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Bhadora Industries

• Bhadora Industries is coming out with an initial public offering (IPO) of 54,00,000 equity shares in a price band Rs 97-103 per equity share.
• The issue will open on August 4, 2025 and will close on August 6, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.70 times of its face value on the lower side and 10.30 times on the higher side.
• Book running lead manager to the issue is Unistone Capital.
• Compliance Officer for the issue is Archana Khare.

Profile of the company

Bhadora Industries is engaged in the business of manufacturing industrial cables which provide efficient electricity transmission and distribution solutions to the government discoms and EPC companies which cater to the diverse electrical connectivity needs of various industrial sectors. It operates under the brand name of “Vidhut Cables”. With over three decades of experience in the cable industry, it has consistently evolved to meet the dynamic requirements of the industry. It started with production of Polyvinyl Chloride (PVC) cables, and it later expanded its range to include Low Voltage (LV) cables, LT Aerial Bunched Cables, Cross-Linked Polyethylene (XLPE) cables. These products are designed for specific functions in electricity transmission and distribution. Each product serves a specific function in electricity transmission, from reliable power distribution in low voltage applications to high performance cables used in overhead power lines. It ensures all its cables meet industry standards for safety and performance, while also staying aligned with the technology and requirements of the sector.

Its manufacturing facility is accredited with Bureau of Indian Standards (BIS) and ISO 9001: 2015 (Quality Management Systems), ISO 14001:2015 (Environment Management System), and ISO 45001:2018 (Occupational Health and Safety Management Systems) certifications. It ensures that its manufacturing facility adheres to these high-quality benchmarks through stringent quality control processes. To maintain product integrity, its manufacturing facility is equipped with an in-house testing laboratory, which plays a crucial role in monitoring and verifying the quality of the industrial cables.

Its manufacturing facility is equipped with efficient machinery like RBD (Rod Breakdown), Skip Stranding cum Armouring Machines, Stranding Cum Armouring Machines and Laying Cum 48 Bobbin Armouring Machine etc. used for drawing, laying, armouring and in other cable manufacturing process. It also has self-sufficient laboratory equipped with machines and instruments to carry out routine and special tests on industrial cables. Its workforce comprises of skilled and semiskilled technicians, supervisory, quality control, commercial and managerial staff.

Proceed is being used for:

• Part finance the cost of establishing new manufacturing facility to expand its production capabilities of industrial cables and conductors at Plot Nos. 188/1, Village Panwa Tehsil Kasrawad, District Khargone, Madhya Pradesh, India (Proposed new facility)
• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

The India wires and cables market size was valued at $9.32 billion in 2024. The market is projected to grow from $10.01 billion in 2025 to $17.08 billion by 2032, exhibiting a CAGR of 7.94% during the forecast period. India has observed a substantial rise in the demand for wires and cables due to the country's ambitious renewable energy goals and the growing awareness of the potential of renewable energy, such as solar and wind power. In solar power plants, photovoltaic (PV) projects require a high-quality cabling system that connects all electrical components with minimal energy loss. The significant growth of solar panels in India is creating a considerable demand for solar cables. According to industry standards, a 1 MW solar project will use about 50 km of solar cable. Considering the Indian government's target of 100 GW of installed solar capacity by 2022, India's solar cable requirement alone is more than 5 million kilometers.

Rapid advancements in cable and connection technology are occurring alongside the shift toward digital technology. One of the key trends is that increasing volumes of data must be transmitted at increasingly faster speeds. Specialty cable designs with thermal insulation and space-saving engineering are being tested. Therefore, the trend is moving toward the frequent use of hybrid cables, which combine power cables, data cables, and even pneumatic and hydraulic hoses in a single sheath. When large volumes of data are transmitted, high-speed Cat.7 industrial Ethernet cables can replace some of the slower cables, and fiberglass cables can replace even more copper cables. Along with cables, connectors are also getting thinner. A modular connector system combines multiple contact points for different cable types in a single housing.

The global wire and cable market is expected to be valued at $193.7 billion in 2024 and is forecast to expand at a CAGR of 5.2% to end up at $321.5 billion by the end of 2034. A wire is a single conductor of electricity, but a cable is many wires bundled together in an assembly. Various types of cables, such as coaxial, transmission, and distribution cables, are extensively used across industrial sectors to transmit high-speed communication signals and electricity. Demand for flexible and fire-resistant wires and cables that offer environmental protection, and extended durability is spurring wire and cable market growth. The wire and cable market size is expanding at a steady pace as new voltage levels are introduced to enhance performance and efficiency. These advancements are allowing the cable industry to produce more efficient, reliable, and cost-effective products. Electrical cables and wires are often used interchangeably. Wire and cable constitute the backbone of the highly acclaimed electrical and electronics industries.

Pros and strengths

Approved vendor in government schemes: Each State Electricity Board has specific eligibility criteria such as past experience in industry and past supply records, for participating in government tenders, particularly for the supply of cables. With over three decades of experience in the cable industry, it has gained in-depth knowledge and expertise that aligns with the state-specific bidding requirements. Its extensive experience ensures that it consistently meet the criteria set forth by government authorities for cable supply tenders. With meeting these criteria, it demonstrates its ability to supply high-quality products. In addition to its established track record, its compliance with these criteria significantly strengthens its competitive position for future government contracts.

Quality assurance: The company is upholding the highest standards of quality across its products, processes, and materials. It holds ISO 9001:2015 certification for its Quality Management System, which covers the manufacture and supply of PVC, XLPE, Aerial Bunch Cable, Armoured and Unarmoured cables. Additionally, it is accredited with ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001: 2018 (Occupational Health and Safety Management System) standards in the same areas. Its adherence to these quality standards is key to achieving consistent results. Timely delivery of quality products is a core objective, and it allocates significant resources to quality assurance to ensure that its standards are consistently met.

Sustainable business operations: The company, established in 1986 as a partnership, has experienced steady growth and expansion over the years. The Business began its journey in 1988 with production PVC cables, and over the years the company launched new products, like “XLPE Cable” and “AB Cable,” marking expansion of its product portfolio. The company is fully compliant with all statutory norms and regulations, ensuring that every aspect of its operations meets both industry standards and legal requirements. This adherence to regulatory frameworks has contributed to its long-term stability and success. Known for its focus on product quality, the company uses quality control measures to ensure that each product meets the highest standards and satisfies customer expectations. 

Risks and concerns

Maximum revenue comes from top 10 customers: The company has garnered 86.92%, 89.79% and 88.95% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. The volume and timing of sales to its long-term customers may vary due to variation in demand for such customers’ products or on account of their manufacturing and growth strategy. Thus, any decrease in the demand for its offerings from its long-term customers, or a termination of its arrangements altogether, would adversely impact its results of operations, financial condition and cash flow.

Dependence on a single manufacturing facility: It currently operates only one manufacturing facility located in Tikamgarh, Madhya Pradesh, which exposes the company to significant operational risks due to its reliance on a single location for all of its production needs. Any disruption or shutdown of operations at this facility, whether due to natural disasters, fire, equipment failure, labour disputes, regulatory issues, or any other unforeseen circumstances, could severely impact its ability to manufacture and supply products in a timely manner. This concentration of manufacturing capacity increases its vulnerability to regional risks and limits its ability to respond to demand fluctuations or scale production in the event of increased market demand. Any prolonged disruption at its Tikamgarh facility could lead to a delay or inability to fulfill customer orders, potentially harming its relationships with customers, and leading to a loss of market share.

High working capital requirement: The company requires working capital for its smooth day-to-day operations and insufficient working capital may result in the company being unable to meet its daily operational needs. This could lead to delays in paying suppliers, wages, or other operational expenses, affecting production schedules and delivery timelines as well as fluctuation in working capital turnover ratio could also adversely impact its business and financials of the company.

Outlook

Bhadora Industries manufactures industrial cables for efficient electricity transmission and distribution, serving government discoms and EPC companies across various industrial sectors. The company operates under the brand name of Vidhut Cables. The company has highest standards of quality across its products, processes, and materials. It also has sustainable business operations. On the concern side, the company is highly dependent on its top ten customers and the loss of any of these customers or a substantial reduction in their purchasing activity would have a significant negative impact on its business. Moreover, the company’s primary source of revenue largely depends on the sale to EPC Contractors. Consequently, any downturn in sales within this segment would significantly hamper its operations and profitability.

The company is coming out with a maiden IPO of 54,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 97-103 per equity share. The aggregate size of the offer is around Rs 52.38 crore to Rs 55.62 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations for the financial year 2024-25 amounted to Rs 11,011.18 lakh, marking an increase of Rs 2,871.86 lakh or 35.28% over the previous year’s revenue of Rs 8,139.32 lakh. This growth was primarily driven by a significant increase in revenue from EPC contracts. Moreover, the Profit After Tax (PAT) for the financial year 2024-25 reached Rs 1,078.68 lakh, marking an increase of Rs 583.17 lakh from Rs 495.51 lakh in the financial year 2023-24.

The company presently supplies its products to State Electricity Boards, domestic and EPC companies across India. As part of its growth strategy, it is looking to expand its footprint in the Middle East market. Towards its strategy, it has participated in the Middle East Energy Exhibition 2025 from April 07, 2025 to April 09, 2025. It plans to enhance its brand recognition globally by actively participating in more international trade exhibitions and events. This will not only strengthen its market position abroad but also establish its brand as a trusted supplier of quality products in the global cable industry. These initiatives will allow the company to showcase its products, connect with potential partners and clients, and further strengthen its brand’s visibility and credibility in the global market.