Founded by the Motwani family in 1978, HP Adhesives is a leading manufacturer of adhesives and sealants in India. From plumbing, sanitary, drainage and water distribution to footwear and automotive, the company’s products have a wide range of applications. Over the last three years, the company’s financial performance has been a mixed bag. In FY20, the company suffered a loss of ₹4.6 crore. But it managed to bounce back in the following year and reported a profit of ₹10 crore in FY21. Now, the company is all set to launch its IPO and use the net proceeds to fuel its expansion.
Good to know
India’s consumer adhesive market is expected to clock 9%-10% CAGR between 2021 and 2026 driven by economic recovery and growth in end-user industries. Being one of the leading companies in this segment, HP Adhesives is well-positioned to benefit from this stellar growth. Also, the rising demand for wooden furniture could be a major tailwind for the company.