About the Company:
Powerful Technologies Ltd was formed to focus exclusively on consumer electronics products like LED TVs & mobile power banks and IT hardware products like LED monitors. Company is into manufacturing of LED TV, LED monitors and mobile power banks.
Company’s manufacturing unit was set up in Noida, which has been a hub for IT and consumer electronics products.
Company is equipped with a good infrastructure facility, constituted with advance technologies and skilled professionals to manufacture the latest line of LED TVs and mobile power banks.
Company is certified as ISO 9001:2008 (Quality Management) and SA 8000:2008 (Social Accountability) for & LED TVs and mobile power banks.
Initially, Company had started selling their products under brand names “Powereye” and “Lappy Master” and also used to make power banks for other brands.
After getting approval from American brands Kodak and Polaroid in year 2016-17 to manufacturer mobile power banks and LED TVs respectively, our company scaled up its volumes over last one year from these brands.
Company is authorized licensee for Polariod LED TVs and LED Monitors and Kodak Power banks in India. Company is also trading in mobile power banks and LED TVs as and when demand is more than supply.
Further, the focus of the company has been to sell their products online. With the recent tie-up of the company with Appraio Retail Pvt. Ltd, a JV of Amazon Asia and Patni group as also with Flipkart India Pvt. Ltd.
The following table illustrates the installed production capacity at Noida, India:
Product wise revenue Breakup (in lakhs):
Agreement with Polaroid Brand:
Powerful Technologies Ltd has been granted license from Polaroid to use the “Polaroid” and “Polaroid & Pixel Design” trademarks with the products i.e. consumer televisions and computer monitors in the territories of India, Nepal& Bangladesh.
The agreement is valid till December 31, 2019 and we pay royalty of 2% of average sales price.
Company has manufacturing/assembling rights for LED TVs under the brand name of “Polaroid” in the 60cm (23.6inches), 100cm (39.5inches), 50cm (19.5inches), 55cm (21.6inches) and 80cm (31.5inches) variants.
Agreement with Kodak Brand:
Powerful Technologies Ltd has entered into a distribution agreement with Strand Europe Ltd to act as a manufacturer and distributor for the range of Kodak Power Banks within India. Strand Europe Ltd is having a Trademark License Agreement with Kodak.
The agreement is valid till December 31, 2018. Commission is payable at a 15% mark up over manufacturing cost.
Company has manufacturing/assembling rights for Power Banks under the brand name of “Kodak” in the 2500 mAh, 5000 mAh, 10000 mAh, 12500 mAh and 15000 mAh variants.
LAPPY MASTER Brand:
Company has an agreement with Pioneer Computronix Private limited, an associate company to use the “Lappymaster” brand to make and sell LED TVs, LED Monitors and Power Banks in their brand name.
Company has entered into a license agreement with Pioneer Computronix Private limited to manufacture, distribution and selling a range of television, computer screens and power banks under the “Lappymaster” Brand.
The agreement is valid till December 31, 2020. Royalty is payable at 1% on the total turnover under the brand name “Lappymaster” on quarterly basis.
Further Online Sales detail for the financial years ended March 2018, 2017 and 2016 is as follows: (in Lakhs)
Management Team:
- Mr. Aditya Gupta (Designation: Managing Director)
- Mrs. Karuna Chhabra (Designation: Non-Executive Director)
- Mr, Nitin Chhabra (Designation: Executive Director)
Positives for the Company:
Licensee Rights with Reputed and Well-known Brands.
Company holds Licensee rights for most reputed international brands like Polaroid in different territories such as India, Nepal and Bangladesh and Kodak in India.
Company earns the majority of its revenue and profit through the sale of their products to Indian consumers. The offering comprises products released under Powerful in-house brand, such as “Powereye” and “Lappymaster” and – products produced under third party brands, such as “Kodak” and “Polaroid”.
company is brand owner of “Powereye” and is having a basket of consumer Electronics and IT products under this brand. Company manufactures consumer electronics and IT products under the brand name of “Lappymaster”.
Extensive array of Products.
Company is mainly engaged in Consumer Electronics business, dealing in Manufacturing of LED TV, Mobile Power Banks and Adaptors. They have launched variety of LED TVs, Mobile Power Banks and Adaptors.
Entered into a MOU. (Memorandum of Understanding)
Company has entered into a MOU dated April 15, 2018 with Advantage Computers India Pvt. Ltd(ACPL), a 22 year old company into the business of manufacturing and distribution of IT products & mobile phones (in the brand name “ADCOM”) to jointly cater mobile phones and their accessories market across Delhi/NCR.
Expansion by introducing more Product line.
Company is planning to expand vertically also by introducing more product line related to mobile accessories like mobile phone charger, earphones, headphones and Bluetooth speakers in addition to introductions of new models in the existing range of Kodak power banks by launching of few more capacities power banks and to have more colors options in the same models and in the same way for polaroid LED TV, by introducing some more Sizes and some new design in the existing sizes.
Objectives of the Issue:
- To meet the Working Capital Requirements of the Company.
- Issue Expenses.
Peer Group Comparison:
Company is into manufacturing of LED TV, LED monitors and mobile power banks. We believe that there are no listed companies in India which are solely engaged in same type of business like Powerful Technologies Ltd. Hence, a strict comparison is not possible.
Financials of the Company:
| (in Crores) | FY 16 | FY 17 | FY 18 |
|---|---|---|---|
| Revenue | 24.97 | 35.61 | 62.62 |
| Net Profit | 0.18 | 0.40 | 4.50 |
Note: The reasons why the profit during the period ending March 31, 2018 has increased:
- Licensed Brands – Kodak & Polaroid contributed to sales significantly which had better margins.
- GST implementation resulting into credit of custom duties on imported materials.
- Economies of scale reached as the turnover has increased.
- Overall price reduction of materials/components due to bulk purchases.
- Product range under Polaroid TV expanded, where margins are much better.
- Vertical expansion in the form of product range and horizontal expansion in the form of expansion of distribution network across India & increase in the number of dealers/distributor’s, has helped in getting better pricing and margins.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 9th August 2018 |
| Issue Closes on:. | 14th August 2018 |
| Issue Price | Rs.51 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 shares |
| Minimum Investment | Rs.1,02,000 |
| Issue Constitutes | 26.5% |
| Issue Size | Rs.13.54 cr |
| Market Cap | Rs.51.11 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 26,56,000 |
| Equity Shares Prior to the Issue | 73,65,716 |
| Equity Shares after the Issue | 1,00,21,716 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 7.32 | 6.97 | 35.73% | 17.11 |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| POWERFUL TECHNOLOGIES LIMITED G1 Prakash Chamber, Ground Floor 6 Netaji Subash Marg, Darya Ganj, New Delhi – 110002 Tel: +91 120 2427181/ +91 11 40071894 E-mail: nitin@pcpl.in Website: www.powerfultech.in |
| IPO Registrar Info: |
|---|
| Big Share Services Private Limited 1st Floor,Bharat Tin Works Building,, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400059, Maharashtra, India Tel: +91 22 62638200 Fax: +91 22 62638299 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| Finshore Management Services Limited Anandlok, Block-A, 2nd Floor, Room No. 207, 227 A.J.C. Bose Road, Kolkata-700020, West Bengal,India Telephone: +91-33-22895101 Facsimile: +91-33-22895101 Investor grievance email: info@finshoregroup.com Website: www.finshoregroup.com |
