Exxaro Tiles IPO to open on August 4: Promoter says focus to continue on domestic market

02:53 PM Jul 30, 2021 | Jescilia Karayamparambil

Gujarat-based tile manufacturing company Exxaro Tiles Limited to raise around Rs 160 crore through an initial public offering (IPO). The offer is priced at Rs 118 – Rs 120 per equity share. The IPO will open on August 4 and close on August 6.

Despite COVID, the company managed to grow its exports, with a slight slip in domestic revenue in FY 2020. The company CAGR saw a growth of 13 per cent, stated the top executive of the company.


Mukesh Patel, chairman and managing director (and promoter) of the company stated, “The company will continue to focus on the domestic market -- retail and institutional projects sales.”


Adding to it, Himanshu Shah, CFO, Exxaro Tiles, said “At present, revenue from export is around 15 per cent. We may be looking to expand it to 20 per cent. ”

The company’s export revenue was at Rs 32.5 crore in FY 2020 and Rs 35.42 crore in FY 2021 respectively. In the case of domestic revenue, the company reported Rs 225.34 crore, Rs 206.53 crore and Rs 218.7 crore in FY 2019, FY 2020 and FY 2021 respectively.

The company has a large presence in tier I cities. “Around 85 per cent of revenue is from the domestic sale which is mostly from tier I cities. Thus, we see good opportunities in tier II and tier III cities as people residing there are looking for quality products," stated Shah.

Meanwhile, the company’s revenue from operations is at Rs 255.14 crore, Rs 240.72 crore and Rs 242.25 crore for FY 2021, FY 2020 and FY 2019 respectively.

Mukesh Patel stated with the construction business reviving the business will be much stronger. He added due to a drop in consumption of products from China, Exxaro Tiles is expecting a rise in demand for its tiles.

To cater to rising demand, the company is planning to expand in new categories as well. Himanshu Shah said, “We need to expand in new categories like wall tiles, outdoor tiles and others. We have a good network and we want to capitalise on that and for that, we need to have more and more products. We will enter the ceramic segment as well. We will make investments for these expansions. The revenue from these investments will come in FY 2023-FY 2024.” It currently has a 2000 plus dealer network across 27 states.

The company will utilise a major portion of the net proceeds to repay or prepay borrowings (worth Rs 50 crore), besides funding its working capital requirements (Rs 40 crore) and utilising it for general corporate purposes. As of December 31, 2020, the company had a total secured borrowings (long term and short term) of Rs 152.57 crore.

Promoted by Mukesh Patel, Dinesh Patel, Rameshi Patel and Kiran Patel, the company started off as a partnership firm in 2007-2008 to manufacturer frit. It later diversified and is now primarily engaged in the business of manufacturing and marketing of vitrified tiles used majorly for flooring solutions catering to residential and commercial segments.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

(To view our epaper please Read Now. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)