DOMS Industries Ltd. (DIL) is the fastest growing stationery and art material products company in India in terms of revenue over the period from Fiscal 2020 to Fiscal 2023.  The company designs, develops, manufactures, and sells a wide range of stationery and art products, primarily under its flagship brand ‘DOMS’, in the domestic market as well as in over 45 countries internationally, as of September 30, 2023. DIL is the second largest player in India’s branded ‘stationery and art’ products market, with a market share of 12%+ by value, as of Fiscal 2023 (Source: Technopak Report). DIL’s keen focus on research and development (R&D), product engineering, and backward integrated manufacturing, operations, combined with multichannel Pan-India distribution network has enabled it to achieve a strong brand recall amongst consumers.

It offers well-designed and quality ‘stationery and art material’ products to consumers, which it classifies across seven categories: (i) scholastic stationery; (ii) scholastic art material; (iii) paper stationery; (iv) kits and combos; (v) office supplies; (vi) hobby and craft; and (vii) fine art products. As of September 30, 2023, it has a widespread multi-channel distribution network with a strong Pan-India presence and a global footprint catering to over 45 countries, covering the Americas, Africa, Asia Pacific, Europe, and Middle East. In the domestic market, it sells products through (i) general trade; (ii) modern trade and ecommerce; and (iii) original equipment manufacturer (OEM) & institutions. Its domestic distribution network for general trade comprises of over 120 super-Stockists, and over 4,000 distributors along with a dedicated sale team of over 500 personnel covering more than 120,000 retail touch points over 3,500 cities and towns.

As of March 31, 2023, the company has a strong, global multi-channel distribution network across the Americas, Africa, Asia Pacific, Europe, and the Middle East.

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*Market cap @upper band of Rs. 790/-

• Leadership position in the Indian ‘stationery and art material’ industry with the widest range of products, driving rapid business growth, with a market share of ~12% by value, as of Fiscal 2023.
• Strong brand recall driven by high quality, innovative and differentiated products.
• Robust manufacturing infrastructure, with a focus on backward integration to drive efficiencies. It operates 13 manufacturing facilities across Umbergaon, Gujarat, spread over approximately 34 acres of land covering approximately 1.18 million square feet and is one of the largest stationery manufacturing 112 facilities in India.
• Robust multi-channel distribution network with strong pan India presence.
• Strategic partnership with FILA enabling access to global markets and product know-how; and
• Experienced Promoters and management team.

• Proposing to partly finance the cost of establishing a new manufacturing facility to expand its production capabilities for a wide range of writing instruments, water colour pens, markers, and highlighters.
• General corporate purposes.

The Company is the fastest growing 2^nd largest leader in stationary and related material products. It has marked tremendous growth since FY23 and that indicates its prospects going forward. Based on FY24 earnings, the issue appears fully priced. Investors may consider to subscribe for the medium to long term.