HP Adhesives Ltd. IPO

HP Adhesives Ltd. IPO - SWOT Analysis

Strengths:

An expansive product range of more than 25 products like solvent cement, synthetic rubber adhesive, silicone and acrylic sealant and PVC pipe lubricants. Stringent quality checks are performed for both finished products and raw materials which enhances the reliability of the company. HP adhesives have an extensive distribution network with 864 distributors and own more than 45 stock points in the country and worldwide.

Weaknesses:

Employee count at HP Adhesives Limited reduced down by 9.4% in the past year as per a report. Such a rate of decrease in the workforce over a long time can leave a bad impact on the company's business operations and performance in the near future.

Opportunities:

HP Adhesives products cater to construction and furniture. The proposed growth in the real estate sector due to the rising trend of working remotely, opens doors for more business. India, Singapore, and China have seen growth in the packaging and automotive industry. This could also prove beneficial for the company since their products have great use in this sector.

Threats:

Solvent-based adhesives react with atmospheric nitrogen to cause respiratory problems. HP Adhesives’ primary products are such types of adhesives. Restrictive standards regarding Volatile Organic Compound (VOC) have been imposed as part of strict environmental regulations. This will limit the company from producing more of these products. The rising crude oil prices could also affect the company’s business since it will make raw materials expensive and hinder market growth.