About the Company:
Zircon Technologies is engaged in the business of Label Printing for packaging of products and Brand Security Solutions.
Company’s product portfolio comprises of self-adhesive labels, security labels, anti-counterfeiting labels, brand security labels and tamper evident labels, hybrid security labels, canister labels and a host of other labeling solutions including techniques for prevention of duplication of prints and anti-counterfeiting.
Company develops and offers a variety of labels and brand security solutions to a large number of national as well as international companies.
Company’s brand security and labeling solutions are designed to suit the specific needs of various industries including home care, personal care, food and beverage, wine and liquor, pharmaceutical, agro-chemicals, automobile industries as well as industrial products.
Sample Images of Company’s Products for better Understanding:
Company’s Business Verticals:
Zircon Label.
They provide high quality labeling and brand image solutions across several different sectors including but not limited to homecare, personal care, food and beverage, wine and liquor, pharmaceutical, agro-chemicals, automobile industry and industrial production.
Labels accounted for approximately 95.78%, 96.33% and 97.96% of their total net sales in Fiscal 2018, Fiscal 2017 and Fiscal 2016 respectively.
Zircon Secure.
Under Company’s Print security segment, they offer high security graphics alone or in combination with different security elements such as OVI, OVD, Taggants, specialized security inks and base materials for anti-counterfeiting purposes.
They offer these brand security solutions under the brand 
which stands for ‘intelligent graphics’.
Brand security solutions segment accounted for approximately 4.22%, 3.67% and 2.04% of their total net sales in Fiscal 2018, Fiscal 2017 and Fiscal 2016 respectively.
Revenue Generated from Business Verticals: (in Millions)
Royalty Income for the Company:
Zircon Technologies have offered their technology of “high security graphics design and printing segment” to a large European company under a licensing agreement in 2013 for which company receives royalty income.
Company’s high security graphics printing technology was developed through their extensive in-house R&D process.Company believes that the brand security technology is capable of successfully penetrating into a large variety of industry verticals and brands.
Manufacturing Facilities.
Company has 3 manufacturing facilities, two of which are located in Dehradun and one is located in Chennai. They have received quality accreditations including ISO 9001:2015 for their manufacturing units in Dehradun and Chennai.
Competition for the Company:
Some of the competitors include Skanem Interlabels Industries Private Ltd and Webtech Labels (a division of Huhtamaki Ltd), Control Print Ltd and Mudrika Labels Private Ltd.
Management Team:
- Mr. Tilak Raj Sondhi (Designation: Chairman and Non-Executive Director)
- Mr. Sanjeev Sondhi (Designation: Managing Director)
Objectives of the Issue:
- Repayment/pre-payment, in full or part, of certain borrowings availed by the Company.
- Capital expenditure for Setting up of New Manufacturing facility at Dehradun.
- Funding the Working Capital Requirements of the Company.
- General Corporate Purposes.
Peer Group Comparison:
There are no listed peers in India which are engaged in a similar line of business or whose business is comparable with that of Zircon Technologies business. (Similar Listed company you can refer is Control Print Ltd)
Positives for the Company:
Emerging Player in Brand Security Solutions.
Under the brand they offer a wide array of brand security solutions to their customers to deter counterfeiters from illegally selling fake products.
In Fiscal 2018, the revenue generated from brand security solutions was Rs.3.97 crores, which represented 4.22% of their total revenue. Company believes that by Fiscal 2021, the brand security solutions will contribute 25% of the total revenue.
In House Development and Adoption of Latest Technology.
Company’s R&D team has played an integral role in making significant contributions and additions to our product portfolio. The research conducted by the R&D team has
enabled them to adopt several new printing techniques and to widen their product profile.
Zircon Technologies is among the few companies in the printing and labeling industry who have been successful in the development of several new technologies which are
commercially viable.
To Increase focus on Packaging Business.
Zircon Technologies intends to expand their operations from the label industry to the packaging industry in the form of canisters and shrink sleeves.
Company has commenced production of canisters in their existing facility in Dehradun and aim to grow this segment. The aim is to set up a manufacturing unit dedicated to the manufacture of canisters, labels and shrink sleeves and other packaging solutions in Dehradun.
Further, in addition to expanding their manufacturing capacity, Company also intends to set up manufacturing facilities in western India, which will help Zircon achieve a pan-India presence and serve their customers more efficiently, besides improving the profit margins.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 47.0 | 61.68 | 83.08 | 98.61 | 96.24 |
| Net Profit | (-1.5) | (-0.003) | 2.95 | 2.4 | 6.38 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Will be Updated |
| Issue Closes on:. | Will be Updated |
| Issue Price | Will be Updated |
| Face Value | Rs.10 |
| 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 | 1,47,70,000 |
| Equity Shares after the Issue | Will be Updated |
Also Read : List of Upcoming IPO’s in India.
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 |
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| QIB | ||||
| NII | ||||
| Retail | ||||
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| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.31 | TBA | 32.28% | 13.38 |
Also Read: Difference between Portfolio Management Services (PMS) and Mutual Funds?
| Check IPO Allotment Status: |
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Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Find the List of Upcoming IPOs in 2019: |
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Upcoming IPOs in 2019 (Click on the below Link)www.UpcomingIPOs-in-India-2019 |
| Company Contact Info: |
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| Zircon Technologies (India) Limited No. 2B-1226, GD Colony Mayur Vihar, Phase – III New Delhi – 110 096, Delhi, India. Telephone: +91 11 2262 5772 Email: contact@zircontech.com Website: www.zircontech.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 22 4918 6200 Fax: +91 22 4918 6195 Email: zircon.ipo@linkintime.co.in Website: www.linkintime.co.in |
