Kent R O Systems Limited IPO

The company derives a substantial portion of its revenues from the sale of the company water purifier and water softeners products (84.25% and 85.93% of its revenue from operations in the six months ended September 30, 2024 and Fiscal 2024, respectively). The company inability to anticipate and adapt to evolving consumer preferences and demand for water purifier products, or ensure product quality, may adversely impact demand for its products, brand loyalty and consequently the company business, results of operations, financial condition and cash flows.

The company's limited operating history in the kitchen and home appliances and fans product categories presents significant challenges. The company may struggle to compete successfully against established competitors in these categories. Further, the historical growth rates the company has experienced in these new product categories may not be indicative of its future performance.

The availability of counterfeit products, such as products passed off as its products by others, could have an adverse effect on the company business, results of operations, financial condition and cash flows.

The company operate in a competitive market and any increase in competition may adversely affect its business, results of operations, financial condition and cash flows.

Interruptions in the supply of raw materials or fluctuations in raw material prices could adversely affect its ability to manufacture the company products and consequently its business, results of operations, financial condition and cash flows.

Its manufacturing facilities are subject to operating risks. Any slowdown or interruption to the company manufacturing operations may have an adverse impact on its business, results of operations, financial condition and cash flows.

The company business is manpower intensive. Its business may be adversely affected by work stoppages, increased wage demands by its employees, or an increase in minimum wages, and if the company is unable to engage new employees at commercially attractive terms.

Its operations are dependent on the company ability to attract and retain qualified personnel, including its Key Managerial Personnel and Senior Management and any inability on the company part to do so, could adversely affect its business, results of operations, financial condition and cash flows.

Its inability to effectively manage the company growth or implement its growth strategies may have an adverse effect on the company business, results of operations, financial condition and cash flows.

Its success also depends to an extent on the company research and development capabilities and failures to derive the desired benefits from its product research and development efforts may hurt the company competitiveness and profitability.