Cello World is a strong player in the field of house ware with strong market dominance and expanding business along with diversified product Catalog and SKU's

Cello World is a strong leader in Houseware, glassware, opalware with improving financials and expanding business along with diversified Catalog.

Cello a name that is common in the Indian households for the past 60+ years. Established in 1962 with the vision to be India's most preferred household brand with innovative & aesthetically superior products at affordable prices. Cello has seamlessly blended innovation, aesthetics, and affordability to become a trusted companion in homes, hotels, restaurants, and catering establishments. With a rich history spanning over 60 years, Cello has continually evolved and diversified its product range to cater to the ever-evolving needs of Indian consumers. Cello's journey has been marked by an unwavering commitment to understanding and addressing the diverse preferences and requirements of Indian consumers. Over the years, the brand has honed its expertise in the consumer products industry, fostering a deep connection with its audience. This connection has not only allowed Cello to anticipate trends but also to proactively create products that seamlessly integrate into the lives of its customers.

Cello's extensive product range reflects its dedication to enhancing the lives of every household. From drinkware, which includes an array of water bottles, flasks, tea sets, and coffee mugs, to dinnerware comprising opalware and stainless steel sets, the brand caters to various aspects of dining and culinary experiences. It provides a range of options, from glass and microwave-safe steel lunch boxes to plastic, opalware, and insulated lunch boxes, along with electric tiffins for convenient meals on the go.

The brand also features both stainless steel and insulated casseroles, keeping food warm and flavorful, which is perfect for home-cooked meals. Additionally, there's a collection of glass jars, stainless steel canisters, and PET containers designed to organize and preserve kitchen essentials with style. Cello's dedication to culinary innovation is further evident through the presentation of mixing bowls and glass bakeware, designed to inspire baking creativity and deliver exceptional culinary results. The brand offers a diverse array of kitchen appliances, including mixer grinders, toasters, sandwich makers, kettles, and beaters, all designed to simplify cooking routines. The cookware range is equally comprehensive, with options including non-stick, hard-anodized, impact-bonded steel, triply, and 5-ply variations in woks, pans, cookware sets, and gas stoves, catering to diverse cooking needs. The "Cello Kidzee" range is tailored specifically for children, encompassing lunch boxes, water bottles, and dinner sets designed with playful aesthetics and functionality in mind. The brand's "#mycelloflask" initiative adds a personalized touch, allowing customers to monogram steel flasks with names or initials, thereby turning utilitarian products into cherished possessions. In the realm of gifting, Cello thoughtfully curates a selection of offerings at various price points, meticulously designed based on the recipient's preferences, thereby ensuring that every occasion becomes a memorable one. The cleaning supplies, branded under the name Kleeno, offer an assortment of essentials such as spin mops, brushes, wipers, brooms, and dustbins, thereby ensuring a hygienic and organized living environment. Cello's journey has been marked by collective growth, both internally and externally. With 13 manufacturing facilities across five strategic locations in India, the brand seamlessly combines global technology advancements with its manufacturing prowess. The brand's growth is not only about product expansion, but also about nurturing its people and fostering a collective spirit that drives success.

Cello have a track record of scaling up new businesses and product categories. They launched glassware and opalware business in 2017 under the “Cello” brand, and increased revenue from operations from this business from ₹1,483.59 million in the Financial Year 2021, to ₹2,289.88 million in the Financial Year 2022 and ₹2,760.16 million in the Financial Year 2023, at a CAGR of 36.40%. Company also launched writing instruments and stationery product category in 2019 under the “Unomax” brand, and increased volume of products sold from this product category from 230.31 million units in the Financial Year 2021, to 264.27 million units in the Financial Year 2022 and 458.10 million units in the Financial Year 2023, at a CAGR of 41.03%. For the Financial Years 2021, 2022 and 2023, revenue from writing instruments and stationery product category was ₹1,113.80 million, ₹1,693.35 million and ₹2,849.99 million, respectively. Company's “Unomax” brand had the highest EBITDAmargin for the Financial Years 2021, 2022 and 2023.

Company own/lease and operate 13 manufacturing facilities across five locations in India, as of March 31, 2023, and they are currently establishing a glassware manufacturing facility in Rajasthan. their manufacturing capabilities allow them to manufacture a diverse range of products in-house. Their revenue derived from in-house manufacturing operations aggregated to 78.65%, 82.63% and 79.37% of total revenue from operations for the Financial Years 2021, 2022 and 2023, respectively. The remaining products (consisting mainly of steel and glassware products) are manufactured by third party contract manufacturers who manufacture these products with their branding pursuant to arrangements with them. The scale at which they manufacture products, combined with supply chain management enables them to derive the benefits of economies of scale across various aspects of their business model. Further, company maintain optimal inventory levels across manufacturing facilities by implementing technology and utilising available market information. Company also endeavor to maintain high quality standards and good manufacturing practices.

Company's nationwide sales and distribution network is supported by 683 member sales team, as of March 31, 2023. they equip  field staff across the distribution network with an enterprise resource planning system, which assists them in forecasting production levels and helps them in optimising inventory levels. They have developed and maintain longstanding relationships with distributors and retailers over the years. Further, their products also reach consumers through modern trade and export channels, e-commerce marketplaces and their own websites. In addition, they also sell their products in bulk quantities to corporate clients and government departments.

To enhance brand awareness and strengthen brand recall for the brands and sub-brands that they use, they utilise a diverse array of promotional and marketing efforts, including in-shop displays, merchandising, advertisements in print and social media, retail branding and product branding. Company have developed a strong brand identity through effective brand advertisements and marketing campaigns, including “Cello – Companion for Life”, “Cello – Rishta Zindagi Bhar Ka”, “Hot Chahiye Toh Cello” and “Don’t Just Write, Glide”. All their marketing efforts are initiated and coordinated by their strong marketing team of 17 employees, as of March 31, 2023.

Industry Research:

India ranked fifth in the world in terms of nominal gross domestic product ("GDP") for FY 2022 and is the third largest economy in the world in terms of purchasing power parity ("PPP"). India is expected to be ~USD 5 trillion economy by FY 2026 and is estimated to be the third largest economy by FY 2030 surpassing Germany and Japan. Since FY 2005, the Indian economy's growth rate had been twice as that of the world economy and it is expected to sustain this growth momentum in the long term. Between FY 2021 and FY 2027, India’s real GDP is expected to grow at a CAGR of 6.57%, which compares favourably to the world average (2.9%) and with other major economies, including China (4.04%), UK (1.36%), Japan (0.99%) and the USA (2.81%) for the similar period of CY 2021 to CY 2027. It is also expected that the growth trajectory of Indian economy will enable India to be among the top 3 global economies by FY 2030.

India’s share of domestic consumption, measured as private final consumption expenditure, in the GDP was ~61% in FY 2020. In comparison, China’s domestic consumption share to GDP in CY 2019 was ~39%. High share of private consumption to GDP has the advantage of insulating India from volatility in the global economy. It also implies that sustainable economic growth directly translates into sustained consumer demand for goods and services. In FY 2022, PFCE accounted for ~60% of India’s GDP. This is much higher than that in China (~39%), Germany (~50%) and comparable to that of the US (~68%) and the UK (~61%) for similar time of CY 2021. With the rapidly growing GDP and PFCE, India is expected to be on the top consumer markets in the world. India’s income growth is one of the strongest drivers for higher private consumption trends. In recent years, the rate of growth of per capita GNI has accelerated indicating that the Indian economy has been growing at a faster rate. The per capita GNI for India stands at INR 1,70,222 in FY 2022, marking a ~73% increase from INR 98,405 in FY 2015, with a CAGR of 8.4% during the period.

India has one of the youngest populations globally compared to other leading economies. The median age in India is estimated to be 28.7 years for FY 2022 as compared to 38.5 years and 38.1 years in the United States and China, respectively, and is expected to remain under 30 years until 2030. With a growing young population, the demand for premiumization is also growing. The younger population is naturally pre-disposed to adopting new trends and exploration given their educational profile and their exposure to media and technology, which presents an opportunity for domestic consumption in the form of branded products and organized retail.

The Indian retail market as a whole has historically been characterized as largely fragmented and unorganized. In FY 2015, the total retail market in India stood at USD 461 Bn. Organized retail, while still in its nascent stage contributed ~8% (in 2015) to the total retail market in India while the unorganized sector had a significant share, contributing to ~92% of the total retail market. In FY 2022, the total retail market reached a value of USD 844 Bn whereas the organized retail market had a value of USD 109 Bn, contributing to ~13% of the total retail market in India. By FY 2027, the values for total retail and organized retail are expected to reach USD 1,418 Bn and USD 325 Bn respectively, exhibiting CAGR of ~11% and 24% for total and organized retail respectively from FY 2022 to FY 2027.

India’s consumption basket includes need-based retail, discretionary retail and services availed by the consumers. The total consumption market in FY 2015 stood at USD 966 Bn which was ~62% of the GDP. The total consumption basket of India witnessed a CAGR of ~9% from FY 2015 to FY 2022. The spending by customers on discretionary categories has seen a rise owing to higher income levels and enhanced standards of living.

The Global Consumerware market was valued at USD 106 Bn in CY 2022. This market has witnessed a steady growth over the years with market size increasing from to USD 98 Bn in CY 2020 to USD 106 Bn, growing at a CAGR of 4%. Various factors like increasing disposable income, changing consumer lifestyles, growing demand for modular kitchens and functional living spaces are further adding to the growth of the global Consumerware industry. Consequently, the market size is expected to reach USD 142 Bn in CY 2027 from USD 110 Bn in CY 2023 growing at a CAGR of 6.6%.

The Indian Consumerware market was valued at INR 348 Bn in FY 2022. This market has witnessed steady growth over the years with market size increasing from INR 305 Bn in FY 2020 to INR 348 Bn FY 2022 growing at a CAGR of 6.9% and INR 565 Bn in FY 2027 growing at a CAGR of 10.2% for the period FY 2022-2027. Various factors like increasing disposable income, nuclearization of families, and growing demand for organized and functional kitchen spaces are further adding to the growth of the Indian Consumerware Market.

This growth is attributed to factors like favourable demographics with shifting dynamics in kitchen responsibilities and an increase in working women, increasing ownership of products per person and the evolving Indian consumer, with increased discretionary spending and improved product availability through online platforms and multi-brand outlets. Additionally, the shift towards innovative and creative products that prioritize aesthetics and functionality have accelerated the growth of branded players in the market and thus the industry itself.

Investment Rationale:

Well-established brand name and strong market positions

Company's strong market positions in the consumer products industry segment are a reflection of vast experience, continuous product development and consumer understanding. Their brand “Cello” was awarded as one of the most trusted brands of India in 2021 by Commerzify. They are a leading company in the consumerware market in India with products in the glassware, opalware, melamine and porcelain categories, and are among the largest consumerware brands in the Indian consumerware market. Company's erstwhile promoter Late Ghisulal Dhanraj Rathod, father of Promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod, was associated with Cello Plastic Industrial Works and the “Cello” brand since 1962. Further, they launched the writing instruments and stationery business in 2019 under the “Unomax” brand. It had the highest EBITDA margin for the Financial Years 2021, 2022 and 2023.

Diversified product portfolio across price points catering to diverse consumer requirements

Company focuses on identifying the needs and preferences of consumers through their network of distributors, and innovating their products to cater to their differing requirements and preferences, while endeavouring that products are available across various price points and meet quality standards expected by consumers. As of March 31, 2023, Company offered 15,841 SKUs across their product categories. They offer an extensive product range across three product categories. They have a diverse range of products across different product categories, types of material and price points, which enables them to serve as a “one-stop-shop”, with consumers across all income levels purchasing their products. Their wide spectrum of product offerings cater to a wide range of consumer needs.

Company have demonstrated the ability to expand SKUs and products across various price points. For example, in a number of product categories, Company had initially started with more affordable products, and subsequently expanded into value-added products at higher price points. Similarly, in a number of product categories, They had initially started with value-added products at higher price points, and subsequently expanded into more affordable products. Their diversified product portfolio has also allowed them to maintain stable profit margins over the years by enabling them to withstand fluctuations in raw material prices. Their products are made of different types of materials, such as plastic, steel, opal, glass, copper and melamine. They have the most diversified product portfolio among their peers, with products in the glassware, opalware, melamine and porcelain categories.

In order to cater to evolving consumer demands, they seek to constantly develop and launch new range of products by leveraging vast experience, market knowledge and innovation capabilities. They have been innovating and introducing new range of products, such as recently launched writing instruments, cleaning aids, opalware, glassware and cookware range of products and appliances, along with moulded furniture and allied products, in order to increase market share of consumer products market in India as well as to grow revenues and profit. During the Financial Years 2021, 2022 and 2023, company launched 397, 169 and 380 new products (across three product categories), respectively. As of March 31, 2023, they had 15,841 products (across three product categories).

Track record of scaling up new businesses and product categories

Company have a track record of scaling up new businesses and product categories. They launched glassware and opalware business in 2017 under the “Cello” brand, and increased revenue from operations from this business from ₹1,483.59 million in the Financial Year 2021, to ₹2,289.88 million in the Financial Year 2022 and ₹2,760.16 million in the Financial Year 2023, at a CAGR of 36.40%. They also launched  writing instruments and stationery product category in 2019 under the “Unomax” brand, and increased volume of products sold from this product category from 230.31 million units in the Financial Year 2021, to 264.27 million units in the Financial Year 2022 and 458.10 million units in the Financial Year 2023, at a CAGR of 41.03%. For the Financial Years 2021, 2022 and 2023, revenue from writing instruments and stationery product category was ₹1,113.80 million, ₹1,693.35 million and ₹2,849.99 million, respectively. Their “Unomax” brand had the highest EBITDA margin for the Financial Years 2021, 2022 and 2023.  Further, Company launched their cleaning aids business in 2017 under the “Kleeno” sub-brand (under the “Cello” brand). They have been able to scale up this business by increasing volume of products sold from this business from 5.35 million units in the Financial Year 2021, to 6.92 million units in the Financial Year 2022 and 7.12 million units in the Financial Year 2023, at a CAGR of 15.36%. For the Financial Years 2021, 2022 and 2023, revenue from cleaning aids business was ₹491.53 million, ₹607.79 million and ₹667.67 million, respectively. Company's track record of scaling up opalware, writing instruments and stationery, and cleaning aids businesses, is a testament of their ability to scale up new businesses and product categories.

Pan-India distribution network with a presence across multiple channels

Company's pan-India distribution network is one of the key reasons behind our efficient launch of new range of products in the past. Their nationwide sales and distribution network is supported by 683 member sales team, as of March 31, 2023. Company equip their field staff across distribution network with an enterprise resource planning system, which assists them in forecasting production levels and helps in optimising inventory levels. They have developed and maintain longstanding relationships with distributors, and retailers over the years. Company regularly interact with distributors and retailers for insight into consumer preferences and market feedback, which in turn helps them to, among others, (i) check for product-market fit at an early stage before scaling them up, and (ii) structure appropriate pricing discounts and advertisement campaigns during festive seasons.

Company's products also reach consumers through modern trade and export channels, e-commerce marketplaces and their own websites. They have an established export channel for stationery business. In addition, They also sell products in bulk quantities to corporate clients and government departments.

Ability to manufacture a diverse range of products and maintain optimal inventory levels

Their manufacturing capabilities allow them to manufacture a diverse range of products in-house, which in turn enables them to scale up production quickly to meet increased demand, reduce time taken to launch new products in the market, maintain quality control of products, maintain better control over supply chain and mitigate risk of supply chain disruption. Their revenue derived from in-house manufacturing operations aggregated to 78.65%, 82.63% and 79.37% of their total revenue from operations for the Financial Years 2021, 2022 and 2023, respectively. The remaining products (consisting mainly of steel and glassware products) are manufactured by third party contract manufacturers who manufacture products with their branding pursuant to arrangements with them. Company own and operate 13 manufacturing facilities across five locations, with an installed annual capacity of 57.77 million units of consumer houseware products per annum, 15,000 tonnes of opalware and glassware per annum, 650.00 million units of writing instruments and stationery products per annum and 12.80 million units of moulded furniture and allied products, as of March 31, 2023. They are currently establishing a glassware manufacturing facility in Rajasthan, which is expected to house European-made machinery that enables high productivity and precision in design and finish. This glassware manufacturing facility in Rajasthan is also expected to (i) house various machines, including fire polishing machines and servo gob feeder; (ii) be located close to their raw material suppliers; and (iii) provide a dry weather environment that is suitable for the manufacturing of glassware. Pursuant to the establishment of the glassware manufacturing facility in Rajasthan, They are expected to become the only domestic consumer products company which has presence across all material types to have an in-house glassware manufacturing unit in India.

Company also maintain optimal inventory levels across manufacturing facilities by implementing technology and utilising available market information. They have implemented an enterprise resource planning system, which is a systems application and product software, to, among others, help them in tracking consumer demands and maintaining optimum inventory levels for consumer houseware and moulded furniture and allied products product categories, and they are in the process of implementing the same for  writing instruments and stationery product category. Additionally, they plan their inventory levels by utilising available market information, including existing inventory levels, delivery timelines and expected order pipelines, and their six decades of experience in anticipating and forecasting consumer demand in the consumer products industry. An optimal level of inventory is important to their business as it allows them to respond to consumer demand effectively.

Strong historical financial results

They have been continuously growing business through increase in sales, and the expansion of brand portfolio, product offerings and distribution network. Their operational efficiencies and supply chain network has resulted in better control of expenses and thereby resulted in an increase in profit after tax. Their revenue from operations increased from ₹10,494.55 million in the Financial Year 2021, to ₹13,591.76 million in the Financial Year 2022 and ₹17,966.95 million in the Financial Year 2023, at a CAGR of 30.84%.  restated profit for the year also increased from ₹1,655.48 million in the Financial Year 2021, to ₹2,195.23 million in the Financial Year 2022 and ₹2,850.55 million in the Financial Year 2023, at a CAGR of 31.22%. Further, as business scales, they are able to enjoy the benefits of economies of scale across procurement value-chain, contributing to cost- efficiencies for them. During the Financial Years 2021, 2022 and 2023, their restated profit for the year margin was 15.77%, 16.15% and 15.87%, respectively. In addition, they also have positive cash flows and relatively low amounts of indebtedness. During the Financial Years 2021, 2022 and 2023, net cash generated by operating activities amounted to ₹1,936.12 million, ₹1,872.68 million and ₹2,273.53 million, respectively, and net cash (used in)/generated from financing activities amounted to ₹(1,328.10) million, ₹941.09 million and ₹3,238.18 million, respectively.

Continued innovation to grow wallet share and expand consumer base

Company intend to utilise innovation capabilities to expand existing product portfolio and develop new range of products across product categories. In particular, they aim to expand product portfolio in their consumer houseware product category, by focusing on introducing new range of products in the kitchenware, porcelain, appliances, cookware, glassware, writing instruments, and stationery spaces. Through new range of products, company expect to increase their wallet share and repeat orders from existing consumers and to also attract new consumers, in order to increase market share and scale their business. During the Financial Years 2021, 2022 and 2023, company launched 397, 169 and 380 new products (across three product categories), respectively.

Expandin distribution network

Company seek to enhance addressable market by expanding sales and distribution network of distributors, sub- distributors and retailers across India. In particular, they aim to expand distribution network by implementing the following initiatives:

• expand sales and distribution network in states where they are currently not very active. In these markets, they intend to increase customer wallet share, as well as enter into arrangements with more distributors and continue to nurture existing relationships;
• increase sales velocity by incentivizing distributors and retailers to increase the volume of products sold by them;
• increase interaction with distributors and retailers, including through sales and marketing employees;
• incentivise distributors through periodic and festival sales schemes, annual and periodic revenue targets and product-specific schemes (through discounts and gift hampers); and
• increase presence in existing markets abroad by expanding distribution network and entering into new markets for their writing instruments and stationery products.

Key Management Personnel:

Pradeep Ghisulal Rathod is the Chairman and Managing Director of our Company. He has passed the Higher Secondary Certificate Examination conducted by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. He has more than 40 years of experience in the business of manufacturing and trading in, inter alia, plastic articles, insulatedware articles and raw materials. He has been a Director of our Company since its incorporation.

Pankaj Ghisulal Rathod is the Joint Managing Director of our Company. He has passed the Senior Secondary Certificate Examination conducted by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. He has more than 34 years of experience in the business of manufacturing and trading in, inter alia, plastic articles and raw materials and insulatedware articles. He was instrumental in the launch of the writing instruments business and also has experience in marketing and product development of all consumer product categories. He has been a Director of our Company since its incorporation.

Gaurav Pradeep Rathod is the Joint Managing Director of our Company. He holds a master’s degree in business administration from the University of Strathclyde, Scotland and a bachelor’s degree in science (economics- finance) from Bentley University, Massachusetts. He has more than 9 years of experience in the marketing of consumerware products and is instrumental in the launch of opalware range of products, and the growth of online and e-commerce sales of our Company. He has been a Director of our Company since its incorporation.

Gagandeep Singh Chhina is a Non-Executive Director of our Company and a nominee of India Advantage Fund S4 I and India Advantage Fund S5 I, alternative investment funds managed by ICICI Venture Funds Management Company Limited, on our Board. He holds a post-graduate diploma in management from the Indian Institute of Management, Calcutta and a bachelor’s degree in engineering (mechanical) from the Punjab Engineering College, Chandigarh, Panjab University. He has over 16 years of experience in the private equity and financial services industry, and was previously associated with Engineers India Limited, WL Ross (India) Limited and CRISIL Limited. He also serves as the senior director, private equity at ICICI Venture Funds Management Company Limited. He was appointed as a Non-Executive Director on our Board with effect from October 21, 2022.

Piyush Sohanraj Chhajed is an Independent Director on our Board. He is a fellow of the Institute of Chartered Accountants of India and has also passed the information systems audit assessment test conducted by the Institute of Chartered Accountants of India. He has more than 18 years of experience practicing as a chartered accountant. He was appointed as an Independent Director on our Board with effect from July 29, 2023.

Pushap Raj Singhvi is an Independent Director on our Board. He holds a bachelor’s degree in law from the University of Calcutta and has nearly 18 years of experience working in sales, marketing and commercial positions in the petrochemical industry. He was previously associated with Borouge (India) Private Limited as the managing director. He was appointed as an Independent Director on our Board with effect from July 29, 2023.

Arun Kumar Singhal is an Independent Director on our Board. He holds a bachelor’s degree in engineering from the Birla Institute of Technology and Science. He has more than 14 years of experience in sales, marketing, contract manufacturing and exports, having worked in positions such as general manager (sales and marketing), vice president (sales and contract manufacturing), vice president (operations and exports), the regional customer development director and the regional franchise operations director at Johnson and Johnson, India and Johnson and Johnson, Asia Pacific. He was appointed as an Independent Director on our Board with effect from July 29, 2023.

Sunipa Ghosh is an Independent Director on our Board. She holds a post graduate diploma in business management from the Indian Institute of Social Welfare and Business Management and is also admitted as an associate member and fellow of the Institute of Company Secretaries of India. She has about 20 years of experience in secretarial, compliance and legal matters and was previously associated with Arch Pharmalabs Limited as assistant company secretary, with Avon Lifesciences Limited as the company secretary and compliance officer, with Geometric Limited as the company secretary and with Dassault Systemes Solutions Lab Private Limited (formerly known as 3d PLM Software Solutions Limited) as senior legal counsel and company secretary. Currently, she is the director head of legal (India) and company secretary at Dassault Systemes Solutions Lab Private Limited. She was appointed as an Independent Director on our Board with effect from July 29, 2023.

Manali Nitin Kshirsagar is an Independent Director on our Board. She holds a bachelor’s degree in law from the Government Law College, University of Mumbai, and is enrolled as an advocate with the Bar Council of Maharashtra and Goa. She has also passed the professional programme examination held by the Institute of Company Secretaries of India. She has more than six years of legal experience working in areas of acquisitions, joint ventures, company restructuring, fund raising and has advised on matters relating to intellectual property, corporate secretarial, immovable properties and commercial contracts. Prior to joining our Company, she was associated with Parinam Law Associates and ALMT Legal. She was appointed as an Independent Director on our Board with effect from July 29, 2023.

Financials:

Balance Sheet

Profit & Loss

Cash Flow

Key Risk:

1. Fluctuations in raw material prices, especially plastic granules and plastic polymer prices, and disruptions in their availability may have an adverse effect on business, results of operations, financial condition and cash flows.
2. They are dependent on distribution network in India and overseas to sell and distribute products and any disruption in distribution network could have an adverse effect on business, results of operations, financial condition and cash flows.
3. Their reliance on third-party contract manufacturers for some of products subjects them to risks, which, if realized, could adversely affect  business, results of operations, financial condition and cash flows.
4. Company do not own the trademark for their key brands, including “Cello”, “Unomax”, “Kleeno”, “Puro” and their respective logos. Further, the “Cello” brand name is also used by one of their competitors for its writing instruments business.
5. Company's business is subject to seasonality, which may contribute to fluctuations in results of operations and financial condition.
6. They face significant competition which may lead to a reduction in market share, cause them to increase expenditure on advertising and marketing as well as cause them to offer discounts, which may result in an adverse effect on business, results of operations, financial condition and cash flows.

Articles

Comments