NAPS Global India IPO

NAPS Global India Limited, founded in 2014 by Pankaj Jain and Ronak Mistry, is a Mumbai-based company specializing in the wholesale import of textile products. The company plays a significant role in the garment manufacturing supply chain in Maharashtra by sourcing cotton and man-made fabrics from manufacturers in China and Hong Kong. This steady supply helps support garment manufacturers and vendors across India. With a focus on meeting the growing demand for man-made textiles, which accounted for a large portion of textile imports in FY 2024-25, NAPS Global leverages its strong procurement network to remain a key supplier in the industry.

Operating on a business-to-business model, NAPS Global prioritizes competitive pricing, efficient supply chain management, and timely delivery. Its asset-light approach, with a registered office in Mumbai and a warehouse in Bhiwandi, helps optimize costs while maximizing profitability. The company’s diverse product offerings, including cotton, linen, velvet, and knitted fabrics, as well as garments like shirts, jeans, and kidswear, enable it to cater to various customer needs. By focusing on economies of scale, NAPS Global aims to expand its reach across India and internationally, ensuring sustained growth and long-term value for its stakeholders.

NAPS Global India IPO Strengths

• NAPS Global has built strong, long-term relationships with suppliers in China and Hong Kong, ensuring efficient procurement at competitive prices. This network allows the company to maintain a stable supply of raw materials, which is crucial for its operations.
• NAPS Global operates with an asset-light model, which minimizes capital expenditure by avoiding investments in large manufacturing facilities or retail stores. This approach enhances profitability by reducing overhead costs.
• The company has demonstrated impressive financial growth, with revenue increasing at a CAGR of 88.30% and PAT growing at a CAGR of 182.02%. This indicates strong financial health and the ability to reinvest earnings for further growth.
• The company offers a variety of fabrics and garments, catering to different manufacturers. This diversification helps in maintaining a stable customer base across various sectors.
• The company focuses on both B2B operations and expanding its presence across India. This dual approach helps in capturing a broader market share and ensuring consistent revenue streams.
• The company plans to enter the garment manufacturing segment, which is expected to increase margins and diversify its revenue streams. This expansion strategy aims to capitalize on growing demand in the textile sector.
• The company benefits from growing demand for garments and technical textiles, which supports its growth potential and provides a favorable market environment for expansion.

NAPS Global India IPO Risks

• The company’s revenue is heavily dependent on a few key customers, with the top five customers contributing 50.84% of revenue. This poses a significant risk if any of these customers reduce their orders or switch suppliers.
• Fluctuations in fabric prices can impact profit margins. An increase in raw material costs without a corresponding increase in selling prices could reduce profitability.
• NAPS Global relies heavily on suppliers from China and Hong Kong. Disruptions in supply chains due to geopolitical tensions or supplier insolvency could severely impact operations.
• The textile sector is highly competitive, with established players exerting pricing pressure. This competition could lead to reduced market share and profitability.
• Changes in import policies or tariffs for textiles from China could affect sourcing and profitability. Regulatory changes could increase costs or limit access to raw materials.
• The company’s revenue is primarily from fabric sales, which are susceptible to market demand fluctuations. Reduced demand could impact revenue and financial performance.
• As the company imports goods from China and Hong Kong, fluctuations in foreign exchange rates could impact profitability by increasing import costs.