Mumbai-based Cello World Ltd, a leading company in the consumer ware market in India with presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories, and are amongst the largest brands in the Indian consumer ware market has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).
The IPO with a face value of Rs 5 is a complete offer for sale (OFS) of up to Rs 1750 crore Promoter and other selling shareholders. The offer includes a reservation of up to Rs 10 crore for subscription by eligible employees.
The offer for sale comprises of up to Rs 300 crore by Pradeep Ghisulal Rathod, up to Rs 670 crore by Pankaj Ghisulal Rathod, up to Rs 380 crore by Gaurav Pradeep Rathod, up to Rs 200 crore by Sangeeta Pradeep Rathod, up to Rs 100 crore by Babita Pankaj Rathod and up to Rs 100 crore by Ruchi Gaurav Rathod.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
Cello World
Founded by late Ghisulal Dhanraj Rathod, formerly the promoter and father of two current promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod, had been associated with Cello Plastic Industrial Works and the "Cello" brand since 1962.
As of March 31, 2023, the company offered a wide range of 15,841 stock-keeping units ("SKUs") spanning its various product categories. In 2017, it ventured into the glassware and opal ware business under the "Cello" brand. The company boasts an extensive product portfolio across three key categories: consumer houseware, writing instruments and stationery, and moulded furniture and related products.
Its diversity of offerings is unparalleled among both Indian and international listed companies. Noteworthy Indian companies with similar products include Borosil Limited, Kokuyo Camlin Limited, La Opala RG Limited, Stove Kraft Limited, TTK Prestige Limited, Linc Limited, and Hawkins Cookers Limited.
Throughout the fiscal years ending in 2021, 2022, and 2023, the company undertook no significant changes to its business operations, apart from the acquisition of shares in Wim Plast Limited and the acquisition of business entities by Cello Industries Private Limited, Cello Household Products Private Limited, and Unomax Stationery Private Limited through a slump sale.
With ownership or leasing of 13 manufacturing facilities in five different Indian locations including eight facilities in Daman in the Union Territory of Daman and Diu; two facilities in Haridwar, Uttarakhand; one facility in Baddi, Himachal Pradesh; one facility in Chennai, Tamil Nadu; and one facility in Kolkata, West Bengal as of March 31, 2023, the company is also in the process of establishing a glassware manufacturing facility in Rajasthan.
Its manufacturing capabilities enable it to independently produce a wide array of products. During the Financial Years 2021, 2022 and 2023, it launched 397, 169 and 380 new products across its three product categories, respectively.
The company's robust distribution network spans across the nation, supported by a sales team consisting of 683 members as of March 31, 2023. For the Consumer Houseware category, it collaborates with 678 distributors and around 51,900 retailers across India. For Writing Instruments and Stationery, it has 29 super-stockists, approximately 1,450 distributors, and roughly 59,100 retailers. In the Moulded Furniture and Allied Products category, it works with 1,067 distributors and around 6,500 retailers located throughout India.
Cello World Earnings
For the fiscal year 2023, the consolidated revenue from operations increased 32.19% to Rs 1796.69 crore against Rs 1359.18 crore a year ago. Net profit increased by 29.86% from Rs 219.52 crore in fiscal 2022 to Rs 285 crore in fiscal 2023. It had the highest ROCE amongst the peers in FY 2021 and FY 2023 and highest EBITDA Margin for fiscal 2021, 2022 and 2023.
Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Limited, JM Financial Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
