About the Company:
Electronics Mart India Ltd is the 4th largest and one of the fastest growing consumer durables and electronics retailers in India and as of Financial Year 2021,
Company is the largest regional organised player in the southern region in revenue terms with dominance in the states of Telangana and Andhra Pradesh.
Company offers a diversified range of products with focus on large appliances (air conditioners, televisions, washing machines and refrigerators), mobiles and small appliances, IT and others.
Company’s offering includes more than 6,000 SKUs across product categories from more than 70 consumer durable and electronic brands.
Company commenced business operations in 1980 and since then there has been a steady rise in revenue from operations.
Company has been one of the fastest growing consumer durable & electronics retailers in India with a revenue CAGR of 17.90% from Financial Year 2016 to Financial Year 2021.
As on August 31, 2022, Company had 112 stores across 36 cities / urban agglomerates with a retail business area of 1.12 million sq. ft.
Company’s Business Model.
Company’s business model is a mix of ownership and lease rental model, as company focusses to secure retail spaces which ensures high visibility and easy accessibility to customers.
As of August 31, 2022, out of the total 112 stores company operates, 11 stores are owned, 93 stores are under long-term lease rental model and eight stores are partly owned and partly leased.
Company’s Expanding Presence:
Company has been steadily increasing the market reach to cover 14 cities in Andhra Pradesh, 20 cities in Telangana and two cities in the NCR region, as on August 31, 2022, by setting up new consumer durable and electronic retail stores and venturing into diverse and specialized product categories.
Company has consistently increased the retail business area over the last three Financial Years from 0.76 million sq. ft in Financial Year 2020, to 0.94 million sq. ft. in Financial Year 2021, to 1.04 million sq. ft. in Financial Year 2022 and to 1.12 million sq. ft. as on August 31, 2022.
Company operates business activities across three channels of retail, wholesale and e-commerce:
Retail: With the object of providing comprehensive electronic solutions, Company has set up diverse consumer durable and electronic retail stores arraying multifarious as well as specialized electronic products.
As of August 31, 2022, out of 112 stores, 100 stores are Multi Brand Outlets (“MBOs”) and 12 stores are Exclusive Brand Outlets (“EBOs”).
Company operate 89 MBOs under the name “Bajaj Electronics” in Andhra and Telangana, eight MBO under the name of “Electronics Mart” in the NCR region, two specialized stores under the name “Kitchen Stories” which caters to the kitchen specific demands of the customers.
Company also operates one specialised store format under the name “Audio & Beyond” focusing on high end home audio and home automation solutions.
As on August 31, 2022, 100 MBOs were operative, having an average store area of 10,876 sq feet per store.
Wholesale: Company is also engaged in the wholesale business of consumer durables, where company supplies products to single shop retailers in Andhra Pradesh and Telangana regions.
The revenue from our wholesale channel was Rs.20.2 crores , Rs.64.2 crores, which represented 1.44%, 1.48%, of the revenue from operations, respectively for the three month period ended June 30, 2022 and Financial Year 2022, respectively.
E-Commerce: Company’s e-commerce website currently functions as a catalogue for the products we retail at our stores.
Company further expanded the e-commerce operations in 2019 by associating with the largest domestic and international players of the e-commerce market thereby expanding our business reach from brick-and-mortar retail stores to e-commerce platforms.
Company’s revenue from e-commerce channel was Rs.15.4 crores, Rs.39.9 crores which represented 1.10%, 0.92%, respectively for the three month period ended June 30, 2022 and Financial Year 2022.
Company’s Revenue mix:
Around 55% revenue comes from Large appliances(refrigerators, televisions, air conditioners and washing machines).
Around 34% revenue comesRevenue from mobile phones, tablets, smart watches and fitness trackers.
Around 11% revenue comes Revenue from Small appliances, IT and others (includes items that typically compliment the above-mentioned products, laptops, personal computers, printers, cables, screen guards, coolers, geysers, ceiling fans, personal care devices and kitchen appliances such as kitchen hobs, chimneys, water purifiers and other allied appliances).
TOP Player in Electronics Retail in India.
- Reliance Retail.
- Croma.
- Vijay Sales.
- Electronics Mart India Ltd (EMIL).
Comparative parameters of some key organised electronic retailers in India (fiscal 2021)
Electronics Mart India Ltd (EMIL)
EMIL started in 1980 as a proprietary concern with a consumer durable and electronics store in Hyderabad. EMIL is the fourth largest and one of the fastest-growing consumer durables and electronics retailers in India.
EMIL is a multi-brand consumer durable and electronics retailer dealing in home entertainment, mobiles, laptop, home appliances, camera, kitchen appliances, and personal care. EMIL operates multi-brand outlets under the Bajaj Electronics brand name.
The company also operates exclusive brand outlets for various brands and a special format store for kitchen appliances called Kitchen Stories.
IQ is an exclusive Apple Store-chain and Kitchen Stories is an experiential showroom which deals with luxury built-in kitchen appliance products across more than 100 brands, including a partnership with German brand Häcker Kitchens.
Currently, the chain of stores has 105 outlets comprising 93 multi-brand outlets and 12 exclusive brand outlets across more than 30 cities in Andhra Pradesh and Telangana.
Management Team:
- Mr. Pavan Kumar Bajaj (Designation: Chairman and Managing Director)
- Mr. Karan Bajaj (Designation: Chief Executive Officer and Whole-time Director)
Objectives of the Issue:
Fresh Issue: (Rs.500 cr)
- Funding of capital expenditure for expansion and opening of stores and warehouses.
- Funding incremental working capital requirements.
- Repayment / prepayment, in full or part, of all or certain borrowings availed by our Company.
- General Corporate Purposes.
Positives for the Company:
Company plans to expand the business.
- Company proposes to utilize a portion of the Net Proceeds of this Issue amounting up to Rs.111.4 crores towards funding of capital expenditure for expansion and opening of new stores in Telangana, Andhra Pradesh and Delhi, National Capital Region (“NCR”) and warehouses in NCR.
- Company intends to enhance position within existing markets i.e., Andhra Pradesh, Telangana and NCR, by increasing company’s market penetration and expanding our store and warehouse network in these states / regions.
- Company also plans to explore new markets with the intent to expand our footprint and further increase customer base and expand our store and warehouse network in key cities and metropolitan areas.
Financials of the Company:
| (in Crores) | FY 20 | FY 21 | FY 22 | 30th June 2022 |
|---|---|---|---|---|
| Revenue | 3179.0 | 3207.3 | 4353.0 | 1410.2 |
| Net Profit | 81.14 | 58.8 | 104.5 | 41.4 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Electronics Mart India Ltd | 10 | 3.46 | 17.05 | 17.42% | 19.88 |
| Aditya Vision Limited | 10 | 30.43 | 45.70 | 41.88% | 72.67 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 4th October 2022 |
| Issue Closes on:. | 7th October 2022 |
| Issue Price | Rs.56 – 59 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 254 shares |
| Minimum Investment | Rs.14,986 |
| Issue Constitutes | 28.24% |
| Issue Size | Rs.500 cr ($62 million) |
| Market Cap | Rs.2270 cr ($280 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 8,47,45,762 |
| Equity Shares Prior to the Issue | 30,00,03,000 |
| Equity Shares after the Issue | 38,47,48,762 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th October 2022 |
| Initiation of Refunds | on or Before 13th October 2022 |
| Credit of Equity Shares: | on or Before 14th October 2022 |
| Listing Date: | on or Before 17th October 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.46 | 17.05 | 17.42% | 19.88 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Electronics Mart India Ltd 6-3-666/A1 to 7, 3rd and 4th Floors Opposite NIMS Hospital Punjagutta Main Road Hyderabad – 500 082 Telangana, India. Tel: +91 40 2323 0244 E-mail: cs@bajajelectronics.in; Website: www.electronicsmartindia.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Limited Selenium Tower-B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: emil.ipo@kfintech.com Investor E-mail: einward.ris@kfintech.com Website: www.kfintech.com |
