 "Ratan Tata")
The company would be ready for either a Series-A fundraising or a Rs 1,000-crore IPO by the time, said Srikanth Bolla, founder and chief executive officer of Bollant Industries. Speaking to Business Standard on the sidelines of the 6th Edition of CII-SR Emerging Entrepreneur Awards 2015, organised by the Confederation of Indian Industry (CII), he said, “We are now doing a Rs 20-crore round, of which half of the fund has been raised and the other half is remaining. We are planning to close it by April.
“We have Ratan Tata, Srini Raju of Peepul Capital, Satish Reddy of Dr Reddy’s Lab, and couple of other investors,” he added. Bolla received an Emerging Entrepreneur Award 2015, along with two other companies. Prior to this round, the company had received Rs 65-lakh funding from Ravi Manta, its first investor, and who sits in the board of the company now.
Later it also raised Rs 1 crore from investor SP Reddy, for working capital requirement.
He said the current fundraising is a convertible one and the angel investors has been offered 0ptionally convertible peferential shares (OCPS) which they can convert at 20 per cent discount in the next round of fundraising.
The next round will be tentatively complete in 12-24 months, and it could either be a Series-A big round or a Rs 1000-crore IPO.
“It depends on how market reacts and how is the name and goodwill in the market. We want to get that particular valuation,” he added.
The company produces eco-friendly disposable products and packaging solutions for manufacturers out of the natural leaf and recycled paper.
He said the paper products and packaging market, such as the craft papers market, is highly fragmented dominated by cottage industries and the company, with its consolidated distribution system, would work with this industry to supply intermediate materials or the products itself.
It supplies raw materials for the paper products industry and disposable products industry.
“We provide different adhesives for different applications, printing inks, eco-friendly organic table and cutlery ware and home care products,” Bolla said.
The company, with five plants in Andhra Pradesh, Telengana and Karnataka, has started works to set up a larger facility at Sri City, Tada in Andhra Pradesh, with an investment of around Rs 10-15 crore.
It has been in a capacity building mode in last three years, from the time of it entering the business and have an infrastructure to generate around Rs 30-50 crore revenue.
This year, the cmpany is clocking in a turnover of Rs 10 crore, and from next financial year onwards it expects to increase the capacity utilisation to the maximum, thus bringing in more revenue.
The new faiclity in Tada will bring in Rs 60 crore per annum, the company expects its turnover in two years to be Rs 100 crore.
At present, it has 450 employees, almost 60 per cent are differently abled. The new facility will employ another 400 people and would be ready for operations in six months, he added.
It currently exports around 10-15 per cent of its production to countries including the US, Australia and Germany and expects the exports to go up to 50 per cent by 2018.
