IKIO Lighting Limited IPO

IKIO Lighting is a manufacturer of light emitting diode (“LED”) lighting solutions. IKIO Lighting is primarily an original design manufacturer (“ODM”) and design, develop, manufacture as well as supply products to customers, who then further distribute these products under their own brands. The company also works with their customers to develop, manufacture and supply products that are designed by their customers.

The company’s products are categorised as (i) LED lighting; (ii) refrigeration lights; (iii) ABS (acrylonitrile butadiene styrene) piping; and (iv) other products. The company’s offerings focus on the premium segment and include lighting, fittings, fixtures, accessories and components. It also provides lighting solutions (lights, drivers and controls) to commercial refrigeration equipment suppliers under its refrigeration light segment.

Further, IKIO Lighting also manufactures an alternative to polyvinyl chloride (“PVC”) piping called ABS piping that is primarily used by their US customers for plumbing applications in the recreational vehicles (“RVs”) that they fit out. In addition, IKIO manufactures and assembles other products including fan regulators that are designed by its clients; light strips, moulding, and other components and spares. The company’s equipment and systems are used in various industries and products, including residential, industrial and commercial lighting.

The company’s largest client is Signify Innovations India Limited, erstwhile Philips Electronics India Limited (Signify (Philips)). One of the promoters, Hardeep Singh, has a 10-year long relationship with Signify (Philips). Other clients include Western Refrigeration Private Limited, Panasonic Life Solutions India Private Limited and Novateur Electrical & Digital Systems Private Limited. In Fiscal 2022, the company derived approximately 93.56% of its consolidated restated revenues from operations from repeat customers.

The company has four manufacturing facilities with one located in the SIDCUL Haridwar industrial park in Uttarakhand and three in Noida in the National Capital Region.

In the nine months ended December 31, 2022, the company’s R&D expenses on a consolidated restated basis was Rs 1.22 crore. In FY22, FY21 and FY20, its R&D expense stood at Rs 83.8 lakh, Rs 61.3 lakh, and Rs 90 lakh, respectively.