Studds Accessories MD Says Export Expansion Key To Next Phase Of Growth

Studds Accessories Ltd. is gearing up for its next phase of growth by sharpening its focus on exports, according to Managing Director Sidhartha Bhushan Khurana. In an interaction with NDTV Profit ahead of the company’s IPO, Khurana emphasised that while the domestic market continues to show healthy momentum, especially with recent GST reforms expected to boost motorcycle sales, the larger opportunity lies in global markets.

Pointing to a nearly $2 billion addressable market, Khurana noted, “I would say export is a bigger growth strategy for us and it is a larger addressable market of nearly $2 billion so that is where most of the growth strategy in the future lies around”

Studds, which has been in the industry for nearly five decades, is also the first helmet manufacturer to list in India and only the second globally, he said.

Notably, exports currently account for 22% of company’s total sales.

Khurana says, “This is the first helmets company to list in India and second globally, we are into manufacturing of motorcycle helmets, accessories and sporting helmets. Studds is a historic brand which was established in 1975 and SMK was established in 2016 which is a premium brand, we have been in the industry for about 50 years now”

On growth and diversification plans Khurana said, “the margins have been growing decently and in terms of expansion we are now focusing on exports, the domestic market is growing and the recent GST news for the motorcycle sales is going to help the motorcycle industry so we expect the domestic industry”

Studds Accessories Ltd. set the price band for its upcoming initial public offer at Rs 557–585 per share. The company is offering 77.9 lakh equity shares in the primary market for its market debut.

The IPO is an offer for sale with no fresh issuance and it will open for subscription on Oct 30 and conclude on Nov 3.

Promoter Madhu Bhushan Khurana will sell up to 38 lakh shares, and Promoter Sidhartha Bhushan Khurana will sell up to 8 lakh shares. Promoter Group member Chand Khurana will offload up to 21 lakh shares. Other sellers include Sanjay Leekha, Charu Leekha, and SE Shoes Private Limited, among others.

IIFL Capital Services Limited and ICICI Securities Limited are the book-running lead managers for the Studds Accessories IPO.