Rolex Rings Ltd IPO

Rolex Rings Company Strengths :

1) Among the leading forging companies in India.
2) Strong manufacturing capabilities
3) Comprehensive product portfolio
4) Geographically diversified revenue base
5) Strong and consistent financial performance track record

Some of the competitive strengths are as follows

• Comprehensive product portfolio:

Rolex Rings offers a diverse range of hot forged and machined alloy steel bearing rings weighing from 0.01 kg to over 163 kg and with inner diameter of 25 mm to outer diameter of 900 mm. This makes RRL products suitable for a wide range of end-user industries such as automotive, railways, industrial infrastructure and renewable energy, among others. They also offer auto components such as wheel hubs, shafts and spindles, gears, etc. The company’s strength in their product portfolio is shown by the fact that they supply domestically and internationally in each of their product segments. Their product portfolio helps them in offering a wide range of products to their customers, enhances their ability to attract new customers, improve their share of business amongst existing customers and helps de-risk the business through limited dependence on any single product category. 

• Long standing customer relationships and geographically diversified revenue base

For Fiscal 2021, the company supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, USA and in European countries such as Germany, France, Italy, Czech Republic and Thailand. Notably, they supply domestically and internationally to some of the leading manufacturers of bearings, Tier-I and Tier-II auto-component suppliers and certain auto OEMs. They have been able to maintain long standing relations with their customers and 70% of their 10 largest customers for Fiscal 2021 have been with them for over a decade. Company’s products find end use across automobile sector (including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles and electric vehicles), industrial machinery, wind turbines and railways, amongst other segments.

• Experienced Promoters and management team with strong domain expertise:

Rolex Rings is led by an experienced management team that has the expertise and vision to manage and grow their business. Manesh Madeka, Chairman and Managing Director, has over 40 years of experience in the industry and has been engaged with the company since its inception. Their production and planning-related business is led by Bhautik Madeka, whole-time Director and the marketing functions and the development of new customers and products related business is led by Mihir Madeka, both of whom have over 18 years of experience in the industry. Besides, members of their senior management team have an average experience of over 24 years with most of such team members having been in the company for more than a decade.

Risk Factors:

Some of the risk factors are as follows

• RRL is heavily dependent on the performance of the automotive sector in India, Europe, North America, Latin America and some part of Asia. Any adverse changes in the conditions affecting these markets can adversely impact our business, results of operations, cash flows and financial condition.
• The continuing impact of the outbreak of the COVID-19 could have a significant effect on our operations, and could negatively impact our financial performance.
• RRL is highly dependent on top 10 customers for their revenues. Any unfavorable decision taken by the customers would impact financial numbers.