Bhavik Enterprises Ltd (BSE SME)

IPO Details

Company Financials (In ₹Crore) 

COMPARISON WITH INDUSTRY PEERS

About Company

Founded in 2008, Bhavik Enterprises Limited is a specialized player in the B2B polymer trading industry. The company operates on a stock-and-sale model, which involves importing key polymer materials, storing them in its network of warehouses, and distributing them to manufacturers across India. It serves as a critical link in the supply chain, providing the essential raw materials for a wide array of plastic products.

Core Business & Product Portfolio
The company's expertise is focused on two major polymer categories:

• Polyethylene (PE): Bhavik Enterprises imports and trades the full spectrum of polyethylene variants. This includes HDPE, LDPE, LLDPE, and the advanced MLLDPE. These materials are fundamental to the packaging industry, among others.

• Polypropylene (PP): The company also supplies polypropylene, a polymer valued for its lightweight nature, durability, and resistance to chemicals. It has widespread applications beyond packaging, including in the automotive and textile sectors.

Market Applications
The polymers supplied by Bhavik Enterprises are vital raw materials used by their clients in numerous industries. Key application sectors include packaging for consumer goods, agricultural films and piping, housewares, flexible films, and a variety of containers. This diversity makes the company's products integral to infrastructure, agriculture, and daily consumer use.
 

Bhavik Enterprises IPO Objective

The Company Bhavik Enterprises IPO proposes to utilise the Net Proceeds from the Issue towards the following objects:

1. Funding Working Capital Requirements of the Company
The amount allocated for this objective is Rs. 47.50 crores. This capital will be used to meet the company's ongoing operational needs and fund its core business activities.

2. General corporate purposes
The amount allocated for this objective is not specified in the provided information. This category typically covers a range of standard corporate activities not otherwise detailed.

Strength

Wide Geographic Presence: The company has expanded operations from Western Europe to Asia, with active markets in Poland, Sweden, Germany, and Mongolia.

Strong Quality Standards: Products are manufactured in EU-based facilities under strict quality controls, ensuring reliability and global compliance.

Innovative Work Environment: A creative culture supported by initiatives like the 'inTegra House' workshop and a 4+1 work week model fosters skill development and innovation.

Weakness

Supplier Dependence: Revenue depends on certain suppliers for polymers; any cost increase, shortage, or quality issue may impact operations and financials.

Distribution Agreement Risk: Termination, non-renewal, or unfavorable changes in agreements with Borouge Pte Ltd. could materially affect business and future performance.

Regional Revenue Concentration: Heavy reliance on the western region of India and Daman & Silvassa exposes revenue to risks from adverse regional developments.