Kumar Arch Tech IPO Upcoming

About Kumar Arch Tech

Established in 1998, Kumar Arch Tech is an Indian manufacturer and exporter of PVC blend-based building materials, operating under the brand name “Echon.” With over 22 years of expertise, the company offers a diverse product portfolio, including boards, sheets, profiles, and signage solutions, catering to residential, commercial, and industrial sectors. As of March 31, 2024, Kumar Arch Tech holds an 18% market share in India’s PVC blend-based building materials industry and accounts for 28% of the country’s exports to the U.S. The company’s proprietary formulations and customer-centric approach have resulted in over 900 SKUs, fostering strong relationships with clients across approximately 15 countries.

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Financials of Kumar Arch Tech

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*All figures are in ₹ Crores.

Issue size

Funds Raised in the IPO	Amount
Overall	₹740 crores
Fresh issue	₹240 crores
Offer for sale	₹500 crores

Utilisation of proceeds

Purpose	INR crores (%)
Funding capital expenditure	182 (76%)
General corporate purposes	58 (24%)

Strengths

• Over two decades of experience in the PVC blend-based building materials’ industry.
• Leading market position with an 18% share in India and significant export presence in the U.S.
• Diverse product portfolio with over 900 SKUs catering to various sectors.
• Strong financial performance with a PAT margin of 27.16% and ROCE of 54.98% as of FY2025.
• Proprietary formulations enabling flexibility and customization in product offerings. 

Risks

• Dependence on PVC raw materials, exposing the company to price volatility.
• High reliance on export markets, particularly the U.S., making revenues susceptible to international trade policies.
• Exposure to foreign exchange fluctuations affecting profitability.
• Potential regulatory changes in environmental policies impacting manufacturing processes.
• Concentration risk due to a significant portion of revenue derived from a limited number of clients.