Sundrex Oil Company
- Sundrex Oil Company is coming out with an initial public offering (IPO) of 37,50,400 shares in a price band of Rs 81-86 per equity share.
- The issue will open on December 22, 2025 and will close on December 24, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 8.10 of its face value on the lower side and 8.60 times on the higher side.
- Book running lead manager to the issue is Affinity Global Capital Market.
- Compliance Officer for the issue is Akansha Lakhani.
Profile of the company
Sundrex Oil Company prides itself as one well-established ISO 9001:2015 certified public limited company catering to lubrication needs of industries across India and foreign countries (Nepal, Bhutan, Bangladesh and UAE). The company is a manufacturer and wholesaler of lubricants, greases, and a wide range of industrial products, serving both B2B and B2C markets across India. The company’s revenue profile is predominantly concentrated in the Business-to-Business (B2B) segment, which accounts for approximately 99% of the total revenue whereas the remaining 1% of revenue is generated from the Business-to-Customer (B2C) segment. Its portfolio includes the production of industrial lubricant, automotive lubricant, and specialty products (co). It is manufacturer of high-performance lubricants, greases, metalworking fluids, bituminous products, IS: 335 Certified Transformer Oils, and other specialized formulations.
Its lubricant business focuses primarily on the production and sale of various industrial lubricants including hydraulic oils, transmission oils, and gear oils, which are essential for various industrial machinery applications. These products contribute significantly to its revenue, reflecting the breadth and demand for its offerings. In addition to manufacturing products under its own brand, it offers contract manufacturing services, including toll blending and contract packaging. These services allow businesses to outsource the production of lubricants and oils tailored to their specific formulations, removing the need for investments in blending facilities, raw materials, and operational overheads.
The company also provides private labeling services, enabling companies to market and sell premium-quality products under their own brand name. This approach offers a cost-effective way for businesses to expand their product portfolios without investing in in-house product development, manufacturing infrastructure, or inventory management. By utilizing its expertise and facilities, its clients can focus on their branding and distribution strategies while ensuring high-quality and consistent products for their customers.
Proceed is being used for:
- Meeting the working capital requirements
- Meeting capital expenditure
- Prepayment and repayment of all or a portion of certain secured and unsecured loan
- General corporate purpose
- Meeting offer expenses
Industry Overview
India Industrial Lubricant Market was valued at $7.25 Billion in 2024 and is expected to reach $9.22 Billion by 2030 with a CAGR of 4.28% The growth in manufacturing and heavy industries significantly drives the demand for high-quality lubricants. As production facilities expand and infrastructure projects increase, the need for reliable lubricants to maintain machinery performance becomes more pronounced. Government initiatives like Make in India and investments in infrastructure are contributing to the expansion of the industrial sector, thereby indirectly boosting the demand for lubricants. However, fluctuations in raw material prices, such as crude oil, can impact lubricant pricing, affecting market stability and profitability. The rise of bio-based and synthetic lubricants presents competition to traditional mineral oils, compelling existing players to innovate and adapt. Despite these challenges, the Indian industrial lubricant market is expected to continue its growth trajectory. This growth will be driven by ongoing industrial development, technological advancements, and a shift toward more sustainable and efficient lubricants. Government support for industrialization is likely to further shape the future dynamics of the market.
The India Automotive Lubricants Market size is estimated at 100 Million tons in 2024, and is expected to reach 150 Million tons by 2029, growing at a CAGR of 2% during the forecast period (2024-2029). In 2020, COVID-19 negatively impacted the automotive lubricants market in India. However, the market has now been estimated to have reached pre-pandemic levels and is forecast to grow steadily in the future. The rise in the number of passenger cars in the nation is the major factor driving the demand for automotive lubricants during the forecast period. On the other hand, the growing penetration of electric cars is likely to slow the growth of the market. The engine oil product type was the most popular in the market, and this is likely to stay the case over the next few years. In the future, the market is likely to benefit from the opening of new manufacturing plants and the increased capacity of the plants that are already there.
As a result of the emerging economy and spreading urbanization, there is a constant hike in consumers’ disposable income. Additionally, given to modernization and willingness to own a personal vehicle have been powering automotive sales in the country. As a result of rising disposable income and a hike in living standards, surging automotive sales have been driving the market, as lubricants play a vital role in the smooth working of engines and vehicles. Their characteristics of durability, vehicle protection, reduction of friction between the engine parts, and more are essential to extend vehicle life, especially regularly further expanding the industry.
Pros and strengths
In-House manufacturing & state-of-the-art quality control: The company operates an in-house manufacturing plant with a production capacity of 100 KL per day for white oil, 60 KL per day for lubricants, and 9 MT per day for greases on a double-shift schedule. This is supported by a fully-equipped laboratory featuring 50 instruments to test various parameters for quality control. Currently, with the plant operating at approximately 45% of its capacity, there is significant potential for growth in sales, allowing the company to scale up operations and respond swiftly to market demands without any capacity limitations.
Strategic location advantage: The company has strategically located its factory in Howrah, West Bengal, offering several advantages in terms of accessibility and logistics. This prime location provides easy connectivity to major transportation networks, facilitating efficient distribution and reducing lead times. Additionally, Howrah's proximity to key industrial hubs and ports enables the company to tap into a vast market and enhance its supply chain capabilities.
Export potential: The connectivity of Haldia and Kolkata Ports to major international shipping lanes significantly boosts the company’s export potential. These ports enable efficient access to markets in Southeast Asia, the Middle East, and other regions, allowing the company to capitalize on the growing demand for high quality lubricants and specialty oils. The ports' infrastructure supports both large bulk shipments and smaller, specialized consignments, making them well-suited for the company’s diverse product range. The location offers excellent road connectivity to neighbouring countries like Bangladesh, Bhutan, and Nepal, ensuring low transit times and reduced costs for regional exports.
Risks and concerns
Reliance on a limited number of customers: The company’s business is dependent on a few customers and the loss of, or a significant reduction in orders by such customers could adversely affect the business. The top ten customers have contributed 46.98%, 41.70%, 35.81% and 52.12% of the total sales for the stub period ended June 30, 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 on Restated Consolidated Basis. Revenues from any of its particular customers may vary significantly from period to period, depending on the nature of ongoing orders and the implementation schedule for such orders. Its success lies in the strength of their relationship with the customers who have been associated with it. Dependence on a concentrated customer base presents ongoing vulnerability, as the loss of any major customer regularly poses a risk of significant declines in sales, disruptions in cash flow, and challenges to maintaining effective operations.
Risk of operational disruption due to supplier dependence: The company procures supply of raw materials from various approved suppliers depending upon the price and quality of raw materials. The company has procured 86.20%, 83.26% and 86.19% of its raw material from top 5 suppliers in FY25, FY24 and FY23 respectively. Raw materials are subject to supply disruptions and price volatility caused by various factors such as commodity market fluctuations, the quality and availability of raw materials, currency fluctuations, consumer demand, changes in government policies and regulatory sanctions. Any disruption of supply of raw materials from these suppliers will adversely affect its operations.
High revenue concentration in Eastern India: While the company operates on a PAN-India basis, a significant portion of the revenue is concentrated in a few key states, primarily in the eastern region of India, including West Bengal, Jharkhand, and Odisha. Over the past three financial years (2022-23, 2023-24 and 2024- 25) and for the stub period ended June 30, 2025 these states have consistently contributed approximately 84% - 93% of its total revenue. This concentration exposes the company to potential adverse effects on overall revenue and profitability. Factors such as political or geographical changes, heightened competition, regulatory amendments, or shifts in customer preferences within these regions could significantly affect the demand for the products. Due to its proximity to the production facility the revenue is concentrated mainly in West Bengal and few eastern states. Any loss of business from these states may adversely affect their revenues and profitability.
Outlook
Sundrex Oil Company is a manufacturer and wholesaler of high-performance industrial and automotive lubricants, greases, and specialty products serving industries in India and neighboring countries. The company's product portfolio includes industrial lubricants, automotive lubricants, and specialty products. The company has in-house manufacturing & state-of-the-art quality control. The company is focused on vertical integration and product line expansion. On the concern side, the company’s business is substantially dependent on certain key customers, from whom it derives a significant portion of the revenue. The loss of any significant customer may have a material and adverse effect on the business and results of operations. Moreover, the company’s business is highly dependent on their suppliers for uninterrupted supply of Raw-Materials. Any shortfall in the supply of the raw materials, or an increase in the raw material costs and other input costs, may adversely affect the pricing and supply of the products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.
The company is coming out with a maiden IPO of 37,50,400 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 81-86 per equity share. The aggregate size of the offer is around Rs 30.38 crore to Rs 32.25 crore based on lower and upper price band respectively. On performance front, revenue from operation for Financial Year 2024-25 stood at Rs 6,719.68 lakh as against Rs 4,831.36 lakh in financial year 2023-24. This significant increase of 39.08% is majorly due to cumulative growth in production and sales in domestic and export along with more focus on PSU supply. Moreover, the company had reported net profit after tax of Rs 544.46 lakh in FY2025 compared to Rs 256.50 lakh inFY2024, an increase of 112.27%.
The company is taking a strategic, multi-step approach to stabilize its revenue and expand its market presence. Further, it has introduced automotive lubricants as part of its product portfolio where it is going direct to consumers in B2C mode, helping to tap into the consistently high-demand automotive sector. It is diversifying its customer base by targeting industries like manufacturing and automotive that are less impacted by seasonal fluctuations. The company is increasing the number and variety of its products to better meet the diverse needs of these sectors. It is expanding into geographic regions that experience fewer seasonal slowdowns, reducing the risk of localized market instability. Together, these initiatives aim to create more stable revenue streams and ensure year round financial consistency, even though it has not previously faced significant seasonal challenges.
