Ganga Bath Fittings Ltd. IPO: Key Details

Ganga Bath Fittings

• Ganga Bath Fittings is coming out with an initial public offering (IPO) of 66,63,000 equity shares in a price band Rs 46-49 per equity share.
• The issue will open on June 4, 2025 and will close on June 6, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 4.60 times of its face value on the lower side and 4.90 times on the higher side.
• Book running lead manager to the issue is Jawa Capital Services.
• Compliance Officer for the issue is Priyanka Sharma.

Profile of the company

The company is engaged in the business of manufacturing and supplying Bathroom Accessories including but not limited to bath fittings items such as CP taps and their parts, showers, bath accessories, Sanitary wear, ABS Shower, ABS Health faucet, ABS Taps, ABS Accessories, PTMT Taps, Door Handles, Bathroom Vanities, Bathroom Sinks, SS Showers, Shower Drains, SS Channel Drainer etc.

The Company derives its revenues from three verticals, viz.: i) sale of goods manufactured and sold under own brands - under this vertical the Company manufactures various bath fittings and accessories and the same are then sold under its brand names, viz. Ganga, Glimpse, Stepian, and Tora; ii) sale of goods to OEMs on contract manufacturing basis - under this vertical the company manufactures various bath fittings and accessories for third parties, under contract manufacturing. The said goods manufactured by the Company are sold under the brand of the third party; and iii) sale of traded goods - under this vertical, the company procures Sanitary ware which is then branded and sold under the brand name Ganga.

The company’s manufacturing facilities are technologically aligned to develop and manufacture the products that adhere to the stringent quality control requirements of its customer. It also manufactures customized components as per its customer’s specific requirements, while ensuring that its products meet the quality and are manufactured as per its customer’s specification in a timely manner. It also offers personalized services to its strong customer base across India. The company’s focus is to consistently expand its product portfolio by developing new designs. It shares a longstanding relationship with its customer and it receives majority of its business from repetitive clients. The company constantly engages with its customers through marketing via personal interactions and updating them on its capabilities and strengths.

Proceed is being used for:

• Capital expenditure towards purchase of equipment/machineries, etc
• Repayment/prepayment of certain borrowings availed by the company
• Funding working capital requirements
• General corporate purpose

Industry Overview

India Sanitary Ware Market has valued at $318.8 million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 7.9% through 2029. The India Sanitary Ware Market is a dynamic and rapidly evolving sector within the country’s construction and home improvement industry. Sanitary ware encompasses a wide range of products, including toilets, washbasins, faucets, showers, and bath accessories, all designed for use in residential, commercial, and institutional spaces. India is experiencing a profound shift towards urban living, with millions of people moving to cities and towns in search of better opportunities. This urbanization has spurred the construction of residential and commercial properties, leading to increased demand for modern and aesthetically pleasing sanitary ware products.

Government initiatives such as 'Swachh Bharat Abhiyan' (Clean India Campaign) have raised awareness about sanitation and hygiene, emphasizing the importance of well-designed and efficient sanitary ware products. This has boosted the adoption of modern bathroom fixtures and accessories. Consumers are increasingly inclined toward bathroom spaces that offer comfort, style, and water efficiency. As a result, there is a growing demand for premium and technologically advanced sanitary ware products that enhance the overall bathroom experience. The booming real estate sector in India, including residential and commercial construction projects, has been a significant driver of the sanitary ware market.

The India Sanitary Ware Market is poised for continued growth and innovation. As urbanization, infrastructure development, and consumer awareness continue to rise, the demand for modern, efficient, and aesthetically pleasing sanitary ware products will persist. Manufacturers are expected to focus on sustainability, water conservation, and technological advancements to meet the evolving needs of consumers. With government initiatives promoting cleanliness and sanitation, the market is set to expand further, offering opportunities for both domestic and international players to thrive in this dynamic industry. 

Pros and strengths

Wide range of products: Currently, the company has 250 SKUs in its GI Unit, 32 SKUs in its GBS Unit, and 150 SKUs in its GPI segment. It offers wide range of products like Bathroom Accessories including but not limited to bath fittings items such as CP taps and their parts, showers, bath accessories, Sanitary wear, ABS Shower, ABS Health faucet, ABS Taps, ABS Accessories, PTMT Taps, Door Handles, Bathroom Vanities, Bathroom Sinks, SS Showers, Shower Drains, SS Channel Drainer etc. The company’s variety of product offerings has enabled it to cater to a large customer base in the domestic market.

Legacy business: The company’s promoters have been engaged in the business of bath fittings since the year 2011. Since the inception of the business, its promoters have diversified the operations and have been continuously adding new products to the portfolio of the company. Further, over the years its promoters have built positive relationship, goodwill and trust with the distributors, customers, suppliers etc. which has been instrumental in growth of its business.

Strong & experienced R&D team: With the ever-changing business scenario, new products are always in development to cater to the customized needs of the market. The company has a highly experienced R&D team who designs various new and complicated parts as requested by its customers within competitive timeline.

Risks and concerns  

Maximum revenue comes from limited clients: The company depends on certain customers who have contributed a substantial portion of its total revenues. The company has garnered 46.77%, 48.72% and 35.62% of its total revenue from top 10 customers in FY24, FY23 and FY22 respectively. If any of its major clients/distributors becomes bankrupt or insolvent, it may lose some or all of its business from that client/distributor and its receivable from that client/distributor would increase and may have to be written off, impacting its income and financial condition.

Limited operating history: The company was incorporated as Ganga Bath Fittings Limited on May 22, 2024, (Formerly Known as Ganga Plast Industries Limited) under the provisions of the Companies Act, 2013. Prior to the incorporation of the company, the business which is presently under the GPI Unit of the Company was being carried out under the Limited Liability Partnership of its Promoters, Tusharkumar Vithaldas Tilva, Jimmy Tusharkumar Tilva, Sajan Tusharbhai Tilva and Niruben Tusharkumar Tilva (Relative of Promoter) in the name and style of M/s Ganga Plast Industries LLP since the year 2018. The company has a very limited operating history as a company from which the investors might evaluate its business performance, financial position, future prospects and viability of its business.

Geographical constrain: All of its manufacturing units are presently located in Rajkot, Gujarat. Further, it generates major domestic sales through its customers situated in Gujarat. More than 45% of its revenues are generated solely from the Gujarat region. Such geographical concentration of its business in this region heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in this region, which may adversely affect its business prospects, financial conditions and results of operations.

Outlook

Ganga Bath Fittings manufactures and supplies various bathroom accessories, including CP taps, showers, sanitary wear, ABS fittings, door handles, vanities, sinks, and more. The company's manufacturing facilities are technologically aligned to develop and manufacture products that meet its customers' stringent quality control requirements. The company has long-standing relationship with distributors, clients and suppliers. It also has strong & experienced R&D team. On the concern side, the company generates a significant percentage of its revenue from few clients. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability. The company has a very limited operating history as a company, which may make it difficult for investors to evaluate its historical performance or future prospects.

The company is coming out with a maiden IPO of 66,63,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 46-49 per equity share. The aggregate size of the offer is around Rs 30.65 crore to Rs 32.65 crore based on lower and upper price band respectively. On performance front, the company’s total revenue increased to Rs 1,367.85 lakh for the year ended on March 31, 2024, as compared to Rs 1,218.04 lakh for the year ended on March 31, 2023. Profits after tax as a percentage of total income is 4.35% during the year ended March 31, 2024. In absolute terms, profit after tax was Rs 59.44 lakh during the year ended March 31, 2024.

Going forward, the company intends to diversify its product portfolio using advanced electronic integration technology and to add more products to its portfolio based on its own assessment of market, demand, and supply position. The company’s strategy is focused towards introducing new product designs to cater to the requirements of its customers as well as garnering the attention of more customers. This helps it in strengthening the relationship with the existing customer network through a wide range of products while also onboarding new customers from untapped geographies. Identifying and developing new products and designs is a continuous exercise that its management team engages into as there is an immense demand in the global markets for unique designs, good quality and competitively priced products.