Brushman(India) Ltd: Multibagger in making

The Company was incorporated in the name and style of BRUSHMAN (INDIA) PRIVATE LIMITED under the Companies Act, 1956 as a private limited Company on 25th January 1993 issued by the Registrar of Companies, Delhi & Haryana. The Company became a public limited company on 16th November 1994.
PRESENT BUSINESS OF THE COMPANY
BIL is the largest manufacturer of paint brushes in India. BRUSHMAN brand of paint brushes are the only brushes available on a nation wide platform and is the largest selling singular brand of paint brush. Apart from paint brushes, BIL is also into manufacture of artist brushes, wire brushes, paint rollers & putty knives.
The Company is now putting up an integrated manufacturing plant in Pantnagar, Uttranchal to manufacture paint brushers, wire brushes, artist brushes, and hair brushes. It is noteworthy that Denman International Ltd., U.K., who are the World's largest manufacturer of hair brushes and who have also invested in the equity of BIL, are giving free technical know-how to manufacture hair brushes and around 34 qualities of hair brushes/combs which shall be manufactured by BIL at the Pantnagar plant shall be exported to Denman International Ltd. For their global markets.
The land for the new plant was acquired in October 2005 and construction work is in full swing. The company expects production to commence by December 2006.
It may be added that the Company shall enjoy all fiscal benefits granted by the Central Govt. for setting up the plant in Pantnagar, Uttranchal.
2. HAIR CARE PRODUCTS
Denman International Limited, UK
BIL made it first foray into cosmetic products in 1996 with a strategic distribution alliance with Denman International Ltd, UK, to market the renowned `Denman' range of hair brushes in India and the SAARC region.
Denman International Limited (DIL) is a subsidiary of Denroy Group, established in 1972. DIL is the UK's largest manufacturer and supplier of hairbrushes and hair accessories, which are exported to more than 72 countries worldwide. The company works in partnership with other companies from the hairdressing industry and has a reputation for developing innovative products. Most of the worldwide patents for hairbrushes are IPR of DIL.
DIL is now entering into a manufacturing agreement with Brushman, which gives BIL the manufacturing right to make select `Denman' products in India on a licence basis. 34 varieties of combs/brushes have been identified and original Denman tooling is in India for commencing exports to Denman. BIL plans to set up the manufacturing facility at Pantnagar (Uttaranchal)
Sales Network for Denman products in India is largely retail oriented. Some ranges of `Denman' hairbrushes are exclusively meant for the salons, which are routed through the Professional Salon network.
Keune, a family owned Dutch company, develops and manufactures exclusive hair cosmetics since 1922. It has an image of credibility based on more than 80 years of experience and possesses one of the best research laboratories in Europe. Keune has a wide range of products including Tinta Colors consisting of 78 Color Shades, Shampoos, Conditioners, Gels, Mousses, Hairsprays, treatment line of lotions for dandruff, falling hair, dry hair etc.
For Keune products the marketing network is primarily the Professional channel comprising of salons and beauty parlours.
Keune Hair Cosmetics, B.V. Holland has invested in 7,00,000 equity shares of Brushman India) Limited ,which were allotted on preferential basis U/S 81(1A) on 28.09.2005.

Brushman (India) Limited, one of the leading manufacturers of paintbrushes, is the only listed company in the country in its category. The company prides itself for being the manufacturer of the largest variety of branded paintbrushes in India. The company has the most sound distribution network, unmatched by any other product in the category. Today, a national network of 2200 distributors and 1000 sub-dealers market the Brushman product.
Brushman brushes are characterized by their superior quality, vast variety and reasonable price range that differentiate them from competing brands. As a matter of pride, the product was adjudged the best in terms of its quality when it was awarded the "INTERNATIONAL DIAMOND STAR OF QUALITY" in 1996, followed by the "EXCELLENCE AWARD" conferred by the Institute of Economic Studies (India) for maintaining the highest quality standards.
The company diversified its operations in 1996 and entered into a distribution agreement with Denman International Ltd., U.K., for distributing the Denman range of hair care products in India, Sri Lanka and Nepal. With a reputed consumer brand product now in hand, a strong salon/distribution network was established. Today, Brushman can proudly claim that their existing distributors are the Most Powerful people in the salon/ cosmetic business.
To further augment its product portfolio, Brushman entered into a strategic tie-up with Keune Hair cosmetics, a Dutch company, which has over 83 years of experience in hair care products. Keune hair products are exclusively developed for professional use, and are launched in the market only after they undergo a thorough research for best ingredients and compositions in the most advanced laboratories in Europe.
Brushman believes very strongly in maintaining its high quality and standardization and is forever committed towards bringing the latest, safest, most exciting and innovative life style products to its customers.

Recomendation: Retail investor can choose this stock for a target of 100-120 for a time span of 1-2 yrs.