Detailed Narrative
Company Overview and Strategic Positioning
Sellowrap Industries Limited, with over 40 years of manufacturing experience, is a leading supplier of customized automotive components for both ICE and EV platforms. The company operates 5 manufacturing plants across India, supported by an in-house R&D center. Sellowrap serves major OEMs like Maruti Suzuki, Mahindra, and Hyundai, and has a professional core management team with three decades of experience. The company emphasizes ESG guidelines, carbon neutrality, and responsibility for future generations.
Financial Performance and Outlook
The company reported an improvement in EBITDA margin from 12% to 14%, attributed to cost-cutting, automation, waste control, and inventory management. Management projects an 8-10% top line and bottom line growth for FY26 and FY27, aiming to surpass the 11% market CAGR with a 14-15% minimum CAGR. Revenue from the Foam product line grew from ₹57.24 crores in 2025 to ₹65.31 crores in 2025-26, representing a 14.1% increase.
Operational Highlights and Capacity
Sellowrap maintains a high capacity utilization of 77-80%. From its current asset base, the company estimates an optimum revenue potential of ₹250-300 crores. The company's plants are strategically located in key Indian automotive hubs, with 49% of total sales value from Ranipet, 23% from Pune, and 20% from Gurgaon. The company has a current order book of ₹275 crores, which is expected to be executed within 2 years.
Product Portfolio and Market Leadership
Sellowrap offers a diversified product portfolio including plastic injection molded parts, foam components, sealing solutions, and EPP molded products. The company is a market leader in Foam and Water Shield products, holding an estimated 60-70% market share in one of its products. Approximately 80-90% of the company's revenue comes from four-wheelers, with minimal contribution from two-wheelers, and the remainder from tractors, buses, and white goods.
Capital Allocation and Investments
Short-term loans and advances increased from ₹8.22 crores at FY25 end to ₹15.16 crores in H1FY26, primarily due to investments in a new plant in Pune, internal recruiters, and converting imported machines into bank loans. Cash flow from operations turned negative in H2FY26, a direct result of these plant investments. The company spends approximately 1-1.5% of its revenue on R&D and plans for further capacity and plant expansion over the next 3 to 5 years to support revenue growth.
EV Transition and R&D
Sellowrap is actively developing new components required for EV vehicles at its Ranipet R&D Center, although specific details remain confidential. The company's products are largely adaptable for both ICE and EV platforms. The management is confident that investments in plant and machinery, potentially funded by IPO proceeds, will enable the development of new product lines, including those for the EV segment.