HP Adhesives Ltd. (HPAL) is a fast-growing multi-product, multi-category consumer adhesives and sealants company. For its largest product category – PVC solvent cement, HPAL is amongst the leading manufacturing companies in India in the consumer/ bazaar segment of the adhesive industry. (Source: CRISIL Research). It manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through a network of distributors and direct customers. These adhesives and sealant products have applications in multiple industries such as plumbing and sanitary, drainage and water distribution, general-purpose building/ construction, and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing, and other varied industries. Apart from the above products, the company also sells ancillary products like ball valves, thread seals, and other tapes and FRP products for drainage and architectural solutions.

As of September 30, 2021, the company has a distribution network of 4 depots situated in Delhi, Kolkata, Bengaluru, and Indore and more than 750 distributors who cater to more than 50,000 dealers in India. The company’s manufacturing facility is located at Village Narangi, Raigad (Maharashtra) which is a multi-product manufacturing facility. During the FY 2020-21, the company sold its products in 21 countries. Anjana Haresh Motwani and Karan Haresh Motwani are the company promoters.

For year/ period ended ( in Cr.)

• It is a growing company with established brand presence
• Wide Product Portfolio and multiple SKUs
• Diversified product portfolio with a diversified customer base
• Extensive distribution network across India
• Established presence in international markets
• Large players as customers
• Efficient manufacturing set-up with scope for expansion
• Focus on quality
• R&D set up for constant product improvement and new product development
• Experienced management team with a committed employee base

• Funding the working capital requirements of the company
• Funding capital expenditure for expansion of production capacity at the existing manufacturing facility in Maharashtra and at the additional unit having a proposed construction area admeasuring about 4,532.57 sq. mtrs

Based on the financial data, the prima facie issue is fully priced. It holds promises for better performance and earnings going forward with added capacities and a strong client list. Cash surplus investors may consider investment for the medium to long term rewards. Listing in (Trade to Trade group) will restrict speculative moves for initial periods.