Global Pet Industries IPO

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i. Global Pet Industries is engaged in the business of manufacturing of pet machines, pet blow machine, fully automatic pet machines, semi-automatic pet machines, pet blow moulding machine, pet bottle moulds, industrial semi-automatic pet machine and spares, components, parts and accessories of such machines and equipment and other mechanical products including their components, parts and accessories.

ii. The company is engaged in manufacturing of PET Stretch Blow Moulding Machine which is used for manufacturing of machine which is suitable in business segment of Pet stretch below moulding solutions from 50ml to 20 Litres of PET bottles such as fridge bottles, packaged drinking mineral water bottles, carbonated soft drinks bottles, hot fill juice bottles, edible oil bottles, liquid detergent bottles, cosmetic products bottles, confectionery jars, Pharma bottles, liquor & distilleries bottles, pesticides bottles, etc. Apart from manufacturing of PET Stretch Blow Moulding Machine, our company also provides after sales services such as providing spares, components, accessories and providing repairs and maintenance of the machines after delivery.

iii. The Company has acquired the running business of M/s. Global Pet Industries, vide Assignment of Business Agreement dated August 09, 2013 entered by and between the promoter and the company

iv. They are engaged in manufacturing of their product, Semi-Automatic Pet Stretch Blow Moulding Machine in Unit 2. Entire end to end process of manufacturing of the said product is completed in this Unit from assembling of raw materials to final conversion of raw materials to finished products.

Competitive Strengths
Customer base across geographies and industries
ii. Our Product Portfolio
iii. Quality assurance

Objects of the Global Pet Industries IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Funding Capital Expenditure towards the construction of factory building, and ii. General Corporate Purposes.

Global Pet Industries IPO Details:

Open Date: Jun 29 2023
Close Date: Jul 03 2023
Total Shares: 27,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 13.23 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 49 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 11 2023

Promoters And Management:

i. Mr. Bipin Nanubhai Panchal, aged 55 years, is the Promoter Chairman and Managing Director of the Company. He has completed his SSC from Maharashtra State Board of Secondary Education in the year 1985. He has completed Industrial Training in Tool and Die making from Industrial Training Institute of Bombay in the year 1988. He has more than 30 years of experience in the industry. He has been associated with the Company since incorporation. He looks after the management and operations of the company and is in involved in bringing about innovation in the operations and products of the Company. He is responsible for the entire management and administration of the Company and brings about innovation through creation of new capacities, development of products, exploring and evaluating ways of penetrating existing markets and developing new markets in India and abroad. ii. Ms. Nisha Bipin Panchal, aged 49 years, is the Whole Time Director of the Company. She has completed her HSC from Gujarat Education Board, Gandhinagar in the year 1991. She has been associated with the company as director since incorporation. She has an experience of around 10 years in industry in which we operate and she is currently responsible for looking after the Human Resource department of the Company. iii. Ms. Harmi Bipin Panchal, aged 20 years, is the Non-Executive Director of the Company. She has completed her HSC from Maharashtra State Board of Higher Secondary Education in the year 2021. She is Currently Pursuing Bachelors of Commerce from University of Mumbai.

Financials of Global Pet Industries IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Equity Share Capital 44.30 44.30 44.30 44.30
Reserves 402 544 660 816
Borrowings 24 0 0 0
Trade Payables 255 467 320 472
Other Liabilities 338 537 654 908
Total Liabilities 617 1,004 975 1,380
Net Block 176 160 140 77
Other Assets 20 19 23 18
Total NC Assets 196 179 164 95
Receivables 163 157 164 249
Inventory 164 506 525 918
Cash & Bank 340 490 512 347
Other Assets 199 261 314 631
Face value 10 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 1,974 2,252 2,761 3,003
Raw Material Cost 1,246 1,661 1,929 2,608
Change in Inventory 5 -195 -48 -519
Employee Cost 401 409 475 519
Other Expenses 193 182 266 229
Other Income 28 34 40 71
EBITDA 157 228 178 237
EBITDA Margin 7.92% 10.12% 6.46% 8.35%
Depreciation 31 27 23 21
Interest 4 2 2 3
Profit before tax 122 199 154 275
Tax 27 56 38 67
Net profit 95 142 116 208
NPM (%) 4.72% 6.23% 4.14% 6.77%
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Cash From Operating Activity
Profit From Operation 167 215 173 219
Receivable 41 6 -6 -86
Inventory -29 -342 -19 -393
Payable -1 213 -147 151
Loans And Advances 53 -38 12 -77
Other WC Items -22 154 74 141
Working Capital Changes 42 -8 -87 -264
Direct Taxes 42 39 57 40
Gratuity paid during the year 0.2 1 0.3 0
Net Cash Inflow from Operating Activity 167 166 29 -85
Cash from Investing Activity
Fixed assets purchased -11 -10 -4 -33
Fixed assets sold 0 0 0.3 80
Investments purchased -100 0 -10 -134
Other investing items 5 20 9 8
Net cash inflow from investing activities -106 10 -5 -78
Cash from Financing Activity
Proceeds from borrowings 4 0 0 0
Repayment of borrowings 0 -24 0 0
Intrest paid fin -4 -2 -2 -2
Net Cash Flow 61 150 22 -166

Comparison With Peers:

* There are no listed companies in India and abroad that is engaged in developing a similar line of product solution to the Company.

Recommendation on Global Pet Industries IPO:

Review and Recommendation of Global Pet Industries by IZ team is 6/10 Brief About Company? 1. Global Pet Industries Ltd is a leading manufacturer and exporter of Two Stage PET Stretch Blow Moulding Machines. The company is based in Mumbai, India​​. 2. The company has been in the industry for over 25 years, making it a reputable brand in India. It has operations in 40 countries across the globe, demonstrating its global presence​​. 3. The company is committed to maintaining high-quality standards, efficient delivery schedules, cost-effective rates, and excellent after-sales service. It prides itself on introducing new products to the Indian market​​. 4. The company was founded by Mr. Bipin Panchal, who started his career as a production manager in his mid-90s. He initially ventured into a business partnership from 1996 to 2000, which focused on the manufacturing of Manual Pet Stretch Blow Moulding Machines​. 5. From 2000 to 2006, Mr. Bipin Panchal served as a Technical Director, where he elevated the business to new levels on domestic stages. In 2006, he established his own manufacturing business, Global Pet Industries, as a proprietary business​​. In 2013, after running the business for seven years, the proprietary business was converted into a corporate entity under the name Global Pet Industries Ltd, with Mr. Bipin Panchal as the Managing Director. 6. Since then, the company has continued to grow and expand, becoming a leading exporter in 40 countries globally​. The company's growth and success can be attributed to the trust and support of its customers, who have shown significant faith and appreciation for the company's offerings​. What is the PET Stretch Molding Machines? PET stretch blow molding machines are used in the production of PET (polyethylene terephthalate) bottles and containers. PET is a type of plastic that is commonly used in the packaging of various products such as beverages, food, and other consumables because of its strength, thermal stability, and transparency. PET bottles are used in such as fridge bottles, packaged drinking mineral water bottles, carbonated soft drinks bottles, hot fill juice bottles, edible oil bottles, liquid detergent bottles, cosmetic products bottles, confectionery jars, Pharma bottles, liquor & distilleries bottles, pesticides bottles.

The main advantage of PET stretch blow molding is that it allows for the production of complex bottle shapes in a cost-effective manner, and the resulting products have excellent material properties such as clarity, strength, and barrier resistance. Clients of Companies? They have some prominent clients like Bisleri, Fosters, ITC, Parle, Priya Gold, Dalmia Bharat Group etc. Manufacturing Units They have two manufacturing units one in Vasai and another in Palghar in Mumbai. Unit -1 - It has a capacity of 127 machines. Unit-II is recently started in April 2023 which is having capacity of 96 machines. So, now total capacity will be 223 Machines from two units. Upto Dec-2022, they have sold 97 machines to the clients with total revenue of ~14.87 Crores. That means per machine average cost is ~15 lakh.

Sr No.
9MFY22 Fy22 Fy21
Units Amount Units Amount Units Amount
1 Electra Series 12 682.96 9 510 3 136
2 Eco Series 12 155.48 21 278 30 370
3 Fully Automatic Machine 11 245.43 15 453 27 607
4 Semi-Automatic Machine 62 403.46 80 551 74 470
Total 97 1,487.32 125 1,792.00 134 1,583.00
Average Price 15 Lac 14.34 lac 11.81 lac

Export Sales and Domestic Sales In the first 9MFY23, the total sales from export is ~25% and rest ~75% from the Domestic market. Why Company is raising Funds from IPO?

Company is raising ~10 Cr from the IPO towards the Capex. To cater to the growing demand from the existing customers and to meet requirements of new customers, they intend to expand their manufacturing capacities for existing products that we are in the process of developing and commercializing. They are basically constructing three floors in the existing factory. Out of 10 Cr, ~4 Cr will be used in Fy23-24 and rest ~6 Cr will be used in Fy24-25. Risks in the Business? 1. Continuous modernisation of equipment is required as per changing demand in the industry. So, it is a capital intensive business. 2. The company operates in the very competitive sector where many small and large domestic and international players exists. Financial Performance of the Company ? 1. Revenue mainly comes from selling machines and providing after sales services such as providing spares, components, accessories and providing repairs and maintenance of the machines after delivery. Revenue has increased from 20 Crores in Fy20 to 28 Crores in Fy22. This show a CAGR growth of 18%.

As they have started new factory from April 2023, the revenue of that factory will also be added from hereon. 2. EBITDA margins in the business is around 8% which is decent. 3. Net-Profit has increased from 95 lac to 2.08 Crores from Fy20 to Fy23. 4. The Return on Equity (ROE) for FY20, FY21, FY22, and FY23 are 21%, 24%, 16%, and 9.6%, respectively. There's a noticeable decline in ROE, primarily due to the company raising 13 Cr through an IPO. However, with the new factory becoming operational and starting to generate profits by the end of FY24, the ROE is expected to rebound. Despite the temporary drop, the company continues to generate a solid ROE overall. 5. Company is debt free. They do not have short term or long term borrowings as on 31.12.2022. 6. Over FY20, FY21, and FY22, the company has managed to generate approximately 3.6 Crores in cash from its operations. A temporary cash flow deficit has occurred in 9MFY22, primarily resulting from inventory accumulation. Once this inventory, estimated around ~4 cr, is liquidated, it is anticipated that the company will return to positive cash flow in FY23. Valuation of the Company? Upon annualising the 9MFY23 figures, the company's Profit After Tax (PAT) is projected to be around 2 Crores. Given the outstanding shares amounting to 97.87 lakh post-IPO, the Earnings Per Share (EPS) would be 2.04 per share. With the share price at 49, this results in a Price-to-Earnings (P/E) ratio of 25x. This appears to be on the higher side.

Lead Manager of Global Pet Industries IPO:


Company Address:

Global Pet Industries Limited Unit No. 108 & 109, Karishma Industrial Estate, Hissa No. 5, Survey No. 36, Village Waliv, Dhumal Nagar, Vasai (East), Palghar – 401208, Phone: +91 8669621562 Email: Website:

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