Shlokka Dyes
- Shlokka Dyes is coming out with an initial public offering (IPO) of 63,50,400 equity shares in a price band of Rs 95-100 per equity share.
- The issue will open on September 30, 2025 and will close on October 6, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.00 times on the higher side.
- Book running lead manager to the issue is Interactive Financial Services.
- Compliance Officer for the issue is Siddharth Gajra.
Profile of the company
The company is engaged in the business of manufacturing of ‘Reactive Dyes’, a category of Synthetic Organic Dyes extensively utilized in the textile industry. It prides itself on offering a diverse portfolio of dyes, including Direct Dyes, Basic Dyes, Vat Dyes, Digital Printing Dyes, and Paper Dyes etc., catering to wide range of industries such as textiles, leather, paper, and paints etc., Its Reactive Dyes are available in primary colors such as black, blue, red, orange, and yellow, along with numerous variants of these shades, each identified by an internationally recognized Color Index Number. These dyes are suitable for a broad spectrum of textile applications, including cotton fabrics, garments, dress materials, bed sheets, and carpets. With their versatile applications and superior quality, its dyes provide reliable solutions to meet the diverse needs of its clients across various industries.
The company’s manufacturing facility, situated in the state of Gujarat, holds ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health & Safety) certification in the manufacturing of Dyes and Intermediates. Its manufacturing facility situated at Saykha, District Bharuch which is admeasuring land spread across approximately 5000 sq. meter. together with construction of factory shed/building of about 5731.81 sq. metre. It boasts a robust installed capacity of 9000 MT per annum, enabling it to meet diverse client demands effectively. Further, its Manufacturing Facilities are equipped with requisite machineries and in-house testing Laboratory to keep a constant check on quality of its product.
Proceed is being used for:
- Capital Expenditure for purchase of machineries.
- Repayment of debt.
- Working capital.
- General corporate purpose.
Industry Overview
Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. The Indian chemical industry is currently valued at $220 billion and is expected to reach $300 billion by 2030 and $1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty. Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world's production of dyestuffs and dye intermediates. From April-May 2024, the export of agrochemicals was $661.18 million, dyes were $379.61 million and the other dye intermediates were $27.87 million. Indian colourants industry has emerged as a key player with a global market share of around 15%. The country’s chemicals industry is de-licensed, except for a few hazardous chemicals. India has traditionally been a world leader in generics and biosimilars and a major Indian vaccine manufacturer, contributing more than 50% of the global vaccine supply. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at the global level (excluding pharmaceuticals).
India’s textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, with the capital-intensive sophisticated mills sector at the other end. The fundamental strength of the textile industry in India is its strong production base of a wide range of fibre/yarns from natural fibres like cotton, jute, silk, and wool, to synthetic/man-made fibres like polyester, viscose, nylon and acrylic. The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. India’s textiles industry has a capacity to produce a wide variety of products suitable for different market segments, both within India and across the world. In order to attract private equity and employee more people, the government introduced various schemes such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS) and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.
Pros and strengths
Cordial relations with customers: The company’s business and growth are significantly depending on its ability to maintain the healthy client relationship. It understands the dye industry is highly competitive and maintaining healthy relationship with them will help it to beat the competition. It has gained significant experience and has established track record and reputation for efficient and timely delivery of its product and services. The customer centric approach of the promoters is one of the key factors for the development of the business of the Company.
Committed to high-quality, versatile products with international certifications: The company’s competitive strength lies in its commitment to producing high-quality, durable, and versatile products that meet the diverse needs of its customers across various industries. It ensures that all its products are manufactured with strict adherence to international quality standards, including ISO, GOTS, and ZDHC certifications. This focus on quality, coupled with its innovative processes and sustainable practices, positions it as a trusted leader in the industry, offering solutions that not only meet but exceed customer expectations while maintaining compliance with the highest environmental and safety standards.
An integrated production process: The company’s state-of-the-art manufacturing facility uses the latest technology and techniques to produce its final products efficiently, safely, and with high quality. It has an integrated production process whereby it will have complete control over final products, quality, cost and output time. The company is dedicated towards quality of products, processes and inputs; it gets repetitive orders from its buyers, as it is capable of meeting their quality standards.
Risks and concerns
Geographical constrain: A significant portion of the company’s operations and revenue is concentrated in the state of Gujarat. For the financial year ended March 31, 2025, March 31, 2024 & March 31, 2023, it derived major portion of its revenue from the state of Gujarat i.e. 78.35%, 84.37% and 100% of total revenue from operations, respectively. This high dependency on a single geographic region exposes the company business to significant regional risk. Any such adverse occurrences in Gujarat could have a material negative impact on its business continuity, revenue generation, financial condition, and overall profitability.
Dependent on few suppliers: The company is dependent on a few suppliers for purchases of product/service. The company’s top ten suppliers contribute 85.40%, 62.08% and 82.25 % of its total purchase of the company for the period ended March 31, 2023, March 31, 2024 and March 31, 2025 respectively. The company cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.
Dependent upon limited number of customers: The company’s revenue from operations is dependent upon a limited number of customers. For instance, its top 10 customers for the financial year ended on March 31, 2025, March 31, 2024 and March 31, 2023 accounted for 99.31%, 99.82% and 100% respectively of its revenue from operations. The loss of any one or more of such key customers for any reason including due to failure to negotiate acceptable terms of purchase order, contract renewal, negotiations, disputes with customers, adverse change in the financial condition of such customers, including due to possible bankruptcy or liquidation or other financial hardship, merger or decline in their sales, reduced or delayed customer requirements, or work stoppages could have an adverse effect on its business, results of operations and financial condition.
Outlook
Shlokka Dyes is engaged in the manufacturing of reactive dyes and pigments, specializing in synthetic organic dyes used extensively in the textile industry, available in basic forms or concentrates. The company offers a wide range of dyes, including reactive, direct, basic, and digital printing dyes, serving industries like textiles, leather, and paper with superior quality and versatile applications. The company uses stringent quality control through an in-house lab, conducting tests like HPLC, shade matching, fastness, stability, and compatibility checks to ensure products meet customer requirements and quality standards. The company is ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified for quality management system, occupational health & safety management system and environment management system and to comply with the norms it strives hard to maintain quality standards of its product. On the concern side, the company’s business is significantly dependent on the efficient and uninterrupted operation of its machineries. Its operations are vulnerable to interruption by events beyond its control such as fire, earthquake, power loss, telecommunications or internet failures, terrorist attacks and computer viruses. The company does not have any long-term contract with its customers. Any change in the buying pattern of its end users or disassociation of major customers can adversely affect the business of the company.
The company is coming out with a maiden IPO of 63,50,400 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 95-100 per equity share. The aggregate size of the offer is around Rs 60.33 crore to Rs 63.50 crore based on lower and upper price band respectively. On performance front, In the Financial Year 2024-25, the company recorded a significant increase in its revenue from operations, reaching Rs 10,321.49 lakh, which marks a substantial growth of 68.44% compared to Rs 6,127.53 lakh in FY 2023-24. In the Financial Year 2024-25, the company achieved a Profit After Tax (PAT) of Rs 1001.15 lakh, an increase from Rs 491.79 lakh in FY 2023-24.
The company’s growth strategy is centered around improving operational efficiencies, which will directly enhance the profitability of the company. To achieve this, the company plans to implement various measures, such as reducing the consumption of disposable items and minimizing waste. It plans to capitalize on this demand by strengthening its supply to rapidly expanding sectors such as apparel, home textiles, technical textiles, dyeing houses, digital printing, and the paper industry. By diversifying its product portfolio and targeting high-growth markets, it aims to drive long-term business growth and strengthen its position as a leading provider of innovative dye solutions. To meet the growing demand from its existing customers and tap into new markets, it plans to expand its geographical reach and supply its products globally.
