VISAMAN GLOBAL SALES IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

About VISAMAN GLOBAL SALES Limited

Visaman Global Sales was originally incorporated on June 27, 2019 under the name “Visaman Global Sales Limited. Visaman is engaged in the business of supply of round pipes, square pipes, rectangle pipes, various specification of structural steels, BGL coils, GP(GI) coils, HR coils, CR coils, colour coated coils, MS sheets, GP and GC sheets, CR sheets, HR sheets and plates, colour coated sheets, roofing PUF panel, wall PUF panel etc. Further, the company also provide the credit facility to their existing customers as value added service. They provide facility to pay later to the existing customers with good financial record in this case if the customers had paid all the outstanding amount in a proper time frame, then they fix their credit worthiness via fix amount of credit limit and the credit days which varies with customers to customers.

In addition, they provide the facility of customization to meet the specific requirement of their customers w.r.t specific size, length, breadth, thickness etc. of their products. They send the requisition to manufacturer for customization of specified products. Further, in certain cases, if the manufacturer is unable to do the specified customization, then, the same will be get done by the third-party process houses. The Company outsources the process of modification and alteration to the third party. They outsource the process of modification and alteration to the third party. Additionally, they facilitate onsite delivery of their products to the customers. They are one of the dealers of APL Apollo Tubes Limited.

INDIAN STEEL INDUSTRY

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a country's economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy. The Indian steel industry is classified into three categories - major producers, main producers and secondary producers.

India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23.

India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24.
The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India's manufacturing output.
The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India. With the industry accounting for about 2% of the nation's GDP, India ranks as the world's second-largest producer of steel and is poised to overtake China as the world's second-largest consumer of steel. Both the industry and the nation's export manufacturing capacity have the potential to help India regain its favourable steel trade balance.

The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31. As per Indian Steel Association (ISA), steel demand will grow by 7.2% in 2019-20 and 2020-21.

Government Initiatives

Some of the other recent Government initiatives in this sector are as follows:

• In October 2021, the government announced guidelines for the approved specialty steel production-linked incentive (PLI) scheme.
• In July 2021, the Union Cabinet approved the production-linked incentive (PLI) scheme for specialty steel. The scheme is expected to attract investment worth ~Rs. 400 billion (US$ 5.37 billion) and expand specialty steel capacity by 25 million tonnes (MT), to 42 MT in FY27, from 18 MT in FY21.
• In June 2021, JSW Steel, CSIR-National Chemical Lab (NCL), Scottish Development International (SDI) and India H2 Alliance (IH2A) joined forces to commercialise hydrogen in the steel and cement sectors.
• Under the Union Budget 2023-24, the government allocated Rs. 70.15 crore (US$ 8.6 million) to the Ministry of Steel.
• In addition, an investment of Rs. 75,000 crore (US$ 9.15 billion) (including Rs. 15,000 crore (US$ 1.83 billion) from private sources) has been allocated for 100 critical transport infrastructure projects for last and first mile connectivity for various sectors such as ports, coal, and steel.
• The Ministry of Steel is facilitating the setting up of an industry driven Steel Research and Technology Mission of India (SRTMI) in association with the public and private sector steel companies to spearhead research and development activities in the iron and steel industry at an initial corpus of Rs. 200 crore (US$ 30 million).
• The Government of India raised import duty on most steel items twice, each time by 2.5% and imposed measures including anti-dumping and safeguard duties on iron and steel items.

VISAMAN GLOBAL SALES LIMITED STRENGTHS
1. Strong Customer Base
2. Wide range of their products
3. Leveraging the experience of their Promoters and management team
4. Comprehensive solution for logistics requirement
5. Existing Supplier Relationship
6. Location Advantage
7. ISO Certified Organization
8. In depth understanding of customers’ requirements

VISAMAN GLOBAL SALES LIMITED STRATEGIES

1. Reduction of operational costs and improving operational efficiencies
2. Focus on cordial relationship
3. Strengthen their brand value
4. Focus on increase in volume of sales
5. Entering into manufacturing activities

VISAMAN GLOBAL SALES LIMITED RISK FACTORS & CONCERNS

1. The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves.
2. They generate a substantial portion of revenue from the region of Gujarat.
3. Their Revenue supply of Pipes contribute significantly to their revenue from operation.
4. The business is a High Volume-Low Margin Business.
5. They are heavily dependent on one of their suppliers, M/s. APL Apollo Tubes Limited.
6. The Company has limited storage capacity.