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Euro Pratik Sales Limited – A Premium Wall Furnishings Player

16 Sep 2025 , 01:52 PM

Euro Pratik is a premium provider of decorative panels and laminates. In a competitive market, its premium positioning has resulted in above average margins. While its margins have improved, revenue growth has been patchy over the past two years. Also, related party transactions and the brand being licensed (vs owned) are some of the risks highlighted in the prospectus.

Its IPO of INR 4513 million is an offer for sale and is aimed at providing liquidity to its founders and key management.

Offer Details of the IPO

Total Offer size: Up to INR 4,513.15 million

The entire offer is an offer for sale. Following founders/promoters are participating in the offer for sale.

Offer for Sale: Up to INR 4,513.15 million,
Pratik Gunwantraj Singhvi: up to INR 282.54 million
Jai Gunwantraj Singhvi: up to INR 278.83 million
Pratik Gunwantraj Singhvi HUF: up to INR 1,566.62 million
Jai Gunwantraj Singhvi HUF: up to INR 1,566.62 million
Dipty Pratik Singhvi: up to INR 409.27 million
Nisha Jai Singhvi: up to INR 409.27 million

Price Band: INR 235 to INR 247 per Equity Share

Book Running Lead Managers (BRLMs)

Axis Capital Limited
DAM Capital Advisors Limited

Indian Wall Decorative Market – Industry Overview

The Indian wall decorative market is a fast growing industry that plays a significant role in enhancing the aesthetics and functionality of interior spaces. The industry caters to a wide range of end customers, including homeowners, businesses, and interior designers, who seek to create unique and visually appealing living and working environments.

The products and services offered by the industry include decorative paints, wallpapers, wall decorative laminates, and non-wood wall panels, which provide both aesthetic and functional value to interior walls.

The Indian wall decorative market can be broadly segmented into four key categories:

Decorative Paints: This segment is the largest, driven by rising disposable incomes, increased focus on home improvement, and demand for premium finishes. Key players include Asian Paints, Berger Paints, and Kansai Nerolac.

Wallpapers: This segment is gaining traction among urban households and commercial spaces due to its wide design options and quick installation. Key players include Marshalls, Elementto, and Nilaya (Asian Paints).

Wall Decorative Laminates: Popular for their durability and versatility, laminates are increasingly being used in both residential and office interiors. Major players include Greenlam Industries and Merino Laminates.

Non-Wood Wall Panels: This emerging segment offers eco-friendly, lightweight, and innovative alternatives to traditional wall solutions, appealing to environmentally conscious consumers.

The Indian wall decorative market has witnessed significant growth in recent years, driven by rising disposable incomes, rapid urbanisation, and an increasing demand for premium interior finishes. The industry size is estimated at approximately INR 343 billion and is projected to expand to around INR 629 billion over the next few years, reflecting a healthy growth trajectory.

Table: Industry Size

Fiscal Year	Overall Decorative Market	Decorative Wall‑Panel Market	Decorative Laminates Market
FY 2018	195,630	9,701	12,425
FY 2023	316,982	21,026	18,256
FY 2024	342,728	24,180	19,351
FY 2025	366,219	28,412	20,996
FY 2029 P	628,902	55,069	32,068
CAGR (2018‑2023)	10.10%	16.70%	8.00%
CAGR (2024‑2029)	12.90%	17.90%	11.60%

Source: RHP

Segment-wise Growth Trends

The growth of the Indian wall decorative market can be segmented into four main categories:

Decorative Paints: This segment accounts for the largest share of the market, supported by strong demand for emulsions, distempers, and primers. Growth is driven by urban housing expansion and consumer preference for high-quality finishes. Key players include Asian Paints, Berger Paints, and Kansai Nerolac.
Wallpapers: A fast-emerging segment, wallpapers are gaining popularity due to their design versatility, quick installation, and growing adoption in both residential and commercial spaces. The segment includes vinyl-based, non-woven, and fabric-based products.
Wall Decorative Laminates: This segment is projected to see steady growth, supported by rising demand for high-pressure and low-pressure laminates in residential and office interiors. Organized players such as Greenlam Industries and Merino Laminates are capturing increasing market share.
Non-Wood Wall Panels: This is among the fastest-growing segments, offering eco-friendly, durable, and low-maintenance alternatives to traditional wood products. Materials such as PS, PVC, and WPC are driving growth in this category.

The organized share is rising faster in both panels and laminates, reflecting the premium‑product shift and the entry of national brands.

Table: Industry Size

Fiscal Year	Organized (%)	Unorganized (%)
FY 2024	71	29
FY 2029 P	75	25

Source: RHP

Key Drivers of Growth

The expansion of the Indian wall decorative market can be attributed to several factors:

Urbanisation & Real Estate Development: Ongoing housing and commercial development projects are fueling demand for modern interiors.
Rising Disposable Income: A growing middle class and increasing spending power are boosting demand for premium and personalized décor solutions.
Sustainable Materials: Consumer awareness of eco-friendly and non-toxic solutions is encouraging the adoption of sustainable wall products.
Technological Advancements: Innovations such as digital printing and advanced coating techniques are enhancing quality, durability, and design options.
Export Opportunities: Strong demand from markets such as the UAE, USA, Europe, and emerging Asian countries is expanding the industry’s global footprint.

Euro Pratik Sales Limited: A Brief Overview

Euro Pratik Sales Limited is a fast-growing company in the decorative wall panel and decorative laminates industry. The company was incorporated in 2010 as Better Life Mission Multitrade Private Limited and later renamed Euro Pratik Sales Private Limited in 2017. The company is led by the Singhvi family along with a core team of experienced executives. Over the years, Euro Pratik has established a strong brand reputation for innovation, quality, and design-forward interior solutions.

Operating Segments

Euro Pratik Sales Limited operates in the following segments:

Decorative Wall Panels: The company offers a wide range of decorative wall panels, including Louvers, Chisel, and Auris, designed to enhance the visual appeal of residential and commercial interiors. The panels are available in multiple designs, colours, and finishes, with many carrying anti-bacterial, anti-fungal, and heavy metal-free certifications.
Decorative Laminates: Includes product lines such as Sapphire, Acroglass, and Mirage, providing durable and stylish surfaces for interiors. Laminates are offered in high-pressure and low-pressure variants to suit different design and functional requirements.

The company also provides ancillary items, including exterior wall panels, interior films, adhesives, and other furnishing materials, with a catalogue featuring 30 product categories and over 3,000 unique designs.

Key Associations

Between 2023 and 2025, the company executed acquisitions of Millenium Decor, Vougue Decor, Euro Pratik Laminate LLP, and Euro Pratik Intex LLP, expanding its product range and customer base.
Miga, South Korea: Long-term partnership for wall panels and interior mouldings.
Shinil Frame Co., Limited: Collaboration for advanced wall panel solutions and interior décor products.
Strong domestic and international presence with subsidiaries in the USA (Euro Pratik C Corp Inc & Euro Pratik USA LLC), UAE (Euro Pratik Trade FZCO), and Croatia (Euro Pratik EU d.o.o.) to support global sales and distribution.

Competitive Landscape

Euro Pratik operates in a highly competitive market, with key competitors including:

Asian Paints
Berger Paints
Indigo Paints
Vivre Panels
Meraki Laminates
Elementto Life Styles
Marshalls Enterprise
Mystic Mann
Greenlam
Merino
Stylam

Table: Competitor Analysis

Segment	Company	2025 Revenue (₹ mn)	Market Share (Revenue)	PAT Margin	Key Strengths
Direct	Euro Pratik (restated)	2842	1.0 % (overall décor market)	0.27	30 product categories, >3,000 designs Strong brand equity (Euro Pratik & Gloirio) Pan‑India distribution (180 distributors, 116 cities)
	Asian Paints	3,39,056	0.12	0.14	Massive scale, extensive retail network (≈160,000 touch‑points) Diversified colour‑bank portfolio
	Berger Paints	1,15,447	0.04	0.12	Integrated raw‑material capabilities (self‑sufficient emulsion) JV in coil‑coatings (Sweden)
	Indigo Paints	1,48,? (≈₹ 148,000)	0.05	0.15	Aggressive colour‑bank expansion, strong marketing
	Vivre Panels	1393	0.01	–	Engineered‑wood focus, limited geographic reach
	Meraki Laminates	1088	0	–	Pure laminate specialist, high‑end design
	Elementto Life Styles	292	0	–	Niche fabric‑based wall finishes
Indirect	Greenlam	25693	0.01	–	Strong presence in PVC‑based laminates, broad export footprint
	Merino	22518	0.01	–	Focus on high‑performance laminates, Europe‑centric sourcing
	Stylam	9141	0	–	Growing export share (≈66 % of sales)

Source: RHP

Strengths

Diversified Product Portfolio: Euro Pratik Sales Limited offers a wide range of products across Decorative Wall Panels, Decorative Laminates, and other decorative solutions, catering to both residential and commercial segments, thereby mitigating risks and expanding market share.
Strong Distribution Network: The company has an extensive pan-India presence across 25 states and 5 union territories, supported by 180 distributors connecting to multiple retail touchpoints, enabling broad market reach.
Asset-Light Business Model: Euro Pratik outsources manufacturing to contract manufacturers, reducing capital investment requirements and operational costs while improving profitability.
Innovation and Sustainability: Focusing on eco-friendly, anti-bacterial, and anti-fungal products helps the company address regulatory and consumer trends.

Weaknesses

Supply Chain Volatility: Fluctuations in raw material costs (e.g., PVC, acrylic resins) in key sourcing countries like Korea and China can impact cost structures despite diversified sourcing.
Regulatory and Sustainability Compliance: Increasing focus on VOC emissions and recycled content standards may raise compliance costs; ongoing R&D investment is required.
Brand Licensing Risk: The Euro Pratik brand is registered under a promoter, not the company, with the company holding only an exclusive, royalty-free, perpetual license.
High Competition: The decorative wall panel and laminates markets are highly competitive with both domestic and international players, affecting market share and profitability.
Related Party Transaction Risk: A significant number of subsidiaries, LLPs, and step-down entities create potential related party transaction exposure.

Financial Profile

Robust Revenue Growth: Euro Pratik Sales Limited’s revenue declined by 16% in FY24 due to industry issues including poor housing demand and a strategic shift away from low-margin basic wall panels toward premium decorative panels and laminates. Slump sale acquisitions in FY24 also impacted revenue. While FY25 witnessed strong growth driven by a full-year contribution from these acquisitions and normalization of product mix, the growth reflects the recovery from prior-year disruptions and product portfolio realignment.

Better Profitability: Margin expansion in FY25 was driven by a higher share of premium products. Decorative Laminates’ contribution increased from 19.31 % of revenue in FY24 to 25.64 % in FY25, while other products such as interior films and adhesives grew from 4.15 % to 8.23 %. This shift, along with efficient operations and cost management, improved net margins and overall profitability, aligning with the company’s premiumization strategy.

Table: Peers Comparison Table

Name of Company	Face value (₹ per share)	EPS Diluted (INR)	NAV (₹ per share)	P/E	RoNW (%)
Euro Pratik Sales Limited	1	7.53	22.91	32.80	32.65
Greenlam Industries Limited	1	2.68	44.17	87.54	6.07
Asian Paints Limited	1	38.25	201.84	62.64	19.16
Berger Paints India Limited	1	10.12	52.78	55.77	19.22
Indigo Paints Limited	10	29.68	216.35	40.32	13.79

Source: RHP

Table 1: KPI Comparison

Company	Particulars	FY 23	FY 24	FY 25	CAGR
Euro Pratik Sales Limited	Revenue from operations (₹ million)	2,635.84	2,216.98	2,842.27	4%
	Profit after tax (₹ million)	595.65	629.07	764.40	13%
	EBITDA (₹ million)	836.34	890.02	1,101.01	15%
	EBITDA Margin (%)	31.73	40.15	38.74	–
	Gross margin (%)	36.02	43.05	45.47	–
	Return on Equity (%)	47.70	44.03	39.18	–
	Return on Capital Employed (%)	61.42	55.17	44.58	–
	Debt to Equity Ratio	0.02	–	0.01	–
	Net Debt to EBITDA Ratio	–	–	–	–
	Working Capital Days	119.00	139.00	168.00	–
Greenlam Industries Limited	Revenue from operations (₹ million)	20,259.58	23,063.49	25,693.40	13%
	Profit after tax (₹ million)	1,285.09	1,380.08	683.50	-27%
	EBITDA (₹ million)	2,508.35	3,163.21	2,855.50	7%
	EBITDA Margin (%)	12.38	13.72	11.12	–
	Gross margin (%)	46.73	52.85	52.26	–
	Return on Equity (%)	15.93	13.56	6.21	–
	Return on Capital Employed (%)	12.32	11.08	7.86	–
	Debt to Equity Ratio	0.59	0.93	0.96	–
	Net Debt to EBITDA Ratio	2.11	2.97	3.61	–
	Working Capital Days	26.51	12.60	1.61	–
Asian Paints Limited	Revenue from operations (₹ million)	344,885.90	354,947.30	339,056.20	-1%
	Profit after tax (₹ million)	41,953.30	55,576.90	37,097.10	-6%
	EBITDA (₹ million)	67,401.70	84,059.40	67,195.30	-0.2%
	EBITDA Margin (%)	19.54	23.68	19.82	–
	Gross margin (%)	38.66	43.40	42.44	–
	Return on Equity (%)	27.38	30.99	18.79	–
	Return on Capital Employed (%)	33.96	37.74	27.47	–
	Debt to Equity Ratio	0.06	0.06	0.04	–
	Net Debt to EBITDA Ratio	–	–	–	–
	Working Capital Days	43.35	42.59	48.71	–
Berger Paints India Limited	Revenue from operations (₹ million)	105,678.40	111,989.20	115,447.10	5%
	Profit after tax (₹ million)	8,604.00	11,698.20	11,828.10	17%
	EBITDA (₹ million)	15,256.00	19,660.20	19,859.30	14%
	EBITDA Margin (%)	14.44	17.56	17.20	–
	Gross margin (%)	36.31	40.65	41.43	–
	Return on Equity (%)	20.40	23.65	20.47	–
	Return on Capital Employed (%)	25.09	30.61	27.09	–
	Debt to Equity Ratio	0.17	0.04	0.02	–
	Net Debt to EBITDA Ratio	0.33	–	–	–
	Working Capital Days	22.94	18.14	26.90	–
Indigo Paints Limited	Revenue from operations (₹ million)	10,733.34	13,060.86	13,406.73	12%
	Profit after tax (₹ million)	1,319.38	1,488.28	1,421.65	4%
	EBITDA (₹ million)	1,915.99	2,522.85	2,519.81	15%
	EBITDA Margin (%)	17.85	19.32	18.80	–
	Gross margin (%)	44.54	47.63	46.02	–
	Return on Equity (%)	18.50	17.74	14.71	–
	Return on Capital Employed (%)	20.91	23.23	19.31	–
	Debt to Equity Ratio	–	0.00	0.01	–
	Net Debt to EBITDA Ratio	–	–	–	–
	Working Capital Days	–	–	2.92	–