CP Plus IPO: The CCTV camera major aims to raise Rs 1,300 crore; here's all you need to know

A Noida-based businessman, who began his entrepreneurial journey in 1995 as a distributor for major electronic brands, transformed his strategy in 2010 by venturing into the niche business of surveillance cameras. He is Aditya Khemka, Managing Director, CP Plus (Aditya Infotech). In an interaction with Business Today, Khemka shared that initially, it took him nearly three months to sell just 1,000 cameras 15 years ago. Today, driven by rising demand and growing awareness about surveillance solutions, the company produces around 82 lakh cameras per annum.

CP Plus now reports sales of more than Rs 2,782 crore in FY24 against Rs 2,285 crore and Rs 1646 crore in FY23 and FY22, respectively. DRHP showed that the company, which is aiming to raise Rs 1,300 crore through IPO, currently earns 78.92% of revenue from the sale of cameras, while 21.08% comes from the sale of other products and services. “Camera now is a part of everyday life, from car to office,” he said, adding that the company also went into a joint venture with Dixon Technologies to meet the demand. At present, Dixon Technologies holds a 6.65% stake in the company, as per the DRHP. On the other hand, promoter group collectively holds 93.35% stake in the company.

“We started the journey by importing products from China, Taiwan, Korea, but now we are building our own R&D, innovation, and manufacturing, thus achieving complete localisation of our production process. Our market share is close to 25% in our own brand,” Khemka said, adding that there is still a long way to go. With an EBITDA margin of 8.46% in FY24, Aditya Infotech reported a profit after tax of Rs 115 crore in FY24. We see a lot of growth potential in India for the next two years, Khemka said.

Shares of the company are proposed to be listed on the BSE and the NSE. ICICI Securities and IIFL Securities are the book-running lead managers to the issue. The objective of the offer is to use the proceeds for the prepayment and/or repayment of all, or a portion of, certain outstanding borrowings availed by the company and for general corporate purposes.

As per the DRHP, several key drivers fuel the growth of the CCTV camera market in India. Growing concerns about security and crime rates, increasing urbanization, the need for monitoring public spaces, and the growing number of use cases for video analytics beyond security (people counting, occupancy management, energy management, parking management, etc.) have been instrumental in prompting the recognition of the significance of CCTV cameras.

Frost & Sullivan estimates that the video surveillance market in India is experiencing a surge, with a market value estimated at Rs 9,670 crore during FY 2024. This growth is expected to continue at a CAGR of 15.6% annually until FY 2029, with the market size estimated to reach Rs 19,980 crore by then. The number of video surveillance units sold is also positioned for significant growth, with an estimated volume of 35.9 million units in FY 2024 expected to double by FY 2029, reaching 76.8 million units.

While sharing his advice for budding entrepreneurs, he said, “As our government says, this is the Amrit Kaal for entrepreneurship. Step out of your comfort zone. If you have the courage, you can soar as high as you want.”