Flair Writing

Focus on growing its existing product portfolio and diversification of its product range.

Emphasis on Mid-premium Segment and Premium Segment to increase margins.

Continue to increase production capacity and enhance capacity utilization.

Strengthening presence in key geographies along with strategically expanding exports.

Deepen its sales and distribution network.

Further strengthen its brands.

Largest player in the pens writing instruments segment in India.

Diversified range of products across various price points catering to a wide spectrum of consumers.

Largest pan-India distributor/dealer network and wholesale/retailer network in the writing instruments industry and strong presence in targeted markets abroad

Ability to partner with international brands in the writing instruments industry and one of the largest exporter of writing and creativ instruments in India.

High quality manufacturing at a large scale coupled with innovation capabilities.

Experienced Promoters supported by professional senior management team.

Historical track-record of strong financial performance with industry-leading profitability.

The company`s success depends on its ability to respond and adapt to consumer needs and maintain an optimal product mix in terms of production volumes and profitability in the writing instruments industry. Any inability to successfully implement the company business plan and growth strategy or effectively manage its growth could lead to a decline in the demand of our products and have a material adverse effect on the company business, operations, prospects or financial results.

The company derives a significant portion of the revenue from the sale of the products under the "Flair", "Hauser" and "Pierre Cardin" brands, and any harm to such brands or reputation may adversely affect its business, financial condition, cash flows and results of operations.

The company is dependent on its distribution network in India and overseas to sell of the products and any disruption in the distribution network could have a material adverse effect on the company business, operations, prospects or financial results.

Any deterioration in the reputation and the consumer awareness of the company brands and products could have a material adverse effect on its business, operations, prospects or financial results.

The company`s business and operations had been adversely impacted by the COVID-19 pandemic and the future impact on its business, operations and financial performance is uncertain and could continue for an unknown period of time.

A slowdown or shutdown in the company manufacturing operations, including due to labour unrest, or any inability to obtain adequate electricity, fuel or water with respect to such operations could have a material adverse effect on its business, operations, prospects or financial results.

Its inability to accurately forecast demand for its products and manage the company inventory may have a material adverse effect on its business, operations, prospects or financial results.

The company operates in a competitive business environment. Competition from existing players and new entrants in the industry could have a material adverse effect on its business, prospects, operations or financial results.

The company expansion into new product categories and an increase in the number of products offered may expose it to new challenges and more risks.

Its inability to grow the business in new geographic markets may affect its growth which could have a material adverse effect on the company business, operations, prospects or financial results.

As of the date of this Draft Red Herring Prospectus, certain of the trademarks are not registered in the name of the Company. If the company is unable to register trademarks or protect the existing intellectual property, or if the company inadvertently infringe on the trademarks of others, its may be subjected to legal action and the reputation, business, operations, prospects or financial results may be materially and adversely affected.

The company has not entered into any definitive agreements to use a portion of the proceeds of the Offer, including for setting up a new manufacturing facility for writing instruments at District Valsad, Gujarat. The company inability to successfully implement any future capacity expansion plans could have a material adverse effect on its business, prospects, operations, prospects or financial results.

An increase in the cost of or a shortfall in the availability of raw materials from the suppliers due to various reasons could have a material adverse effect on its business, operations, prospects or financial results as the company may not be able to pass on such costs to the customers. The company do not have long term contracts with its suppliers and the company depend on a limited number of supplier for certain raw materials.

Any failure by third party transportation providers for delivery of raw materials or products to it and our super-stockists could have a material adverse effect on its business, operations, prospects or financials results.

The company has significant working capital requirements and the objects of the Offer include funding working capital requirements of the Company and our Subsidiaries, which is based on certain assumptions and estimates. Any failure in arranging adequate working capital for the company operations may adversely affect its business, results of operations, cash flows and financial conditions.

There are legal proceedings pending involving the Company, the Promoters and the Directors which if determined unfavorably, may have a material adverse effect on its reputation, business, operations, prospects or financial results.

The company is dependent on certain third party vendors from whom its procure certain components on a non-exclusive basis and any significant loss or disruption of production or deterioration in product quality from the company third party vendors for any reasons could have a material adverse effect on its business, operations, prospects or financial results. The company do not have contractual arrangements with such third party vendors.

The customers of the original equipment manufacturer business may not continue to outsource manufacturing to it or there may be a downward trend in such business, which could have a material adverse effect on its business, operations, prospects or financial results.

The demand of writing and creative instruments in foreign countries is subject to international market conditions that could adversely affect its business, financial condition and results of operations. Further, the company face risks related to the geographic concentration of the exports and may not be successful in penetrating new export markets.

Under-utilization of the manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, prospects and future financial performance.

If the company fail to obtain, maintain or renew the statutory and regulatory licenses, permits and approvals required for the business and operations, its business, operations, prospects or financial results may be materially and adversely affected. As of the date of this Draft Red Herring Prospectus, certain of the company statutory and regulatory approvals are not registered in the name of the Company.

The company depends heavily on the Key Management Personnel and Senior Management, and loss of the services of one or more of the key executives or a significant portion of the management personnel could weaken the company management team and have a material adverse effect on its business, operations, prospects or financial results.

The company is dependent on the Promoters, the Directors, the Promoter Group and the Group Companies for certain aspects of its business and operations, and certain Directors, Group Companies and Promoter Group entities are engaged in business activities similar to the company own, which could lead to a conflict of interest.

Any delays and/or defaults in payments from the customers could result in increase of working capital investment and/or reduction of the company profits, thereby affecting its business, operations, prospects and financial results. Further, the company accounts receivable collection cycle exposes it to client credit risk.

The company has certain contingent liabilities disclosed and not provided for as of March 31, 2023, which, if materialized, could have a material adverse effect on its business, financial condition and results of operations.

Any inability to meet the company obligations under various business agreements, including financial and other covenants under the debt financing arrangements could materially and adversely affect its business, operations, prospects or financial results.

The company insurance coverage may not be sufficient or adequate to protect it against all material hazards, which may materially and adversely affect its business, operations, prospects or financial results.

The company face foreign exchange risks that could materially and adversely affect its business, operations, prospects or financial results.

The company has made certain delayed or inaccurate statutory form filings with the RoC in the past and are delayed in filing of other statutory forms with the RoC. The company has also been delayed in filing the GST returns and payment of contribution towards employee provident fund in the past.

Non-compliance with and changes in, safety, environmental and labour laws and other applicable regulations, may materially and adversely affect its business, operations, prospects or financial results.

The Company will not receive any proceeds from the Offer for Sale portion and the Company`s management will have flexibility in utilizing the Net Proceeds, subject to certain approvals. There is no assurance that the Objects of the Offer will be achieved within the timeframe expected or at all, or that the deployment of the Net Proceeds in the manner intended by us will result in any increase in the value of your investment. Further, the funding plan has not been appraised by any bank or financial institution.

The company propose to repay or prepay all or a portion of certain outstanding borrowings availed by the Company and its Subsidiaries, Flair Cyrosil Industries Private Limited and Flair Writing Equipments Private Limited.

The company has not placed orders for machinery of value of Rs. 750.19 million constituting approximately 100% of the value of the total machinery to be purchased from the Net Proceeds.

The Registered Office and certain manufacturing plants are situated on lands/in buildings that are not owned by it. In the event that the company lose such rights or are required to renegotiate arrangements for such rights, the company business and financial results could be materially and adversely affected.

Significant disruptions of information technology systems or breaches of data security could have a material adverse effect on its business, operations, prospects or financial results.

The company has, in the past, entered into related party transactions and may continue to do so in the future.

Information relating to the historical capacity of the manufacturing plants included in this Draft Red Herring Prospectus is based on various assumptions and estimates and future production and capacity may vary.

The withdrawal/ cessation/ reversal of benefits and exemptions availed by the Company could have a material adverse effect on its business, operations, prospects or financial results.

The company ability to pay dividends in the future will depend on its earnings, financial condition, cash flow, working capital requirements, capital expenditures and restrictive covenants of the financing arrangements.

Certain of the Directors, Key Management Personnel and members of the Senior Management have interests in us other than reimbursement of expenses incurred, normal remuneration or benefits.

The Promoters and members of the Promoter Group will continue to retain majority shareholding in it after the Offer, which will allow them to exercise significant influence over it, which may limit your ability to influence the outcome of matters submitted for approval of the Shareholders.

Some of the agreements entered into by it may not be adequately stamped or may not have been registered.

Industry information included in this Draft Red Herring Prospectus has been derived from an industry report commissioned and paid for by it exclusively in connection with the Offer.

Unsecured loans taken by the Company from certain Directors and other related parties of the Company may be recalled at any time.

The company has included certain Non-GAAP Measures, industry metrics and key performance indicators related to its operating and financial performance in this Draft Red Herring Prospectus that are subject to inherent challenges in measurement. These Non-GAAP Measures, industry metrics and key performance indicators may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.

If the company is unable to raise additional capital, its business, operations, prospects or financial results may be materially and adversely affected.