R R Kabel

Expand distribution and establish leadership position for its wires and cables segment in India.

Enhance its geographical footprint of its wires and cables segment.

Capitalize on the market opportunity in wires and cables segment, including through innovation and product development to expand its product portfolio.

Grow and expand FMEG segment organically and inorganically.

Enhance productivity and operational efficiencies.

Enhancing its environmental initiatives.

Description of its Business and Operations.

The costs of the raw materials that the company uses in its manufacturing process are subject to volatility due to factors beyond its control. Increases or fluctuations in raw material prices may have a material adverse effect on its business, financial condition, results of operations and cash flows.

Any shortages, delay or disruption in the supply of the raw materials the company uses in its manufacturing process due to factors beyond the company control may have a material adverse effect on its business, financial condition, results of operations and cash flows.

Any disruption, breakdown or shutdown of its manufacturing facilities or the company original equipment manufacturer suppliers may have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company inability to maintain the stability of its distribution network across the company distribution channels and attract additional distributors, dealers and retailers may have a material adverse effect on its results of operations and financial condition.

The company is dependent on the performance of the wires and cables market. Any adverse changes in the conditions affecting the wires and cables market can adversely impact its business, financial condition, results of operations, cash flows and prospects.

If the company is unable to maintain and enhance its brands, including the company ability to protect its brand through intellectual property, the sales of the company products will suffer, which would have a material adverse effect on its results of operations. Its may also unintentionally infringe upon the intellectual property rights of others, any misappropriation of which could harm its competitive position.

The availability of counterfeit products, such as products passed off as its products by others, and any failure to protect or enforce the company rights to own or use trademarks and brand name and identity could have an adverse effect on its business and competitive position.

The company inability to handle risks associated with the export sales could negatively affect its sales to customers in foreign countries, as well as the company operations and assets in such countries.

The company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials, export of products and its borrowings, which may adversely affect the company results of operations, financial condition and cash flows.

The company`s success depends on its ability to execute its growth strategies. If the company is unable to sustain or manage its growth, its business, results of operations, cash flows and financial condition may be adversely affected.

The company has pursued inorganic growth opportunities in the past to grow its FMEG business. Its may face difficulties integrating acquired businesses and brands, which may result in significant costs and impact its business, results of operations and profitability.

The company is subject to strict quality requirements and any product defect issues or failure by it or its raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims.

The company is highly dependent on its Key Managerial Personnel and the company Senior Management Personnel for its business. The loss of or the company inability to attract or retain such persons could have a material adverse effect on its business performance.

The company is highly dependent on its skilled personnel for its day to day operations. The loss of or the company inability to attract or retain such persons have a material adverse effect on its business performance.

The company has substantial capital expenditure and working capital requirements and may require additional financing to meet those requirements, which could have a material adverse effect on its results of operations, cash flows and financial condition.

The company is exposed to risks arising from credit terms extended to its customers comprising distributors, dealers, retailers and end users.

The company face significant competitive pressures in its business. The company inability to compete effectively would be detrimental to its business and prospects for future growth.

If the company is unable to anticipate product trends and consumer preferences and develop successful new products, its may not be able to maintain or increase the company revenues and profits.

The company depends on a limited number of third parties for the supply of its raw materials and delivery of products and such third parties could fail to meet their obligations, which may have a material adverse effect on its business, results of operations, financial condition and cash flows.

The company engage third party contract manufacturers and its business, financial condition and results of operations may be adversely affected by any material changes to its contract arrangements or any negative impact on the company contract manufacturing suppliers.

The company operate in a labor-intensive industry and are subject to stringent labor laws and any strike, work stoppage or increased wage demand by its employees or any other kind of disputes with the company employees could adversely affect its business, financial condition, results of operations and cash flows.

The company has entered into collective bargaining agreements with unions of workers at one of its facilities.

The company has significant power and fuel requirements and any disruption to power sources could increase its production costs and adversely affect the company results of operations and cash flows.

The company regularly work with hazardous materials and activities in its operation which can be dangerous and could cause injuries to people or property.

The company is exposed to compliance and internal control related risks.

The company has utilized channel financing from banks to its customers to facilitate the company cash flows and provided guarantees for a portion of the amount owed by its customers to these banks. Any failure of the company customers to repay the amounts under these channel financing arrangements may result in it incurring losses and may negatively impact the company profitability.

The Company is involved in certain legal proceedings. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, financial condition, results of operations and cash flows.

The company has commissioned an industry report from Technopak Advisors Private Limited, which has been used for industry related data in this Draft Red Herring Prospectus.

The company is subject to various laws and extensive government regulations and if its fail to obtain , maintain or renew the company statutory and regulatory licenses, permits and approvals required in the ordinary course of its business, including environmental, health and safety laws and other regulations, the company business financial condition, results of operations and cash flows may be adversely affected.

The company failure to maintain optimum inventory levels could adversely affect its business, financial condition, results of operation and cash flow.

Improper storage, processing and handling of its raw materials, work products and products could damage its inventories and, as a result, have an adverse effect on its business, results of operations and cash flows.

Information relating to historical installed capacity and estimated capacity utilization of its manufacturing facilities included in this Draft Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity utilization may vary. Under-utilization of our manufacturing capacity and an inability to effectively utilize its manufacturing facilities may have an adverse effect on its business and future financial performance.

The company will not receive any proceeds from the Offer for Sale portion and objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of its Net Proceeds as disclosed in this Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders` approval.

A portion of the Net Proceeds may be utilized for repayment or pre-payment of loans taken from Citibank N.A. and Citicorp Finance India Limited, which are affiliates of one of the Book Running Lead Managers, Citigroup Global Markets India Private Limited.

The company is entitled to certain tax benefits. These tax benefits are available for a definite period of time, which, on expiry or if withdrawn prematurely, may adversely affect its business, financial condition, results of operations, cash flows and prospects.

If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company financial risks. Despite its internal control systems, the company may be exposed to operational risks.

Failure or disruption of its information technology systems may adversely affect the company business, financial condition, results of operations, cash flows and prospects.

The company suppliers and customers may engage in certain transactions in or with countries or persons that are subject to international economic sanctions.

A downgrade in its credit ratings could materially adversely affect the company business and financial condition and its ability to raise capital in the future.

The company financing agreements contain covenants that limit its flexibility in operating the company business. If its not in compliance with certain of these covenants and are unable to obtain waivers from the respective lenders, its lenders may accelerate the repayment schedules, and enforce their respective security interests, leading to a material adverse effect on its business and financial condition.

The Company has availed unsecured loans from banks and other financial institutions, which may be recalled on demand.

The insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on the company business, financial condition, cash flows and results of operations.

Certain of its manufacturing properties are located on leasehold lands. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be a material adverse effect on its business, financial condition and operations. Certain of the company warehouses are not registered in its name, which could have a material adverse effect on its business financial condition and operations.

The company conduct a portion of its operations through a joint venture and the company control over the joint venture is limited by the interests of its joint venture partners.

The company has certain contingent liabilities and commitments, which, if they materialize, may adversely affect its results of operations, financial condition and cash flows.

The company has negative cash flows in prior periods and may continue to have negative cash flows in the future.

The company Promoters and Promoter Group will continue to retain a majority shareholding in the Company after the Offer, which will allow them to exercise significant influence over it.

The company Directors and Promoters may enter into ventures that may lead to real or potential conflicts of interest with its business.

The compan has acquired and agreed to acquire land in the last five years from entities related to its Promoters and Directors and may undertake such transactions in the future.

The company ability to pay dividends in the future will depend on its future cash flows, working capital requirements, capital expenditures and financial condition.

The company has entered, and will continue to enter, into related party transactions which may involve conflicts of interest. Further, its Promoters, Directors and Key Managerial Personnel have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.

The determination of the Price Band is based on various factors and assumptions and the Offer Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges. Further, the current market price of some securities listed pursuant to initial public offerings which were managed by the Book Running Lead Managers in the past, is below their respective issue prices.

The COVID-19 pandemic has had a material and adverse impact on its business and operations, and it may continue to have an adverse effect on the company business prospects and future financial performance.

The company performance is subject to seasonality.

The company has presented certain supplemental information of its performance and liquidity which is not prepared under or required under Ind AS.

Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which investors may be more familiar with and consider material to their assessment of its financial condition.