Manilam Industries India IPO

Inception and Evolution

The business traces its roots to May 2013, when it was originally formed as a partnership firm named “M/s B P Industries” under the Partnership Act, 1932. The firm was engaged in the manufacturing and trading of plywood and laminate products.

Key milestones in the company’s journey:

Manufacturing Location & Infrastructure

Manilam operates its primary manufacturing facility at Bareilly, Uttar Pradesh, which serves as the backbone of its production operations.

The Bareilly facility is strategically located to serve North and Central India markets, ensuring efficient logistics and raw material sourcing.

Products and Services Offered

Manilam specializes in decorative laminates, which are used as surface finishes in:

• Furniture

• Modular kitchens

• Wardrobes

• Wall panels

• Office interiors

Product Portfolio

Indian Decorative Laminates Industry Overview

Manilam operates within the Indian decorative laminates and plywood industry, which is a sub-segment of the building materials and interior décor market.

According to the Dun & Bradstreet Industry Report cited in the RHP:

Growth Drivers

• Urbanisation and housing demand

• Growth of modular furniture & kitchens

• Rising disposable income

• Shift from unorganised to organised players

• Real estate recovery post-pandemic

Regulatory Landscape

The industry is influenced by:

• GST regime (18% on laminates)

• Environmental regulations for wood-based products

• Factory & labour compliance laws

• Import-export duties on kraft paper and resins

Future Outlook

• Premium laminate demand growing faster than economy range

• Increasing use of eco-friendly laminates

• OEM and B2B demand from real estate developers

Core Business Model

Manilam follows a manufacturing-led B2B distribution model, supplying laminates to:

• Dealers and distributors

• Furniture manufacturers

• Interior contractors

• OEM customers

Value Chain Positioning

Target Customers

Applicable Laws and Regulations

Compliance Status

• All statutory filings up to date

• Factory license and GST registrations in place

• SEBI disclosures as per SME norms

Key Business Risks

Financial Risks

• Working capital intensive operations

• Dependence on bank borrowings

• Interest rate sensitivity

Promoter Details

Promoter Contribution

• Over a decade of experience in laminate & plywood industry

• Strong dealer relationships

• Hands-on involvement in daily operations

Manilam Industries India Limited operates with a focused group structure, which is relatively lean compared to large conglomerates. This helps in simpler governance, tighter control, and operational clarity, which is important for an SME-listed company.

Group Structure Overview

Group Entities (as per RHP)

Insight:
The absence of multiple subsidiaries reduces:

• Inter-company dependency risk

• Complex cash transfers

• Governance challenges

This is a positive structural aspect for SME investors.

Board of Directors

The Board combines promoter-driven leadership with independent oversight, as mandated under the Companies Act and SEBI SME norms.

Key Managerial Personnel (KMP)

Management Strengths

• Promoters directly involved in manufacturing & sales

• Finance and compliance handled by experienced professionals

• Faster decision-making due to promoter-led structure

Manilam has adopted governance practices aligned with SEBI (LODR) Regulations, applicable to SME-listed companies.

Statutory Board Committees

Governance Highlights

• Independent directors on key committees

• Periodic statutory & internal audits

• Clear separation of management & oversight

Litigation Overview

As disclosed in the RHP, the company has no material litigations that could adversely impact operations or financial position.

Investor Note

Legal risks are normal for manufacturing SMEs and do not indicate structural red flags.

Manilam holds all necessary licenses and statutory approvals to operate its manufacturing unit and conduct business.

Key Approvals & Licenses

Restated Financial Performance (₹ in Lakhs)

Performance Analysis

• Revenue CAGR driven by capacity utilisation & dealer expansion

• Margin improvement due to operating leverage

• Growing net worth through retained earnings

Borrowing Profile (₹ in Lakhs)

Lenders

• Nationalised banks

• Private sector banks

Observation:
Borrowings are primarily for working capital, typical for laminate manufacturing businesses.

Cash Flow Summary (₹ in Lakhs)

Interpretation

• Operating cash flows supported by sales growth

• Investing outflows reflect capacity & efficiency improvements

• Financing cash flows aligned with business expansion

Key Ratios

Management View

• Focus on scaling laminate volumes

• Strengthening dealer network in Tier II & III cities

• Cost optimisation through procurement efficiency

• Improving brand visibility

Growth Strategy

Objects of the Issue

Strategic Rationale

• Reduce working capital pressure

• Support higher sales volume

• Improve liquidity and balance sheet strength

IPO Pricing Methodology

The IPO of Manilam Industries India Limited is being conducted through the 100% book-building process in accordance with SEBI (ICDR) Regulations, 2018. The final issue price will be determined based on investor demand, company fundamentals, and SME peer benchmarks.

Key Factors Considered in Pricing

Peer Valuation Context (Indicative)

Investor Insight:
Manilam’s valuation is positioned as a growth-oriented SME, balancing earnings visibility with expansion potential rather than aggressive premium pricing.

Equity Share Capital Details

Capital Structure Snapshot

Note:
The Fresh Issue results in equity dilution, while OFS does not add funds to the company.

Expected Post-IPO Shareholding

Key Takeaways

• Promoters retain majority control

• Public float sufficient for SME liquidity

• Compliance with NSE Emerge norms

Manilam has adopted a formal dividend policy, though it remains a growth-focused company.

Dividend Policy Framework

Investor View

• Dividend payouts may be limited in the near term

• Retained earnings expected to fund expansion

• Suitable for growth-oriented investors

Tax Implications (Resident Individuals)

Other Investors

• NRIs & FPIs subject to DTAA benefits

• TDS applicable on dividends

Manilam has disclosed related party transactions conducted in the ordinary course of business, primarily involving promoter entities.

Nature of Related Party Transactions

Governance Safeguards

• Conducted at arm’s length

• Approved by Audit Committee

• Disclosed in financial statements

IPO-Related Agreements

Business-Critical Contracts

IPO Structure Summary

Investor Reservation

Shareholder Rights

Minority Protection

• SEBI disclosure norms

• Independent directors

• Statutory audits

Mandatory Disclosures

Manilam Industries India Limited is a manufacturing-led SME with:

• Growing presence in decorative laminates

• Improving margins and ROE

• Promoter-driven execution

• Clear working-capital-led IPO objective

The IPO is best suited for investors seeking exposure to India’s housing and interior décor growth story through an SME platform.