Varmora Granito IPO: How Management Plans To Reduce Morbi Concentration Risk

For investors evaluating the Varmora Granito IPO, geographic concentration and manufacturing risks are key factors to watch. In this conversation, CMD Bhavesh Varmora and CFO Bhavesh Koshti explain how the company plans to reduce its dependence on Morbi, which accounts for around 90% of India’s tile industry manufacturing base. Management says Varmora has already commissioned a 6.4 million square metre manufacturing facility in Tezpur, Assam, to serve the Northeast and parts of Bihar and eastern Uttar Pradesh. Post IPO, the company is also targeting an acquisition in South India. On energy risk, management says its plants can switch between natural gas and propane depending on availability. Watch the full conversation for management’s strategy on geographical diversification, fuel flexibility and expansion—key factors for investors assessing Varmora’s growth and risk profile.