About Sellowrap Industries Limited

BUSINESS OVERVIEW

Sellowrap Industries Limited, headquartered in Mumbai, is a B2B manufacturing company specializing in customized components for the automotive, non-automotive, and white goods industries. With over four decades of presence in the automobile sector, the company delivers adhesive and non-adhesive processed components focused on quality, cost-efficiency, and customer value.

Manufacturing operations span across Gurugram, Ranipet, Kancheepuram, and Pune, covering approximately 5 acres of production space. Facilities are equipped with advanced technology, supported by centralized R&D centers and warehouses, ensuring compliance with global quality standards.

The R&D laboratory functions as a pilot industrial plant, enabling rigorous product testing and chemical experimentation to ensure innovation, process efficiency, and product excellence before scaling up production.

Product Range

• Adhesive Parts

• Non-Adhesive Parts

• Plastic Injection Moulded Parts (Interior & Exterior)

• PU Foam Moulding

• Foam, Labels & Stickers

• Screen Sealing Parts

• EPP Moulding

• Brought-out Parts

As on June 30, 2025 there are total of 159 employees on payroll and 635 Contractual Employees. The Banker to the comapny is HDFC Bank Limited.

INDUSTRY ANALYSIS

Industry Analysis: Automobile & Allied Sectors in India

The Indian automobile industry serves as a key barometer of the nation’s economic health, significantly contributing to macroeconomic growth and technological progress. Among the various segments, two-wheelers dominate in volume, driven by a growing middle class and a predominantly young population. Expanding interest in rural markets has also supported this momentum.

The commercial vehicle segment is witnessing rising demand, supported by growth in logistics and passenger transport. Looking ahead, emerging trends such as vehicle electrification—especially for three-wheelers and compact cars—are expected to accelerate market expansion.

India holds a strong global position in heavy vehicles, being the world’s largest tractor manufacturer, second-largest bus manufacturer, and third-largest producer of heavy trucks. In FY23, India produced 25.9 million vehicles, demonstrating strong domestic demand and growing export potential. In September 2024 alone, production of passenger vehicles, two-wheelers, three-wheelers, and quadricycles reached 2.77 million units. Exports stood at 4.76 million units in FY23, underlining India’s global competitiveness.

The sector’s GDP contribution has risen from 2.77% in 1992-93 to approximately 7.1% today, employing around 19 million people, directly and indirectly. Initiatives such as the Automotive Mission Plan 2026, Vehicle Scrappage Policy, and the PLI scheme are paving the way for India to become a global leader in two- and four-wheeler manufacturing.

Market Size & Growth Outlook

• The passenger car market in India was valued at US$ 32.7 billion in 2021, and is projected to grow to US$ 54.84 billion by 2027, at a CAGR of over 9%.

• The global Electric Vehicle (EV) market, valued at US$ 250 billion in 2021, is expected to quintuple to US$ 1.31 trillion by 2028.

• In FY24 (till January), EV sales in India reached 1.32 million units.

• India’s EV market is estimated to reach ₹50,000 crore (US$ 7.09 billion) by 2025 and presents a US$ 206 billion opportunity by 2030, requiring US$ 180 billion in investments across manufacturing and charging infrastructure.

• As per NITI Aayog and RMI, India’s EV financing sector alone is poised to grow to US$ 50 billion by 2030.

• According to IESA, India’s EV market is expected to grow at a CAGR of 36% until 2026, while the EV battery market will expand at 30% CAGR.

India also aims to increase its vehicle exports fivefold by 2026, building on the 36.52 lakh two-wheeler exports in FY23.

Future Prospects & Government Initiatives

Key growth enablers include:

• Availability of low-cost skilled labor

• Strong R&D ecosystem

• Competitive steel prices

• Massive domestic market potential

The EV industry alone is expected to generate 50 million jobs by 2030.

The PLI Scheme for Automobiles and Auto Components has been extended to FY2027-28, attracting ₹67,690 crore (US$ 8.1 billion) in proposed investments—surpassing the original estimate of ₹42,500 crore.

The Indian government is prioritizing the development of a low-carbon, high-density urban mobility ecosystem, as seen with the launch of India’s first double-decker electric bus in Mumbai in 2022.

India also seeks to emerge as a global leader in shared mobility and autonomous vehicles by 2030.

In CY23, the sector showed recovery from COVID-19 disruptions, with single-digit growth across passenger, commercial, and two-wheeler segments, and a strong rebound in three-wheelers, supported by policy incentives.

Indian Auto Components Industry

Overview

India’s economic growth, rising disposable incomes, infrastructure expansion, and manufacturing incentives have propelled the auto industry and, by extension, the auto components sector.

In FY24:

• The auto component industry accounted for 2.3% of India’s GDP

• It directly employed over 1.5 million people

• Projected to contribute 5-7% of GDP by 2026, creating 3.2 million incremental jobs

India produced 100,000 electric cars and 900,000 electric two-wheelers in 2024. However, ICE vehicles still dominate, with 20 million two-wheelers and 5 million cars produced.

Market Size & Exports

• The industry turnover reached ₹6.14 lakh crore (US$ 74.1 billion) in FY24, growing 9.8% YoY

• Domestic OEMs contributed 54% of the turnover, aftermarket 10%, and exports 18%

• Exports stood at US$ 21.2 billion, while imports were US$ 20.9 billion, yielding a US$ 300 million trade surplus

• North America (32% share), Europe (33%), and Asia (24%) are the top export destinations

• Key exports include drive transmission systems, steering, engine components, body/chassis, and braking systems

• By 2026, exports are expected to touch US$ 30 billion, and total revenue is projected at US$ 200 billion

Growth Outlook

With global shifts toward electric, hybrid, and smart vehicles, India’s auto components sector is set for transformation. Investments are being directed toward:

• Lightweight and sustainable materials

• R&D and innovation

• Digitalization and data analytics

• Global supply chain integration

The Indian government is supporting this shift through capital goods import exemptions and infrastructure development (e.g., EV charging stations, set to rise from 1,800 in 2021 to 400,000 by 2026).

India’s component exports are expected to grow by 4-5% annually, reaching US$ 80 billion by 2026, making it the third-largest auto component industry globally.

Indian Plastic Moulding Market

India’s plastic moulding market was valued at US$ 45.13 million in 2024 and is projected to reach US$ 53.64 million by 2030, growing at a CAGR of 3.12%.

Plastic moulding is widely adopted across automotive, consumer goods, electronics, packaging, and healthcare industries. India hosts over 30,000 plastic processing units, utilizing techniques such as injection moulding, blow moulding, and extrusion.

Factors propelling growth:

• Urbanization and industrial expansion

• Rising demand for consumer products

• Government programs like ‘Make in India’

• Cost-effective production techniques

India PU Foam Moulding Market (2024–2031)

India’s polyurethane (PU) foam market was worth US$ 2.8 billion in 2022 and is expected to touch US$ 5.18 billion by 2031, growing at a CAGR of 8.0%.

Growth drivers:

• Strong GDP growth (6.8% in 2022, 6.4% expected in 2024)

• Rising demand across automotive, construction, and consumer goods

• Expansion of petrochemicals sector, expected to contribute 10% of global growth

Geographic Insights: West India

West India holds a 27.5% market share in PU foam due to:

• Industrial hubs in Maharashtra and Gujarat (notably Mumbai, Pune, Ahmedabad)

• Access to strategic ports like Mumbai, Kandla, and Mundra

• High export orientation in packaging, textiles, and auto sectors

Conclusion

India's automobile and allied sectors are on a transformative path, backed by strong domestic consumption, rising exports, policy support, and a pivot toward electrification and sustainability. With significant opportunities in EVs, auto components, plastic moulding, and PU foams, India is well-positioned to become a global automotive hub by the end of the decade.

BUSINESS STRENGTHS

1. Commitment to Quality, Safety & Zero Defects
Consistent track record of zero defects and no customer complaints, driven by stringent quality control protocols and robust manufacturing practices.

2. Diverse Product Portfolio for Automotive and White Goods
Offers a wide range of performance-engineered components, including Plastic Injection Moulded Parts, PU Foam Moulding, Foam Components, Stickers & Labels, Screen Sealing Parts, and EPP Parts, catering to automotive, non-automotive, and white goods sectors.

3. Long-Term Partnerships with Leading OEMs
Established, long-standing relationships with domestic and global OEMs, ensuring integrated supply of high-quality, performance-aligned components.

4. Integrated & Strategically Located Manufacturing Facilities
Facilities across NCR, Maharashtra, and Tamil Nadu, spread over ~5 acres, enable proximity to OEMs and Tier-1 suppliers, ensuring cost efficiency, timely delivery, and precision production.

5. Dedicated R&D Centre Driving Innovation
A focused R&D facility in Ranipet, Tamil Nadu, staffed by 11 engineers, supports product innovation, process improvement, and alignment with global automotive standards.

6. Experienced Leadership & Skilled Workforce
Governed by an experienced Board and supported by a multidisciplinary team, with deep domain knowledge and agility to adapt to market dynamics.

7. Robust Information Security Framework
Certified under ISO 27001:2013 ISMS and implementing TISAX, meeting international standards for data protection and cybersecurity, especially relevant for global OEM collaboration.

BUSINESS STRATEGIES

1. Sustainability-Driven ESG Focus
Sustainability forms the backbone of business strategy, guided by ESG principles. Since August 2023, operations have increasingly integrated eco-friendly practices, human capital development, diversity, and community engagement.

2. Dual Growth Approach: Organic and Inorganic Expansion
Growth is driven through a mix of organic scaling and inorganic methods like strategic partnerships and joint ventures, enabling rapid market expansion and operational synergies.

3. Product Diversification and Value Addition
The strategy emphasizes expanding into adjacent markets and offering value-added products to reduce single-product dependency and enhance portfolio resilience.

4. Brand Visibility through Industry Participation
Active engagement in trade fairs, exhibitions, and expos helps boost brand visibility, market awareness, and industry networking.

5. B2B Focus with Long-Term Collaborations
Emphasis is placed on establishing long-term B2B agreements that align with industry-specific needs, ensuring recurring revenue and sustained collaboration.

BUSINESS RISK FACTORS & CONCERNS

1. High Dependency on the Automotive Sector
Business performance is closely tied to the automotive industry, both domestically and globally. Political, economic, technological, or market fluctuations can directly affect component demand, thereby impacting revenue and profitability.

2. Operational Disruptions Risk
Manufacturing efficiency across facilities in Gurugram, Pune, Kancheepuram, and Ranipet is critical. Disruptions from strikes, equipment failure, regulatory changes, or workforce unavailability may adversely affect financial and operational results.

3. Customer Concentration Risk
A significant portion of revenue is derived from the top 10 customers. This concentration increases vulnerability to revenue volatility from factors such as order reductions, contract non-renewals, strategic shifts, or loss of key accounts. Absence of long-term agreements further adds to demand uncertainty.