Suich Industries Limited was previously known as Delhi Fone N Batteries Pvt Ltd. This is mainly Delhi based company. The article cover Suich Industries IPO Review as well as issue details, company summary, financial details.
Suich Industries IPO Issue Details :
- IPO Opens on – 30th May, 2019.
- IPO Closes on – 4th June, 2019.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. – Rs. Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – Nil.
- Minimum Order Quantity – Nil
- Issue Size – 4,547,200 Equity Shares of Rs. 10 (aggregating up to Rs [.] Cr).
- Fresh Issue – 4,547,200 Equity Shares of Rs. 10 (aggregating up to Rs [.] Cr).
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Click Here
Objectives of the issue of the Company :
- Repayment or pre-payment of certain unsecured loans availed from banks and financial institutions by Suich Industries Limited.
- Funding the working capital requirement of this Company.
- General corporate purposes of Suich Industries Limited.
About The Company –
- Suich Industries Limited was incorporated in 2008.
- This company is engaged in assembling and marketing of feature and smart phones, batteries, chargers, power bank, LED TV and smart TV under the Suich brand name.
- Suich Industries Limited imports the equipment and assembling parts from China.
- This company has a manufacturing unit at State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIIDCUL) in Haridwar where it assembles the products.
- Suich Industries Limited has also entered into exports business for its products.
- This company is also involved in the trading activity of finished products between manufacturers and distributors on-demand basis.
- Blue Wave Trading H.K. Ltd is the wholly owned subsidiary of Suich Industries limited to procure the raw materials.
- This company has also set up a Research & Development Centre (R&D) focusing on the expansion of the product portfolio.
- Suich Industries Limited’s products are marketed under its own brand name, “Suich” and are sold in Northern India specifically catering to rural areas and Tier-2 and Tier-3 cities.
Products of This company :
- Mobile Phones
- Batteries and Chargers
- Power Banks
- Smart Tv’s
Plot No- 68, 3rd Floor,
Block No-5, WEA,
Naiwala, Karol Bagh,
New Delhi- 110005.
Phone – 011-45607111
Email id – [email protected]
The promoter of Suich Industries Limited :
- Gunnit Singh Allagh, aged 36 years is the Promoter, Chairman and Managing Director of this Company.
- Sanchit Allagh, aged 34 years is the Promoter, Whole Time Director of this Company.
The Board of Directors of this company :
- Gunnit Singh Allagh, aged 36 years, is the Promoter, Chairman and Managing Director of this Company.
- Sanchit Allagh, aged 34 years is the Promoter and Whole Time Director of this Company.
- Dinesh Suri, aged 41 years is the Independent Director of this Company.
- Upneet Birinder Chahal, aged 34 years is Independent Director of this company.
Competitive Strengths of Suich Industries Limited :
- The main competitive strength of Suich Industries Limited is their wide range of products.
- Experienced Management and employee are another strength of this company.
- Catering to niche segment of Suich Industries Limited.
- Cost effective procurement of this company.
- Tax incentives of Suich Industries Limited.
SWOT Analysis of Suich Industries Limited :
- Strengths :
- Experienced Management – With experience of more than a decade in the industry, Suich Industries Limited has an experienced management and promoter team which leads the operational decisions for the Company.
- Wide range of products – Suich Industries offers wide range of products which completes the basket of consumer durables electronics. Their wide offerings help us in getting preference by our distributors.
- Focussed segment – Suich Industries Limited cater only in rural areas and Tier-2 and Tier-3 cities of Northern India allowing us to focus their business activity and decision as per the demand scenario.
- Weakness :
- Manual manufacturing process – Suich Industries Limited is into manufacturing process, the activity of which is done manually and is largely dependent on labour.
- Limited market reach – Suich Industries Limited is present across Northern India, however, with only 20 distributors network, the market reach of the Company is not deep-rooted and hence brand recall is not as easy as other established players.
- Opportunities :
- Growing market size – TV market size is expected to reach Rs. 862 billion by FY 2020. The TV market has grown at CAGR of ~15% over the last 5 years and the feature mobile phone market grew by 55% in Q4 2017 and the accessories market is growing at CAGR of 10.4%. With this market size, there is enough scope for Suich Industries Limited to grow organically.
- Government initiative – Government focus on “Make in India” initiative will be a boost for mobile parts manufacturing which is currently being procured from China. With the production within the country, cost of production is expected to reduce substantially. Further, for promotion of local manufacturing, government has removed certain import duties.
- Threats :
- Competition from established players – Established players in the organised sector which are larger in size and experience bring tough competition within the industry with their ability to produce higher quality products at reasonable prices.
- Lower bargaining power – As most of the raw materials are procured from China which boasts of the largest producer in the category leads to lower bargaining power of manufacturers apart from the trade to be conducted mostly on their terms.
Business strategies of this company :
- The main business strategies of Suich Industries Limited is their increasing capacity utilization.
- Widening distributors network of this company.
- Online marketplace of Suich Industries Limited.
- Introducing newer product range of this company.
Company Financials :
Suich Industries IPO Review :
The above details contains financial details of the company, the profit-loss statement is derived from the company prospectus. It reflects the company’s development is still in the moderate stage. In the quarter of 2018, the company has gained maximum profit. Now, look at the company prospectus (draft red herring prospectus). Basic and Diluted Earnings per share was 6.68 (as per 2018 FY data). The prospectus has not reveal P/E (price to earnings ratio) of the company. Now, let’s move forward to the other fundamental details of the company. RoNW (return on net worth) of the company stands at the level of 18.45% and NAV/Share was 36.19. Therefore, our reports reflects Suich Industries IPO Review carries a NEUTRAL view. Investors can try for long-term investment in it.
Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. She is a NISM certified Research Analyst. An experienced stock market content writer Ankita is also trading successfully on her own account.