archidply industries limited to tap capital market with initial public offer (ipo)
Archidply Industries Limited, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on November 5, 2007 to raise funds from the capital market. Archidply Industries proposes to use the proceeds from the Initial Public Offer (IPO) primarily for setting up a new manufacturing facility at Chintamani, Karnataka for Plain Particle Board (PPB), Pre Laminated Particle Board (PLB) and Decorative Plywood and manufacturing facility at our existing unit to manufacture medium density fibreboard(MDF) located at Rudrapur, Uttarakhand.
Archidply Industries Limited is the flagship company of the Archidply group which has been associated with plywood manufacturing for more than 30 years. The brand “Archidply”, has positioned itself in the premium segment of the wood panel and decorative surfacing products and is well known amongst architects, interior designers and contractors for more than three decades, making it one of the oldest active brands in its product category. The traders across India, including dealers and distributors, have over a period of years recognized the Archidply Group for its quality and fair policies. Mr. Deen Dayal Daga, Chairman & Managing Director and CEO and one of the promoter of the company, has more than three decades of experience in managing wood panel industry.
Archidply group has grown significantly in recent periods from a small saw mill in Assam to a modern state of the art manufacturer of wood panel products and decorative surfacing products manufactured in an integrated multi-product facility strategically located in different geographical zones namely Mysore in south India and Rudrapur, Uttarakhand in the north of India and Assam in the east. The companies Operational Income and Profit after Tax(PAT) for the financial year ending March 31,2007 stood at Rs.9,842.37 lakhs and Rs.524.85 lakhs respectively. The Operational Income and Profit after Tax (PAT) for the half year ended September 30, 2007 stood at Rs.6,580.81 Lakhs and Rs.680.85 Lakhs reflecting a growth of 34% and 159% respectively on annualized basis.
The Company has set up a large distribution network and operates through 16 marketing offices and 61 distributors and stockists across the country.
Commenting on the distribution network of the company, Mr. Deen Dayal Daga , Chairman and Managing Director and CEO, Archidply Industries said, “We have a network of 586 authorized dealers who in turn supply to more than 2,000 sub dealers / retailers, giving a pan India presence for marketing of our products. This ensures the availability of our products off-the-shelf in any corner of India”.
The company products have a unique product features in which they use renewable plantation timber thus not destroying any forest cover of India or neighboring countries. Also, the decorative laminates and water proof plywood & block boards are manufactured conforming to low formaldehyde emission standards thus reducing in-door pollution due to the low gas emission caused in the environment which is normally high in the other plywood’s and laminates
Archidply proposes to introduce new products thereby leveraging their extensive distribution channels. They also plan to increase their market presence in fast developing tier 2 and tier 3 cities and enter into the export market. Commenting on the company’s market expansion plans, Mr. Shyam Daga, Joint Managing Director and CFO said “We intend to foray into the export market which will have a dual benefit of penetration into newer markets and also avail of the Duty Exemption Scheme on the import of raw materials and capital equipment.”
Disclaimer: Archidply Industries Ltd is proposing to make a public issue of its equity shares and has filed its Draft Red Herring Prospectus (DRHP) with SEBI. The DRHP is available at www.sebi.gov.in as well as on the BRLM site at www.motilaloswal.com and that of the company on www.archidply.com Investors should note that investment is equity shares involves a high degree of risk and for details relating to the same read the section titled "Risk Factors" in DRHP.
