Sellowrap Industries IPO

Incorporated in 1983, Sellowrap Industries Limited manufactures components for the automotive and white goods sectors, focusing on delivering adhesive and non-adhesive parts that prioritize quality, cost-efficiency, and customer value. Its product offerings include plastic injection moulding parts for both interiors and exteriors, PU-foam moulding, foam/label and sticker products, screen sealing parts, and EPP moulding. The company operates four technologically advanced manufacturing units located in Gurugram, Ranipet, Kancheepuram, and Pune, all supported by centralized R\&D and warehousing facilities to ensure global quality standards.

Sellowrap serves customers across 15 Indian states including Maharashtra, Tamil Nadu, Karnataka, and Gujarat, and exports to international markets such as Brazil, China, Germany, Poland, and the UK. As of January 31, 2025, the company employs 159 permanent staff and 549 contractual workers. Its strong domestic and global footprint, combined with its focus on innovation and operational efficiency, positions Sellowrap as a reliable component supplier in its industry.

Sellowrap Industries IPO Strengths

• Sellowrap Industries manufactures a diverse range of products, including plastic injection-moulded parts, polyurethane foam mouldings, foam components, and EPP parts, catering to both automotive and white goods sectors. The product mix supports customer requirements across varied industries.
• The company has demonstrated sharp revenue growth, rising from ₹77.9 crore in FY22 to ₹138.0 crore in FY24 and further to ₹151.3 crore on an annualized basis in FY25. This reflects robust demand, efficient operations, and scalability.
• Sellowrap’s client list grew substantially from 85 in FY22 to 130 in FY24, underscoring improved market penetration and broad acceptance among domestic and international clients.
• Sellowrap Industries has a growing international presence, supplying products to markets such as Brazil, China, Germany, Poland, and the UK. This helps diversify risk and opens new revenue channels.
• Investment in modern manufacturing technologies and continuous product innovation ensure that Sellowrap meets evolving industry requirements, helping maintain its competitive edge.

Sellowrap Industries IPO Risks

• A significant share of the company’s revenue comes from a limited customer base in the automotive and white goods sectors. If key clients reduce orders or switch to competitors, revenue could see sharp declines and affect cash flows.
• The company is exposed to credit risk as it routinely offers credit to customers for product sales. Delays or defaults in customer payments may negatively impact financial performance and liquidity since high outstanding receivables are a feature of its operations.
• Sellowrap is closely tied to the fortunes of the automotive industry, which is cyclical and sensitive to economic downturns. Any slowdown in automotive production, demand, or unfavorable industry trends could directly reduce order volumes and margins.
• The market for automotive and component manufacturing is highly competitive. The presence of organized and unorganized players creates pricing pressures, potentially lowering margins and hindering sustainable growth.
• The company operates through leased manufacturing units spread across several locations. Any issues arising from non-renewal or early termination of leases could disrupt production and business continuity.
• Manufacturing operations in this industry demand significant working capital. Delays in receivables, inventory management inefficiencies, or supply chain disruptions can exert pressure on day-to-day liquidity and overall financial stability.