About the Company:
S.J.S Enterprises Ltd is a “design-to-delivery” aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio for a
wide range of customers primarily in the automotive and consumer appliance industries.
Company is one of the leading players in the Indian decorative aesthetics industry in terms of revenue and offered the widest range of aesthetics products in India,
Company supplied over 115 million parts with more than 6,000 SKUs in Fiscal 2021 to around 170 customers in approximately 90 cities across 20 countries.
Company manufactures aesthetics products that cater to the requirements for two-wheeler, passenger vehicle and consumer appliance industries.
Company also manufactures a wide range of aesthetics products that cater to the requirements of the commercial vehicles, medical devices, farm equipment and sanitary
ware industries.
Company also offers a variety of accessories for the two-wheelers’ and passenger vehicles’ aftermarket under company’s “Transform” brand.
Products manufactured by the Company:
Company’s product portfolio is diverse, and we manufacture a wide range of aesthetics products catering to the two-wheelers, passenger vehicles, commercial vehicles, consumer durables/appliances, medical devices, farm equipment and sanitary ware industries.
In Fiscal 2021, Company supplied over 115 million parts with more than 6,000 SKUs in Fiscal 2021 to around 170 customers in approximately 90 cities across 20 countries.
Company’s product offerings include decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminium badges, IMLs/IMDs, lens mask assembly and chrome-plated, printed and painted injection moulded plastic parts.
Images of products Manufactured by the Company.
Company’s revenue from sale of key products.
Company’s Key Customers:
Godrej, Whirlpool India, TVS Motors, Samsung, Honda Motorcycle, Visteon, Suzuki, Bajaj Auto, Royal Enfield &
Eureka Forbes.
Company’s key customer base includes:
• well-known automotive original equipment manufacturers (“OEMs”) such as Suzuki, Mahindra & Mahindra, John Deere, Volkswagen, Honda Motorcycle, Bajaj Auto, Royal Enfield and TVS Motors.
• Tier-1 automotive component suppliers such as Marelli, Visteon and Mindarika.
• well-known consumer durables/appliances manufacturers such as Whirlpool, Panasonic, Samsung, Eureka Forbes, Godrej and Liebherr.
• medical devices manufacturers such as Sensa Core.
• sanitary ware manufacturers such as Geberit.
Company has developed long-standing relationships with several customers. As at March 31, 2021, Company’s relationship with its 10 largest customers in terms of revenue averaged approximately 15 years.
Company’s Subsidiary:
Company’s Subsidiary, Exotech, which was acquired on April 5, 2021, caters to requirements in the two-wheelers, passenger vehicles, consumer durables/appliances, farm equipment and sanitary ware industries for chrome-plated, printed and painted injection moulded plastic parts.
The acquisition has enhanced company’s product suite and customer base and provided company with cross-selling opportunities to existing and future customer base.
Company’s Manufacturing Facilities:
Company manufactures the products from modern manufacturing facilities located in Bengaluru and Pune in India, with the facility in Pune acquired as part of the recent acquisition of Subsidiary (Exotech).
As at March 31, 2021, the annual production capacity of the Bengaluru and Pune facilities was 208.61 million and 29.50 million products, respectively.
In Fiscal 2021, Company and Subsidiary (Exotech) produced 91.94 million and 15.60 million products, respectively, resulting in capacity utilization rates of 44.07% and 52.88% respectively.
Company’s Exports.
In Fiscals 2021, 2020 and 2019, 16.05%, 14.89% and 9.82%, respectively, of Company’s revenue from operations were derived from the sale of products to customers outside India (i.e., rest of the world).
Company intends to increase the presence in existing geographies and enter new geographies based on current customer relationships.
Over the last three fiscal years, Company sold its products to around 170 customers in approximately 90 cities across 20 countries, including in North America, Italy, Russia, Japan, Thailand, South Africa and Poland.
Competitors in the Business.
Classic Stripes Pvt Ltd, Galva Deco Parts Pvt Ltd, Kongovi Pvt Ltd, Monochem Graphics Pvt Ltd, Polyplastics Industries Pvt Ltd,Pragati Industries Ltd, PRS Permacel Pvt Ltd and Unique Labels Pvt Ltd
Management Team:
- Mr. Ramesh Chandra Jain (Designation: Chairman and Independent Director)
- Mr. K.A. Joseph (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs. 800 cr)
- Company will not directly receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders.
Peer Group Comparison:
There are no listed companies in India that engage in a business similar to that of S.J.S. Enterprises Ltd. Accordingly, it is not possible to provide an industry comparison in relation to the Company.
Positives for the Company:
Leading aesthetics solution provider with an extensive suite of premium products in a growing industry.
- Company is one of the leading decorative aesthetics suppliers with the widest product coverage across decorative aesthetics pertaining to major vehicle segments such as two-wheelers, passenger vehicles and consumer appliances.
- In addition, company also manufactures a wide range of aesthetics products that cater to the requirements of the commercial vehicles, medical devices, farm equipment and sanitary ware industries.
Manufactures wide range of product offerings.
- In Fiscal 2021, Company supplied over 115 million parts with more than 6,000 SKUs in Fiscal 2021 to around 170 customers in approximately 90 cities across 20
countries. - Company’s product offerings include decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminium badges, IML/IMD, lens mask assembly and chrome-plated, printed and painted injection moulded plastic parts.
- Company also offers a variety of accessories for the two-wheelers’ and passenger vehicles’ aftermarket under company’s “Transform” brand.Company believes that the Exotech Acquisition is synergistic to company’s business and provides with opportunities to cross-sell the products across a diversified customer base, while expanding into the growing chrome-plated parts business.
Strong manufacturing capabilities.
- Company manufactures the aesthetics products from manufacturing facilities located in Bengaluru and Pune in India spread across an area of approximately 235,000 and 68,350 square feet, respectively.
- As at March 31, 2021, the annual production capacity of Company and Subsidiary’s manufacturing facility was 208.61 million and 29.50 million products, respectively and their capacity utilization rates were of 44.07% and 52.88%, respectively.
Company’s Customer includes well known names from the industry.
- Company has collaborated with customers from early stages of design and product development to engineering and manufacturing. For example, Company collaborated with Suzuki to design and develop aesthetics for its Swift, Ertiga and WagonR passenger vehicle models.
- Other customers with whom Company has collaborated on conceptualizing and designing aesthetics include Honda Motorcycle, Royal Enfield, TVS Motors, Eureka Forbes, Bajaj Auto and Whirlpool.
- This has also helped company strengthen the product design and development capabilities and become a “design-to delivery” destination for customers.
Long-standing customer relationships.
- Company’s key customer base includes automotive OEMs, global Tier-1 automotive component suppliers, consumer durables/ appliances manufacturers, medical devices manufacturers and sanitary ware manufacturers.
- Company has received several awards from our key customers including Whirlpool, Suzuki, Honda Motorcycle and Samsung, for supplier excellence, quality performance, price competitiveness, support and valuable contribution.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th June 21 |
|---|---|---|---|---|
| Revenue | 240.76 | 221.2 | 255.1 | 75.2 |
| Net Profit | 37.2 | 41.0 | 47.74 | 9.4 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st November 2021 |
| Issue Closes on:. | 3rd November 2021 |
| Issue Price | Rs.531 – 542 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 27 shares |
| Minimum Investment | Rs.14,634 |
| Issue Constitutes | 48.49% |
| Issue Size | Rs. 800 cr ($106 million) |
| Market Cap | Rs.1650 cr ($ 219 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,47,60,147 |
| Equity Shares Prior | 3,04,37,904 |
| Equity Shares after the issue | 3,04,37,904 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or before 10th November 2021 |
| Initiation of Refunds | On or before 11th November 2021 |
| Credit of Equity Shares: | On or before 12th November 2021 |
| Listing Date: | On or before 15th November 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 30,13,183 | 0.00 | 0.00 | 1.45 |
| NII | 22,59,887 | 0.01 | 0.06 | 2.36 |
| Retail | 52,73,070 | 0.65 | 1.02 | 1.41 |
| Employee | —— | —- | —- | —- |
| TOTAL | 1,05,46,140 | 0.33 | 0.52 | 1.63 |
Note: Retail Subscription on the basis of Applications: 1.24x
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 15.69 | 34.55 | 15.15% | 103.56 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| S.J.S. Enterprises Limited Sy. No. 28/P16 of Agra Village and Sy. No. 85/P6 of B.M. Kaval Village Kengeri Hobli, Bangalore 560 082 Karnataka, India Tel: +91 80 6194 0777 E-mail: compliance@sjsindia.com; Website: www.sjsindia.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 247 Park, L.B.S. Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: sjs.ipo@linkintime.co.in Website: www.linkintime.co.in |
