About the Company:
Flair Writing Industries Ltd is among the top three players in the overall writing instruments industry.
Company’s flagship brand “Flair” has enjoyed a market presence of over 45 years.
Company has a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 31, 2023.
Company has an extensive range of products across various price points and cater to a broad range of consumers, including students, professionals and offices.
Company manufactures and distributes writing instruments including pens, stationery products and calculators.
Company is Leveraging its manufacturing capabilities and existing customer base in the writing and creative instruments business, and thereby diversified into manufacturing houseware products and steel bottles.
Company intends to leverage the strength of the “Flair” brand and our manufacturing and distribution capabilities to expand and optimize the business of houseware products and steel bottles, which is expected to be a key area of our growth going forward.
Company has recently commenced manufacturing steel bottles through one of our Subsidiaries, FCIPL, in March 2023.
Company’s Product Range:
Company’s product range includes a variety of pens (ball pens, fountain pens, gel pens, roller pens and metal pens), which is our largest category in terms of number of products offered, stationery products (mechanical pencils, highlighters, correction pens, markers, gel crayons and kids’ stationery kits) and calculators.
Company has launched a range of “Flair Creative” products in Financial Year 2021 which include water colours, crayons, sketch pens, erasers, wooden pencils and geometry boxes, fine liners, sharpeners and scales. Company offered 727 different products as of June 30, 2023.
Manufacturing of Steel Bottles:
Company has received a letter of intent from one of our key OEM customers with whom Company has a relationship of more than 15 years. One manufacturing line has been commissioned in the month of March 2023.
Company intends on commissioning two more manufacturing lines during the third quarter of Financial Year 2024 at our manufacturing plant in Valsad, Gujarat.
Foray into Houseware Products:
Company has recently forayed into manufacturing a wide range of houseware products including casseroles, bottles, storage containers, serving solutions, cleaning solutions and basket and paper bins.
Company’s Sale of Pens in Domestic and International market:
In the Financial Year 2023, company sold 130.36 crore units of pens, of which 97.53 crore units or 74.82% was sold domestically, and 32.83 crore units or 25.18% was exported globally.
Company’s top five export countries were the U.S., United Arab Emirates, Yemen, Colombia and Japan, which contributed 61.19% of our revenue from export operations during the Financial Year 2023.
Company has also entered into OEM arrangements with various international companies for contract manufacturing and exporting writing instruments
Company’s products are sold and distributed in 77 countries as of June 30, 2023.
Company’s segment-wise revenue details:
Company’s Brands:
Company’s products are sold under “Flair” , “Hauser”, “Pierre Cardin” and have recently introduced “ZOOX” in India.
Company’s brands “Flair” and “Hauser” offer mass-market and premium pen and stationery products.
The brand “ZOOX” focusses on mid-premium and premium writing instruments, and our “Pierre Cardin” brand offers premium pen and stationery products.
Company’s Revenue from each Brand:
Company manufactures for other brands:
Company also manufactures and distributes several brands in India and due to company’s ability to manufacture quality products and distribution and retail capabilities, we are able to partner with various international brands in the writing instruments.
Company also contract manufacture writing instruments as an OEM for export and for sale in India, which contributed 16.87%, 19.94%, 33.37% and 38.67% to our revenue from operations in the three-month period ended June 30, 2023 and the Financial Years 2023, 2022 and 2021, respectively.
Company also provides customized corporate gifting products to our corporate customers.
Company’s Manufacturing Facilities:
Company manufactures pens and other products from 11 manufacturing plants located in Valsad, Gujarat; in Naigaon (near Mumbai), Maharashtra; in Daman, Union Territory of Dadra and Nagar Haveli and Daman and Diu; and in Dehradun, Uttarakhand.
Company’s Human Resource:
As at June 30, 2023, Company had 5,899 full-time employees of which 3,318 were woman employees, which formed approximately 56% of the total workforce in our Company.
Management Team:
- Mr. Khubilal Jugraj Rathod (Designation: Chairman and Whole-time Director)
- Mr. Vimalchand Jugraj Rathod (Designation: Managing Director)
Company’s Production capacity and Capacity Utilization:
Setting up the New Valsad Unit:
Company aims to further increase the production capacity and capacity utilization and propose to utilize Rs.55.9 cr from the Net Proceeds towards capital expenditure in connection with setting up the New Valsad Unit.
The New Valsad Unit is being set up by the Company with the objective of leasing the New Valsad Unit to our Subsidiary, FWEPL on commercially acceptable terms for manufacture of a wide range of writing instruments.
This expansion would benefit our Company by increasing our overall manufacturing capacities for our existing products and enhance our competitive position in the writing instruments and houseware sectors.
The total land required to set up the New Valsad Unit is approximately 150,000 square feet which will consist of a total built-up area of approximately 180,000 square feet comprising the manufacturing facility, a warehouse and an administrative block.
Schedule of implementation: (New Valsad Plant)
Objectives of the Issue:
Offer for Sale: (Rs.301 cr)
- Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds.
Fresh Issue: (Rs. 292 cr)
- Setting up a new manufacturing facility for writing instruments in District Valsad, Gujarat (“New Valsad Unit”).
- Funding capital expenditure of our Company and our Subsidiary, FWEPL.
- Funding working capital requirements of our Company and our Subsidiaries, FWEPL and FCIPL.
- Repayment/pre-payment, in part or full, of certain borrowings availed by our Company and our Subsidiaries, FWEPL and FCIPL.
- General corporate purposes.
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Flair Writing Industries Ltd | 5 | 12.66 | 24.01 | 31.17% | 46.90 |
| Linc Limited | 10 | 25.15 | 33.50 | 23.37% | 119.17 |
| Kokuyo Camlin Ltd | 1 | 2.44 | 56.82 | 9.74% | 26.18 |
Distribution network of some players in the writing and creative instruments industry:
Competition in the Business:
- Company’s competitors in the Indian writing and creative instruments industry include BIC Cello, Camlin, DOMS, Hindustan Pencils, Linc, Luxor and Reynolds.
- Company’s key competitors in the Indian homeware industry include Borosil , Cello Household Products Pvt Ltd, Hamilton Housewares Pvt Ltd and Placero International Pvt Ltd.
Positives for the Company:
Among the top three players in the overall writing instruments industry in India.
- Company is among the top three players in the overall writing instruments industry with a revenue of Rs.915.5 crores in Financial Year 2023 and occupy a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 31, 2023.
Diversified range of products across various price points catering to a wide spectrum of consumers.
- Company has the most comprehensive product portfolio in the writing and creative instruments industry in India.
- Company has an extensive product range across various price points and consumer segments, including pen products (ball pens, fountain pens, gel pens, roller pens and metal pens), which is our largest category in terms of number of products offered.
- Company also offers creative and stationery products (mechanical pencils, highlighters, correction pens, markers, gel crayons, colouring range, erasers, geometry boxes and kids’ stationery kits), calculators, and offered 727 different products as of June 30, 2023.
Company is growing much faster than the overall writing and creative instrument industry.
Company is among the top two organized players which have seen faster growth in revenue as compared to overall writing and creative instrument industry growth rate.
while the industry grew at a compounded annual growth rate of 5.5% between Financial Year 2017 and 2023, company grew at a compounded annual growth rate of approximately 14% during the same period. Company reported the highest operating and net income margins of 17.8% and 9.6%, respectively.
Company had the largest distributor/dealer network and wholesale/retailer network, in the writing instruments segment in India.
- Compared with other key organized players in the writing and creative instruments industry such as DOMS, Camlin, Linc and Luxor, Company had the largest distributor/dealer network and wholesale/retailer network, in the writing instruments segment in India.
- Company has a network comprising approximately 7,700 distributors/dealers and approximately 315,000 wholesalers/retailers, as of March 31, 2023.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 310.8 | 587.64 | 954.2 | 248.5 |
| Net Profit | 0.98 | 55.1 | 118.1 | 32.1 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 22nd November 2023 |
| Issue Closes on | 24th November 2023 |
| Issue Price | Rs.288 – 304 |
| Face Value | Rs.5 |
| Retail Category Allocation | 35% |
| Minimum Lot | 49 Shares |
| Minimum Investment | Rs.14,896 |
| Issue Constitutes | 18.50% |
| Issue Size | Rs.593 cr ($ 71 million ) |
| Market Cap | Rs.3204 cr ($ 386 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 96,05,236 (Rs. 292 cr) |
| Equity Shares Offered (OFS) | 99,01,315 (Rs. 301 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 1,95,06,578 (Rs. 593 cr) |
| Equity Shares Prior to the Issue | 9,57,90,115 |
| Equity Shares after the Issue | 10,53,,95,378 (Rs. 3204 cr) |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st December 2023 |
| Initiation of Refunds | on or Before 4th December 2023 |
| Credit of Equity Shares: | on or Before 5th December 2023 |
| Listing Date: | on or Before 5th December 2023 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 12.66 | 24.01 | 31.17% | 46.90 |
| Company Contact Info: |
|---|
| Flair Writing Industries Ltd 63 B/C, Government Industrial Estate Charkop, Kandivali West Mumbai 400 067 Maharashtra, India. Tel: +91 22 4203 0405 E-mail: investors@flairpens.com Website: www.flairworld.in |
| 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 Tel: +91 810 811 4949 E-mail: flairwriting.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 |
