STUDDS Accessories Ltd

STUDDS Accessories

About the Company:

STUDDS Accessories is the largest manufacturer of two-wheeler helmets in the world in terms of volume of two-wheeler helmets sold in Fiscal 2018

Company’s flagship brand Studds is the largest selling two-wheeler helmet brand in India in terms of volume of two-wheeler helmets sold in India and is marketed and sold in 21 countries.

Company has also launched their premium helmet brand ‘SMK’ in 2016, which has emerged as the leading brand with the largest market share in the premium two-wheeler helmet segment in India in terms of volume of premium two-wheeler helmets sold in Fiscal 2018.

Company has a portfolio of products with 47 different styles and designs of helmets in various sizes and colours across the helmet categories

The range of products also include two-wheeler lifestyle accessories such as two-wheeler luggage, gloves, helmet security guards, rain suits and eye wear.

 

STUDDS Brand:

The Studds brand was established in the year 1975 and over time has become a widely-recognized brand in India. Studds covers the mass commuter market segment in India and the two-wheeler helmets under the brand were sold at maximum retail prices in India ranging from Rs.825.00 to Rs.2,165.00 per two-wheeler helmet.

Helmets sold under the Studds brand constituted more than 25% share in the two-wheeler helmet industry in India in Fiscal 2018.

A total of 4.95 million two-wheeler helmets were sold in India under the Studds brand in Fiscal 2018.

In Fiscal 2018, more than five million helmets were sold under the Studds brand within India and Asia, Latin America, Central America and Africa.

 

 

SMK Brand:

The SMK brand was introduced in the year 2016 and caters to the premium two-wheeler helmet segment in India.

SMK helmets primarily cater to the premium two-wheeler helmet segment in certain countries in Asia and Latin America, whereas in certain countries in Europe.

Helmets under the SMK brand were sold at maximum retail prices in India ranging from Rs.2,300 to Rs.9,800 per helmet.

Based on the total units of premium two-wheeler helmets sold in India in Fiscal 2018, SMK had a market share of 27.79% in the premium two-wheeler helmet market in India. In Fiscal 2018, a total of 23,436 two-wheeler helmets were sold under the SMK brand within India.

 

Daytona Helmets.

They also manufacture helmets for Jay Squared LLC D.B.A. Daytona Helmets Int. which are sold under the brand name Daytona in the United States.

 

Competitors for the Company: 

The two-wheeler helmet industry in India is highly fragmented. Company’s key competitors are Vega and Steelbird. Other organized players like Aerostar, Wrangler, Ergo, Aeron, Gliders are also making their presence felt across the country.

 

Market Share of Key Players in India:

 

Company’s Distribution Network:

Company has a strong pan India dealer network across urban, semi urban and rural parts of India which consists of dealers and institutional customers, such as the Central Police Canteens and Canteen Stores Department as well as a global distribution network.

They sell the products through 363 active dealers in India and had sold their products to 30 importers across Europe, North America, Asia, Latin America, Central America and Africa for their export operations.

 

Agreements for Supply of Helmets:

STUDDS Accessories has also entered into agreements for supply of helmets and two-wheeler lifestyle accessories with two-wheeler OEMs such as Honda Motor India Private  Limited, Hero Motorcorp Limited, Suzuki Motorcycle India Private Limited and UM Lohia Two Wheelers Private Limited.

 

Company’s Installed Capacity:

As of Fiscal 2018, Company’s manufacturing facilities had a combined installed capacity of producing 6,120,000 two-wheeler helmets per annum and 499,500 units of two- wheeler luggage.

 

Management Team:

  1. Mr. Madhu Bhushan Khurana (Designation: Chairman and Managing Director)
  2. Mr. Sidhartha Bhushan Khurana (Designation: Managing Director)

 

Objectives of the Issue:

  • Part-financing the motorcycle helmet and accessories manufacturing facility situated in Faridabad (“Manufacturing Facility III”)
  • Part-financing the bicycle helmet manufacturing facility situated in Faridabad (“Manufacturing Facility IV”)
  • General corporate purposes.

 

Peer Group Comparison:

There are no listed entities in India which are similar to STUDDS Accessories Ltd line of business and comparable to their scale of operations.

 

Positives for the Company:

Largest Manufacturer of Helmets with Leading Brands and Wide Product Range.

STUDDS Accessories is the largest manufacturer of two-wheeler helmets in the world in terms of volume of two-wheeler helmets.

The flagship brand Studds is the largest selling two-wheeler helmet brand in India in terms of volume of helmets sold in India.

Studds branded helmets constituted a share of 25.66% of the two-wheeler helmet market in India in Fiscal 2018. A total of 4.95 million two-wheeler helmets were sold in India under the Studds brand in Fiscal 2018.

 

Increase their presence in the Premium Helmet segment through the SMK brand.

In addition to strengthening and expanding the reach of the Studds brand, Company also intends to continue to grow SMK Brand targeting the premium helmet market.

STUDDS Accessories is the only manufacturer in India that is present in the premium two-wheeler helmet segment.

Company also proposes to increase the manufacturing capacity of SMK helmets in order to cater to the growing demand for premium two-wheeler helmets.

 

Expand their Product Portfolio:

Company also aim to leverage their existing suite of products, knowhow and manufacturing capabilities to produce niche and higher-margin products. In particular, they intend to expand the production of bicycle helmets and two-wheeler luggage and apparel.

They also intend to use a part of the Net Proceeds towards funding their new manufacturing facility located at Faridabad for entering new product lines and segments such, as bicycle helmets and apparels.

 

Franchisee Route Expansion:

Company intends to increase their domestic retail footprint through franchisee owned and operated exclusive brand outlets.

They plan to initially open approximately 10 to 15 exclusive franchise brand outlets primarily in tier 1 and tier 2 cities and towns in India during Fiscals 2019 and 2020.

 

Financials of the Company: (Consolidated)

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18
Revenue 173.54 206.1 293.2 311.3 341.43
Net Profit 7.49 10.47 24.69 23.74 32.46

 

IPO Details:

Details Info
Issue Opens on Will be Updated
Issue Closes on:. Will be Updated
Issue Price Will be Updated
Face Value Rs.5
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior to the Issue 1,96,76,700
Equity Shares after the Issue Will be Updated

Also Read:  Important Tips For Investing in an IPO.

 

Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated

 

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3
QIB
NII
Retail
Employee
TOTAL

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
16.50 TBA 27.35% 1085.74

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Check IPO Allotment Status:

Link InTime Website (Click on the below Link)

https://linkintime.co.in/PublicIssue/

 

Find the List of Upcoming IPOs in 2019:

Upcoming IPOs in 2019 (Click on the below Link)

www.UpcomingIPOs-in-India-2019

 

Company Contact Info:
Studds Accessories Limited
23/7 Mathura Road, Ballabgarh,
Faridabad 121 004, Haryana, India
Telephone: +91 129 429 6500
Facsimile: +91 129 429 6518
Website: www.studds.com

 

IPO Registrar Info:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200
Fax: +91 22 4918 6195
E-mail: studds.ipo@linkintime.co.in
Website: www.linkintime.co.in