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Screener Research Unlisted Startup Funding

Aditya Sharma    

Mumbai, India

I am a MBA students and simultaneously reading on capital market to get some knowledge on fundamental research where I more focus on business model, opportunity size of the industry and their related parameters who help me out to find out great businesses for the investment. Nevertheless, I always look forward to learn about grow further into the same.

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Contributor since: 2022







Global Surfaces Limited

A IPO Analysis

Business Overview

The company is engaged in the business of processing natural stones and manufacturing engineered quartz. Natural stones are produced by complex geological processes and include a number of products such as granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine, and others that are quarried from the earth. Natural stones are widely known for their uniqueness, aesthetic appeal, texture, color, and composition as no two natural stones are the same. Engineered quartz on the other hand, is an example of engineered stone used in the countertop industry, which is a composite material made up of crushed stone bonded by an adhesive. For instance, for countertops, the slabs are made from quartz crystals bonded with a resin binder.  

Globally, the natural and engineered stone (combined) market accounted for $65,746 million in 2022 and is expected to reach of $ 114,504 million by 2032. In the year 2022, the natural stone segment accounted for a major 59% of market share with $ 38,829 million while the contribution of engineered stone segment stood at $ 26,917 million. However, in projected years between 2022 and 2027, the engineered stone is expected to grow at a higher CAGR of 6-7% as compared to natural stone which is expected to grow at a CAGR of 5-6%. This is mainly because the engineered stones are non-porous, strong, durable and stain resistant. The engineered stones are also available in various colors and designs which is making them a preferred choice.

The company have two units, one located at RIICO Industrial Area, Bagru Extn, Bagru, Jaipur, Rajasthan and the other at Mahindra World City SEZ, Jaipur, Rajasthan for processing and manufacturing of our products. Company's Unit I which is admeasuring 20,488 sq. mtrs. or thereabouts is located at Bagru, Jaipur, Rajasthan. This Unit was acquired by them as a stressed asset under the Recovery of the Debt Due to Banks and Financial Institutions Act, 1993 in 2004 and is exclusively dedicated to processing natural stones such as marble, granite and quartzite. Company's Unit I is strategically located in close proximity of the key raw material (i.e. blocks of natural stones) which helps them in sourcing their raw materials and also minimize the logistics and transportation cost. In 2004, a sick industrial unit comprising of the leased premise situated at RIICO Industrial Area, Bagru Extn, Bagru, Jaipur, Rajasthan along with the building and shed constructed on such premises and plant and machinery for cutting and processing of natural stones was being auctioned by the Debts Recovery Tribunal. The Company assessed the opportunity and believing it to be viable, bid in the auction wherein we were allotted the premises and the plant and machinery. Company started the processing of natural stones from these premises were able to turn around this sick industrial unit into a profitable venture over the years. Prior to the acquisition of Unit I in 2004, our Company was engaged in the real estate construction business which business we have since ceased to undertake. From FY 2017-18 onwards, their Company has further diversified its business into manufacturing of engineered quartz and for this purpose, Unit II at Mahindra World City SEZ, Jaipur, Rajasthan was set up by them. This Unit II is spread across 24,139.08 sq. mtrs. or thereabouts of land and is dedicated towards manufacturing engineered quartz. This Unit is also equipped with a R&D facility to develop, improve and test their products which assists them in keeping pace with the ever evolving market trends and demands. Both their Units are located in close proximity of each other i.e., within a range of 20 Kms. from one another.    

Company's products have application in the flooring, wall cladding, countertops, cut-to size and other items. Our products are used in both commercial and residential industry and are sold within and outside India. Majority of their operational revenues comprise of export sales. Approximately 99% of their revenues from operations have been derived from exports during the Fiscals 2020, 2021 and 2022 and approximately 98% of their revenues from operations have been derived from exports during the period ended September 30, 2022. Company are focused on exporting their products and have exported to the United States of America, Canada, Australia and Middle East.  

Company's business model is aimed at consistently expanding their product portfolio by developing new designs. Company constantly engage with their customers through marketing and promotional activities and industry specific events. Company sales team works closely with their customers to obtain their insights and feedback about the upcoming trends in the industry which enables them to develop and improve their products to fulfil the tastes and demands of the market.  

The Company is promoted and managed by their Managing Director and Promoter, Mr. Mayank Shah who has been instrumental in the growth of their Company. Mr. Shah has played a key role in reviving and turning around a sick and closed unit (i.e. Unit I) into a profitable venture, facilitating technology upgradation in the production process, diversification of business into engineered quartz and spearheading our venture of setting foot in previously untapped markets.

The table below sets forth certain key operational and financial metrics for the periods indicated:

Business Growth Drivers

Consistent Growth

Company has grown from a single category to multi-category stone manufacturing company. Company's revenue from operations has grown from INR 232.89 Million in Fiscal 2011 to INR 1903.13 Million in Fiscal 2022, registering a CAGR of 21.04% in last 11 years. Despite Fiscal 2021 being impacted by COVID-19, their revenue from operations has grown by 7.40% between Fiscal 2020 to Fiscal 2021. The recognition of their product quality and established goodwill has enabled them to penetrate the engineered quartz market and cater to new customers in addition to the Company’s existing customer network. Increased acceptance of newer product categories due to improved designs and efficient pricing has further established the Company’s reputation. 

Wide product portfolio and multiple designs

Company had started their business activities with processing of natural stones and have since branched out to manufacturing engineered quartz which has enabled them to diversify their product portfolio manifold. Having a wide range of products not only enables them to meet the trends and ever changing demands of their customers but also gives our Company an edge to efficiently compete with big players in the industry. Company constant efforts are focused towards identifying new market trends and introducing high quality products which are in demand. For the Fiscal 2021-22, engineered quartz generated revenues of INR 1574.83 Million which represents about 82.75% of our operating revenue.  

Established presence in international markets 

Company’s philosophy has always been to manufacture and process quality products which in turn has helped them to build a sustainable export business. As on date, various regions of the USA are their primary focus in international markets. Company exports business constitutes 99.13% of operating revenue in the Fiscal 2021-22 and has grown at 21.60% CAGR over last 11 years. Company have in the recent past sold our products in the United States of America, Canada, Australia and Middle East.  

Experienced and result oriented Promoter

Mr. Mayank Shah, Promoter and Managing Director has about eighteen years of experience in the stone industry. He has been instrumental in reviving and turning around a sick and closed unit (Unit I) into a profitable venture and helping us achieve great milestones including setting-up of a dedicated unit in the year 2018 for manufacturing engineered quartz at Mahindra World City SEZ, Jaipur, Rajasthan (Unit II) and doubling our operating revenue from about ₹ 500 Million in Fiscal 2016 to about ₹ 1350 Million in Fiscal 2019. Our Company has received recognitions from reputed organisations from around the world including Asia Pacific Enterprise, Capexil, India SME Forum, Government of Rajasthan – Department of Industries and Indian Organisation for Commerce and Industry under his tutelage. 

Synergy of young and experienced management team with a committed employee base

Company have an experienced management team with considerable industry experience. Company's key business functions like production, finance, sales and HR play an important role in efficient day-to-day operations of the Company. Company endeavour to maintain a balance of highly experienced and young professionals in the team. Their Board of Directors includes a combination of management executives and independent members who bring in significant business expertise including in the areas of administration and management, manufacturing, finance, compliance and audit. Company well-defined organization structure has helped in establishing cordial relationships with our employee base across their offices.

Effective quality checks thereby reducing loss 

The company have developed quality control processes for inspecting the raw materials as well as the final products. The raw materials undergo a strict quality check and for this purpose they have even implemented internal procedures for procurement of the raw material as the quality of the final product is dependent on them. Company Units have dedicated personnel responsible for monitoring the parameters of equipment, strength of materials, reporting any irregularities in the manufacturing process and making adjustments accordingly. These multi-level quality checks ensure that they consistently provide premium quality products which further enhances their brand value.

R&D set up for new product development 

Company have an in- house R&D facility at their Mahindra World City SEZ, Jaipur, Rajasthan (Unit II) where they focus on developing good quality and cost- efficient engineered quartz. A dedicated team of R&D personnel are engaged in developing new products and designs which would appeal to the diversified customer base. This in- house development ensures that we are self-reliant for the development of highquality products and are kept abreast of the market trends.

Business Strategy

Increasing our global footprint and augmenting growth in current geographies 

With a view to further diversify their customer base and increase our market share, we intend to augment our sales in the markets where we sell their products as well as expand into new geographies. Over the last several years, their Company has consistently expanded the customer network across the North American continent and this continues to be one of the core strategies of their Company for the future. Having a wider product portfolio and an established brand presence in existing products provides confidence to new customers to engage with their Company. Company will continue to focus their efforts in the select geographies such as United States of America and establish a greater presence there. Company's growth strategy in these markets will be to create local presence and connect and expertise with required development capabilities to exploit growth potential offered by these markets. Company focus will remain on acquiring new customers, retaining existing customers and offering good quality products. 

Setting up strategically located manufacturing facility  

The company are in the process of setting up manufacturing facility in Jebel Ali Free Trade Zone, Dubai, UAE through their wholly owned subsidiary which is scheduled to commission production by FY 2023-24. Dubai is situated centrally and has new manufacturing lines established strategically at Free Trade Zone which is at Jebel Ali port. This positioning of the manufacturing units near the port leads to optimization of freight and transportation charges as compared to manufacturing units established in landlocked areas that use rail and roads for transportation. The companies and production facilities located in Free Trade Zones are exempt from income tax. The income tax exemption and free trade privileges serve as a key factor in attracting investments. Also, the application of engineered stone is expected to witness growth in Dubai due to increase in infrastructure activities like building metro stations and various tourist attraction places.  

The engineered stone market in LAMEA estimated to have a CAGR of 6% and is estimated at $ 2,156 million in 2022. It is expected to reach $ 4,289 million in 2032. The expansion in the construction sector in countries namely Abu Dhabi, Qatar, Saudi Arabia, and Dubai is estimated to propel the engineered stone market demand in the coming years. Under LAMEA, the UAE engineered stone market was valued at $606 million in 2022 and is projected to reach $1,137 million by 2032.

Company growth strategy in these markets will be to make early in-roads in the manufacturing space for engineered quartz, create local presence, connects and expertise with required development capabilities to exploit growth potential offered by these markets. 

Continue to add to product portfolio by introducing new designs

Company’s strategy is focused towards introducing new product designs to meet the ever-changing demands of the market as well as garnering the attention of more end-users. This helps in strengthening the relationship with the existing customer network through a wide range of products while also onboarding new customers from untapped segments and regions. Identifying and developing new products and designs is a continuous exercise that our management team engages into as we believe that there is an immense demand in the global markets for unique designs, good quality and competitively priced products. 

Business Operation

The below mentioned table sets out the production sales turnover of our product categories for the periods indicated below: 

Company's Products

Natural Stones

Natural Stone products segment may be further divided into:  

  • Marble  
  • Granite  
  • Quartzite and others 

Engineering Stones

  • Engineered quartz,   
  • Polymer concrete and   
  • Engineered marble

Company's Manufacturing Unit

Capacity and Capacity Utilization

The following table sets forth certain information relating to capacity utilization of our Units calculated on the basis of total installed production capacity and actual production as of/ for the periods indicated below: 

Management Of The Company

Mayank Shah is the Managing Director of our Company and has been associated with our Company since 2004. He has played an instrumental role in acquisition and revival of a sick industrial unit (Unit I) which eventually became the pillar of support of our Company’s operations. Our Company was able to tap international markets though Mr. Shah’s vision and resources. Our Company was able to diversify its business into manufacturing of engineered quartz under Mr. Shah’s tutelage. Mr. Shah holds a Bachelors’ degree in Commerce (1999) from University of Calcutta and has about 18 years’ experience in the natura and engineered stone industry. He looks after various aspects of the Company’s business including planning, procurement, finance, monitoring and execution. 

Sweta Shah is the Executive Director of our Company. She holds a Bachelors’ degree in Commerce (1997) from the University of Calcutta. She has an experience of approximately 2 years working as a Chief Executive Officer in our Company and has been associated with the Company since September 11, 2021. She looks after Administration & Marketing of our Company. 

Objective of the issue

  1. Investment in the wholly owned subsidiary, Global Surfaces FZE for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for engineered quartz at The Jebel Ali Free Zone, Dubai, United Arab Emirates (UAE);
  2. General corporate purposes.

Financial Performance

Profit and Loss

Balance Sheet

Cash Flow


I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Sources of data - Company's RHP. Disclaimer - This is not an recommendation, so kindly do your own research before applying IPO

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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