Clay Craft India

Clay Craft India is coming out with an initial public offering (IPO) of 54,24,000 shares in a price band of Rs 193-203 per equity share.
The issue will open on June 17, 2026 and will close on June 19, 2026.
The shares will be listed on SME Platform of NSE.
The face value of the share is Rs 10 and is priced 19.30 times of its face value on the lower side and 20.30 times on the higher side.
Book running lead manager to the issue is Hem Securities.
Compliance officer for the issue is Anil Kumar Sharma.

Profile of the company

Clay Craft India is a manufacturer and distributor of ceramic tableware products in India, engaged in the design, development, production and sale of a wide range of ceramic tableware including dinner sets, tea and coffee serving sets, mugs, tumblers, platters, bowls, and table top accessories. Its product portfolio addresses the diverse requirements of retail consumers, institutional buyers, and the hospitality industry. It markets its products under its in-house brands, Clay Craft and JCPL, in addition to its proprietary brands, it has entered into arrangements with various customers for whom it undertakes design, development, and manufacturing activities.

It also offers customized ceramic solutions for corporate and institutional clients based on specific requirements and has developed a product range for the HoReCa (Hotel, Restaurant, and Catering) segment to meet the operational needs of the industry. Its capability to serve both broad-based and specialized demand segments, supported by its design and manufacturing infrastructure, enables it to operate across domestic and select international markets. It offers around 5,770 stock keeping units (SKUs) across various product categories under different brands.

It primarily operates on a business-to-business (B2B) model, supplying the majority of its products through its own distribution network, large format retail chains and using different retail channels. It is committed to offering quality ceramic tableware at competitive prices and aims to foster long-term relationships with customers by adhering to industry standards and meeting specific business requirements. Its distribution network includes around 132 distributors across major states and union territories in India, supported by a dedicated sales and marketing team of 47 personnel. Over the years, it has developed and maintained long-standing relationships with its distributors, large format retail chains and retailers, which has contributed to consistent market access and customer loyalty.

Proceed is being used for:

Funding capital expenditure towards setting up an additional manufacturing facility at Manda, Rajasthan.
General corporate purpose.

Industry overview

The ceramic tableware industry in India presents a dynamic and steadily evolving landscape, shaped by rising consumer sophistication, expanding hospitality infrastructure, and a robust manufacturing base. India is one of the largest producers and exporters of ceramic tableware globally, with the industry offering a broad range of products such as plates, bowls, mugs, teapots, serving dishes, and specialty items. These are manufactured using various ceramic types, including porcelain, stoneware, bone China, and earthenware, each catering to different price points, functionalities, and aesthetic preferences. In India, ceramic tableware production is concentrated in key clusters known for their scale and craftsmanship. Morbi in Gujarat leads the sector, producing the bulk of India’s tableware with a strong focus on exports and modern manufacturing technologies. Khurja in Uttar Pradesh is another prominent hub, recognized for its traditional hand-painted ceramics and artistic designs. Jaipur and nearby areas in Rajasthan contribute with semi-premium and design-focused tableware suited for boutique and export markets. Smaller centers like Thangarh (Gujarat), parts of West Bengal, and Tamil Nadu also support niche and regional production. These hubs benefit from access to raw materials, skilled labour, and improved logistics.

The ceramic industry in India plays a pivotal role in supporting various end-use sectors, serving both domestic demand and international markets. Beyond traditional uses like tiles and sanitary ware, the industry has evolved to include high-performance ceramics used in electronics, automotive, and aerospace applications. This diversification reflects a shift from being purely utility driven to offering high-value, technologically advanced solutions. The sector benefits from India's well-established manufacturing ecosystem, robust supply chain of raw materials, and a growing emphasis on quality and innovation. As infrastructure projects, real estate development, and industrial expansion continue to rise, the ceramic industry is poised to serve as a critical enabler of aesthetic and functional advancement, while also moving toward sustainability and digitalization in production practices. From CY 2019 to CY 2025, the market expanded from Rs 630.7 billion to Rs 993.2 billion, driven by rising construction activity, infrastructure development, and evolving consumer preferences.

The Indian ceramic industry is set to continue its upward growth trajectory beyond 2025, reflecting the sector's increasing relevance in India’s infrastructure, real estate, and consumer goods landscape. As a core component of the construction and lifestyle ecosystem, the ceramic industry is benefiting from a strong convergence of demographic growth, urbanization, policy support, and evolving consumer preferences. This period of expansion is expected to be marked not just by volume growth, but also by product diversification, export potential, and increased adoption of technology in manufacturing. From a projected market size of Rs 993.2 billion in CY 2025P, the Indian ceramic industry is expected to reach Rs 1,461.3 billion by CY 2029P, registering a healthy CAGR of around 9.9% over the four-year period. This significant growth reflects increasing demand across various segments including tiles, sanitary ware, tableware, and technical ceramics.

Pros and strengths

Integrated and scalable manufacturing capabilities: It operates two manufacturing facilities located in the state of Rajasthan, India, with a combined installed capacity of around 6,000 metric tonnes (MTs) per annum. Its first manufacturing facility located at VKIA, Jaipur, is spread across 17431.04 square meters. Its second manufacturing facility (Plant II) is situated at RIICO, Manda-2 Industrial Area, Near Kaladera, Jaipur and covers an area of around 72000 square meters. These facilities are owned/leased and operated by it. Its manufacturing units are equipped with requisite plant and machinery, including air compressor, automatic China machine, Ball Mill, coating machine, cup plant hollowware machine, Filter Press, flatware machine, Klin, Pugmill, ram press machine, rubbing machine, screen printing machine etc. and utility equipment’s like conveyer belt, transformer etc. capable of undertaking the manufacturing activities, which enable it to undertake both manufacturing and design functions in-house. The integrated nature of its operations allows for scalability, quality control, and operational efficiency across production lines.

Extensive distribution network and multi-channel presence: It has established an extensive and growing distribution network that enables it to efficiently deliver its products across a wide geographic footprint. Its distribution model includes a combination of direct sales, distributors, retail networks, large format retail chain and e-commerce platform, allowing it to cater to a diverse and expanding customer base. Its products are available across multiple cities and towns in India, and its network has been built to support both scale and speed in order fulfilment.

Diversified product portfolio: The demand in the ceramic tableware industry is influenced by consumer preferences that are shaped by both functional needs and lifestyle choices. Additionally, factors such as disposable income, lifestyle upgrades, growth in the hospitality and food service sectors, and increasing awareness of sustainability and health considerations impact product demand. It focuses on identifying the needs and preferences of its consumers through its sales network and designing its products to cater to their differing requirements and preferences, while endeavouring that its products are available across various price points and meet quality standards expected by its consumers. It offers around 5,770 stock-keeping units across various product categories which includes dinner sets, tea and coffee serving sets, mugs, tumblers, Vaccum Bottles, platters, bowls, and table top accessories etc. Under its in-house brands, Clay Craft and JCPL, along with the brands for whom it undertakes design, development, and manufacturing activities. Its product offerings cater to a wide range of consumer needs. Further, its ability to innovate across multiple categories helps it stay competitive and resilient to market fluctuations. The diversified nature of its product lines not only supports revenue stability but also positions it for its customer’s household and gifting needs, both in domestic and selected export markets.

Risks and concerns

Reliance on external distribution channels: It currently distributes its products through a network of distributors, retailers, large-format retail stores, and online platforms. It generally does not enter into any exclusive distribution agreement with any of its distributers, retailers or online platforms any disruption in its trade channel could have an adverse effect on its business, financial condition, cash flows and results of operations. Further, with some of its customers (multi-retail stores and e-commerce platforms), it has entered into non-exclusive agreements which govern the terms of such distribution. These agreements contain certain terms and conditions that may be unfavourable to it and could have an adverse impact on its operations and financial performance. Such terms include, the right of customers to reject and return products at its expense if they do not meet specified quality or are destroyed, right to terminate the agreement without cause, at any time and without prior notice etc. Any invocation of these contractual provisions or the imposition of additional onerous terms, may result in financial liabilities, disruptions in product placement, or reputational damage. Such occurrences could adversely affect its business, prospects, financial condition, and results of operations.

Key revenue dependence on limited number of customers: A significant portion of its revenue is derived from a limited number of customers which are existing from last few years and comes into top 10. For the Fiscal Years 2026, 2025 and 2024, its top 10 customers contributed around 33.73%, 32.72% and 36.84% of its total revenue, respectively. Accordingly, its business and results of operations are substantially dependent on the continued association with these key customers. The loss of any of these customers, or a significant reduction in the volume of business from them, for any reason such as inability to agree on commercial terms, decline in their financial or operational performance, loss of market share, supply chain disruptions, changes in sourcing strategy, or disputes could materially and adversely affect its revenue, profitability, and cash flows.

Dependence on seasonal demand: Its business is subject to seasonality as it may see higher demand of its products from its customers during the festive seasons. Further, its demand is also sensitive to consumer spending and housing markets, which affect home goods sales. Accordingly, its results of operations and financial condition in one quarter may not accurately reflect the trends for the entire financial year and may not be comparable with its results of operations and financial condition for other quarters. Additionally, any significant event such as unforeseen economic slowdown, political instabilities or epidemics during these peak seasons may adversely affect its business and results of operations. Any such fluctuations or disruptions may materially and adversely affect its business, results of operations, cash flows, and financial condition.

Outlook

Clay Craft India is engaged in manufacturing and dealing of wide range of Ceramic Tableware products such as dinner sets, tea sets, mugs, and other table top items for both household and hospitality use. It undertakes comprehensive activities including product designing, development, manufacturing, decal printing, and packaging entirely within its own facilities. This vertically integrated approach enables it to exercise stringent control over quality, production timelines, and cost structures. By minimizing reliance on third-party vendors for core functions, it is able to significantly reduce lead times, avoid operational bottlenecks, and maintain consistency across product lines. On the concern side, nature of its finished products may result in higher handling, packaging, and logistics costs and could adversely affect its business and results of operations. Further, its operations are highly dependent on information technology systems, including software, hardware, and network infrastructure. Any failure, disruption, or inadequacy in these systems could affect business continuity, operational efficiency, and customer service.

The company is coming out with a maiden IPO of 54,24,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 193-203 per equity share. The aggregate size of the offer is around Rs 104.68 crore to Rs 110.11 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2026 was Rs 17,988.67 lakh as against Rs 15,194.22 lakh for Fiscal year 2025, an increase of 18.39%. Profit after tax for the Fiscal 2026 was at Rs 2,701.49 lakh against profit after tax of Rs 2,075.74 lakh in fiscal 2025, an increase of 30.15%.

It is leveraging its capabilities to both enhance its existing product offerings and develop a broader product portfolio across its various categories and brands. Its current focus is on expanding the Consumer tableware segment, with a strategic emphasis on introducing a new range of products within kitchenware, Tableware, and Hotel-ware. By launching innovative and quality products in these categories, it aims to increase its market share in the consumer houseware space, drive repeat purchases from existing customers, and attract new consumer segments, thereby scaling its overall business. Further, to capitalize on new market opportunities and drive long-term growth, it is focused on expanding its global footprint. This includes strengthening its presence in existing regions and focus on entering new international markets, particularly in regions such as the Middle East, North America, South America and Europe. By increasing its global footprint, it aims to not only grow revenue from new regions but also build a more diversified and resilient business.

Clay Craft India Ltd.