About the Company:
Platinum Industries Ltd is a multi-product company engaged in the business of manufacturing stabilizers. Our business segment includes PVC stabilizers, CPVC additives and lubricants.
Company’s products find their application in PVC pipes, PVC profiles, PVC fittings, electrical wires and cables, SPC floor tiles, Rigid PVC foam boards, packaging materials, etc.
Company’s business model is aimed at consistently expanding the product portfolio by introducing new products to cater to multiple end-use applications.
Company exports products to other countries also and has a distribution network of 12 spread across India.
Company’s Manufacturing Facility is located at Palghar, Maharashtra which is spread across an aggregate parcel of land admeasuring about 21,000 sq. ft.
Company’s Technical Collaboration Agreement:
Company has a Technical Collaboration Agreement with HMS Concept E.U. which is a sole proprietorship concern of Dr. Horst Michael Schiller, who is an internationally renowned scientist with over three decades of experience in the PVC industry.
Major Shareholders of the Company:
Operational KPIs for the Company:
Company’s Product Portfolio:
What is PVC stabilizers?
- PVC stabilizers are chemical additives used in the production of polyvinyl chloride (PVC) based products to enhance the performance and durability of PVC.
- These stabilizers enhance the thermal stability of PVC by allowing it to withstand heat without significant degradation or loss of physical properties.
- They prevent the discoloration, embrittlement and degradation of PVC caused by UV exposure, ensuring the longevity and aesthetics of PVC-based applications.
- It also improves the mechanical properties of PVC, such as its impact strength, tensile strength, and flexibility.
- PVC stabilizers thus, contribute to the overall durability and performance of PVC products, making them suitable for a wide range of applications.
What is CPVC additives?
- CPVC additives, or chlorinated polyvinyl chloride additives, are chemical substances added to enhance the properties and performance of chlorinated polyvinyl chloride (CPVC) materials.
- CPVC additives improve the heat and chemical resistance of CPVC materials, allowing them to withstand higher temperatures compared to standard PVC and withstand exposure to a wide range of chemicals and corrosive substances.
- This makes CPVC suitable for applications that involve hot water handling such as plumbing systems, industrial pipes, and fire sprinkler systems and for use in chemical processing plants, laboratories, and industrial applications where resistance to chemicals is crucial.
- CPVC Additives also improve the mechanical strength and toughness of CPVC materials. They enhance the impact resistance, tensile strength, and dimensional stability, making CPVC suitable for demanding applications where durability and strength are required.
Company’s Overseas Expansion:
Company through its subsidiary Platinum Stabilizers Egypt LLC, intend to establish a project in Egypt, which shall be spread over an aggregate parcel of land admeasuring about 10,000 sq. mtrs and shall venture into manufacturing of PVC stabilizers (both lead based and non-lead based).
Setting up New Manufacturing facility in Palghar, Maharashtra:
Company is in the process of setting up a new manufacturing facility at Palghar, Maharashtra which shall be spread across an aggregate parcel of land admeasuring about 14,800 sq. mts.
Company’s Capacity and Capacity utilization:
Management Team:
- Mr. Krishna Dushyant Rana (Designation: Chairperson & Managing Director)
- Ms. Parul Krishna Rana (Designation: Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs.235 cr)
- Investment in our Subsidiary, Platinum Stabilizers Egypt LLC (“PSEL”) for financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for PVC Stabilizers at SC Zone, Governorate of Suez, Egypt. .
- Funding of capital expenditure requirements of the Company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar, Maharashtra, India.
- Funding working capital requirements of the Company.
- General corporate purposes.
Fund Utilisation:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Investment in Platinum Stabilizers Egypt LLC for financing its capital expenditure requirements in relation to the setting up of the Proposed Facility 1 (Egypt) | 67.7 |
| Funding of capital expenditure requirements of our Company towards setting up of the Proposed Facility 2 (Palghar) | 71.2 |
| Funding working capital requirements of our Company | 30 |
The expected schedule of implementation of the Proposed Facility is set forth below:
Peer Group Comparison:
There are no listed companies that exclusively undertake the manufacturing of PVC stabilizers and CPVC additives.
Unlisted Peer Companies:
Positives for the Company:
Varied product portfolio catering to diversified industries.
- Company has a varied products for PVC industry in the market and multiple product categories such as low lead based stabilizer, calcium zinc based stabilizer and organic based stabilizer.
- Within each product category, there are multiple grades depending on application and customer requirements.
- Company’s constant efforts are focused towards continuously identifying market demands and introducing relevant products with high quality. In PVC applications, company has developed more than 400 grades, which help to cover majority of customers as well as different applications.
- Company had launched with PVC stabilizers and were primarily supplying to PVC pipes industry (irrigation, and water transport).
- Subsequently, with the varied developments in the product portfolio company have now established presence in pipes and fittings, rigid and semi-rigid films, window profiles, wires and cables, and other applications such as medical and consumer goods.
High entry barriers in the speciality chemical industry.
- Barriers to entry in the speciality chemical industry are typically high. The specialised nature of products leads to significant differentiation. R&D requirements, technical know-how, capital intensity service capabilities, customer relationships, and engineered or regulated specifications also create important barriers to entry.
- Thus, customer acquisition is difficult and limits the number of competitors involved in the manufacturing of company’s products.
Expanding the production capacities and broadening the global footprint.
- Company intends to increase global market reach for which will have to broaden the manufacturing capabilities.
- For this purpose, company is in the process of setting up manufacturing facility in Egypt, through our subsidiary, which is scheduled to commission production by fourth quarter of FY 2024-25.
- Company is establishing a presence in Egypt by setting up a new manufacturing facility will, in addition to augmenting our manufacturing capacity, also enable company to capture market share by catering to the needs of the PVC pipes and tubes, PVC profiles, PVC fittings, electrical wires and cables industries which have a presence in and around Egypt.
- Setting up manufacturing operations in the Egypt will also provide company easier access to cater to the needs of such industries and increase the sales due to the proximity of various manufacturing facilities in these industries in Egypt.
- Currently there are no manufacturers of PVC stabilizers in Egypt and the country has an average demand of around 12,000 tons/annum which can be addressed preferentially by a local manufacturer, since currently the market is importing stabilizers to meet their demand.
Company has good relationships with some of the major PVC pipe producers in the country.
- Company is currently one of the leading manufacturers and suppliers of PVC stabilizers in India and aims to expand the global footprint.
- Company’s strategy to achieve this is by having a systematic approach of customer classification and strategy of market penetration.
- Company has established good relationships with some of the major PVC pipe producers in the country (accounting for the major share of stabilizer market)
Modernization and Expansion of facilities in India.
- Company’s first manufacturing plant was set up in 2016 at Palghar, Maharashtra which is engaged in manufacture of existing products. Initially the production was set up on a leased plot of land to manufacture lead based stabilizers, and over a period of time we expanded to non-lead based products.
- The rapid increase in production has hindered the options for any automation and process improvements in our existing plant. It also does not give company any more room for expansion or for additional raw material and finished goods storage.
- Therefore, company is in the process of establishing another facility at Palghar, Maharashtra to streamline the production and also to increase the capacity engaged in the manufacture of non-lead based stabilizers. This will also assist in segregating the lead from the non-lead products thereby giving more control of product quality for our customers.
- Company has already acquired a parcel of land admeasuring about 14,800 sq. mtrs. The installed capacity of the facility is proposed to be an aggregate of 60,000 MTPA of PVC Stabilizers (Non-Lead Based).
- This facility is being undertaken to create a distinction between lead based and non-lead based products which shall help company to maintain quality and reduce impurities.
- This facility shall have automation with a “dust-free” powder line with emphasis on quality and high safety features, thereby giving us a technological edge over competition.
- This facility will have advanced technology and automatic machinery which will help to reduce dependence on labour force.
- Company intends to start commercial production at this facility by fourth quarter of financial year 2024-25. The lead based products will continue to be manufactured in the existing facility.
Continue to innovate new product categories, catering to wider end-applications.
- Company intends to strengthen the relationships with existing customers and explore opportunities to grow along the value chain by expanding the array of existing products and solutions that we supply to customers across geographies, and to win new customers by developing products and solutions aligned with their needs.
- As part of growth strategy, company is seeking to pursue emerging opportunities in the existing product categories.
- Currently, company’s portfolio caters to PVC pipes and tubes, PVC profiles, PVC fittings, electrical wires and cables industry sectors and company intends to diversify the product base to cater to other end-use industries as well, such as pharma and medical.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 89.5 | 189.2 | 232.5 | 123.7 |
| Net Profit | 4.8 | 17.7 | 37.5 | 22.8 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 27th February 2024 |
| Issue Closes on | 29th February 2024 |
| Issue Price | Rs.162 – 171 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 87 Shares |
| Minimum Investment | Rs.14,877 |
| Issue Constitutes | 39.91% |
| Issue Size | Rs.235.31 cr ($ 28 million ) |
| Market Cap | Rs.939.21 cr ($ 113 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,37,61,225 |
| Equity Shares Prior to the Issue | 4,11,63,648 |
| Equity Shares after the Issue | 5,49,24,873 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st March 2024 |
| Initiation of Refunds | on or Before 4th March 2024 |
| Credit of Equity Shares: | on or Before 4th March 2024 |
| Listing Date: | on or Before 5th March 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.42 | 18.15 | 61.26% | 15.37 |
| Company Contact Info: |
|---|
| Platinum Industries Limited Unit No. 841, 4th Floor, Solitaire Corporate Park8, Andheri Kurla Road, Andheri (E), Mumbai, Maharashtra – 400093 Telephone: +91 7304538055 Email: cs@platinumindustriesltd.com Website: www.platinumindustriesltd.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai –400 093, Maharashtra, India. Telephone:022-62638200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
