Super Tannery Ltd. Share Price

Acme Universal Safezone 9

• Acme Universal Safezone 9 is coming out with an initial public offering (IPO) of 50,60,800 shares in a price band of Rs 65-71 per equity share. 
• The issue will open for subscription on September 28, 2026 and will close on September 30, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 6.50 times of its face value on the lower side and 7.10 times on the higher side.
• Book running lead manager to the issue is Expert Global Consultants.
• Compliance officer for the issue is Priya Darshil Mody.

Profile of the company 

Acme Universal Safezone 9 is engaged in the manufacturing and supply of industrial safety footwear under the brand name ‘ACME’. The company operates in the Personal Protective Equipment (PPE) segment, specifically in the industrial safety footwear subsegment. Safety footwear use is mandated under applicable occupational health and safety regulations across sectors including construction, oil and gas, mining, heavy engineering, automotive, pharmaceuticals, chemical processing, foundry, and power generation. The company serves end users across all these sectors through 15 product lines covering EVA-rubber, Nitrile Rubber, and PVC sole types, addressing hazard categories including impact and compression protection, penetration resistance, electrical shock resistance, anti-static protection, heat and fire resistance, chemical resistance and slip resistance.

The company collects data from the customers, analyse the data and then design a customized product which cater to the needs of its customers. It undertakes manufacturing and supply of finished products for its customers depending upon the demand of Product. Design and visualisation are carried out using ICad3D technology. The company has implemented SAP S/4 HANA for enterprise resource planning across its manufacturing units, covering finance, operations, and logistics. CRM systems are used for customer management and HRMS platforms for workforce management and employee data analytics. 

The company distributes its products through direct institutional sales, regional distributors & dealers and digital & e-commerce channels with channel-partner warehousing at more than 40 locations across India covering cities including New Delhi, Mumbai, Pune, Hyderabad, Bengaluru, Chennai, Kolkata, Ahmedabad, Indore and Bhopal among others. Export sales are made to the United Arab Emirates, Bahrain, Saudi Arabia, Nigeria, Israel, Netherlands, Hong Kong, Cameroon, Mauritius and other markets.

Proceed is being used for: 

• Funding capital expenditure requirements for the installation of solar power plant
• Funding capital expenditure requirements towards installation of additional machinery
• Funding incremental working capital requirements of the company
• Funding inorganic growth through unidentified acquisitions and other strategic initiatives and General corporate purposes

Industry overview 

Safety footwear refers to specially designed shoes or boots that protect workers’ feet from potential injuries caused by heavy objects, sharp materials, slips, chemicals, or electrical hazards in the workplace. These shoes are an essential component of Personal Protective Equipment (PPE) and are widely used across industries such as manufacturing, construction, mining, logistics, oil and gas, and heavy engineering. They are made using durable materials like leather, rubber, polyurethane (PU), and PVC, and often come with features like steel or composite toe caps, anti-slip soles, and shock resistance to ensure maximum protection and comfort during industrial operations. In India, the safety footwear sector has evolved into a significant part of the country’s broader PPE industry, driven by rapid industrialization, expanding infrastructure projects, and greater emphasis on worker safety. The country is one of the largest producers and exporters of safety shoes, with manufacturing hubs located in Agra, Kanpur, Chennai, and Ranipet. The domestic market has been expanding steadily, supported by stricter occupational safety regulations, rising adoption across organized and unorganized sectors, and growing awareness of workplace safety. The importance of the safety footwear sector extends beyond industrial safety it contributes to India’s export earnings, supports MSMEs, and generates significant employment in semi-urban regions. 

Moreover, the market is witnessing a shift toward nonleather and sustainable materials, aligning with global environmental and ESG standards. Backed by government initiatives like Make in India and increasing compliance with international standards (EN ISO 20345, ASTM), the sector is poised for long-term growth. Overall, safety footwear not only ensures worker well-being but also strengthens India’s position as a reliable global supplier of high-quality protective gear. India’s safety footwear demand is increasingly shaped by structural shifts in the country’s industrial and employment profile. The formalization of the workforce in both organized and semi-organized sectors has significantly expanded the user base beyond traditional heavy industries. Demand is now emerging strongly from light manufacturing, warehousing, healthcare, e-commerce logistics, and renewable energy operations, where occupational safety protocols are becoming integral to HR and ESG compliance frameworks. India’s Safety Footwear industry has witnessed sustained growth in its export performance over the past five years, reflecting the sector’s rising global competitiveness and manufacturing strength. The consistent increase in export value indicates expanding acceptance of Indian-made safety footwear across international markets, driven by superior product quality, adherence to global safety norms, and cost-effective production.

Pros and strengths 

Manufacturing scale and location: The company operates four manufacturing facilities across Madhya Pradesh and Uttar. The manufacturing setup covers all production stages in-house, from leather cutting and upper assembly through lasting, sole injection, finishing and packaging. The co-location of all production stages within the company's own facilities provides control over production scheduling, quality at each stage and delivery timelines. The warehousing infrastructure supports inventory holding, order consolidation and dispatch to channel-partner locations across India.

Automation and Technology: The company has transitioned key production operations to automated processes. Desma PU direct injection machines (Germany) ensure consistent sole density, dimensions, and surface finish, while Orisol automated stitching machines control stitch density and seam alignment across production batches. Digital process monitoring systems, integrated with SAP S/4 HANA, enable real-time tracking of output, machine utilisation, and material consumption. The company also deploys triple density manufacturing technology, Phylon rubber processing, and Surge Sense technology. These systems reduce manual dependency, ensure output consistency, and support continuous process improvement across large production volumes.

Established sales and distribution network: The company operates a multi-channel sales and distribution network across major industrial and commercial centres in India, comprising direct institutional sales, regional distributors and dealers, and digital and e-commerce platforms. Institutional clients across construction, oil and gas, mining, automotive, pharmaceuticals, and heavy engineering are serviced through dedicated representatives under long-term rate contracts and annual supply agreements. The dealer and distributor network spans key cities including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, Bhopal, and Jaipur. This combination of direct, distributor, and digital channels ensures broad market reach across diverse customer segments and order sizes.

Risks and concerns 

Revenue highly concentrated among small number of customers: The company’s top ten customers contribute 47.71%, 48.82% and 45.04% of its total sales for the financial year ended on March 31, 2026, March 31, 2025 and March 31, 2024 respectively. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on business and results of operations. The company cannot assure that it will be able to maintain historic levels of business and/or negotiate and execute long term contracts on terms that are commercially viable with its significant customers or that it will be able to significantly reduce customer concentration in the future. Any decline in the company’s quality standards, growing competition and any change in the demand, may adversely affect its ability to retain them.

High dependence on key raw materials: The manufacturing of industrial safety footwear requires specialized raw materials including PU (polyurethane) and PVC sole compounds, upper materials (genuine leather, synthetic leather, coated fabrics), steel or composite toe-caps, midsole materials, and standard accessories. PU compound prices are linked to global crude oil derivatives any spike in crude oil raises input costs and leather prices are subject to supply-demand dynamics in hide markets, export duty changes and tannery shutdowns due to regulatory action. The company does not enter into long-term fixed-price contracts with raw material suppliers. It depends on open-market procurement. In periods of raw material price inflation, the company may not be able to pass on the full cost increase to customers, especially under government Rate Contracts where the sale price is fixed for the contract period. Any sustained increase in raw material costs could significantly compress EBITDA margins. 

Operate in highly competitive markets: The company operates in a highly competitive market, with participants in the organized and the unorganized sectors. There are no entry barriers in its industry, which puts it to the threat of competition from new entrants. It faces competition from other manufacturers, traders, suppliers and importers of shoes, soles, leather and other items in relation to its offerings. In the event of inability to compete effectively in the market, this can increase competition in the market, lower its market share, reduce its operating margins and adversely affect its results of operations.

Outlook

Acme Universal Safezone 9 is one of the leading safety shoe brands manufactured in India. The company manufactures 15 product lines across EVA-rubber, Nitrile Rubber, and PVC sole types, addressing occupational hazard categories such as impact protection, penetration resistance, electrical safety, heat resistance, chemical resistance, and slip resistance. Products comply with IS 15298, EN ISO 20345, ASTM F2413, and SEDEX SMETA standards, enabling the company to serve both domestic institutional buyers and export markets from a single production infrastructure. An in-house R&D unit drives material selection, structural design, and new variant development. On the concern side, though the company supply its products on PAN India basis across all the states in India. However, a significant portion of its revenue is concentrated in some states across India. Any factors relating to political and geographical changes, growing competition and any change in the demand for its service by customers of these states may adversely affect its ability to retain them. Besides, the company is exposed to hazardous materials and industrial safety risks in manufacturing operations, any accident or injury could result in financial liability and operational disruption. 

The company is coming out with a maiden IPO of 50,60,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 65-71 per equity share. The aggregate size of the offer is around Rs 32.89 crore to Rs 35.93 crore based on lower and upper price band respectively. On performance front, revenue from operations increased from Rs 18,735.58 lakh in the year ended March 31, 2025 to Rs 20,590.31 lakh in the year ended March 31, 2026, representing a growth of 9.90%. Net Profit after Tax (PAT) increased from Rs 80.42 lakh in FY 2025 to Rs 585.73 lakh in FY 2026, with margins increasing from 0.43% to 2.84%. 

Meanwhile, the company's strategic intent is to broaden its customer base, reduce geographic revenue concentration, and increase the share of export revenue in its overall revenue mix over the medium term. The company intends to deepen existing client relationships and acquire new institutional accounts by leveraging its multi-standard product range, reliable supply track record, and expanding production capacity. Sustained institutional engagement is expected to support demand stability and provide a predictable revenue base alongside growth in distributor and export channels.