Dhariwalcorp Limited

Company

Logo-Website link
Business ActivityTrade
DivisionRefined petroleum products
Sub-classWaxes
Location of unitsJodhpur (Rajasthan)
Mundra(Gujarat)
Bhiwandi (Maharashtra)

Management

Managing DirectorMr. Manish Dhariwal
Educational QualificationsBachelor of Commerce, Jai Narain Vyas University, Jodhpur, 2001.
ExperienceOver 17 years in the wax industry.
Annual Salary as % of Revenue
0.16%
Total Number of Employees7

About

Dhariwalcorp Limited is a trading company specializing in a wide range of waxes, industrial chemicals, and petroleum jelly. The company’s operations include processing, purchasing, selling, importing, and trading these products. Dhariwalcorp emphasizes maintaining a diverse product portfolio and efficient supply chain management to meet customer demands across various industries.

Products and Services:

The company deals in a variety of waxes, including Paraffin Wax, Micro Wax, Slack Wax, Carnauba Wax, and others. They also trade in industrial chemicals such as Rubber Process Oil, Light Liquid Paraffin, and various types of petroleum jelly. These products cater to industries like plywood, paper coating, crayon manufacturing, candle production, textiles, pharmaceuticals, and more.

Suppliers:

The company sources its products domestically from 21 states and 3 union territories, as well as internationally from countries including China, Egypt, Singapore, UAE, UK, and Hong Kong.

Sources of Revenue:

Dhariwalcorp Limited generates revenue through both domestic and international sales of its products. As of the financial year ended March 31, 2024, the company’s revenue from domestic sales constituted 98.91% of its total revenue from operations. Dhariwalcorp Limited has expanded its operations to include exports, with Nepal being its primary export market as of March 31, 2024. The company’s revenue primarily comes from the sale of its diverse range of products to various industries within India and Nepal.

Work Flow Chart
Revenue – Product wise
Revenue – Location-wise

Audit and Records

Auditor’s Remarks:

There are no qualifications included by the Statutory Auditors in their audit reports.

Dhariwalcorp Limited acknowledges having conducted related party transactions, primarily with promoters, directors, related entities, and relatives. These transactions predominantly pertain to remuneration, salaries, commissions, and the issuance of Equity Shares.

Non-Compliances and Other Issues:

The company has delayed filing GST returns on several occasions, leading to late filing fees and interest on late deposits

Discrepancies in corporate records related to forms filed with the Registrar of Companies, including a delay in filing Annual Returns and Financial Statements for the fiscal year 2022-23

SWOT Analysis

Strengths
Wide range of products
Location Advantages
Experienced Promoter and management team.
Well-established relationships with clients
Weaknesses
Reliance on third-party logistics providers
Opportunities
Centralize warehousing to enhance operational efficiency and reduce costs
Expand relationships with existing customers to secure repeat business and explore new product lines
Threats
Competition from established companies with greater resources
Changes in the global economy impacting the chemical and wax industry.
Fluctuations in market demand and pricing for wax and chemical products.

Porter’s Five Forces

Threat of New EntrantsMODERATE
Dhariwalcorp operates in a specialized trading industry requiring established supplier relationships, logistics networks, and industry knowledge, which could pose barriers to entry.
Bargaining Power of SuppliersMODERATE
Dhariwalcorp sources products domestically and internationally from various suppliers, including China, Egypt, Singapore, UAE, UK, and Hong Kong.
Bargaining Power of BuyersMODERATE – HIGH
Dhariwalcorp faces competition from both organized and unorganized players in the market. They emphasize the importance of competitive pricing and reliability in retaining clients. These factors indicate that buyers likely have a moderate to high degree of bargaining power.
Threat of Substitute Products or ServicesLOW
Dhariwalcorp provides a range of specialized waxes, industrial chemicals, and petroleum jelly products used in various applications and industries. This specialization might indicate a lower threat from direct substitutes.
Rivalry Among Existing CompetitorsHIGH
Dhariwalcorp acknowledges operating in a highly competitive market. They highlight that the company competes on factors such as product quality, brand value, distribution network, reliability, and competitive pricing.

Green Box

Capacity expansion:
Dhariwalcorp intends to consolidate its warehousing operations into a new, centralized facility in Jodhpur, Rajasthan.
Dhariwalcorp plans to focus on increasing sales volume by growing its existing product lines and introducing new product offerings.

The company believes that there are no listed Companies in India that are focused exclusively on the segment in which they operate.

Amber Box

Dhariwalcorp Limited acknowledges operating in a competitive market with both organized and unorganized players. The company believes its experience and reliability, along with competitive pricing, are key to overcoming competition.

Indian Wax Market is projected to grow at a compound annual growth rate (CAGR) of 4.5% between 2024 and 2032. Factors driving this growth include increasing demand from industries such as packaging, cosmetics, pharmaceuticals, textiles, and automotive.

Operating cash flow is marginally positive compared to PAT.

Debt-to-Equity Ratio: is high at 1.00 as of 2024 but has come down significantly from 2.98 in 2022

Dhariwalcorp relies on leased properties for critical operations. Its registered office, wax processing unit, and warehouses are all leased. But the company is planning to set up a warehouse soon.

Red Box

Dhariwalcorp is heavily reliant on a small number of customers. In 2024, the company’s top 10 customers were responsible for approximately 34.81% of its revenue. Any loss of these key customers could significantly impact Dhariwalcorp’s business and profitability.

Dhariwalcorp relies on leased properties for critical operations. Its registered office, wax processing unit, and warehouses are all leased. If the company were to lose these leases or face unfavourable renegotiation terms, its operations and financial health could be negatively impacted.

The company’s dependence on a limited number of third-party suppliers and Fluctuations in raw material prices, particularly for materials imported from other countries, present a risk.

Images

One comment

  1. Very good attempt on dhariawal company. Important information, Good analysis and neutral opinion.

Leave a Reply

Your email address will not be published. Required fields are marked *