About the Company:
DOMS Industries Ltd designs, develops, manufactures, and sell a wide range of stationery and art products, primarily under company’s flagship brand ‘DOMS’, in the domestic market as well as in over 45 countries internationally.
Company’s products are marketed under the flagship brand ‘DOMS’ along with other brand/sub-brands including ‘C3’, ‘Amariz’, and ‘Fixyfix’.
Company is the second largest player in India’s branded ‘stationery and art’ products market, with a market share of ~12% by value, as of Fiscal 2023.
Company’s keen focus is on research and development(R&D), product engineering, and backward integrated manufacturing, operations, combined with multichannel pan-India distribution network has enabled company to achieve a strong brand recall amongst consumers.
Company’s core products such as ‘pencils’ and ‘mathematical instrument boxes’ enjoy high market shares; 29% and 30% market share by value in Fiscal 2023 respectively.
Company’s widest breadth of product categories amongst peers in India and are amongst the few ‘stationery and art material’ products manufacturing and marketing companies globally with such a wide product breadth.
Among other factors, company’s presence across multiple such categories and price points has enabled DOMS Ltd to be the fastest growing ‘stationery and art material’ products company in India in terms of revenue over the period from Fiscal 2020 to Fiscal 2023.
Company’s History:
Company was formed in the year 1973, as a partnership firm, ‘R.R. Industries’ by the founders, late Rasiklal Amritlal Raveshia and late Mansukhlal Jamnadas Rajani, which over the years undertook the
business of manufacturing and sale of pencils and crayons.
Subsequently, in 2005, another partnership firm ‘S. Tech Industries’ was founded by certain members of the Promoter Group, to primarily undertake the business of manufacturing and sale of polymer based ‘scholastic stationery’.
Further, in 2012, Company entered into a strategic partnership with FILA, a listed Italian multinational company, engaged in the supply of various ‘art materials’ and ‘stationery products’, with a global presence.
Company’s partnership with FILA has enabled “DOMS” to gain access to international markets for distribution of products, augmentation of R&D and technological capabilities.
About F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A.
F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A. (or F.I.L.A Group) is an Italy based stationery company, incorporated in 1920, having a presence in the market for over 100 years.
It is a leading global enterprise devoted to the research, design, manufacture and sale of tools for creative expression, catering to millions of homes, schools, offices and ateliers. With over 25 renowned brands under its umbrella, F.I.L.A. operates in an extensive network spanning more than 150 countries across 5 continents.
The group operates in the creativity tools market, producing and marketing over 20 categories of products including coloring, design, modelling, writing, and painting objects, such as pencils, crayons, modelling clay, chalk, oil colors, acrylics, watercolors, paints and paper for the fine arts, school and leisure.
Facts & Figures about F.I.L.A Group:
Company’s Product Categories can be classified across seven categories:
- Scholastic stationery.
- Scholastic art material.
- Paper stationery.
- Kits and combos;
- Office supplies.
- Hobby and craft.
- Fine art products.
Company’s Product Categories with No. of SKU’s:
Break-up of Gross Product Sales across product categories for Fiscal 2023:
Company’s Manufacturing Facilities:
Company undertakes manufacturing operations from facilities located in Umbergaon, Gujarat and Bari Brahma, in Jammu and Kashmir.
The Umbergaon Manufacturing Facilities are spread over approximately 34 acres of land covering approximately 1.18 million square feet, which are equipped with modern and automated production processes.
The Jammu Manufacturing Facility is spread across approximately 2 acres of land covering approximately 0.07 million square feet.
Expansion of Manufacturing Facilities:
In order to support the growth strategy to expand manufacturing capabilities, recently company has acquired 44 acres of land which is adjacent to the existing Umbergaon Manufacturing Facilities.
Company’s Employee Strength:
As of September 30, 2023, company had 8,890 full-time employees.
Company’s Distribution Network:
Company has a widespread multi-channel distribution network with a strong pan-India presence and a global footprint catering to over 45 countries, covering the Americas, Africa, Asia Pacific, Europe and Middle East.
Company’s domestic distribution network for general trade comprises of over 120 super-stockists, and over 4,000 distributors along with a dedicated sales team of over 500 personnel covering more than 120,000 retail touch points over 3,500 cities and towns.
Company’s products are also sold through a variety of modern trade platforms such as supermarkets, hypermarkets, minimarkets, cash and carry stores. Further, products are also available on multiple e-commerce platforms.
Company’s Expansion into new Geographies:
Company intends to expand the distribution capabilities in certain South East Asian countries as well as in the African continent.
Company has recently entered the European market with sales of DOMS branded products in Italy and believes with the product offering and quality, DOMS will be able to generate significant sales from European countries as well.
Company’s Plans to enter Toys business through Inorganic growth Strategies:
Company has recently acquired a minority stake in ClapJoy Innovations Private Limited, which is in the business of manufacturing and sale of ‘toys’, to enter into a complementary line of business to capitalise on existing distribution and sales network.
Above Averge Growth Expected in Writing & Stationery Business:
Company anticipates significant growth in the industry segments in which we operate. As of Fiscal 2023, the Indian domestic writing instrument market is ₹13,350 crore by value and is expected to grow at a CAGR of ~ 16% till Fiscal 2028 to reach a market value of ₹27,750 crore.
Further, as of Fiscal 2023, the Indian domestic paper stationery market is ₹16,200 crore by value and is expected to grow at a CAGR of ~12% till Fiscal 2028 to reach a market value of ₹28,700 crore.
Company’s Key Financial Metrics: (in millions)
Management Team:
- Mr. Gianmatteo Terruzzi (Designation: Chairman and Independent Director)
- Mr. Santosh Rasiklal Raveshia (Designation: Managing Director)
Objectives of the Issue:
Offer For Sale: (Rs.850 cr)
- Each of the Selling Shareholders will be entitled to the respective portion of the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Fresh Isssue: (Rs. 350 cr )
- Proposing to part finance the cost of establishing a new manufacturing facility to expand its production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters, at Village: Dehri, Tal: Umbergaon, District Valsad, Gujarat, India (“Proposed Project”).
- General corporate purposes.
Schedule of implementation:
Positives for the Company:
- Leadership position in the Indian ‘stationery and art material’ industry with the widest range of products, driving rapid business growth.
- Strong brand recall driven by high quality, innovative and differentiated products.
- Robust manufacturing infrastructure, with a focus on backward integration to drive efficiencies.
- Robust multi-channel distribution network with strong pan India presence.
- Extensive distribution network in India.
- Strategic partnership with F.I.L.A.- Fabbrica Italiana Lapis ed Affini S.p.A. enabling access to global markets and product know-how.
- Expansion of manufacturing capacities.
- Company is Strengthening the distribution network and expanding modern trade channels.
- Company plans to undertake inorganic growth through acquisitions or strategic partnerships.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 408.7 | 686.2 | 1216.5 | 764.2 |
| Net Profit | (-6.02) | 17.1 | 102.87 | 73.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| DOMS Industries Ltd | 10 | 18.29 | 43.19 | 28.39% | 59.99 |
| Flair Writing Industries Ltd | 5 | 12.66 | 24.01 | 31.17% | 46.90 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 13th December 2023 |
| Issue Closes on | 15th December 2023 |
| Issue Price | Rs.750 – 790 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 18 Shares |
| Minimum Investment | Rs.14,220 |
| Issue Constitutes | 25.03% |
| Issue Size | Rs. 1200 cr ($145 million ) |
| Market Cap | Rs. 4794 cr ($577 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 44,30,380 (Rs.350 cr) |
| Equity Shares Offered (OFS) | 1,07,59,494 (Rs. 850 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 1,51,89,874 (Rs.1200 cr) |
| Equity Shares Prior to the Issue | 5,62,50,218 |
| Equity Shares after the Issue | 6,06,80,598 |
Also Read : List of Upcoming IPO’s in India.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 18.29 | 43.19 | 28.39% | 59.99 |
| Company Contact Info: |
|---|
| DOMS Industries Ltd J-19, G.I.D.C, Opp. Telephone Exchange, Umbergaon – 396 171, Dist. Valsad, Gujarat, India. Telephone: +91 7434888445 Email: ir@domsindia.com Website: www.domsindia.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli (West) Mumbai – 400 083, Maharashtra, India Telephone: +91 810 811 4949 E-mail: domsind.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
