About the Company:
Tolins Tyres Ltd is a leading player in the Tyre & Treads industry with all India presence with a diverse product range and present in both verticals – manufacturing of new tyres and tread rubber.
Company has established itself as a major tyre retreading solutions provider across India and exported to 40 foreign countries, including the Middle East, East Africa, Jordan, Kenya and Egypt.
The major products of the Company include two wheeler, three- wheelers, light commercial vehicle and agricultural tyres, precured tread rubber and other accessories including bonding gum, tyre flap, vulcanizing solutions, etc.
Company is primarily engaged in manufacturing of bias tyres for comprehensive array of vehicles (including light commercial, agricultural and two/three-wheeler vehicles) and precured tread rubber and are also involved in manufacturing of ancillary products like bonding gum, vulcanizing solution, tyre flaps and tubes.
Under the “Tolins Tyres” brand, Company markets and sells tyres for use in light commercial vehicles, agricultural vehicles and two/three-wheeler vehicles, primarily in India and export to the Middle East, the ASEAN region, and Africa.
As on September 30, 2023, company has a total of 8 depots and 3,737 dealers across the country.
Company has established itself as a major tyre retreading solutions provider across India and exported to 40 foreign countries.
Company’s Background:
Company commenced operations in 1982 as a proprietorship concern for manufacture of tread rubber and incorporated this Company in the year 2003 and commenced production and sales in the year 2005 and since then have been one of the players for retreading products manufacturing owing to our excellence and innovation in the industry.
Company’s Business Verticals:
- Tyres.
- Tread Rubber.
Products Manufactured by the company:
- Light Commercial Vehicle Tyres (LCV).
- Off the Road/Agriculture Tyres (OTR).
- Two-wheeler & Three-wheeler Tyres.
- Tyre Tubes & Tyre Flaps.
- Precured Tread Rubber (PCTR).
- ConventionalTread Rubber.
- Bonding Gum.
- Vulcanising Solution.
Company’s Sales and Production volume:
Company’s Segment Wise Revenue:
Company’s Sales:
Currently, Company caters to all three segments of market viz. exports, domestic sales and Original Equipment Manufacturers (“OEMs”) like, Marangoni GRP, Kerala Agro Machinery Corporation Ltd (KAMCO), Redlands Motors, Tyre Grip etc.
Further, company sells the products through dealership network and our depots. Company has a widespread domestic customer base situated in most of the regions of the country and international customers situated across varied countries covering Middle East, the ASEAN region and Africa.
Company’s Exports:
Company do direct sales and through established tyre dealers overseas to market our products. Currently company is exporting to 18 countries.
The names of the countries to which company exported the products are: United Arab Emirates, New Zealand, Kenya, Saudi Arabia, United Kingdom, Sri Lanka, South Sudan, Nepal, Canada, Uganda USA, El Salvador, Peru, Tanzania, Madagascar, Czech Republic, Bahrain and Oman.
Company’s Manufacturing Facilities:
Company operates from three manufacturing facility out of which two are located at Mattoor in Kalady, Kerala and the third one is located in Al Hamra Industrial Zone in Ras Al Khaimah in UAE.
Company’s manufacturing facility is spread over approximately 8.99 acres covering approximate built-up area of 126,488 square feet for end-to-end manufacturing of tyres and tread rubber.
Company’s other facility in India is situated within the same premise and is spread over 2.21 acres covering an approximate built up area of 64,537 square feet and is engaged in manufacturing complete compound mixing which is used by the Company as a raw material to manufacture our products.
Company’s facility in UAE is spread over approximately 2.47 acres with a built up area of 30,189 square feet and is used for manufacture of tread rubber, bonding gum and warehousing of tyres.
Company’s Manufacturing Capacity:
Currently,company has a consolidated capacity of 1.51 million tyre manufacturing, 12,486 tons tread rubber manufacturing capacity and 17,160 tons of rubber compound across our Company and its wholly owned subsidiaries.
Management Team:
- Dr. Kalamparambil Varkey Tolin (Designation: Chairman and Managing Director)
- Mr. Jerin Tolin (Designation: Non-Executive & Non Independent Director)
Objectives of the Issue:
Fresh Issue: (Rs. 180 cr)
- Repayment and / or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by our Company.
- Augmentation of long-term working capital requirements of our Company.
- Investment in our wholly owned subsidiary, Tolin Rubbers Private Limited to repay and/ or prepay, in full,certain of its short term and long term borrowings and augmentation of its working capital requirements.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Repayment and / or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by our Company |
62.5 cr |
| Augmentation of long-term working capital requirements of our Company |
75.0 cr |
| Investment in our wholly owned subsidiary, Tolin Rubbers Private Limited to repay and/ or prepay, in full, certain of its short term and long term borrowings and augmentation of its working capital requirements |
24.3 cr |
Positives for the Company:
Company Plans to Penetrate into New Geographies through an Increase in Exports.
- At present, company is exporting to 18 countries. For the year ended March 31, 2023, export revenue contributed to 9.01% of company’s total revenue from operations.
- Company would continue to focus on key international clusters and seek to participate in various international exhibitions and aim to increase our visibility and expand customer base and operations.
Optimisation of Company’s Capacity Utilisation.
- Currently company has a combined production capacity of 1.51 million per annum tyre capacity, 12,486 tons per annum of tread rubber capacity and 17,160 tons per annum of rubber compounds.
- The capacity built up has been done over a period of years keeping pace with future requirements of market demand and supply coupled with our positioning in the market through penetration.
- The capacity expansion has been completed recently through acquisition of plant and machinery in tyre segment through promoters infusing money into our Company.
- Currently, company is operating at an average capacity utilization of around 25% and intends to increase the production capacity progressively in the next few years to go up to 75% capacity utilization under various product portfolios.
Expanding Reach of Domestic Markets.
- Currently company operates in major regions within India and intends to expand the reach in domestic markets as company has already expanded the manufacturing capacity. To expand within our existing verticals, company intends to collaborate with OEMs in India.
Company Plans to Pursue Inorganic Growth through Selective Acquisitions.
- Company intends to pursue inorganic growth opportunities through selective strategic acquisitions in the rubber and rubber related products, including tyre manufacturing segment to complement the scale of our operations and growth in recent periods.
- Company is currently engaged in discussions for opportunities that will enable us to gain access to new geographies, categories and an opportunity for expanded product range within the industry we operate.
- Company believes that the proposed collaborations will expand our customer base by addressing additional business verticals.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 106.9 | 114.3 | 119.6 | 88.3 |
| Net Profit | 0.76 | 0.63 | 4.99 | 12.6 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Tolins Tyres Limited | 5 | 2.55 | TBA | 25.70% | 9.92 |
| Indag Rubber Ltd | 2 | 5.04 | 31.81 | 6.25% | 8.07 |
| Vamshi Rubber Ltd | 10 | 0.22 | 177.55 | 0.72% | 3.07 |
| TVS Srichakra Ltd | 10 | 101.85 | 42.23 | 7.53% | 135.00 |
| GRP Limited | 10 | 104.61 | 48.72 | 9.46% | 110.57 |
| Elgi Rubber Company Ltd | 1 | 1.35 | 42.44 | 3.68% | 3.68 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| 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 (Fresh) | Will be Updated |
| Equity Shares Offered (OFS) | Will be Updated |
| Total Equity Shares Offered (Fresh + OFS) | Will be Updated |
| Equity Shares Prior to the Issue | Will be Updated |
| Equity Shares after the Issue | Will be Updated |
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 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 2.55 | Will be Updated | 25.70% | 9.92 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Company Contact Info: |
|---|
| Tolins Tyres Ltd No. 1/47, M C Road, Kalady, Ernakulam, Aluva – 683 574, Kerala, India. Telephone: +91 72592 87215 Email: cs@tolins.com Website: www.tolinstyres.com |
| Registrar to the Issue: |
|---|
| CAMEO CORPORATE SERVICES LIMITED Subramanian Building No. 01, Club House Road, Chennai – 600 002, India. Telephone: 044 4002 0700 Email: priya@cameoindia.com Website: www.cameoindia.com |
| Lead Manager to the Issue: |
|---|
| SAFFRON CAPITAL ADVISORS PRIVATE LIMITED 605, Center Point, 6th floor, J. B. Nagar, Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India Telephone: +91 22 4973 0394 Email: ipos@saffronadvisor.com Website: www.saffronadvisor.com |
| Check IPO Allotment Status: |
|---|
Cameo: http://www.CameoIPO.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
