HONASA CONSUMER LIMITED

HONASA CONSUMER LIMITED - IPO DETAILS 

Company Overview 

Honasa Ltd. is a prominent digital-first beauty and personal care company in India, established in 2016. The company operates through six House of Brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s, each catering to distinct customer segments with specific needs and preferences. Mamaearth, the flagship brand, focuses on providing natural and safe products for mothers and babies, while the other brands offer solutions for skincare, haircare, wellness, and grooming.  

Honasa Ltd. maintains a robust online presence, with 59.36% of its revenue generated from online channels, complemented by an extensive offline distribution network that contributes 36.14% of its revenue, with an additional 4.50% coming from other services. The company operates 13 warehouses across India, serving 18,640 pin codes, and operates 85 exclusive brand outlets for Mamaearth products. 

Objective of the IPO 

Here are a few quick reasons why Honasa Consumer Limited going public:  

1. Promoting brand awareness and increasing the visibility of the company's brands through advertising expenses. 

2. Covering the capital expenditure required to establish new Exclusive Brand Outlets (EBOs). 

3. Investing in the expansion of the company's subsidiary, Bhabani Blunt Hairdressing Private Limited. 

4. To open new salon locations, and address general corporate expenses, including potential unspecified inorganic acquisitions. 

Company Financials 

Key Performance Indicator 

Pros 

1. Honasa Consumer places its customers at the forefront of its business operations, integrating this customer-centric approach across various facets, from innovation to marketing. It effectively leverages online channels, encompassing Direct-to-Consumer platforms and e-commerce marketplaces, to reach a wide network of over 5,000 stores. 

2. The company boasts a comprehensive product range designed to cater to diverse needs and preferences. Its portfolio encompasses a wide spectrum of offerings, spanning baby care, face care, body care, hair care, cosmetics, and fragrances. 

3. In 2023, Honasa Consumer established partnerships with 4,025 influencers and 4 celebrities hailing from diverse domains, including beauty, fashion, and lifestyle. This strategic initiative has yielded substantial gains in terms of brand recognition and awareness. 

4. Throughout the Financial Year 2023, the company introduced a notable 5.7 times more new products/SKUs than the industry median within the Beauty and Personal Care sector. This aptitude for continuous product innovation plays a pivotal role in their overall success. 

Cons 

1. The company allocates a significant portion, approximately 35% of its revenue, towards advertising, reflecting its aggressive marketing strategy. Reducing these expenses does not guarantee the maintenance of current revenue growth. 

2. Honasa Consumers relies on third-party providers for the management of 10 out of its 13 warehouses, and it depends entirely on external manufacturers for product production. Any fluctuations in acquisition costs could impact profit margins and product pricing. 

3. The beauty and personal care industry is susceptible to frequent shifts in consumer preferences and product trends. Unpredictable changes in consumer choices or the introduction of competing products may put the company's products at a competitive disadvantage. 

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”