CELLO WORLD LIMITED

CELLO WORLD LIMITED - IPO DETAILS 

Company Overview 

Cello World is a well-known Indian consumer product company that primarily operates in three key categories: writing instruments and stationery, molded furniture, and consumer housewares, along with related products. With over 60 years of experience in the consumer product industry, the company has gained valuable insights into consumer preferences and choices. Cello World boasts 13 manufacturing units situated in five different locations across India. In addition to its existing operations, the company has plans to establish a glass manufacturing unit in Rajasthan, equipped with European-made machinery, aimed at enhancing productivity and manufacturing capacity. 

As of March 31, 2023, Cello World offers a diverse range of products, with a total of 15,841 stock-keeping units (SKUs) across all product categories. The company's national sales distribution team consists of 683 members, working to promote and distribute its products to consumers across India. 

Objective of the IPO 

Here are a few quick reasons why Cello Limited going public:  

1. The company will not be the recipient of any funds from the Offer; instead, all the proceeds generated through the Offer will be received by the Selling Shareholders, distributed based on the number of Offered Shares sold by each respective Selling Shareholder as part of the Offer. 

Company Financials 

Key Performance Indicator 

Pros 

1. Cello World has secured a formidable position in India's consumer ware market, primarily through a strategic approach of commencing with affordable products and progressively expanding into higher-priced, value-added items. 

2. The company's manufacturing capabilities are a key asset, accounting for 80% of its revenue, reducing reliance on third-party products. 

3. Cello World maintains a robust distribution network, featuring 721 sales members and collaborating with over 60,000 retailers nationwide. Effective marketing strategies, including in-shop displays, merchandising, print and social media advertising, retail branding, and product branding, have contributed to the development of a strong brand identity. 

4. With a product portfolio encompassing 15,891 stock-keeping units (SKUs) across various categories, the company caters to a wide range of consumer needs. This diversification positions Cello World as a comprehensive destination for consumers of all income levels. 

Cons 

1. The company heavily relies on its distribution network in India and abroad for the sale and distribution of its products. Any challenges in maintaining or expanding this network may limit the company's ability to effectively reach consumers, potentially resulting in a loss of market share. 

2. Cello World is entirely dependent on third-party suppliers for the procurement of raw materials, such as plastic granules and plastic polymers. Fluctuations in raw material prices can significantly impact the company's expenses and, consequently, its profit margins. 

3. The company's success is contingent on its capacity to accurately predict consumer demand and maintain optimal inventory levels. Failure to identify and respond to shifting consumer preferences promptly may lead to reduced product demand, which could negatively affect business operations. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our YouTube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”