Jiwanram Sheoduttrai Industries Limited IPO

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i. Jiwanram Sheoduttrai Industries is engaged in the manufacturing and export of the Industrial Safety Gloves and Garments which provides customized solutions in the field of Industrial Safety. The endeavour is complimented with the manufacturing facilities at Baruipur, Nandankanan and Falta SEZ West Bengal. The Products are well accepted for its quality which covers all the manufacturing range of Gloves, Industrial Garments and other protective PPEs and solution basket for the Industrial Safety.

ii. Jiwanram Sheoduttrai Industries Limited began manufacturing PPEs in 1997 and has since grown to establish manufacturing facilities and export to countries such as the United States of America, Spain, Germany, and Belgium. The company has differentiated its business lines to make the most of its in-house potential. Over the past two decades, JSIL has made its presence known around the world, particularly in Europe, America, and the Middle East, and has expanded to over twenty countries. JSIL is a globally renowned manufacturer of Industrial Garments and Gloves and exporter of head-to-toe safety wear, workwear, and more.

iii. Jiwanram Sheoduttrai Industries Limited initially started manufacturing industrial safety gloves and gradually expanded its presence in the industrial garment sector. The company’s commitment to producing quality products has helped it maintain its position in the market and establish sustainable relationships with overseas buyers.

iv. They classify their business under the following 3 (three) product verticals:

Manufacturing and export of –

i. Industrial Leather Gloves which are classified as Canadian, Welder, Driver, Mechanical, Combi, Hi- Vis etc; which are thinsulate lined and kevlar stitched as per the customization requirements of our customers

ii. Industrial Garments which are classified as Fire retardant, high visibility, water repellent, U.V protection , oil and soil repellent, anti- bacterial, anti-peeling etc; manufactured as per the specifications of our customers

iii. Work and Casual wear – The Company ventured into the manufacturing of Hospital Garments, Hotel Industry Garments, shirts, trousers, Jeans, jackets, T- shirts on order basis.

Competitive Strengths

i. International Presence and Wide Distribution Network
ii. Cost effective production and timely fulfilment of orders
iii. Established manufacturing facilities with over decades of operations

Objects of the Jiwanram Sheoduttrai Industries Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To meet the working capital requirements. ii. Prepayment and repayment of all or a portion of certain unsecured loans availed by the company. iii. General Corporate Purpose and to meet the offer expenses.
DRHP of Jiwanram Sheoduttrai Industries Limited IPO
RHP of Jiwanram Sheoduttrai Industries Limited IPO

Jiwanram Sheoduttrai Industries Limited IPO Details:

Open Date: Sep 08 2023
Close Date: Sep 12 2023
Total Shares: 7,422,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 17.07 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 23 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 21 2023

Promoters And Management:

i. Alok Prakash, aged about 62 years, is the Managing Director and one of the Promoters of the Company. He holds a Bachelor Degree in Commerce from the University of Calcutta. He has been on the Board of the Company since November 29, 1997. He has over 24 years’ of experience in the Industrial Safety Industry that includes Industrial Safety products from head to toe. He is instrumental in penetrating new markets and achieving unprecedented sales growth for the Company. He is responsible for strategic marketing and oversees the whole of the business affairs of the Company. He has successfully implemented growth oriented strategies and instituted significant quantitative and qualitative improvements in production, administration and finance department including streamlined the operational process, implemented cost-effective information systems which boosted productivity, cut lead times and dramatically enhanced customer satisfaction, ii. Amitava Majumder, aged about 61 years, is the Non-Executive Director of the Company. He holds a Bachelors’ Degree in Science from the University of Calcutta and Diploma in Export- Import Management and International Marketing. He has been associated with the Company since April 02, 2022 . He has more than three decades of experience in the International Marketing, export - import, foreign exchange and foreign trade matters. iii. Madhurima Dutta, aged about 43 years, is a Non-Executive Director of the Company. She holds a Bachelors’ Degree in Science from University of Calcutta and Post Graduate Diploma in Management with specialisation in Human Resources Management from All India Management Association (AIMA) through its Nodal Centre “Academy for Professional Excellence” (APEX), Kolkata. She has been associated with the Company since April 02, 2022 . She has over 15 years’ of experience in the field of human resources management and overall administration.

Financials of Jiwanram Sheoduttrai Industries Limited IPO:

 
Pariculares ( In Lakhs )
2021
2022
2023
Revenue from Operations 3,052 3,408 4,232
Other Income 230 7 367
Total Revenue 3,281 3,415 4,598
Cost of Goods Sold 1,594 2,189 2,739
Changes in inventories 234 -114 129
Employee Benefits Expense 323 304 286
Other Expenses 615 722 629
EBITDA 515 314 815
Depreciation & Amortisation 64 58 65
Finance Cost 188 178 187
EBIT 451 255 750
OPM (%) 15.70% 9.19% 17.72%
PBT 15 212 561
Tax 12 62.8 159
PAT 3 149.7 403
NPM (%) 0.09% 4.38% 8.76%
No.of Shares 247.48 247.48 247.48
EPS 0.01 0.60 1.62

Comparison With Peers:

Notes: - There is no listed companies related to this company.

Recommendation on Jiwanram Sheoduttrai Industries Limited IPO:

Review and Recommendation of Jiwanram Sheoduttrai Industries SME IPO by IZ team is 4/10

A) Business Focus

1. Core Business:  Jiwanram Sheoduttrai Industries Private Limited (JSIL), incorporated in 1997, manufactures work gloves made of leather, work and safety wear (textile garments) and other leather accessories including leather wallets, purse and bags for both men and women. Based in Kolkata, the company manufactures around 35 lac pairs of gloves, 4 lac pieces of garments per annum. The company has three factories located in Baruipur, Falta SEZ and Nandan Kanan near Barasat 2. Customization: Offering customized solutions adds a layer of competitiveness. 3. Manufacturing Facilities: Multiple facilities in West Bengal may help in decentralized production and distribution. 4. Quality Products: Known for quality, which can be a strong selling point in the safety industry.

B) Global Reach

1. International Presence: Exporting to multiple countries including the USA and European nations can diversify revenue streams. 2. Global Recognition: Known globally for a variety of safety wear, enhancing brand value.

C) Product Verticals

1. Product Range: Broad spectrum of products from industrial safety to casual wear, providing diversification. 2. Customization and Specifications: Tailoring products as per customer specifications can be a USP.

D) Government Registration

1. OEM Registration: Being registered as an OEM under the Quality Council of India can open doors for government contracts. 2. Vendor Registration: Focus on increasing domestic market presence is a good sign.

E) Financials

1. Revenue Growth: Revenue increased from Rs. 30 Crore in FY21 to Rs. 42 Crore in FY23, indicating a positive growth trajectory. 2. EBITDA: An increase from Rs. 5 Crore to Rs. 8 Crore suggests operational efficiency. 3. PAT Growth: PAT has dramatically increased from 3 lac in Fy21 to 4 Cr in Fy23. 4. Liquidity and Efficiency: CFO/EBITDA of 58% is low. Debtors Days of 374 is high, indicating potential issues in receivables management. 5. Valuation: With an EPS of 1.62 and a P/E of 14.13X, the company appears to be reasonably valued.

Lead Manager of Jiwanram Sheoduttrai Industries Limited IPO:

  1. Affinity Global Capital Markets Pvt Ltd

Registrar of Jiwanram Sheoduttrai Industries Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Jiwanram Sheoduttrai Industries Limited 30D Jawaharlal Nehru Road, 2nd Floor, Kolkata- 700016 Phone: +91 33 4016 9500 Email: investor@jiwan.co.in Website: https://www.jiwanramgroup.com/

Discussion on Jiwanram Sheoduttrai Industries Limited IPO:

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