From Tiffin to Table, Cello World’s Chairman Pradeep Rathod’s Journey

At the age of 59, Cello World's Managing Director and Chairman Pradeep Rathod became the newest billionaire in India.

Cello World, a Mumbai-based firm, is the latest member of the country's billionaires club. It produces a range of kitchenware, from snack boxes and water bottles to storage containers and plastic furniture. Cello World sells stationery, pencils, and molded furniture in addition to cookware, which makes up more than two-thirds of its total revenue.

The business went public recently. Cello World's IPO price of Rs 648 was 28% higher than the price at which their shares were listed, and the issue was 39 times oversubscribed.

Pradeep Rathod - Biography

Pradeep Rathod - Personal Life
Pradeep Rathod - Early Life
Pradeep Rathod - Career
Pradeep Rathod - Journey So Far
Pradeep Rathod - Philanthropy
Pradeep Rathod - Awards and Recognitions

Pradeep Rathod - Personal Life

Rathod is a seasoned expert with more than 40 years of manufacturing and trade expertise in raw materials, plastic, and thermoware products. Since the beginning, he has played a key role as a Director in Cello World. Gaurav Rathod, Pradeep Rathod's son, and Pankaj Rathod, Pradeep Rathod's younger brother, are both managing directors in the company. The Rathods are major shareholders of Wim Plast Ltd, a BSE-listed firm best known for its Cello-branded plastic furniture.

Pradeep Rathod - Early Life

Cello World began in 1962, when Pradeep's late father, Ghisulal Rathod, partnered with a small maker of plastic items. Building on this foundation, Pradeep and his 56-year-old younger brother Pankaj Rathod, who serves as the company's joint managing director, have expanded into new product categories. 

Pradeep's son, Gaurav, who received his education in the United Kingdom, plays an important role as joint managing director, contributing to Cello World's continuous growth. 

Wonderchef Success Story | Company wiki | Owners | Funding

Wonderchef company offers stylish & convenient Cookware and Kitchen Appliances. Read about Wonderchef company founders, Revenue, Funding & more.

StartupTalkyChayanika Goswami

Pradeep Rathod - Career

According to Forbes, Pradeep's $ 44% stake in Cello World is worth $1 billion. 

Cello World, based in Mumbai, has grown into a well-known supplier of kitchenware, with a diverse product line that includes snack boxes, water bottles, storage containers, and plastic furniture. 

The company's product line also includes plastic, glass, and porcelain goods, resulting in a 70% increase in sales.

Cello World, which manufactures consumer housewares, devices for writing, and molded furniture, was compelled to boost the IPO size to Rs 1,900 crores from the Rs 1,750 crores suggested in the offer document submitted with the SEBI in August of this year. The issue is a comprehensive offer for sale (OFS) of shares by the promoters and other selling shareholders, which implies the money will not go to the firm, instead, it will go to the current owners.

Rathod explained why the IPO size was increased, saying, There was a lot of demand, so we had to scale it up a little bit. We are just selling 13.82% of our investment, not the whole stake.

He also stated that Cello World is a B2C firm and that the brand would grow and expand if its shares were listed on public exchanges.

Rathod stated that the company gets 65% of its sales from the consumer houseware division, 18% from molded furniture, and roughly 16% from writing instruments.

Cello World has reserved up to 50% of the shares in the public offering for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 35% for retail investors, according to the offer document filed with the SEBI. Under the employee reserve part, the business has reserved shares worth 10 crore for qualified workers, which will be issued at a discount of Rs 61 per equity share.

Cello's consolidated revenue increased 32.19% to Rs 1,796.69 crore in fiscal year 2023, from Rs 1,359.18 crore the previous year. From Rs 219.52 crore in fiscal 2022 to Rs 285 crore in fiscal 2023, net profit increased by 29.86%.

Pradeep Rathod - Journey So Far

Cello World is a company that manufactures a variety of home items. Understanding the everyday demands of the Indian family, Cello offers a diverse product line that includes melmoware, therm-oware, opal ware, kitchen appliances, glassware, melamine ware, automotive tools and dies, cleaning equipment, and air conditioners. With significant technological improvement, Cello has driven the transformation of the Indian home industry.

Plastic housewares goods were introduced by the firm in the 1980s. Cello entered the furniture market in the 1990s, and in 2017, Gaurav, who had joined the company seven years prior, introduced the 'opalware' section.

From seven machines and 60 employees, the firm now employs over 6,000 people and operates plants in Haridwar, Kolkata, Chennai, Daman, Pardi, and Baddi. Furthermore, the company's well-known pen and stationery business was sold to the French company BIC in 2013.

Cello World sells pens, stationery, and molded furniture in addition to its signature kitchenware section, which accounts for roughly two-thirds of total revenue. 

The category currently accounts for 18% of total revenue.

Cello World shares, which sell kitchenware under the Cello name, debuted at a 28% premium to their IPO price of Rs 648, and the offering was 39 times oversubscribed.

It is predicted to expand even faster, at a compounded annual rate of 10.2%, reaching Rs 565 billion ($6.8 billion) by fiscal 2027, as Indians renovate their kitchens and stock them with modern items. 

The firm hopes to capitalize on rising local demand for plastic furniture, which is estimated to reach Rs 270 billion ($3.3 billion) by fiscal 2027, up from Rs 122 billion ($1.5 billion) in fiscal 2022.

Cello World's revenues have increased by 70% in the last two years. In the fiscal year that ended in March 2023, the firm earned Rs 17.97 billion. Over that time, net profit climbed by 58% to Rs 2.8 billion.

Pradeep Rathod - Philanthropy

Rathod, in addition to his commercial success, is involved in charitable organizations and serves as President of the JITO Administrative Training Foundation.

Pradeep Rathod - Awards and Recognitions

Known as one of the world's most prominent plastics manufacturers and India's indisputable market leader, Cello is a globally recognized brand known for its vitality and spirit of innovation. Cello is continually striving to bring in the latest and greatest technology to set new quality benchmarks and to develop to carve new trails in the industry.

Awarded the renowned PLEXCONCIL AWARD 18 times in a row for NO.1 exceptional performance.

The Cello Group, which manufactures India's favorite Cello pens, is worth Rs.1000 crore. 

FAQs

Who is the Chairman of Cello World?

Pradeep Rathod is the chairman and joint Managing Director of Cello World.

What is the price of Cello World IPO?

Cello World's IPO price of Rs 648 was 28% higher than the price at which their shares were listed, and the issue was 39 times oversubscribed.

How much are the sales from various product lines of Cello?

The company gets 65% of its sales from the consumer houseware division, 18% from molded furniture, and roughly 16% from writing instruments.