Cello World is a leading company in India’s consumerware industry, with a presence in consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories.
A large portion of their revenue comes from their in-house manufacturing operations, aggregated to 79.37% of their total revenue from operations for FY 2023. The remaining products (mostly steel and glassware products) are outsourced from third-party contract manufacturers. As of March 31, 2023, they own/lease and operate 13 manufacturing facilities across five locations in India. They are also currently establishing a glassware manufacturing facility in Rajasthan.
The Indian consumerware market was valued at ₹34,800 crore in FY 2022. In FY 2020-22, the market grew at a CAGR of 6.9%. It is expected to reach ₹56,500 crore in FY 2027, growing at a CAGR of 10.2% in FY 2022-2027. Various factors behind this growth are increasing disposable income, the nuclearisation of families, and the growing demand for organised and functional kitchen spaces. The growth in the Indian consumerware market is expected to help the branded products of Cello World to increase sales in the coming years.
Cello World Limited IPO Details
Cello World Limited IPO Date
Cello World Limited's IPO is a 100% offer for sale (OFS). The OFS comprises 2,93,20,987 shares of ₹5 aggregating up to ₹1,900.00 Cr. Cello World Limited’s IPO will be listed on the BSE and NSE on November 09, 2023. It is a book-built issue IPO.
Cello World Limited IPO Price Band
The price range of the IPO has been fixed at ₹617 to ₹648 per share.
Cello World Limited IPO Lot Size
The Cello World Limited IPO lot size is 23 shares, and the minimum investment will be ₹14,904.
Cello World Limited IPO Objectives
The proceeds raised from the offer will be received by the respective selling shareholders in proportion to the equity shares offered by them in the offer for sale. The company will not receive any proceeds from the offer.
Peer Details
As per DRHP, Cello World Limited has the following listed peers:
- Borosil Limited
- Kokuyo Camlin Limited
- La Opala RG Limited
- Stove Kraft Limited
- TTK Prestige Limited
- Linc Limited
- Hawkins Cookers Limited
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Contact Details of Cello World Limited
Registered office: 597/2A, Somnath Road, Dabhel, Nani Daman–396 210, Daman and Diu, India
Phone: +91 22 2685 1027
E-mail:grievance@celloworld.com
Company Financials
| Particulars | Period Ending on March 31, 2021 ( ₹ Cr. ) | Period Ending on June 30, 2023 ( ₹ Cr. ) | Period Ending on March 31, 2023 ( ₹ Cr. ) |
|---|---|---|---|
| Total Income | 1,059.58 | 479.88 | 1,813.44 |
| Profit After Tax (PAT) | 165.55 | 82.83 | 285.06 |
| Assets | 1,146.51 | 1,686.05 | 1,551.69 |
| Total Borrowings | 334.07 | 328.64 | 335.11 |
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Strengths
3Their massive pan-India distributor network and the feedback they get from this network allow them to launch products that have product-market fit at a large scale. Hence, they have a large array of products sold at different price points.
They have a track record of scaling up new businesses and product categories. For example, they scaled their glassware and opalware business from ₹148.35 crore in FY 2021 to ₹228.98 crore in FY 2022. They also scaled their writing instrument and stationery business from ₹111.38 crore in FY 2021 to ₹284.99 crore in FY 2023.
They have developed capabilities in a wide range of products, both in manufacturing and distribution. Product categories include houseware, electronic appliances, cleaning tools and kitchenware.
Risks
3They source their raw materials on a purchase-order basis and do not enter into long-term contracts with raw material suppliers. Thus, their profits are susceptible to fluctuations in raw material prices.
Revenues from more scalable avenues, such as exports and online sales, constitute only around 15% of their sales. Over 80% of their sales come from their network of distributors, which makes the company dependent on good relations with distributors.
They do not own the trademark for their key brands, including “Cello”, “Unomax”, “Kleeno”, “Puro”, and the respective logos. In fact, the “Cello” brand name is also used by one of its competitors for its writing instruments business. This puts them at risk of their product being copied and sold under their brand name.
