As of March 31, 2023, the company has 15,841 stock-keeping units ("SKU") across all product ranges. As of March 31, 2023, the company's national sales distribution team comprises of 683 members.
Business Overview
The consumerware market is broadly divided into two categories, consumer houseware and consumer glassware and the company is a prominent player in the consumerware market in India with presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products and consumer glassware categories, according to the Technopak Report.
While the Company was incorporated only in 2018, our erstwhile promoter Late Ghisulal Dhanraj Rathod, father of two of our Promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod, was associated with Cello Plastic Industrial Works (“CPIW”) and the “Cello” brand since 1962. Promoters (through their family) have since diversified our product range and brand portfolio over the last six decades. The six decades of experience of their Promoters (through their family) in the consumer products industry has enabled them to better understand the preferences and needs of consumers in India, diversify their product portfolio and grow thier multi-channel distribution network. This has enabled us to curate an extensive product portfolio that caters to a diverse range of consumer requirements, and offers a broad range of contemporary products across different ranges, types of material and price points. As of June 30, 2023, offered 15,891 stock-keeping units (“SKUs1 ”) across our product categories. The table below sets forth the brands, sub-brands and range of products offered across their
three product categories:
Cello Group's Corporate Structure
Company's Brands and Products
The company offers consumer products across three categories: consumer houseware, writing instruments and stationery, and moulded furniture and allied products.
Consumer Houseware
Our products under the consumer houseware product category are offered and sold by us under the “Cello” brand.The popular sub-brands under the “Cello” brand include “Kleeno”, “Puro”, “Chef”, “H2O”, “Modustack”, “Maxfresh” and “Duro”. The table and images below set forth an overview of our range of products under the consumer houseware product category:
Writing Instruments and Stationery
Company's products under the writing instruments and stationery product category are offered and sold by us under the “Unomax” brand. The popular sub-brands under the “Unomax” brand include “Ultron2X” and “Geltron”. The table and image below sets forth an overview of their range of products under the writing instruments and stationery product category:
Moulded Furniture and Allied Products
Company's products under the moulded furniture and allied products category are offered and sold by them under the “Cello” brand. The table and image below set forth an overview of their range of products under the moulded furniture and allied products product category.
Manufacturing Facilities
Company's facilities include 13 manufacturing facilities in India, including eight facilities in Daman in the Union Territory of Daman and Diu; two facilities in Haridwar, Uttarakhand; one facility in Baddi, Himachal Pradesh; one facility in Chennai, Tamil Nadu; and one facility in Kolkata, West Bengal. Revenue derived from their in- house manufacturing operations aggregated to 78.65%, 82.63%, 79.37%, 82.08% and 79.67% of their total revenue from operations for the Financial Years 2021, 2022 and 2023, and the three months ended June 30, 2022 and June 30, 2023, respectively. The remaining products (consisting mainly of steel and glassware products) are manufactured by third party contract manufacturers who manufacture products with our branding pursuant to contracts with us.
Network and Distribution
The company have a strong pan-India distribution network. From the distribution network established by CPIW for its thermoware household articles and plastic materials business, Promoters have further expanded the distribution network of their Company over the last six decades. The table below sets forth details relating to our nationwide sales and distribution network across their three product categories:
Company's nationwide sales and distribution network is supported by our 721 member sales team, as of June 30, 2023. The company equip their field staff across their distribution network with an enterprise resource planning system, which assists them in forecasting production levels and helps them in optimising inventory levels. The company have developed and maintain longstanding relationships with their distributors and retailers over the years. Further, products also reach consumers through modern trade and export channels, e-commerce marketplaces and own websites. In addition, company also sell their products in bulk quantities to corporate clients and government departments.
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Industry Analysis
Global Consumerware Market
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%.
Houseware: Hydration (Includes Bottles, jugs, flasks made of plastic, steel, glass, mix of materials, insulated etc.). Cookware (Includes Cooking range of pans, cookers etc made of steel, non-stick, cast iron etc). Insulated Ware (Includes casseroles made of plastic, steel, mix of materials). Lunchboxes (Made of plastic, steel, glass, mix of materials). Storage containers (Made of plastic, steel, glass, mix of materials). Small kitchen appliances (like food processors, OTG, toasters, grillers etc). Cleaning products (like mops, scrubs etc. not including cleaning
chemicals/consumables).
Glassware: Glass, opal, melamine, porcelain made--dinner sets, cups/mugs, bowls, bakeware, serving plates and glasses (Excluding glassware covered in Consumer houseware categories i.e. glass bottles, flasks, Insulated Ware, lunchboxes, containers. The key consumption markets in the Global Consumerware market are USA, Europe (Germany, UK, France dominate in Europe) and Asia Pacific (China being the dominant country in this region). The industry's growth is driven by several factors common to these regions, such as increasing urbanization, rising disposable income, and the growth of e-commerce.
Key Growth Drivers
Introduction of Advanced and Affordable Materials: The Consumerware industry has been introducing advanced and quality materials at affordable prices. For instance, ceramic ware has gained popularity in hotels due to its durability, heat resistance, and aesthetic appeal. The availability of such materials at reasonable prices has expanded the market and driven the adoption of Consumerware products.
Rise of Modular Kitchens & Aesthetic Consumerware: The surge in popularity of modular kitchens and the growing demand for aesthetic Consumerware products have sparked increased spending on remodelling and improvement endeavours. Consumers are increasingly inclined to invest in premium cookware and tableware items that seamlessly complement the contemporary designs of modular kitchens. This prevailing trend is stimulating the expansion of the Consumerware market, specifically for products that cater to the aesthetic preferences of modular kitchen enthusiasts. Notably, consumers are also actively opting for visually appealing bottles, lunch boxes, and other related items that harmonize with the overall aesthetic appeal of their kitchen spaces.
Increasing Spend on Remodelling and Improvement Projects: The COVID-19 pandemic accelerated the need for beautiful and functional homes as more people spent increased time indoors in 2020 and 2021. While the pandemic undoubtedly accelerated this phenomenon, it is crucial to acknowledge that other driving forces, such as the growing trend of households becoming smaller and more independent
and the increasing urban population density and related societal transformations, have significantly contributed to the heightened demand for Consumerware products including cookware, tableware, and home decor, as consumers sought to create comfortable and aesthetically pleasing living spaces. Importantly, as travel resumes and social activities regain momentum, the continued preference for home improvement projects reflects a strong and lasting motivation driven by these overarching factors.
Influence of Social Media: The rise of social media influencers, particularly in the Consumerware industry, has had a significant impact on consumer behaviour. Influencers with expertise in interior design, home organization, and culinary arts have gained large followings on platforms like Instagram, YouTube, and Pinterest. They showcase Consumerware products, provide inspiration, and offer tips on styling and usage. The influence of these social media personalities has led to increased consumer awareness and desire for Consumerware products, contributing to higher consumption.
Indian Consumerware Market
The Indian Consumerware Market is broadly divided into two categories, Consumer Houseware and Consumer Glassware. The Consumer Houseware and Consumer Glassware markets are further segmented into various subcategories like:
Consumer Houseware: Hydration, Cookware, Insulated Ware, Lunchboxes, Storage Containers, Melamine, Small Kitchen Appliances and Cleaning Products.
Consumer Glassware: Opalware, Glassware and Porcelain
Consumerware Market Segmentation:
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Strength Of The Business
Well-established brand name and strong market positions
Company's strong market positions in the consumer products industry segment are a reflection of their 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. The company are a prominent player in the consumerware market in India with products in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories (Source: Technopak Report). While the company was incorporated only in 2018, their erstwhile promoter Late Ghisulal Dhanraj Rathod, father of their Promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod, was associated with Cello Plastic Industrial Works and the “Cello” brand since 1962. Further, the company have 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
The company focus on identifying the needs and preferences of our consumers through their network of distributors, and innovating their products to cater to their differing requirements and preferences, while endeavouring that their products are available across various price points and meet quality standards expected by their consumers. As of June 30, 2023, the company offered 15,891 SKUs across their product categories. The company offer an extensive product range across their three product categories. The company 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. Company wide spectrum of product offerings cater to a wide range of consumer needs. The image below sets forth a range of our product offerings that are commonly used in the kitchen:
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. The table below sets forth details relating to our nationwide sales and distribution network across our three product categories:
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Management Of The Company
Pradeep Ghisulal Rathod is the Chairman and Managing Director of the 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 the 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, interalia, 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 the Company. He holds a master’s degree in business administration from the University of Strathclyde, Scotland and a bachelor’s degree in science (economicsfinance) 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.
Financial Performance
Profit and Loss Statement
Balance Sheet
Cash Flow Statement
Risk Factors
- High competition can affect the company's profitability, and thier market share
- Increasing raw material prices
- If any impact on overall consumption pattern, the share of the company's profitabilty can also impact.
- High inflation can have some impact on consumer's pocket to spend on such stuff
