Exim Routes Ltd. is preparing for its IPO of ₹ 43.73 cr., aiming to tap into India’s fast-growing packaging and recycling ecosystem. With domestic paper mills increasingly dependent on imported waste paper, the company is positioning itself as a key enabler in this supply chain—making its market debut noteworthy for investors tracking opportunities in logistics-led and sustainability-driven businesses.

Let's explore the IPO further:

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India’s paper and recycling ecosystem is expanding rapidly. The domestic paper industry produces ~25 million tonnes annually, contributing about 5% to global output, and is projected to touch 35 million tonnes by 2030 as demand accelerates across FMCG, e-commerce, pharma, and retail sectors. The industry’s heavy reliance on recycled fibre, which accounts for nearly 71% of all raw material used in paper manufacturing. The domestic waste collection efficiency is at only 25–28% of its own waste paper, thus the industry is heavily dependent on imported waste paper.

With an Industry turnover exceeding ₹80,000 crores, India’s per capita paper consumption is around 16 kg, which is lower than the global average of 57 kg. The market is expected to expand with economic growth, and an increase of one kg per capita in consumption could lead to a rise in demand by one million tonnes. The increasing consumption makes global sourcing a critical supply link for Indian mills.

Policy tailwinds — including the single-use plastic ban, EPR compliance norms, and the broader push toward circular-economy practices — continue to accelerate demand for recycled materials. While challenges such as import-price volatility, customs duties and fragmented local waste collection persist, the long-term outlook remains robust. As India’s reliance on high-quality imported waste paper intensifies, organised players with international procurement networks, like Exim Routes, are positioned to benefit from this sustained market opportunity.

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Incorporated in 2019, the company operates through overseas subsidiaries that procure recyclable grades and supply them to domestic mills requiring high‑quality fibre inputs. Exim Routes operates as a global platform that facilitates the sourcing, quality assurance, and logistics of recyclable paper materials for Indian paper mills. Its business combines an international procurement network with an AI-driven digital system called ERIS, which integrates global supplier inventory, mill demand, price discovery, communication, market intelligence, and logistics execution into a single B2B workflow.

The company functions through a network of foreign subsidiaries in the USA, Singapore, UK, Germany, and South Africa, which handle procurement and cross-border logistics in compliance with Indian environmental regulations that restrict direct domestic trading of imported waste paper. Alongside its core recovered-paper trading operations, Exim Routes also undertakes high-seas sales, limited domestic trading, logistics and container-handling services, and management/consultancy support for subsidiaries and supplier partners—positioning it as a comprehensive, technology-enabled solution provider to India’s recycled fibre supply chain.

Business Model

Exim Routes operates a procurement-driven, tech-enabled B2B supply-chain model where the company manages the entire lifecycle of recyclable paper — from international sourcing to quality checks, shipment planning, documentation, and final delivery to Indian paper mills. By controlling every operational step through its overseas subsidiaries and its ERIS digital platform, the company ensures consistent grade quality, predictable supply, and improved cost efficiency for mills that depend on imported waste paper.

Orders from paper manufacturers are usually grade-specific and volume-specific, based on their machine requirements, product specifications, and fibre-quality parameters. Since mills cannot afford inconsistent fibre input, they tend to work with trusted partners who can deliver reliability across multiple sourcing geographies.

Exim Routes operates through a set of strategically placed foreign subsidiaries, each performing a defined role in the sourcing and logistics chain: Exim Routes USA, UK, Germany, UAE & South Africa Subsidiaries

These subsidiaries form the backbone of the company’s international sourcing operations. Their functions include:

• Procuring wastepaper from local recycling yards

• Conducting on-ground inspections and quality grading

• Consolidating shipments and booking freight

• Managing export documentation and compliance

• Coordinating with the India office for delivery schedules

ERIS – The Digital Backbone of the Business, The (ERIS) is the company’s proprietary platform that integrates:

• Supplier inventory visibility

• Mill demand planning

• Price discovery and bidding

• Market insights and global wastepaper trends

• Logistics tracking and documentation workflows

ERIS is also offered selectively to suppliers and mills, enabling a potential platform-based revenue stream as the ecosystem scales.

Core Products/Services

Brown Grades – Old Corrugated Containers (OCC), Kraft Recoverable, Mixed Paper (MP) and Cores. These are the highest-volume products and are primarily used by kraft and packaging-paper manufacturers.

White Grades – Sorted Office Paper (SOP), Cupstock Waste, Tissue Cuttings and Higher-Grade Recoverable that are used in writing-printing, specialty, and premium recycled paper.

Mechanical Grades – Old Newspapers (ONP), Old Magazines (OMG) and other fibre-rich mechanical pulp substitutes, commonly used in tissue, low-GSM papers, and newsprint applications.

Revenue Model

Direct Model - The foreign subsidiary procures wastepaper in USD/GBP/EUR and sells directly to Indian mills in foreign currency. Revenue is booked in the subsidiary’s books.

High-Seas Sales Model- The subsidiary sells recyclable paper to Exim India in USD.
 While the ship is still in international waters, Exim India sells the cargo to the mill in INR. Revenue is recorded in Exim India’s books.

Digital, Logistics & Advisory Services- The company earns fee from ERIS platform subscriptions, management consultancy provided to subsidiaries, logistics support, including freight booking and documentation.

Core business dominated by the trading of recyclable paper. For FY25, paper recyclables contributed ~96% of total revenue, making it the primary growth engine and the rest comes from ERIS subscriptions, management consultancy, and logistics support.

Management Overview & Promoter Holdings

Exim Routes is led by its founding promoters, who maintain strong control of the company prior to the IPO. The business is spearheaded by Managing Director Manish Goyal, a first-generation entrepreneur who has built the company’s global sourcing network and oversees its shift toward a tech-enabled model through the ERIS platform. His focus spans international procurement, supplier relationships and strategic expansion across multiple geographies.

He is supported by Whole-time Director Govind Rai Garg, who manages day-to-day operations, commercial execution and financial coordination across subsidiaries. The Board also includes independent oversight, supported by qualified professionals in finance, compliance, logistics and IT. Anshul Bansal (CFO) leads finance and budgeting, Richa Anand (Company Secretary & Compliance Officer) strengthens regulatory governance, while functional heads such as Pallav Singal (Sales & Operations) and Vivinprasath Devaraj (Quality Control) support end-to-end operations. The DRHP notes no major governance issues, aside from past filing delays 

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Exim Routes has seen a strong growth over the last three financial years, driven by an expanding subsidiary network, increasing import dependence of Indian paper mills, and rising adoption of the company’s high-seas sales model. Consolidated revenue grew from ₹36.46 Cr. in FY23 to ₹120.98 Cr. in FY25, reflecting a CAGR of over 85%. This growth has been supported by scale-up in international sourcing and the integration of new subsidiaries in Singapore, Germany, the UK and South Africa. Profitability has improved steadily, with EBITDA growing from ₹0.63 Cr. to ₹9.94 Cr.  and margins expanding from 1.75% to 8.24%, reflecting better operational efficiency and scale benefits. The transition from a traditional trading business to a tech-enabled, multi-subsidiary platform with increasing scale, improving margins, and diversified revenue streams ia framing Exim Routes to build a more resilient financial foundation

(In INR Cr.)

Competitive Landscapes

The DRHP notes that Exim Routes does not have any directly comparable listed peers in India, as no public company operates in the same niche—global sourcing, trading and logistics of recyclable waste paper for domestic paper mills. The company’s model, scale of operations, and dependence on cross-border sourcing place it in a uniquely specialised segment within the broader recyclables and paper-supply ecosystem. The sector faces several entry barriers, including high capital investment requirements, complex regulatory frameworks, and supply chain inefficiencies.

That being said, there are companies in adjacent spaces—waste-management players, paper manufacturers that partially import waste paper, and logistics-tech platforms—but none of these operate purely as a global recyclables-sourcing and supply-chain aggregator, nor do they match Exim Routes’ business mix or geographic footprint. Therefore, they cannot be considered direct peers for valuation, profitability or operating-metric comparison.

Some of the international competitors are as follows: 

a) Lavorazione Carta Riciclata Italiana S.r.l. (LCI), Italy, Europe

b) Brown Fiber Overseas, Dubai, UAE

c) Indicaa Group Limited, Dubai, UAE 

d) Ocean Line FZE, Dubai, UAE 

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• Investment in Technology ( ERIS Platform): ₹ 14.50 Cr. for development and scaling of its ERIS digital platform, enhancing supplier–buyer integration, market-intelligence capabilities, and end-to-end shipment visibility.

• Working Capital Requirements: ₹9.00  Cr to meet out the expenses for Working Capital to fund business growth

• Investment in Office Space: ₹ 7.13 Cr. to meet out the expenses for Investment in Office space to accommodate new hires.

Final Words

Leadership: Exim Routes remains strongly promoter-led, with Managing Director Manish Goyal driving global sourcing and technology initiatives, supported by Whole-time Director Govind Rai Garg on operations. The addition of finance, compliance, and logistics professionals strengthens oversight, though control remains concentrated with the promoters.

Moat: The company operates in a niche supply-chain segment with limited organised players, but the trading nature of the business offers thin structural barriers. Its advantages lie in multi-country sourcing capabilities, reliable grade quality, and the ERIS digital platform, which enhances efficiency—but the model remains exposed to commodity cycles and regulatory changes.

Valuation: Revenue and profitability have grown sharply over the last three years, supported by scale and an asset-light structure. However, long-term earnings stability will depend on working-capital discipline, managing forex and freight volatility, and successfully scaling ERIS-linked service income.

Tailwinds: Rising packaging demand, low domestic waste paper recovery, and sustainability mandates create strong long-term demand for imported recyclable fibre. With India structurally dependent on waste paper imports, Exim Routes is positioned to benefit from sustained industry momentum.

Bottom line: Exim Routes offers exposure to a growing but operationally intensive sector. Its global sourcing network and tech investment provide scalability, but risks tied to commodity pricing and multi-country operations persist. Suitable for investors comfortable with trading-driven businesses; others may prefer to track margin consistency and cash-flow stability over time.

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