In a remarkable turn of events, Pradeep Rathod, the Chairman and Managing Director of a Mumbai-based company specializing in kitchenware products, has become India’s newest billionaire. The success story unfolded with the company’s initial public offering (IPO), propelling Rathod into the billionaire club owing to his significant 44% stake, now valued at an impressive $1 billion.
Cello World, the company under Rathod’s leadership, witnessed an oversubscribed IPO, with shares trading at a 28% premium to their IPO price of 648 rupees. The listing’s success is attributed to improved market sentiment toward midcap stocks and the auspicious timing coinciding with the Diwali festival, known for peak consumer houseware sales.
Over the past two years, Cello World has demonstrated remarkable growth, experiencing a 70% surge in revenue, reaching 17.97 billion rupees ($219 million) in the fiscal year ending March 2023. During the same period, net profit rose by 58% to 2.8 billion rupees ($35 million). Despite the IPO not being priced conservatively, investors were drawn to the extensive range of plastic, glass, and porcelain products offered by the company.
The consumer ware market in India, particularly the kitchenware segment, has been on an upward trajectory, growing at a compounded annual rate of 6.9% from 2020 to 348 billion rupees ($4.2 billion) by fiscal 2022, driven by a burgeoning middle class. Projections indicate a faster growth rate of 10.2% annually, reaching 565 billion rupees ($6.8 billion) by fiscal 2027 as households upgrade their kitchens.
Cello World faces competition from other established brands in the market, including Borosil, TTK, Milton, and La Opala. Apart from dominating the kitchenware sector, the company diversifies its offerings, including pens, stationery items, and moulded furniture, contributing 18% to its total revenue.
With an eye on the growing demand for plastic furniture, expected to reach 270 billion rupees ($3.3 billion) by fiscal 2027, Cello World is strategically positioned to capitalize on this market trend. The company’s origins trace back to 1962, and under the leadership of Pradeep Rathod and his younger brother Pankaj, it has evolved and diversified into new product lines.
The Rathod legacy continues, with the involvement of the next generation, exemplified by Pradeep’s son, Gaurav, educated in the United Kingdom, actively contributing to the company’s management as the joint managing director.
