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.
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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.