Siyaram Recycling Industries Ltd IPO

Incorporated in 2007, Siyaram Recycling is primarily engaged in the segregation of brass scrap, manufacturing of brass ingots, billets and brass rods and also brass-based components for plumbing and sanitary parts. 

Under brass-based components for plumbing, they manufacture various customisable components, such as brass inserts, brass ceramic cartridges, valves, etc., from their 2 manufacturing units in Jamnagar. Some of their renowned customers include Hindware, ROCA, Eauset, Somany, Supreme, AGI Greenpac and Ashirvad Pipes. For FY 2023, their revenue from brass-based components was ₹35.50 crore, contributing 7.20% to the revenue from operations.

They manufacture brass ingots, billets and rods from Jamnagar too, but mainly export these products to China. Their customers in India include Astral Ltd, Kajaria Bathware and AGI Greenpac. In FY 2023, this segment brought in ₹198.64 crore, i.e. 40.30% of the revenue from operations.

They also procure brass scrap, mainly from international markets such as the USA, UK, Europe and the Middle East. Post procurement, brass scrap is segregated and sold in Gujarat. Revenue from this segment was ₹258.30 crore, i.e. 52.41% of the revenue from operations, in FY 2023.

Brass recycling is an important part of the brass industry as brass is an alloy that can be recycled many times. The Indian government has also progressed towards recycling minerals and is formulating a National Resource Efficiency Policy (NREP) that will encourage the recycling of materials in industry. This may, in the future, help a company like Siyaram, which generates revenue from recycled brass, in expanding its operations. 

Siyaram Recycling Industries Ltd IPO Details

Siyaram Recycling Industries Ltd IPO Date

The dates for bidding for the Siyaram Recycling Industries IPO are Thursday, December 14, 2023, to Monday, December 18, 2023.

Siyaram Recycling Industries Ltd IPO Price Band

Siyaram Recycling Industries is a book-built IPO. The exact price range is yet to be announced.

Siyaram Recycling Industries Ltd IPO Lot Size

The Siyaram Recycling Industries Ltd IPO lot size is yet to be announced.

Siyaram Recycling Industries Ltd IPO Objectives 

This IPO is purely an offer for sale, so the proceeds of the IPO will not be received by the company.

Peer Details

Some of the peer companies of Siyaram Recycling Industries include:

1. Sprayking Agro Equipment Limited
2. Poojawestern Metaliks Limited

How To Check the Allotment Status of the Siyaram Recycling Industries Ltd IPO?

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2. Go to the IPO Section and then to IPO Orders.
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Contact Details of Siyaram Recycling Industries Ltd 

Registered office: Plot No. 6 & 7, Village, Lakhabaval Post, Khodiyar Colony, Jamnagar 361006, Gujarat.

Phone: +91-75750-20500

E-mail: cs@siyaramindustries.co.in

Company Financials

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Strengths

1. The company’s customer base is fairly diversified, ranging from manufacturers in the sanitary and bathware sector to metal dealers and traders.

2. Their Promoter Director, Mr Ramgopal Ochhavlal Maheshwari, has been engaged in the brass industry for the last 34 years, which gives the company an advantage not only in domain knowledge but also in high contacts with clients and suppliers.

3. All 3 of their manufacturing units are situated in the district of Jamnagar, Gujarat, which is known as the hub of brass components. The strategic location of their manufacturing units allows them to access a larger consumer base of local brass scrap buyers and reduce logistic costs to achieve economies of scale.

Risks

1. The company’s profits and the cost of production are exposed to the fluctuations in the prices of their raw material. Any disruption in the supply of the raw material or volatility in its pricing could have an adverse effect on the business.

2. In FY 2023, 63.86% of their raw materials were supplied by their top 10 suppliers. This poses the risk of concentration of supplies from just a few suppliers and poses a risk to their supply chain and profits.

3. In FY 2023, their top 10 customers contributed 48.70% of their revenue from operations. This poses a risk to their revenue as the loss of a single customer can significantly affect their revenues.