HP Adhesives Ltd - Stock Valuation and Financial Performance

HP Adhesives was originally formed as a partnership firm under the name and style of M/s. H.P. International pursuant to a deed of partnership dated January 01, 1987. M/s. HP International was thereafter converted into a private limited company HP Adhesives Private Limited on May 07, 2019, pursuant to the provisions of Chapter XXI of the Companies Act. Subsequently, the company has been converted into a public limited company and the name of the company changed to “HP Adhesives Limited” pursuant to a special resolution passed at the Extra-Ordinary General Meeting of the company held on June 23, 2021 and a fresh Certificate of Incorporation dated July 01, 2021 issued by the RoC.

The company has a robust business model aimed at consistently expanding its product portfolio by introducing new product categories as well as SKUs to cater to multiple end-use applications which are sold through its distribution network across India. With strict focus on product quality and long-standing track record in the distributor network, it has an established brand image which helps it in penetrating new product categories. The company constantly engages with its distributor network through marketing and promotional activities and also conduct a range of activities such as distributor meets, retailer meets and plumber and carpenter meets which leads to promotion of its product brands.

Business area of the company

The company is a fast-growing multi-product, multi-category consumer adhesives and sealants company. For its largest product category - PVC solvent cement, it is amongst the leading manufacturing companies in India in the consumer/ bazaar segment of the adhesive industry. It manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through network of distributors and direct customers. It also manufactures these products for select large PVC pipe manufacturing companies under co-branding or private label on order basis. Apart from the above products, it also sells ancillary products like ball valves, thread seal and other tapes and FRP products for drainage and architectural solutions that are distributed along with its products to the end customers through its distribution network.

Key events and milestones

• 1987: Partnership Firm in the name and style of H.P. International founded by Haresh Dhanraj Motwani and Seema Abhichandani
  
• 1988: Established manufacturing plant at Andheri East, Mumbai.
  
• 2001: Reconstitution of partnership firm, H.P. International with Haresh Dhanraj Motwani and his wife, Anjana Haresh Motwani as partners.
  
• 2004: Launch of brand ‘Strong Weld’.
  
• 2004: Shifted manufacturing facility to Village Padghavalli, Raigad, Maharashtra for manufacturing of PVC solvent cement.
  
• 2007: Karan Haresh Motwani, the company's Promoter, admitted as a Partner to the partnership firm, H.P. International.
  
• 2012: Shifted manufacturing facility to Village Narangi, Raigad, Maharashtra.
  
• 2011: Received NSF International Certification for manufacturing solvent cements.
  
• 2018: Commenced manufacturing synthetic rubber adhesives and PVA adhesives.
  
• 2019: Commenced manufacturing of silicone sealants and gasket shellac.
  
• 2019: Conversion of the company’s business from partnership firm to private limited company.
  
• 2019: Started trading in Ball Valves, PTFE and Masking Tape.
  
• 2021: Conversion of the Company from private limited to public limited company.