Excellent Wires and Packaging Limited IPO

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Excellent Wires and Packaging Limited, originally started as Perfect Wire Industries in April 2012, began its journey as a partnership firm specializing in the manufacturing of various types of wires. The company quickly established itself as a leading manufacturer under the brand name “Excellent,” producing a diverse range of wires, including Spring Steel Wire, High Carbon Wire, Galvanized Wire (GI Wire), Round and Flat Stitching Wire, Mild Steel (M.S.) & Low Carbon Wire, Annealed Wire, Brass Wire, Copper Wire, Stainless Steel Wire, Spiral Wires, Binding Wires, Bailing Wires, and all types and sizes of Wire Ropes made from high carbon or stainless steel with or without PVC coating. These products are designed for multiple applications across industries such as Packaging, Engineering, Stationery, Imitation Jewelry, Wires & Cables, among others.

In March 2021, the business transitioned into a corporate entity with the incorporation of Excellent Wires and Packaging Limited. Over a period, the operations of Perfect Wire Industries were gradually reduced and fully integrated into the new corporate structure by August 2021. The entire production facility, along with its assets, was rented to Excellent Wires and Packaging Limited via an agreement dated June 1, 2021, and all machinery was sold to the company on March 1, 2024, at a written-down value of ₹17.75 lakhs.

Expansion and Operational Streamlining
In May 2022, the company leased a property in Panvel from Dhara Brass Wire Private Limited, which included existing machinery with an installed capacity of 360 MTPA. This acquisition allowed the company to expand its product line to include brass wires. However, managing two separate manufacturing units posed operational challenges. To streamline operations and reduce costs, the company vacated the Panvel property on April 30, 2024, and relocated to a new property adjacent to its original unit in Palghar (Gala No. 3). This strategic move not only simplified operations but also resulted in financial benefits due to lower rental expenses.

Product Portfolio

Excellent Wires and Packaging Limited’s product offerings are categorized into three broad segments:
i. Brass Wires & Products: The company produces a variety of brass wires, catering to diverse industrial applications.
ii. Steel Wires & Products: This segment includes a wide range of steel wires, including Spring Steel, High Carbon, Galvanized, and Stainless Steel wires, among others.
iii. Other Products: In addition to wires, the company also offers packaging products such as PP Strapping Rolls and BOPP Self-Adhesive Tapes, which are procured from the market and sold under the “Excellent” brand name.

Conclusion

Excellent Wires and Packaging Limited has established itself as a reliable and quality-driven manufacturer in the wire and packaging industry. With a strong focus on quality, operational efficiency, and customer satisfaction, the company continues to grow and adapt to market demands. Its comprehensive product portfolio, combined with its commitment to continuous improvement and innovation, positions Excellent Wires and Packaging Limited as a key player in the industry, well-equipped to meet the evolving needs of its diverse clientele

Objects of the Excellent Wires and Packaging Limited IPO:

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: i. Acquisition of Land and construction of Building ii. Acquisition of Plant & Machineries iii. Funding additional Working capital requirements; and iv. General Corporate Purposes
DRHP of Excellent Wires and Packaging Limited IPO
RHP of Excellent Wires and Packaging Limited IPO

Excellent Wires and Packaging Limited IPO Details:

Open Date: Sep 11 2024
Close Date: Sep 13 2024
Total Shares: 1,400,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 12.60 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 90 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 18 2024

Promoters And Management:

Bhavya Vasant Shah, aged 47, is the Non-Executive Chairman of the Company, having joined the board on February 15, 2024, and redesignated on May 31, 2024. He holds a Bachelor's degree in Commerce from the University of Mumbai and brings over two decades of experience in the packaging and wire industries, with a strong focus on financial management, marketing strategies, and stakeholder relationships. His deep industry knowledge and expertise make him a valuable asset for driving the Company's growth. Rachit Paresh Masalia, aged 35, is the founding promoter and director of the Company, recently redesignated as Managing Director on April 6, 2024. He holds a Bachelor's degree in Management Studies from the University of Mumbai and a Post-Graduate Diploma in Management from Flame School of Business, Pune. With over 10 years of experience in the wire and packaging industry, Rachit specializes in production management, quality control, supply chain management, sales, and marketing. He is deeply involved in optimizing production processes, ensuring product quality, managing supplier relationships, and developing competitive pricing strategies, all while capitalizing on market opportunities. Darshil Hasmukh Shah, aged 33, is a founding promoter and director of the Company, recently redesignated as Executive Director on April 6, 2024. Despite being an undergraduate, he brings over 10 years of experience in the manufacturing segment of the wire and packaging industry. His expertise includes overseeing assembly lines, managing equipment maintenance, ensuring product quality, and optimizing production workflows. Darshil is also skilled in inventory management, supply chain coordination, and compliance with industry regulations, with a strong focus on implementing safety protocols and quality control measures to maintain the Company's product standards.

Financials of Excellent Wires and Packaging Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 729 1,448 1,541
Other Income 0.02 0.01 0
Total Revenue 729 1,448 1,541
Cost of material Consumed 699 1,283 1,253
Changes in Inventories -60 -66 -14
Employees Benefit Expenses 37 55 48
Other Expenses 36 134 108
EBITDA 17 42 146
OPM (%) 2.27% 2.89% 9.48%
Depreciation & Amortisation 1 3 6
EBIT 15 39 140
Finance Cost 9 24 27
PBT 6 14 113
Tax 2 4 30
PAT 5 10 83
NPM (%) 0.65% 0.72% 5.39%
No.of Shares 44.70 44.70 44.70
EPS 0.10 0.23 1.85

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Excellent Wires and Packaging Limited 15 1 1.85 48.5 90 40
Bedmutha Industries Ltd 812 21 6.49 24.4 206 665
KEI Industries Ltd 8,104 581 64.39 64.6 4,368 39,415
Rajratan Global Wire Ltd 890 72 14.15 40.7 598 3,039
* All the data is as per FY24.

Recommendation on Excellent Wires and Packaging Limited IPO:

1. Excellent Wires and Packaging Limited is engaged in the manufacturing and sale of a wide range of wire products and packaging materials. 2. Its product portfolio includes: i. Brass Wires & Products ii. Steel Wires & Products iii. Other Products: The company also offers packaging products such as PP strapping rolls and BOPP self-adhesive tapes under the "Excellent" brand. 3. Market Focus and Sales Strategy Excellent Wires and Packaging Limited primarily operates in the B2B segment, supplying its products to a variety of industries across India. The company's sales strategy focuses on building strong relationships with B2B customers, ensuring a steady demand for its products. 4. Competitive Landscape The wire and packaging industry is highly competitive, with competition primarily based on product quality and pricing. Excellent Wires and Packaging Limited faces competition from both domestic and international players 5. The Revenue has Increased from Rs.7 Crores in FY22 to Rs.15 Crores in FY24. 6. The EBITDA has Increased from 17 Lakhs in FY22 to 1 Crores in FY24. 7. The PAT has Increased from 5 Lakhs in FY22 to 83 Lakhs in FY24. 8. As per FY24, CFO/EBITDA is 1.00, and EPS is 1.85, 9. Market Capitalization is 40 Crores and P/E is 48.5x based on FY24.

Lead Manager of Excellent Wires and Packaging Limited IPO:

  1. Inventure Merchant Banker Services Private Limited

Registrar of Excellent Wires and Packaging Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Excellent Wires and Packaging Limited Gala No. 1, Jyoti Industrial Estate Vevoor Village, Ganesh Nagar, Palghar - E, Thane, Palghar-401404 Phone: +91 98202 85767 Email: info@excellentwiresandpackaging.com Website: https://www.excellentwiresandpackaging.com/

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