have built a robust dealer network of over 750 dealers, supported by 250+ sales and technical staff. What sets us apart is not just the quality of our products but also the timely delivery and on-ground technical support we offer farmers. That end-to-end service approach is our biggest differentiator.
Q2: What is the current scale of your operations and manufacturing capabilities?
We operate out of two manufacturing units ” one in Rajkot, Gujarat, and another in Kurnool, Andhra Pradesh ” catering to the western, northern, and southern regions. Additionally, we are setting up a third facility in Ahmedabad, which will go operational in Q1 FY26. Once commissioned, this new plant will enable us to expand our accessory and component manufacturing, reduce outsourcing, and improve margins.
Q3: What is your current market share in the micro irrigation segment?
The micro irrigation space is quite fragmented with around 40-50 vendors operating in each state. Our market share varies between 5% and 10% in key states like Gujarat, Andhra Pradesh, and Tamil Nadu. These are high-potential markets with strong state and central government support, and we`re well-positioned to grow our presence further.
Q4: You are also expanding solar EPC segment. Could you elaborate on your strategy and performance in that vertical?
We entered the solar EPC segment in FY21, targeting small-scale rooftop solar installations across residential and industrial sectors. The traction has been strong, particularly in Gujarat, and we are now empanelled under the PM Surya Ghar Yojana in seven states. Currently, solar contributes ~9.5% to our revenue, and we plan to double that to 20% by FY26, leveraging our irrigation dealer network to cross-sell solar solutions.
Q5: What are some of the key products in the solar vertical beyond rooftop systems?
Apart from rooftop installations, we offer solar water pumps, solar fence energizers, solar water heaters, and solar streetlights. These products are especially relevant for agricultural and rural applications ” from irrigation and livestock watering to crop protection and household energy needs.
Q6: How do you manage the working capital given the long payment cycles in government-linked businesses?
Receivables in the micro irrigation segment typically take around 5-6 months due to the subsidy structure. However, the government has now implemented the SPARSH model ” where subsidy payments are routed through RBI treasury accounts, limiting delays. Additionally, by growing our non-subsidy business ” particularly solar EPC ” and export operations, we`re reducing working capital intensity. Our recent ₹34.56 crore preferential issue also strengthens our liquidity.
Q7: Speaking of exports, how significant is your international business today, and what are your future plans?
Exports currently contribute around 5% of revenue, primarily to Africa, the Middle East, and Latin America. We have a dedicated team focused on expanding this further. Over the next few years, we aim to enter North America and enhance our global footprint by leveraging our value-driven product portfolio and superior service model.
Q8: What growth are you targeting over the next few years?
We expect micro irrigation expected to grow by ~20% and solar to double in size. With increased capacity and a diversified product mix which will lead to growth in revenue, profitability margins and eventually the bottom line
Q9: Let`s talk about R&D and innovation. How are you staying ahead of the curve?
While our R&D spend is modest in terms of accounting, we invest significantly in technology. Most of our machinery is imported from Israel and the US, ensuring high product quality and efficiency. Our upcoming Ahmedabad plant will also help reduce outsourcing and improve precision manufacturing of key components.
Q10: With both businesses largely policy-dependent, do you foresee any headwinds?
Policy support is indeed critical, especially for micro irrigation. However, the government`s commitment under schemes like PMKSY and PMSGY gives us confidence. With India targeting 500 GW of renewable energy by 2030 and expanding irrigation coverage rapidly, we believe both segments offer a long growth runway. That said, we remain vigilant about election cycles and competitive pricing pressures in the market.