Unraveling DHARIWALCORP LIMITED IPO: Key Metrics and Risks

Dhariwalcorp Limited Introduction

Dhariwalcorp Limited is a company that was originally formed and incorporated as ‘Dhariwalcorp Private Limited’ on June 14, 2020. Their registered office is located in Jodhpur, Rajasthan.

Dhariwalcorp is engaged in the trading of a comprehensive range of waxes, industrial chemicals, and petroleum jelly.

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Brief about Dhariwalcorp Limited

Summary of the business of Dhariwalcorp Limited

Company Dhariwalcorp is a trading entity engaged in a comprehensive waxes, industrial chemicals, and petroleum jelly. With expertise in processing, purchasing, and trading, the company offers a diverse range of products, including Paraffin Wax, Rubber Process Oil, and White Petroleum Jelly. Their commitment to quality and compliance ensures reliability across heavy and light chemicals, catering to various industries. Logistics and supply chain management underscore their efficiency in meeting customer demands. Positioned for growth, Dhariwalcorp continues to explore new markets, innovate product formulations, and enhance sustainability practices, exemplifying adaptability and excellence in the trading landscape.

History of Dhariwalcorp Limited

Company was originally incorporated under the name “Dhariwalcorp Private Limited” under the provisions of the Companies Act, 2013 vide Certificate of Incorporation dated June 14, 2020, issued by the Assistant Registrar of Companies, Central Registration Centre. Subsequently, the status of the Company was changed to public limited and the name of our Company was changed to “Dhariwalcorp Limited” vide Special Resolution passed by the Shareholders at the Extra Ordinary General Meeting of our Company held on April 01, 2024. The fresh certificate of incorporation consequent to conversion was issued on May 04, 2024, by Assistant Registrar of Companies/ Deputy Registrar of Companies/ Registrar of Companies, Centralised Processing Centre. The Corporate Identification Number of our Company is U24242RJ2020PLC069105.
Mr. Manish Dhariwal and Ms. Shakshi Dhariwal were the initial subscribers to the Memorandum of Association of Dhariwalcorp Limited Company. Mr. Manish Dhariwal, Ms. Shakshi Dhariwal and Mr. Dilip Dhariwal are the current promoters of Dhariwalcorp Limited company.

Promoters & Board of Directors of Dhariwalcorp Limited

• The promoters of Dhariwalcorp Limited company are Mr. Manish Dhariwal, Ms. Shakshi Dhariwal and Mr. Dilip Dhariwal.

Board of directors

Share Holding pattern of Dhariwalcorp Limited

Qualitative Factors of Dhariwalcorp Limited

• Wide range of products
• Location Advantages
• Experienced Promoter and management team
• Well established relationship with clients

Strategy of Dhariwalcorp Limited

• Invest in proposed centralized warehouse facility and increase storage capacity
• Expand relationships with our existing customers
• Focus on increase in volume of sales:
• Improving Functional Efficiency

Industry Outlook

GLOBAL WAX INDUSTRY

Wax Market size was valued at USD 9.69 billion in 2019 and is poised to grow from USD 10.1 billion in 2023 to USD 14.16 billion by 2031, growing at a CAGR of 4.3% in the forecast period (2024-2031).

Wax has been witnessing tremendoum demand from various industries because of its outstanding characteristics such as high gloss, good water repellence, and superior chemical resistance. However, the global wax market is highly fragmented owing to the strong presence of local and multinationals players that are aggressively focusing rapid expansion, product innovation, and diversification through R&D activities, mergers and acquisition, and joint venture. Moreover, most of the players are focusing on sustainable strategic planning and execution programs to increase their operational efficiency and market reach globally.

Wax Market Segmental Analysis

The global wax market is segmented as per product type, application and region. Wherein, we have further segmented product type into mineral, synthetic and natural to gain rightful insights about the market. Moving further, the application Wax Market segment is further segmented into candles, packaging, plastic & rubber, pharmaceuticals, cosmetics& toiletries and others. Based on region, the global wax market is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

Wax Market Analysis by Product Type

By product type, the mineral wax segment was holding more than 65% of the global wax market in 2021 and is expected to maintain its market position in the years to come. Mineral waxes are pure and contain no trace of alcohol or esters and these products are extracted from coal, petroleum, lignite, and shale oil through the fractional distillation process. On the other hand, synthetic wax segment is growing at the fastest CAGR in line with increasing demand for paper & paperboard, building boards, cosmetics & personal care, adhesives, and ink and coating sectors.

Wax Market Analysis by Application

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By application, the candle segment accounted for over 30% of the global wax market in 2021. According to National Candle Association, around 7 out of 10 households use candles for stress-related therapies and scented candles as home fragrance products. Apart from this, factors such as easy product availability and storng prence of different type of candles through multiple distribution channels such as décor, merchandise stores, and online platforms have aided significant demand for candles globally. Followed by candle, packaging segent is second largest contributor to the global wax market.

Wax Market Regional Insights

In 2021, the Asia Pacific emerged as the largest contributor to the global wax market by holding over 30% market share. The growth is attributed to rising per capita income, improving living standards in countries like China and India. Apart from this, Europe held the second-largest revenue share in 2021 and is attributed to the rising demand for hot melts in the adhesives and sealants industry in the region. Also, Europe is home to several multinational giants engaged in personal care such as Colgate-Palmolive, Unilever Group, Procter and Gamble Co., and L’Oréal group. These companies have well- established brand presence across European countries and that has led to their dominance in cosmetics and personal care applications in the Europe wax market.

Wax Market Driver

• Growing demand for aromatherapy through scented candles and their easy availability in a variety of sizes, shapes, and product range like birthday, taper, utility, teal light container to novelty candles are projected to add fuel to the wax market during the forecasted period.
• Market growth is further supported by rising utilization of cosmetic products such as creams, lotions, sunscreens, and makeup.
• Emerging economies in Southeast Asian countries like Indonesia and Malaysia are anticipated to reflect steady economic growth in the future. The demand for packaging and printing ink is projected to rise in the Asia Pacific region.
• Wax Market Restraint
• Fluctuating price of raw material used in the production of wax and their availability. Since petroleum is the major raw material used for production of wax producers often have to face change in their price. This further reduces their profit market and negatively affect operation.

INDIAN WAX INDUSTRY

Market Overview:

The India wax market size is projected to exhibit a growth rate (CAGR) of 4.5% during 2024-2032. The widespread product adoption across the industrial sector, the growing product utilization in the manufacturing of vehicle polish and the extensive product use in fruit coatings to extend shelf life represent some of the key factors driving the market.

Wax is a versatile substance that finds numerous applications across various industries. It is a solid material with a low melting point, typically derived from natural sources such as plants, animals, and petroleum. The most common types of wax include beeswax, paraffin wax, and carnauba wax, each possessing distinct properties suited for different purposes. Beeswax, produced by honeybees, is well-known for its natural, eco-friendly qualities. It is commonly used in cosmetics, candles, and furniture polishes due to its pleasant scent, smooth texture, and ability to enhance shine. Paraffin wax, a by product of crude oil refining, is the most widely used type of wax due to its affordability and ease of manufacturing. Its applications include candles, coatings for food products, and as a component in cosmetics and pharmaceuticals. Carnauba wax, mainly derived from the Brazilian palm tree leaves, is renowned for its hardness and high melting point. It is commonly found in automobile waxes, shoe polishes, and various industrial products, providing a protective and glossy finish. Beyond these specific types, waxes can be customized and blended to meet specific requirements in various sectors, including paper and packaging, textiles, and the automotive industry. They offer benefits such as moisture resistance, lubrication, and surface protection.

India Wax Market Trends:

The market in India is majorly driven by widespread product adoption across the industrial sector. Waxes are widely used in industries such as packaging, cosmetics, pharmaceuticals, and textiles. The growth of these industries in India has a direct impact on the demand for waxes. For instance, the expanding packaging sector requires waxes for coatings and laminations, while the cosmetics industry utilizes waxes in lipsticks, lotions, and creams. Moreover, the automotive sector in India is witnessing significant growth, and waxes play a crucial role in applications, such as car waxing and polish. As the automotive industry expands, so does the demand for automotive-grade waxes. Also, the construction industry in India is booming, leading to increased demand for building materials, including waxes for coatings and adhesives used in construction. Furthermore, in the agricultural sector, waxes find use in fruit coatings to extend shelf life and maintain freshness. Additionally, the demand for food-grade waxes is rising due to the growing focus on food safety and hygiene, thereby acting as a growth-inducing factor. Apart from this, ongoing research and development activities aimed at improving wax properties, developing new applications, and finding innovative uses of waxes contribute to market growth further.

India Wax Market Segmentation:

Type Insights:

• Mineral Wax
• Synthetic Wax
• Natural Wax
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes mineral wax, synthetic wax, natural wax, and others.

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Application Insights:

• Candles
• Cosmetics
• Packaging
• Emulsions
• Hot Melts
• Floor Polishes
• Others

INDIAN TRADING INDUSTRY

The distribution network in India

Evolution of the Sector

There has been a significant expansion in distribution channels in India during the past few years. Indian retail industry is one of the fastest growing in the world. According to Invest India, the overall retail market is set to cross the $2 trillion mark by 2032 from $690 billion in 2021. The Indian retail e-commerce market, which amounted to $72 billion in 2021, is also set to grow at an annual growth rate of 30% for a gross value of goods of $350 billion by 2030. Retail is India’s largest industrial sector, currently accounting for over 10% of India’s GDP and 8% of total employment.

Most Indian manufacturers use a three-tier selling and distribution structure that has evolved over the years. This structure involves redistribution stockists, wholesalers, and retailers. As an example, an FMCG company operating on an all-India basis could have between 40 and 80 redistribution stockists (RS). The RS will sell the product to between 100 and 450 wholesalers. Finally, both the RS and wholesalers will service between 250,000-750,000 retailers throughout the country. The RS will sell to both large and small retailers in the cities as well as interior parts of India. Depending on how a company chooses to manage and supervise these relations, its sales staff may vary from 75 to 500 employees. Wholesaling is profitable by maintaining low costs with high turnover, with typical FMCG product margins anywhere from 4-5%. Many wholesalers operate out of wholesale markets. In urban areas, the more enterprising retailers provide credit and home- delivery. Now, with the advent of shopping malls, companies talk of direct delivery and discounts for large retail outlets.

In 2021, e-commerce generated $63 billion in revenues, growing by 26% compared to 2020 (ecommerceDB). India will have 500 million online buyers by 2030, compared to 150 million in 2020, with digital spending projected to increase more than tenfold to $800 billion and account for more than a third of all retail sales by 2030.

Market Share

India’s food and grocery retail industry is considered the third largest in the world with sales reaching $858 billion in 2022 and expected to grow annually by 8.17% (Statista). The food and grocery sector constitutes nearly 70% of the total retail market in India. The food retail sector in India is comprised of modern grocery retailers along with e-commerce, representing 10% of the market share and traditional retail formats, specifically neighborhood shops called kirana stores, which account for 90% of all retail sales.

Due to the Covid-19 crisis, the food retail sector in India has undergone changes. India’s largest food retailer, Reliance, has worked with WhatsApp to expand its presence in the e-commerce market by linking kirana shops to its online platform and supply chain. Due to blocking restrictions and social distance regulations, Indian customers have increasingly turned to e- commerce platforms to secure essential food supplies. Thus, many retailers have organised themselves with and commerce services, Amazon India has expanded its Amazon Pantry services to over 300 cities.

The unorganized sector in food retail is predominantly dominated by general stores, kirana stores, convenience stores and street markets. On the other hand, the organized sector includes gourmet stores, department stores, discount stores, supermarkets and hypermarkets, e-tailers and cash-and-carry formats; there are mainly Indian firms.

The major food retail chains in India are: Reliance Retail, Future Value Retail, Avenue Supermarts Limited, More Retail Limited, Star Bazaar, Spencer’s Retail, Walmart India, Spar Hypermarket and Namdhari’s Fresh.

INDIAN CHEMICAL INDUSTRY INTRODUCTION

Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India’s chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040.

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world’s production of dyestuffs and dye intermediates. India’s agrochemicals export was estimated to be at US$ 3.12 billion from April 2023 to December 2023. Indian colourants industry has emerged as a key player with a global market share of ~15%. The country’s chemicals industry is de-licensed, except for a few hazardous chemicals. India has traditionally been a world leader in generics and biosimilars and a major Indian vaccine manufacturer, contributing more than 50% of the global vaccine supply. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at the global level (excluding pharmaceuticals). From April 2023 to December 2023, India’s dye exports (Dyes and Dye Intermediates) totalled US$ 1.69 billion.

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MARKETS SIZE

India’s chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 383 billion to India’s GDP by 2030.

India has traditionally been a world leader in generics and biosimilars and major Indian vaccine manufacturers, contributing more than 50% of the global vaccine supply. Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040.

An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. Specialty chemicals account for 20% of the global chemicals industry’s US$ 4 trillion, with India’s market expected to increase at a CAGR of 12% to US$ 64 billion by 2025. This gain would be driven by a healthy demand growth (CAGR of 10-20%) in the export/end-user industries.

The Department of Chemicals & Petrochemicals intends to bring PLI in the chemical & petrochemical sector and will redraft the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) guidelines.

The Indian chemical industry is expected to further grow with a CAGR of 11-12% by 2027, increasing India’s share in the global specialty chemicals market to 4% from 3%.

A shift in the global supply chain brought on by the China+1 strategy and a resurgence in domestic end-user demand was expected to fuel significant revenue growth of 18–20% in 2022 and 14–15% in 2023.

INVESTMENTS AND RECENT DEVELOPMENTS

A few recent developments/investments in the Indian chemical sector are as follows:

• From April 2023 to December 2023, exports of organic chemicals stood at US$ 5.49 billion & inorganic stood at US$ 1.50 billion.
• Imports of organic chemicals were US$ 11.21 billion and inorganic chemicals US$ 5.01 billion from April 2023 to December 2023.
• From April 2023 to December 2023, exports of castor oil, essential oil, and cosmetics and toiletries stood at US$ 2.92 billion.
• Major chemical production reached 899.84 million metric tonnes (MMT) in October 2023, while petrochemical production reached 1,702.13 MMT. In October 2023, production levels of various chemicals were as follows: Soda Ash: 226.87 MMT, Caustic Soda: 285.46 MMT, Liquid Chlorine: 207.88 MMT, Formaldehyde: 20.66 MMT, and Pesticides and Insecticides: 21.14 MMT.
• In August 2023, the Prime Minister announced a subsidy of Rs. 10 lakh crore (US$ 120.93 billion) for providing cheaper Urea to farmers.
• In July 2023, Global Chemicals and Petrochemicals Manufacturing Hubs in India (GCPMH 2023) was organized in Delhi, India.
• In June 2023, Himadri Speciality Chemical invested Rs. 58 crore (US$ 7.01 million) in Sicona Battery Technologies Pty Ltd, (Sydney) for a 12.79% stake.
• In June 2023, Mumbai-based UPL Ltd, will hive off its speciality chemicals business on a slump sale basis to a wholly- owned arm of UPL Speciality Chemicals Ltd for Rs. 3,572 crore (US$ 431.96 million).
• In June 2023, Reliance plans to invest Rs. 75,000 crore (US$ 9.06 billion) over 5 years to expand its oil to chemical business.
• Tata Chemicals intended to invest about Rs. 8,000 crore (US$ 967.45 million) over the next 2-3 years as capex on an expansion spree that includes scaling businesses sustainably.
• In May 2023, Reliance Industries plans to set up a 10 GW solar project in Andhra Pradesh.
• In March 2023, Chennai awaits more bio-CNG plants to enable a switch to clean energy.
• On February 15th, 2023, the Indian Speciality Chemical Manufacturer’ Association (ISCMA) signed an MoU with USIIC to promote trade in speciality chemicals.
• In February 2023, the company is setting up a new formaldehyde plant with 300 TPD capacity at the existing manufacturing facility at GIDC, Ankleshwar in Gujarat.
• In January 2023, Tata Chemicals Europe signed a pact with Essar-backed Vertex for the sale of low-carbon hydrogen.
• In December 20222, GMM Pfaudler Ltd entered into an agreement on December 8, 2022, to acquire Mixel France SAS and its wholly owned subsidiary Mixel Agitator Co. Ltd. for US$ 7.63 million.
• In September 2022, the Royal Society of Chemistry (RSC) and CSIR work together to support chemistry in schools across India.
• In September 2022, Spanish perfume maker Puig acquired a controlling stake in Kama Ayurveda Pvt. owning 85% of the company.
• In May 2022, a global investment firm, PAG acquired Optimus Group along with consortium partners CX Partners and Samara Capital.
• In April 2022, Dorf Ketal, a manufacturer of research-based specialised chemicals acquired Khyati Chemicals for Rs. 300-400 crore (US$ 36.28 – 48.48 million).
• Advent International acquired a majority position in Avra Labs in January 2022, uniting it with two other businesses it had previously acquired, RA Chem Pharma and ZCL Chemicals.
• In July 2022, NTPC Renewable Energy Limited (NTPC REL) and Gujarat Alkalies and Chemicals Limited (GACL) signed an MoU to establish India’s first commercial-scale Green Ammonia and Green Methanol plants.
• In November 2021, Indian Oil Corporation (IOCL) announced plans to invest Rs. 3,681 crore (US$ 495.22 million) to set up India’s first mega-scale maleic anhydride unit for manufacturing high-value speciality chemicals at its Panipat Refinery in Haryana.
• In November 2021, Praj Industries Limited and Indian Oil Corporation inked a memorandum of understanding (MoU) to explore opportunities in the production of alcohol-to-jet (ATJ) fuels, 1G & 2G ethanol, compressed bio-gas (CBG) and related opportunities in the biofuels industry.
• In November 2021, Coromandel International announced plans to set up a 1,650-metric-tonnes-per-day sulphuric acid plant at its fertiliser complex in Visakhapatnam with an investment of Rs. 400 crore (US$ 53.69 million).
• On September 30, 2021, Prime Minister, Mr. Narendra Modi, inaugurated the CIPET: Institute of Petrochemicals Technology, Jaipur.
• In October 2021, Nayara Energy announced that it expects 15-20 new integrated petrochemical plants to become operational within the next decade in the country, to meet the rising demand for raw materials used in the plastics and clothing industries.
• In October 2021, Rosneft, Russia, launched a large-scale petrochemical production development programme in India with investments worth ~US$ 750 million at the current implemented stage.
• In September 2021, Bharat Petroleum Corporation (BPCL), announced plans to invest US$ 4.05 billion, to improve petrochemical capacity and refining efficiencies over the next five years.
• The government is planning to hold roadshows in eight overseas markets for the proposed investors’ summit planned in January 2022, with a focus on the petrochemicals sector, and is eager to attract investors to its newly launched Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) near the upcoming crude oil refinery in Pachpadra village (in Barmer district, Rajasthan).

GOVERNMENT INITIATIVES

The government has started various initiatives such as mandating BIS-like certification for imported chemicals to prevent dumping of cheap and substandard chemicals into the country.

The Indian government recognises the chemical industry as a key growth element and is forecast to increase share of the chemical sector to ~25% of the GDP in the manufacturing sector by 2025.

• Under the Interim Budget 2024-25 the government allocated Rs. 192.21 crore (US$ 23.13 million) to the Department of Chemicals and Petrochemicals.
• Government to open 25,000 Jan Aushadhi Kendras to make medicines available at affordable prices.
• In April 2023, the Cabinet approved the National Medical Devices Policy, 2023.
• The Department of Chemicals & Petrochemicals intend to bring PLI in the chemical & petrochemical sector and will redraft the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) guidelines.
• PLI schemes have been introduced to promote Bulk Drug Parks, with a budget of Rs. 1,629 crore (US$ 213.81 million).
• The Government of India is considering launching a production-linked incentive (PLI) scheme in the chemical sector to boost domestic manufacturing and exports.
• A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector. The government plans to implement a production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters.
• In October 2020, the government urged players in the agrochemicals industry to come out with new molecules of global standards for the farmers’ benefit, while CropLife India, the industry body, pitched for stable policies and regulatory regimes to boost growth in the sector.
• 100% FDI is allowed under the automatic route in the chemicals sector with few exceptions that include hazardous chemicals. FDI inflows in the chemicals sector (other than fertilisers) reached US$ 21.48 billion between April 2000- June 2023.
• The government has proposed several incentives for setting up a sourcing or manufacturing platform within an Indian SEZ:
• Effective April 1, 2020, 100% Income Tax exemption on export income for SEZ units for the first five years, 50% for the next five years thereafter and 50% of the ploughed back export profit for the next five years.
• Single window clearance for central and state-level approvals.
• Duty-free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
• In December 2020, the PCPIR policy is being completely redesigned. Under the new PCPIR Policy 2020-35, a combined investment of Rs. 10 lakh crore (US$ 142 billion) is targeted by 2025, Rs. 15 lakh crore (US$ 213 billion) by 2030 and Rs. 20 lakh crore (US$ 284 billion) by 2035 in all PCPIRs across the country. The four PCPIRs are expected to generate employment for ~33.83 lakh people. ~3.50 lakh persons have been employed in direct and indirect activities related to PCPIRs by the end of 2020. The Gujarat Infrastructure Development Corporation (GIDC) has made an investment of around US$ 2.09 billion (Rs. 17,317 crore) for infrastructure development in the PCPIR.

Business Data of Dhariwalcorp Limited

Verticals of Dhariwalcorp Limited

• WAX
  • Slack Wax
  • Paraffin Wax
  • Carnauba Wax
  • Microcrystalline Wax
  • Semi Refined Paraffin Wax
  • Yellow Beeswax
  • Hydrocarbon Wax
  • Montan Wax
  • Polyethylene Wax
  • Vegetables Wax
  • 11.Residue Wax
  • 12.Palm Wax
  • Soya Wax
• INDUSTRIAL CHEMICALS
  • Rubber Process Oil
  • LLP Light Liquid Paraffin
  • Citric Acid Monohydrate
  • Refined Glycerine
  • Bitumen
  • Steric Acid
• PETROLEUM JELLY
  • White Petroleum Jelly

Product wise break-up of Dhariwalcorp Limited

Revenue contribution from Geography presence

Customer dependency

(₹ in lakhs)

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Supplier dependency

(₹ in lakhs)

Competition

Dhariwalcorp Limited operate in a competitive atmosphere. Some of Dhariwalcorp Limited competitors may have greater resources than those available to us. While service, brand value, marketing, etc. are key factors in client decisions among competitors, reliability and business logic contribution is the deciding factor in most cases. Dhariwalcorp Limited face fair competition from both organized and unorganized players in the market. We believe that our experience, and reliability record with our customers will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough competitors offering end-to-end solutions like us. Dhariwalcorp Limited believe that we are able to compete effectively in the market with our quality of services and our reputation. Dhariwalcorp Limited believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

Peer companies comparison

• There are no listed companies in India and abroad that is engaged in developing a similar line of product solution to that of Dhariwalcorp Limited company.

Business risk factors

• Dhariwalcorp Limited depend on the success of our relationships with our customers. We derive a significant part of our revenue from our major customers and we do not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from us, our business, financial condition and results of operations may be adversely affected.
  • Dhariwalcorp Limited revenue from operations for the financial year ended March 31, 2024, 2023 and 2022 top 10 customers contributed approximately 34.81%, 34.74% and 32.23%, respectively.
• Changes in technology may render Dhariwalcorp Limited current technologies obsolete or require us to make substantial capital investments.
• Dhariwalcorp Limited generate our major portion of sales from our operations in certain domestic market. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.
• Dhariwalcorp Limited Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact our growth and business.

(Rs. in Lakhs)

Financials

Key Financial Ratios

Key Performance Indicators

(₹ in Lakhs, otherwise mentioned)

Balance Sheet

(Rs.in lakhs)

Profit & Loss

(₹ in Lakhs, otherwise mentioned)

Cash Flow

(Rs. in Lakhs)

Capital structure

SWOT ANALYSIS

• Strengths:
  • Wide Product Range: Dhariwalcorp deals in a comprehensive range of waxes, industrial chemicals, and petroleum jelly. This diversification contributes to their stability.
  • Strong Regional Presence: Operating in 21 states and 3 union territories provides a solid foothold in the market.
  • Experienced Promoters: The involvement of Mr. Manish Dhariwal, Ms. Shakshi Dhariwal, and Mr. Dilip Dhariwal adds expertise.
• Weaknesses:
  • Limited IPO Size: The recent IPO size (₹25.15 Crores) might restrict growth opportunities.
  • Niche Market: The focus on specific chemical products may limit scalability.
  • Dependency on Raw Materials: Any disruption in raw material supply could impact operations.
• Opportunities:
  • Market Expansion: Dhariwalcorp can explore new regions or international markets.
  • Product Diversification: Expanding the product portfolio beyond chemicals could enhance revenue.
  • Industry Trends: Capitalizing on eco-friendly and sustainable products is an opportunity.
• Threats:
  • Competition: Rival companies pose a threat to market share.
  • Regulatory Changes: Compliance with environmental regulations is crucial.
  • Economic Volatility: Economic downturns can affect demand.

IPO Details

Dhariwalcorp Limited IPO Details

Object of the issue

(₹ in Lakhs)

Litigation involved

Gray Market Premium

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