GANDHAR OIL REFINERY INDIA LIMITED

GANDHAR OIL REFINERY INDIA LIMITED- IPO DETAILS 

Company Overview 

As of June 2022, Gandhar Oil Refinery India stands as the foremost manufacturer of white oils, leading the industry in terms of revenue. The company is strategically expanding its focus on the consumer and healthcare sectors. Offering an extensive range of over 350 products, categorized mainly into personal care, lubricants, healthcare and performance oils (PHPO), and process and insulating oils (PIO), the products are marketed under the brand name "Divyol." Gandhar Oil Refinery's diverse product line serves as crucial ingredients for various end products in consumer goods, healthcare, automotive, industrial, power, tyres, and rubber. The brand has gained prominence both in India and globally, with its products being utilized by top Indian and international companies. 

As of June 2022, the company has successfully established its presence in 100 nations worldwide. Among its clientele of over 3500 clients are well-known names such as Procter & Gamble (“P&G”), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. The investment in Texol will be in the form of a loan to facilitate the repayment or pre-payment of an existing loan facility obtained by Texol from the Bank of Baroda. Additionally, the funds will be allocated for capital expenditures, including the acquisition of equipment and execution of civil work. These capital expenditures are intended for expanding the automotive oil capacity at the Silvassa Plant, enhancing the capacity of the petroleum jelly and associated cosmetic product division at the Taloja Plant, and increasing the capacity of white oils through the installation of blending tanks at the Taloja Plant. 

2. Furthermore, the investment will cover the financing of the company's working capital requirements. 

3. serve general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

1. The corporation stands as one of the primary generators of revenue for white oils both domestically and internationally in the fiscal year 2022. Additionally, it secured a position among the top five global players in terms of market share in 2021. 

2. Having cultivated enduring partnerships with prominent consumers and pharmaceutical manufacturers, the company is adept at delivering tailored products. As of the fiscal year 2022, it has served a total of 3529 clients in India and across the globe. 

3. Strategically siting three manufacturing facilities, two in western India and one in the UAE, positions the company well to meet the demands of its domestic and international operations. 

4. Given the industry's characteristics and the stringent quality standards applicable to the company's products in various end-industries, replication of our quality, scale, and business operations poses a formidable challenge for potential new entrants. 

Cons 

1. A considerable portion of the company's business transactions is conducted primarily in USD or various other currencies, exposing it to the potential negative effects of exchange rate fluctuations. 

2. A noteworthy portion of the company's revenue is derived from a limited number of suppliers. The absence of long-term contracts with these suppliers means that any interruption in the supply of raw materials from them can have a substantial impact on the company's business. 

3. The smooth operation of the business relies on substantial working capital. Any disruption in this cash flow can significantly impede the company's operational capabilities. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”