Mumbai-based consumer-ware manufacturer, Cello World, is targeting sales growth of 18-20% in the second half of this financial year on better volumes. In the first half of the year, Cello World's sales rose 9%.

Pradeep Rathod, the company's Chairman and Managing Director said the subdued first show was because of a 5-6% cut in product prices in line with a drop in raw material costs. The delayed start to the festive period also affected sales.

On the expansion plans, Rathod said the company's new 20,000-tonne glassware facility in Rajasthan can generate sales of around ₹250-275 crore. "For the next year, we will be targeting sales of around ₹120 crore, because when the furnace starts in March, the main sales will start only from June, because we have to create the whole range before we go into the market,” he noted.

In the second quarter of the financial year 2024 (Q2FY24), Cello World’s revenue from operations rose 4% to ₹489 crore from ₹472 crore in the same quarter last year. Other income rose 32% to ₹10.7 crore from ₹8.1 crore. The EBITDA margin was lower at 24.6% versus 25.2%. The profit after tax rose 4% to ₹86.5 crore from ₹82.8 crore.

The market capitalisation of the recently-listed Cello World is ₹16,579 crore and it competes with industry rivals such as Borosil, Pigeon, Camlin, and La Opala.

Shares of Cello World made an impressive debut on Dalal Street on Monday, November 6, as the stationery manufacturer was listed at ₹829 on the National Stock Exchange (NSE), a premium of 27.93% over its issue price of ₹648 apiece. The stock was listed at a premium of 28.24% at ₹831 on BSE.

(Edited by : Shweta Mungre)