JIWANRAM - Jiwanram Sheo

📊 NSE: JIWANRAM 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 8:39

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 25.21% YoY, reaching INR 53.90 Cr in FY25 compared to INR 43.05 Cr in FY24. However, H1FY26 revenue stood at INR 11.09 Cr, indicating a potential slowdown or significant seasonality in the leather and safety gear segments.

Geographic Revenue Split

While specific regional percentages are not disclosed, the company is heavily focused on exports, particularly to the UK, following the India-UK Free Trade Agreement (FTA) signed in July 2025 which eliminates duties on 99% of Indian leather exports.

Profitability Margins

Net Profit Margin (NPM) stood at 4.4% in FY25, a slight improvement from 4.07% in FY24. Operating Profit Margin (OPM) was reported at 7.97% in FY25, down from 9.80% in FY24, reflecting intense competition and rising operational overheads.

EBITDA Margin

Operating profit margin declined from 9.80% in FY24 to 7.97% in FY25, a contraction of 183 basis points. This decline is attributed to severe margin erosion from both multinational and local competitors in the industrial safety gear sector.

Capital Expenditure

The company faces limited funding for investment in men and machinery; however, it maintains three manufacturing facilities in West Bengal (Baruipur, Falta SEZ, and Nandan Kanan). Specific INR values for planned CAPEX were not disclosed.

Credit Rating & Borrowing

Ratings were reaffirmed at 'CRISIL B-/Stable/CRISIL A4' in September 2024 but migrated to 'Issuer Not Cooperating' in December 2025. The company has total rated bank loan facilities of INR 22.62 Cr. Interest coverage ratio deteriorated significantly from 1.45 in FY24 to 0.85 in FY25.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include leather (for gloves and accessories) and textiles (for work and safety wear). Specific cost percentages for each material were not disclosed.

Import Sources

Not disclosed in available documents; however, manufacturing is concentrated in West Bengal, India.

Capacity Expansion

Current annual capacity is 35 lakh pairs of gloves and 4 lakh pieces of garments. Expansion is constrained by limited infrastructure and funding availability for new machinery.

Raw Material Costs

Raw material costs are impacted by global trade dynamics and competition, contributing to the OPM decline to 7.97%. Procurement strategies focus on maintaining healthy relationships with long-term suppliers established over two decades.

Manufacturing Efficiency

The company operates three specialized factories in West Bengal to maintain production of 3.9 million total units annually. Efficiency is challenged by rising operational costs and limited infrastructure.

Logistics & Distribution

Distribution is focused on export markets; the India-UK FTA is expected to significantly reduce the cost of entry into the UK market by eliminating 99% of duties.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by the India-UK FTA (signed July 2025), which eliminates duties on leather goods. The company plans to capture UK market share through strategic partnerships with UK distributors, increasing export volumes of leather safety gloves and industrial gear.

Products & Services

Industrial safety gear, leather work gloves, work and safety wear (textile garments), and leather accessories including wallets, purses, and bags for men and women.

Brand Portfolio

Jiwanram (JSIL).

New Products/Services

Expansion of the protective apparel and leather accessory lines to leverage the duty-free access to the UK market.

Market Expansion

Targeting the UK market following the FTA; the company anticipates strong revenue growth and higher export volumes in this region.

Strategic Alliances

Strategic partnerships with UK-based distributors to facilitate market entry and volume growth.

🌍 External Factors

Industry Trends

The industry is seeing a shift with global companies setting up shops in India, increasing the demand for safety gear and implementation of safety standards. The sector is growing but remains highly fragmented and competitive.

Competitive Landscape

The market is crowded with players ranging from large multinationals to small local manufacturers, leading to intense price competition.

Competitive Moat

The moat is based on the promoters' 20+ years of experience and established understanding of market dynamics. However, this is weakened by poor liquidity (95.15% bank limit utilization) and a stretched working capital cycle.

Macro Economic Sensitivity

Highly sensitive to international trade policies; the India-UK FTA is a primary positive driver for the leather export segment.

Consumer Behavior

Increasing global focus on industrial safety standards is driving demand for certified safety gloves and protective apparel.

Geopolitical Risks

Recent geopolitical scenarios and trade wars are cited as significant challenges to operational costs and infrastructure investment.

⚖️ Regulatory & Governance

Industry Regulations

Complies with the Factories Act, 1948 and the Special Economic Zones Act, 2005. The company must adhere to international safety standards for its export-grade industrial gear.

Taxation Policy Impact

The company operates a unit in the Falta SEZ, which likely provides specific export-related tax benefits.

Legal Contingencies

The National Stock Exchange (NSE) levied a fine of INR 31,000 plus 18% GST on the company for a 31-day delay in appointing a Compliance Officer as per Regulation 6 of SEBI LODR.

⚠️ Risk Analysis

Key Uncertainties

The migration to 'Issuer Not Cooperating' status by CRISIL indicates a lack of information sharing, which increases risk for investors. Stretched working capital (802 days GCA) poses a severe liquidity risk.