Sylvan Plyboard (India) Limited IPO

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The company, originally incorporated as “Singh Brothers Exim Private Limited” in Kolkata, West Bengal, in 2002, has undergone several transformations to reflect its evolving business activities and brand identity. Initially a private limited company, it acquired the business of M/s. Singh Brothers & Co. in 2004. To better represent their brand and business focus, they rebranded to “Sylvan Plyboard (India) Private Limited” in 2013 and subsequently converted to a public limited company in 2018, now known as “Sylvan Plyboard (India) Limited.”

Product Range

They specialize in the manufacturing of various wood products, including plywood, block board, flush doors, veneer, and sawn timber, available in multiple grades and thicknesses. Their diverse product range caters to a wide array of customer needs:

i. Plywood, Block Boards & Flush Doors               ii. Veneer                      iii. Sawn Timber

Their products are marketed under the “Sylvan” brand, distributed through a network of 223 Authorized Dealers across 13 states. Their comprehensive product portfolio includes premium offerings like “Sylvan Z+ Premium Plus” and more budget-friendly options like “Sylvan Blu.” They also provide Boiling Water Proof (BWP) and Boiling Water Resistant (BWR) plywood to meet varying customer requirements.

Market Presence and Clientele

Since their inception, they have served a diverse clientele across various industries, including shipping, construction, real estate, interior decor, furniture, aviation, education, healthcare, transport, and government projects. Their expansive reach is supported by a network of sales and marketing offices, ensuring their products are accessible to customers nationwide.

Conclusion

Sylvan Plyboard (India) Limited is committed to delivering high-quality wood products through continuous innovation and adherence to stringent quality standards. Their strategic location, integrated manufacturing processes, and experienced leadership team position them as a leader in the industry. As they expand their product offerings and market reach, they remain dedicated to meeting the diverse needs of their customers across various sectors.

Objects of the Sylvan Plyboard (India) Limited IPO:

The Objects of the Issue are: i. Funding Capital Expenditure towards the purchase of additional plant and machinery ii. To meet the Working Capital Requirements iii. To meet the Issue Expenses iv. General Corporate Purposes
DRHP of Sylvan Plyboard (India) Limited IPO
RHP of Sylvan Plyboard (India) Limited IPO

Sylvan Plyboard (India) Limited IPO Details:

Open Date: Jun 24 2024
Close Date: Jun 26 2024
Total Shares: 5,100,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 28.05 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 55 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 01 2024

Promoters And Management:

Anand Kumar Singh, aged 53 years, is the Promoter and Managing Director of the Company. He was originally appointed as a Director on August 06, 2008 and has been appointed as Managing Director w.e.f. May 05, 2018 for Five (5) years and has been re-appointed as the Managing Director w.e.f. May 05, 2023 for Five (5) Years. He has experience of more than 25 years in Plywood & Timber Industry. Prior to incorporation of the company, he was associated with M/s. Singh Brothers & Co. (Proprietorship Firm). He is responsible for day-to-day business operations and entrusted with the responsibility of the looking after the overall management of the Company. Jai Prakash Singh, aged 75 years, is the Promoter, Chairman and Whole Time Director of the Company. He has been associated with the Company since its inception. He was appointed as first director of the Company on August 20, 2002, has been re-designated as Whole-Time Director w.e.f. May 05, 2018 for Five (5) years and again re-appointed as the Whole-Time Director w.e.f. May 05, 2023 for Five (5) Years. Prior to incorporation of the company, he was associated with M/s. Singh Brothers & Co. (Proprietorship Firm). He has experience of more than 45 years in the Timber Industry. He is guiding force behind all strategic decisions. Shakuntala Singh, aged 69 years, is the Promoter and Non-Executive Director of the Company. She has been associated with the Company since its inception. She was appointed as first director of the Company on August 20, 2002, re-appointed as Executive Director w.e.f. May 05. 2018 for Five (5) years, re-appointed as an Executive Director w.e.f. May 05, 2023 for Five (5) Years and finally re-designated as a Non-Executive Director w.e.f. December 13, 2023. She has an experience of more than 20 years in the Timber Industry.

Financials of Sylvan Plyboard (India) Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 10,889 17,182 19,807 16,079
Other Income 140 110 108 114
Total Revenue 11,029 17,293 19,915 16,193
Cost of Material Consumed 7,371 11,578 12,659 9,927
Purchase of Stock-in-trade 464 1,738 1,529 634
Changes in inventories -739 -1,370 -1,330 630
Employees Benefit Expenses 551 686 856 779
Other Expenses 2,436 3,496 4,782 2,740
EBITDA 946 1,164 1,420 1,482
OPM (%) 8.57% 6.73% 7.13% 9.15%
Depreciation & Amortisation 195 210 234 165
EBIT 750 954 1,186 1,316
Finance Cost 699 560 725 664
PBT 51 393 461 652
Tax 14 88 108 204
PAT 37 305 353 448
NPM (%) 0.34% 1.77% 1.77% 2.77%
No.of Shares 193.74 193.74 193.74 193.74
EPS 0.19 1.57 1.82 2.31

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sylvan Plyboard (India) Limited 198 4 1.82 30.2 55 107
Archidply Industries Limited 417 12 6.17 29.1 104 207
Duroply Industries Limited 302 5 6.73 306.0 314 309
The Western India Plywoods Limited 108 3 4.31 39.7 158 134
* All the data is as per FY23.

Recommendation on Sylvan Plyboard (India) Limited IPO:

Review and Recommendation of Sylvan Plyboard (India) by team IZ is 4/10. 1. Sylvan Plyboard (India) Limited is engaged in the manufacturing of various wood products, including: i. Plywood, Block Boards & Flush Doors                   ii. Veneer                iii. Sawn Timber These products are marketed under the brand name "Sylvan" through a network of 223 authorized dealers across 13 states. The company’s product range includes over 12 plywood products, with thicknesses ranging from 4 mm to 40 mm. The plywood segment, including block boards and flush doors, contributes approximately 81.74% of the company's revenue from operations. 2. Product Segments The company's product offerings cater to a wide range of customers: i. Premium Segment: "Sylvan Z+ Premium Plus" ii. Middle Segment: "Robusta Premium" & "Primo Plus" iii. Lower Segment: "Sylvan Blu" 3. SWOT Analysis Strengths: i. Experienced management team with extensive industry expertise. ii. Diverse product offering catering to premium, middle, and lower segments. iii. Integrated manufacturing facility ensuring complete in-house production. iv. Strong regional presence in West Bengal and Eastern India. Weaknesses: i. Dependence on suppliers for high-quality timber. ii. High operating costs due to capital investment in modern machinery. iii. Market saturation leading to increased price pressure. iv. Dependency on authorized dealers without definitive agreements. Opportunities: i. Expansion into new product lines such as MDF, Particle Board, and Laminates. ii. Untapped markets in Western, Northern, and Southern India. iii. Rising commercial and residential construction activity. iv. Potential partnerships with large construction firms for long-term contracts. Threats: i. Competition from established players with stronger market reach and resources. ii. Growing focus on MDF products as a cheaper alternative to plywood. iii. Rising raw material costs impacting profitability. iv. Fluctuations in demand influenced by economic conditions and design trends. 4. Dealer Network Sylvan Plyboard boasts an extensive dealer network spanning across the following states and territories: i. West Bengal        ii. Bihar                iii. Uttar Pradesh              iv. Uttarakhand          v. Rajasthan vi. Haryana            vii. Assam           viii. Arunachal Pradesh    ix. Jharkhand             x. Odisha xi. Karnataka         xii. Telangana     xiii. Maharashtra           xiv. Andhra Pradesh   xv. Tamil Nadu xvi. Kerala            xvii. Andaman and Nicobar 5. Competition Sylvan Plyboard operates in a competitive industry dominated by unorganized players and established competitors with better financial positions, market share, and resources. The company continues to compete vigorously by launching new products across different grades and quality to penetrate new geographical regions. 6. The Revenue has Increased from Rs.108 Crores in FY21 to Rs.198 Crores in FY23. 7. The EBITDA has Increased from 9 Crores in FY21 to 14 Crores in FY23. 8. The PAT has Increased from 37 Lakhs in FY21 to 3.5 Crores in FY23. 9. As per FY23, CFO/EBITDA is 0.95, As per FY24, EPS is 3.08, 10. Market Capitalization is 107 Crores & P/E is 17.8x based on FY24.

Lead Manager of Sylvan Plyboard (India) Limited IPO:

  1. Finshore Management Services Limited

Registrar of Sylvan Plyboard (India) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Sylvan Plyboard (India) Ltd NH-2, Delhi Road, Champsara, Chinnamore, Baidyabati Hooghly – 712222 Phone: +91 33 4801 7916 Email: cs@sylvanply.com Website: http://www.sylvanply.com/

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