Greenchef Appliances Limited IPO

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i. We are engaged in the business of manufacturing and marketing of wide range of kitchen appliances under the brand name of Greenchef. Our kitchen appliances include wide range of solutions comprising of Gas Stoves, Pressure Cookers, Mixer Grinders, Wet Grinders, Electric Rice Cooker, Induction Cooktops, Non-stick Cookwares like: Tawa, Fry Pan, Kadai, Biriyani Pot, Tadka Pan, Paniyarakkal, Appamchetty etc, Kettles, Hose Pipes, Gas Cylinder Trolley and Spin Mop. Further our company is also engaged in marketing of appliances like: Chimney, Stainless Steel Utensils, Blenders, Vegetable Chopper, Silicon Gasket, Water Bottles, Fans, Iron etc

ii. We also trade in other appliances including (i) Chimney, (ii) HOB Gas Stoves, (iii) Iron (i) Stainless steel utensils, (i) Blenders, (ii) Vegetable Chopper, (Iii) Water Bottles, (Viii) Silicon Gasket etc vide distributors and dealers across India.

iii. We manufacture the majority of core products like: railing pipe, mixing tube, brass burner, pan support etc required in Gas Stoves, weight valve and vent tube required in pressure cookers, mixi motor and jars required in Mixer Grinders etc. This enables us to control and monitor the quality and costs of these products.

iv. For certain product categories and sub-categories, we engage in sourcing from third party manufacturers both domestically and from outside India. For sourced products, we have a dedicated team to undertake inspection and ensure that such products are built to suit our specifications in terms of design and quality. We also provide after sales services in relation to our products.

v. We have three manufacturing facilities located at Bengaluru, Karnataka and one manufacturing facility located at Parwanoo, Himachal Pradesh

Competitive Strengths

i. A one stop shop for kitchen solutions with a diverse range of products across consumer preferences
ii. Emerging player in some of the key verticals
iii. Widespread, well connected distribution network with a presence across multiple retail channels and online e-commerce platforms and a dedicated after-sales network.

Objects of the Greenchef Appliances Limited 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 installation of additional plant and machinery, and the construction of the factory building, ii. Funding of working capital requirement, and iii. General Corporate Purpose.
DRHP of Greenchef Appliances Limited IPO
RHP of Greenchef Appliances Limited IPO

Greenchef Appliances Limited IPO Details:

Open Date: Jun 23 2023
Close Date: Jun 27 2023
Total Shares: 6,163,200
Face Value: ₹ 10 Per Equity Share
Issue Type: 53.62
Issue Size: 53.62 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 82-87 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 06 2023

Promoters And Management:

i. Sukhlal Jain, aged 71 years, is the Promoter, Chairman and Whole Time Director of the Company. He has been on the Board of Directors of the Company since incorporation. He has completed his Secondary School Certification from Govt. Sr. Secondary School, Todgarh, Ajmer in year 1967-68. He has an overall work experience of around 51 years. He is a visionary entrepreneur and plays a pivotal role in business planning and development along with the overall management of the Company. Under his guidance the Company has witnessed continuous growth. ii. Praveen Kumar Sukhlal Jain, aged 42 years, is the Promoter and Managing Director of the Company. He has an overall work experience of around 20 years. He has been on the Board of Directors of the Company since Incorporation and has completed his Secondary School Certification from Sarda Vidya Mandir, Bangalore in year 1996-97. He drives the organization’s goals and visions with a keen eye on industry trends and business strategies. He looks after marketing and financial activities of the company. iii. Vikas Kumar Sukhlal Jain, aged 46 years, is the Promoter and Whole Time Director of the Company. He has an overall work experience of around 22 years. He has been on the Board of Directors of the Company since January 17, 2018 and has completed his Bachelor of Engineering (Computer Science) from Sir M. Visvesvaraya Institute of Technology in year 1999. He looks after production, raw material procurement and quality control activities of the company

Financials of Greenchef Appliances Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Equity Share Capital 356.43 356.43 356.43 356.43
Reserves 4,498 4,737 4,814 5,706
Borrowings 3,916 5,182 6,683 6,027
Trade Payables 2,797 2,674 4,684 6,429
Other Liabilities 815 1,100 1,237 1,811
Total Liabilities 7,528 8,956 12,604 14,267
Net Block 2,231 2,245 2,979 2,864
Capital Work in Progress 23 24 283 770
Other Assets 157 270 299 390
Total NC Assets 2,410 2,540 3,562 4,023
Receivables 5,894 5,987 6,477 6,780
Inventory 3,610 4,276 6,706 8,467
Cash & Bank 64 147 181 120
Other Assets 584 1,274 1,027 939
Face value 10 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 23,755 23,899 33,578 33,977
Raw Material Cost 9,761 13,171 18,873 17,742
Purchases of Stock In Trade 6,902 4,013 4,197 4,442
Change in Inventory -1,090 -519 -622 -889
Employee Cost 2,406 1,979 3,509 3,787
Other Expenses 5,062 4,365 6,829 6,517
Other Income 53 30 126 201
EBITDA 766 920 919 2,579
Depreciation 193 164 250 331
Interest 441 381 553 457
Profit before tax 132 376 116 1,791
Tax 15 119 34 429
Net profit 117 257 82 1,362
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Cash From Operating Activity
Profit From Operation 728 778 875 1612
Receivable 800 -93 -490 -309
Inventory -900 -666 -2431 -1761
Payable -257 -123 2010 1733
Loans And Advances 90 -714 246 62
Other WC Items -530 268 166 406
Working Capital Changes -797 -1327 -499 131
Net Cash Inflow from Operating Activity -69 -549 376 1743
Cash from Investing Activity
Fixed assets purchased -225 -187 -1295 -1008
Investment sold 0 0 0 51
Net cash inflow from investing activities -225 -187 -1295 -957
Cash from Financing Activity
Proceeds from borrowings 570 1266 1500 0
Repayment of borrowings 120 0 0 -655
Intrest paid fin -441 -381 -553 -342
Other financing items 317 -66 5 165
Net Cash Flow 32 84 34 -47
 

Comparison With Peers:

Name of the Company Rev (Cr) PAT (Cr) EPS ( in Rs) P/E CMP Mcap (In Crore)
Greenchef Appliances Limited 340 13.6 5.85 14.9 87 202
TTK Prestige Limited 2626 260 18.77 39.8 747 10355
Hawkins Cookers Limited 1,006 95 179.24 35.7 6,397 3,384
Stove Kraft Limited 1,284 36 10.83 41.2 446 1,474
Butterfly Gandhimathi Appliances Limited 1,057 52 28.9 40.7 1,177 2,105
* All the data is as per FY23.

Recommendation on Greenchef Appliances Limited IPO:

Review and Recommendation of Greenchef Appliances SME IPO by IZ team is 5/10 1. Product Range: Greenchef Appliances, operating under the brand name Greenchef, offers a wide range of kitchen appliances including gas stoves, pressure cookers, mixer grinders, wet grinders, electric rice cookers, induction cooktops, non-stick cookware, kettles, hose pipes, gas cylinder trolleys, and spin mops. They also market appliances like chimneys, stainless steel utensils, blenders, vegetable choppers, silicon gaskets, water bottles, fans, and irons. 2.Trading Activities: In addition to manufacturing their own products, the company also trades in other appliances such as chimneys, HOB gas stoves, iron, stainless steel utensils, blenders, vegetable choppers, water bottles, and silicon gaskets through distributors and dealers across India. 3. In-house Manufacturing: Greenchef Appliances manufactures the majority of its core products, such as railing pipes, mixing tubes, brass burners, pan supports for gas stoves, weight valves, and vent tubes for pressure cookers, and mixi motors and jars for mixer grinders. This allows them to have control over quality and costs for these products. 4. Sourcing from Third-Party Manufacturers: For certain product categories, the company sources from third-party manufacturers, both domestically and internationally. They have a dedicated team to inspect and ensure that the sourced products meet their specifications in terms of design and quality. 5. After-Sales Services: Greenchef Appliances provides after-sales services for their products, indicating a focus on customer satisfaction and support. 6. Manufacturing Facilities: Greenchef Appliances has three manufacturing facilities located in Bengaluru, Karnataka, and one in Parwanoo, Himachal Pradesh. These facilities serve as production centers for their range of kitchen appliances. 7. Issue Objective: Greenchef Appliances is raising 53 Cr funds for capex and working capital requirement. 8. Revenue Growth : Greenchef Appliances revenue has increased from 237 Cr in Fy20 to 340 Cr in Fy23. This shows CAGR growth of 12.78% which is a decent growth. 9. EBITDA margins: The EBITDA margins in FY23 is ~7%, margins are low in the business. 10. Valuation: The IPO is coming at P/E of 15x and Mcap of 200 Cr. This looks quite decent as compared to listed players. But branded peers like TTK, Hawkins have almost double the margins.

Lead Manager of Greenchef Appliances Limited IPO:

  1. Hem Securities Limited

Registrar of Greenchef Appliances Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Greenchef Appliances Limited No. 477 E, IV Phase, Peenya Industrial Area, Bangalore - 560 058 Phone: +91-80-29564495 Email: info@greenchef.in Website: https://www.greenchef.in/

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