Riddhi Display Equipments
- Riddhi Display Equipments is coming out with an initial public offering (IPO) of 24,68,400 shares in a price band of Rs 95-100 per equity share.
- The issue will open on December 08, 2025 and will close on December 10, 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 Jawa Capital Services.
- Compliance Officer for the issue is Neelu Jain.
Profile of the company
Riddhi Display Equipments is primarily engaged in creating innovative and tailormade solutions for commercial kitchen and bakery setup requirements. The company offers customized display equipment for Sweet, Bakery, Namkeen, Fast-food, Chat, Dry Fruit, Snacks, Panipuri (Gol Gappa), Sweet Corn, Ice-cream and Shrikhand. The products manufacture by it are supplied to Restaurants, Food Courts, Cafes, Retail Shops, Super Markets, Ice Cream Parlours, Cake & Pastry Shops, etc.
The company customizes its equipment to suit specific needs of its clients, it designs tailor-made layouts that can ideally co-exist with the clients’ specific demands and other variables such as space. It provides solutions to its clients with prime focus on client requirement, equipment design, shape, pattern, space planning, internal temperature maintenance or external sturdiness of the equipment. The equipments provided by it are available in different temperature variants, i.e. refrigerated, heated and ambient display equipment. Further its kitchen equipment, the range which includes burner range, bain-marie, dish trolley, masala trolley, sink table, storage rack and work table.
The company is led by an experienced board of directors, professional, and experienced management team with extensive experience manufacturing of Display counters, Refrigeration Equipments and Kitchen Equipment. Further, its manufacturing facility has been duly certified in accordance with international standards of quality management systems such ISO 9001:2015 for the scope of Design, Manufacture & Supply of Display Equipment, Kitchen Equipment & Refrigeration. Further, the company has Certificate of Compliance issued by Progressive International Certifications Ltd. England, with respect to compliance with Directive 98/37/EC for its product, viz., display counter for food products (hot, cold and normal), refrigeration equipments, and kitchen equipments, and Authorization to Mark (ETL Mark) for few of its models of Refrigerators and Freezers.
Proceed is being used for:
- Capital expenditure towards interior work and for purchase of new equipment/machineries for setting up of Manufacturing cum assembly Unit at Lucknow, Uttar Pradesh
- Capital expenditure towards purchase of new equipment/machineries/software etc. for upgradation of existing Manufacturing Unit of the Company located at Gondal, Rajkot
- Capital expenditure towards setting up of Showroom at Gondal, Rajkot
- Funding working capital requirements
- General corporate purpose
Industry Overview
The commercial refrigeration market in India is on an impressive growth trajectory and is poised to double from its current valuation of Rs 4,500- Rs 5,000 crore to Rs 10,000 crore by FY28. This surge is fuelled by the rising demand for food safety and quality, making commercial refrigeration indispensable to the food industry. The sector's rapid expansion offers exciting opportunities for innovation and growth. The country’s commercial refrigeration equipment market generated revenue of $1,226.4 million in 2023 and is expected to reach $2,110 million by 2030. It is expected to grow at a CAGR of 8.1 per cent from 2024 to 2030. In terms of segment, other equipment was the largest revenue generating product in 2023. Refrigerators and freezers is the most lucrative product segment registering the fastest growth during the forecast period. The Indian commercial refrigerated display cabinet market size is estimated to reach 201k units by 2030, growing at a CAGR of 6.6 per cent during the forecast period 2024-2030 and generate revenue of $1.1bn. Its growth is majorly driven by increasing demand for remote cabinets among supermarkets and hypermarkets.
Additionally, the expansion of supermarkets and hypermarkets chain after a sharp recovery from pandemic-led blows will also trigger the growth of the refrigerated display cabinet market in India. Furthermore, increasing demand for ready to eat food will create demand for the commercial refrigerated display cabinets among the retail stores. Ready to eat food require proper refrigeration at lower temperatures to provide higher shelf-life, maintain nutritional value and related benefits. This crucially drives the demand for commercial refrigerated display cabinets to maximize customer attention, increase business profits and so on in retail stores. Such factors are anticipated to boost sales of commercial refrigerated display cabinet in the coming years. Increasing urbanization and the expansion of organized retail chains are driving demand for advanced refrigeration solutions. Energy efficiency and sustainability are becoming critical concerns, leading to the adoption of eco-friendly refrigerants and energy-efficient models that reduce operational costs and environmental impact. Technological advancements, such as smart refrigeration systems equipped with IoT sensors and remote monitoring capabilities, are enhancing operational efficiency and food safety by providing real-time data on temperature and performance.
Refrigerated display cabinets (RDC) are used to exhibit and preserve food products thus raises its adoptability among retail food stores. This type of equipment is considered an area for displaying food products that can be quickly and easily accessed by customers. Increasing demand for ready to eat food is creating demand for the commercial refrigerated display cabinets among the retail stores, which, in turn, triggers the growth of this market. They require proper refrigeration at lower temperatures to provide higher shelf-life and maintain nutritional value, which drives the demand for commercial refrigerated display cabinets to maximize customer attention, increase business profits and so on. The factors that attribute to the rise in demand for ready to eat foods are busy lifestyle of millennial workforce, growing consumer preferences for vegan or healthier alternative food products, spike in gross family income, the growing number of single-person households, among other such factors.
Pros and strengths
Consistent delivery of quality products: The company is committed to offering high-quality products to its customers. Through continuous improvements in its production processes, the company has developed products that meet the specific requirements of its customers. The company’s consistent product quality enables it to offer competitive prices, achieved through effective cost optimization strategies. The company endeavours to ensure customer satisfaction by offering quality products and by providing after-sales services.
Providing customized solutions with a focus on after sales service: The company provides tailormade products based on customer specifications and also has a robust after sales service. Apart from offering standardized products as per the industry requirements, it strives to customize products based on the specifications received from the customer while. It focuses on quality as well as on giving solutions to clients based on their requirement. The company’s efficient after sales service plays crucial role in ensuring customer satisfaction, which has helped it to create a trustworthy brand for the company.
Catering to clients from diverse sectors and industries: The company’s wide range of products has helped it to cater to companies in various industries. It caters to industries such as dairy, ice-cream, food processing, pharmaceuticals, hospital, hospitality and retail, among others. Over the past years, it has built a strong and diverse customer base.
Risks and concerns
Reliance on key clients without long-term contracts: The company generates a significant percentage of its revenue from few clients. The company has garnered 49.06%, 53.50% and 39.54% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. The company has not entered into long term agreements with majority of these customers and the success of its business is accordingly significantly dependent on maintaining good relationship with them. The loss of a significant client or clients may have a material adverse effect on its results of operations/cash flow.
Purchases concentrated among few key suppliers: The company’s top ten suppliers contribute majority of its purchases. The company has made 41.37%, 44.02% and 44.10% of its total purchase from top 10 suppliers in FY25, FY24 and FY23 respectively. The company cannot have assured that it shall do the same quantum of business, or any business at all, with these customers, and loss of business with one or more of them may adversely affect its purchases and business operations.
High regional dependence on Gujarat market: The company’s business operations are concentrated in the Gujarat. The company has garnered 37.79%, 35.46% and 44.06% of its total revenue from the state of Gujarat in FY25, FY24 and FY23 respectively. 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
Riddhi Display Equipments is engaged in the business of manufacturing and supply of innovative solutions in the field of display equipment like Display Counter, Kitchen Equipments and Refrigeration Equipments. The company is providing customized solutions with a focus on after sales service. The company is catering to clients from diverse sectors and industries. 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. Moreover, the company has only one Manufacturing Facility, continued operations of its manufacturing facility is critical to its business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
The company is coming out with a maiden IPO of 24,68,400 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 23.45 crore to Rs 24.68 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased 32.73% to Rs 2,503.30 lakh for the year ended on March 31, 2025, as compared to Rs 1,886.08 lakh for the year ended on March 31, 2024. Moreover, the company’s net profit surged 105.30% to Rs 413.88 lakh in FY25 as compared to Rs 201.60 lakh in FY24.
The company is expanding its operations by setting up a new manufacturing cum assembly unit in Lucknow, Uttar Pradesh. This will improve its service quality and operational efficiency. The proximity of the Lucknow, Uttar Pradesh unit to key markets will help it to significantly reduce time and risk related to transportation to the customer, ensuring quicker and more efficient service to its UP-based clients and all the nearby areas. Moreover, this expansion will also improve its ability to serve existing customers and also create opportunities to attract new one. The new facility will allow it to continue to grow, innovate, and better meet the demands of the market.
