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Exim Routes

• Exim Routes is coming out with an initial public offering (IPO) of 49,69,600 shares in a price band of Rs 83-88 per equity share. 
• The issue will open on December 12, 2025 and will close on December 16, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 5 and is priced 16.60 of its face value on the lower side and 17.60 times on the higher side.
• Book running lead manager to the issue is Narnolia Financial Services.
• Compliance Officer for the issue is Richa Anand.

Profile of the company

Exim Routes operates as a global platform dedicated to facilitating the exchange of recyclable paper product materials, providing end-to-end services to Indian Paper Mills (Mills), ranging from sourcing/procurement of waste paper to quality assurance and logistics wastepaper to mills. To enable these operations, the company has developed the Exim Routes Intelligence System (ERIS), an AI-powered B2B digital platform.

The company operates through a group structured framework comprising the Indian parent entity, Exim Routes, and a network of foreign subsidiaries. Sourcing and international logistics of the waste paper are undertaken by its subsidiaries including Exim Routes Inc., incorporated in the United States of America; Exim Routes Pte. Ltd., incorporated in Singapore; Exim Routes (UK) Ltd., incorporated in the United Kingdom; Good Earth SCM GmbH, incorporated in Germany and Exim Routes (SA) Pty Ltd., incorporated in South Africa. The company is responsible for providing overall strategic direction, group-level governance, and driving technology initiatives. It also oversees the coordination of operations, logistics, and trade execution, in collaboration with subsidiaries.

In addition to the revenue generated through the ERIS platform, the company also engages in high-seas sales transactions, acting as an intermediary buyer in the trade of waste paper, which is supplied to Indian paper mills for use as raw material in the production of finished products. Secondly, the company conducts a small volume of domestic trading, which involves purchasing recyclable paper from the domestic Indian market and selling it to local mills. Furthermore, the company provides services to select suppliers and foreign subsidiaries of Exim, supporting their operations. Additionally, it offers the sale and subscription of the ERIS platform to a select group of mills.

Proceed is being used for:

• Meeting expenses for development and maintenance of the ERIS platform
• Meeting expenses for working capital to fund business growth
• Meeting expenses for investment in office space to accommodate new hires
• Meeting expenses for general corporate purposes

Industry Overview

Recycling plays a significant role in India's transition towards a circular economy, focusing on resource efficiency, waste reduction, and sustainable industrial growth. With increasing environmental concerns and government regulations, industries are adopting recycling practices to minimize their ecological footprint. Moreover, the Indian paper recycling industry is witnessing steady growth, with paper consumption registering a CAGR of 6% over the past decade, double the global average. The recycling industry in India is expected to witness substantial growth over the next five years, driven by government regulations, increased industrial waste, advancements in recycling technologies, and corporate sustainability initiatives. With a strong push towards a circular economy, key sectors including plastics, metals, e-waste, paper, and construction waste recycling are expected to scale up operations to meet sustainability goals and resource efficiency targets.

Meanwhile, India’s paper industry accounts for about 5% of global paper production, with an estimated turnover exceeding Rs 80,000 crores and a contribution of approximately Rs 5,000 crores to the exchequer. The industry provides direct employment to around 500,000 people and indirectly supports an additional 1.5 million jobs. It plays a significant role in the economy, contributing about 1.6% to India’s GDP. With around 850 paper mills, the industry produces approximately 25 million tonnes annually, projected to reach 35 million tonnes by 2030. It comprises various segments, including writing and printing paper, packaging materials, and specialty papers. The packaging paper and paperboard segment has been growing, with domestic consumption increasing at an annual rate of 8.2% in 2023-24.

The Indian paper industry is expected to continue its growth trajectory, driven by sustained demand for packaging paper, increased recycling initiatives, and government support for agro-forestry. Projections indicate that by 2025, total paper consumption will exceed 26-28 million tonnes, with a CAGR of 6%. The packaging paper segment will be the primary driver of growth, while writing & printing paper demand will stabilize as education sector needs offset digitalization effects. To ensure long-term sustainability, investments in modern recycling technologies and alternative raw materials (such as bagasse and agricultural waste) are increasing. The Government has also encouraged agro-forestry initiatives, supporting the development of high-quality tree clonal saplings that are disease resistant and adaptable to diverse climatic conditions. This is expected to increase domestic wood pulp supply and reduce dependency on imports. Additionally, circular economy models in packaging where companies recycle and reuse packaging materials are gaining traction, further supporting industry expansion. 

Pros and strengths

Global sourcing network: Exim Routes India is in the space with foreign subsidiaries in Singapore, South Africa, UK, Germany and USA as well as a network of strategic yards/ suppliers and partners. This allows Company to source recyclables from 15+ countries across the globe into India (USA, UK, Europe and Middle East).

Domain knowledge: Founded by Manish Goyal, paper engineer from IIT Roorkee with 16 years of deep technical expertise and experience in the paper industry. Furthermore, most of its leadership team are also paper and polymer engineers from IIT Roorkee.

Proprietary digital platform: The company has built its own AI-powered B2B platform, Exim Routes Intelligence System (ERIS) that streamlines supply chain operations through global inventory matching and price discovery, enables efficient customer and communication, delivers actionable insights via integrated market intelligence, and ensures seamless logistics execution with its freight partners.

Risks and concerns

Concentration risk from recyclable paper exchange segment: The company is primarily engaged in facilitating the exchange of recyclable paper products, offering comprehensive end-to-end services to Indian Paper Mills (Mills). These services include the sourcing and procurement of waste paper, quality assurance, and logistics support. A significant portion of its operational revenue is generated from the recyclable paper exchange segment. This high reliance on a single business vertical poses a potential risk to its operations. Any inability or failure to acquire new clients within this segment could have an adverse impact on its overall business performance.

Exposure to loss of major customers: The company has garnered 63.04%, 73.05% and 69.93% of its revenue from top 10 customers in FY25, FY24 and FY23 respectively. As its business is currently concentrated among relatively few significant customers, it may experience reduction in cash flow and liquidity and its business would be negatively affected if it loses one or more of its major customers or if the amount of business from one or more of them is significantly reduced for any reason, including as a result of a dispute with or disqualification by a major customer.

Procurement concentration exposing operational risk: The company’s business operations are significantly dependent on a limited number of suppliers for the procurement of recyclable paper. The top ten suppliers contributed substantially to its total purchases. The company has procured 67.70%, 62.87% and 91.91% of recyclable paper from top 10 suppliers in FY25, FY24 and FY23 respectively. This concentration exposes it to operational risks in the event that any of these suppliers terminate or reduce their supply volumes.

Outlook

Exim Routes is a global platform that facilitates the exchange of recyclable paper materials, offering end-to-end services to Indian Paper Mills, from sourcing waste paper to quality assurance and logistics. It is a globally oriented sourcing network for recyclable paper materials, enabling access to international supply. It is an end-to-end service model including procurement, logistics, and delivery - reducing complexity for Indian paper mills. On the concern side, the company’s major revenue is sourced from trading of Paper Recyclables. The company’s inability or failure to manage and attract more clients in this segment could adversely affect its business. Moreover, the company’s revenue dependence on customers from specific geographic locations exposes it to risks from economic downturns and regional market volatility.

The company is coming out with a maiden IPO of 49,69,600 equity shares of Rs 5 each. The issue has been offered in a price band of Rs 83-88 per equity share. The aggregate size of the offer is around Rs 41.25 crore to Rs 43.73 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations for the financial year 2024-2025 stood at Rs 12,066.99 lakh whereas for the financial year 2023-24, it stood at Rs 7,185.90 lakh, representing an increase of 67.93%. Moreover, the restated profit after tax for the financial year 2024-2025 stood at Rs 756.28 lakh whereas for the financial year 2023-24, it stood at Rs 420.33 lakh, representing an increase of 79.93%.

The company plans to strengthen its purchase and sourcing capabilities by expanding its yards and inventory across existing strongholds such as the UK, USA, South Africa, Singapore, and Europe, while also entering new high-potential markets including Canada and South America. On the sales front, it aims to broaden distribution by developing direct sales channels to paper mills and end reprocessors outside India, targeting regions such as Sri Lanka, Nepal, Bangladesh, Southeast Asia, Europe, and Africa. Additionally, the company intends to scale its digital presence by increasing its subscriber base through enhancements to its existing platform and functionalities, and by introducing new commercial technology offerings, including advanced procurement planning tools, to deepen customer engagement and drive recurring revenue growth.