About the Company:
Capricorn Food Products is the second largest fruit based ingredients supplier in India.
Company had commenced operations in 1998 and currently have three multi-functional production facilities, strategically located in Sathyavedu, Andhra Pradesh, Krishnagiri, Tamil Nadu, and Nashik, Maharashtra, which are high fruit and vegetable cultivating states
They are the world’s fourth largest supplier of mango pulps and concentrates, with an overall market share of approximately 5% and India’s second largest manufacturer with approximately 13% volume share in 2016.
Company is also the largest exporter of mango pulps and concentrates from India, with approximately 13% share of global market production volumes in 2016.
Company is India’s largest supplier of tomato paste and puree with approximately 9% volume share in 2016. They are also India’s largest producer and exporter of individually quick frozen (“IQF”) fruits with approximately 22% volume share in 2016.
They have a strong presence in the export as well as the domestic markets, the export and domestic sales accounting for 54.95% and 45.05% of their revenue from product sales for fiscal 2017.
In fiscal 2017, Company has catered to over 40 countries across Europe, Middle East, Asia Pacific, Africa and North America.
Company’s major domestic customers include multinational companies such as Coca-Cola India Private Limited, which has been their customer for approximately 12 years, and Varun Beverages Ltd has been their customer for approximately 10 years.
In the domestic market, Company also supplies to Manpasand Beverages Limited, Cremica Food Industries Limited, FieldFresh Foods Private Limited, Hector Beverages Private Limited and certain multinational companies.
Some of the overseas customers with whom they enjoy long-standing relationships include Aujan Industries LLC and Crop’s Fruits NV, for approximately 15 years and 9 years respectively. Company’s other major international customers include Ardo UK Limited and Agrana Fruit Services GmbH.
Competition in the Business.
In India, mango processing has more than 50% of manufacturers under the tiny and small scale industry (“SSI”) sector. Large scale production is limited to players like Jain Farm Fresh and Capricorn Food Products.
Jain Farm Fresh contributes to around 17% of the total Indian mango pulp production, followed by Capricorn, with 13% production share in 2016.
Capricorn Food Products is the second largest mango pulp manufacturer and supplier in India. The mango pulp export industry is highly fragmented and has many small companies contributing to the total volume.
They are the largest exporter with approximately 13% share of exports, followed closely by 12%, 6% and 5% for Exotic Fruits, Jain Farm Fresh and Foods & Inns, respectively, of the total exports out of India.
Company is the largest producer of IQF fruits in India, with 22% of the production and the largest significant exporter with 22% of the total exports.
Market Share of Key Competitors in the Mango Pulp Exports Business:
Management Team:
- Mr. Rahoul Jain (Designation: Chairman and Managing Director)
- Ms. Shuchi Jain (Designation: Whole time Director)
- Mr. Virendra Singh Jain (Designation: Independent Director)
Positives for the Company:
Leading player in the Fruits and Vegetable processing industry with a wide array of Products.
They are the world’s fourth largest supplier of mango pulps and concentrates, with an overall market share of approximately 5% and India’s second largest manufacturer with approximately 13% volume share in 2016.
Company is also the largest exporter of mango pulps and concentrates from India, with approximately 13% share of global market production volumes in 2016.
Company is India’s largest supplier of tomato paste and puree with approximately 9% volume share in 2016. They are also India’s largest producer and exporter of individually quick frozen (“IQF”) fruits with approximately 22% volume share in 2016.
Large Scale Procurement and Storage Capabilities.
Company has an extensive procurement network of over 3,900 farmers and over 400 aggregators, collection centres and mandis. They also engage in contract farming activities with farmers for sustained procurement of raw materials such as tomato, gherkins, melon, papaya and okra.
They have production facilities at Sathyavedu, Andhra Pradesh, Krishnagiri, Tamil Nadu, and Nashik, Maharashtra, have storage capacities of 19,984 MT, 22,315 MT and 11,700 MT, respectively, spread over 106,588 sq. ft., 113,528 sq. ft. and 69,595 sq. ft., respectively.
Large storage capabilities allows them to procure and process large volumes of fruits and vegetables at a time, including during off-peak seasons, while also managing concerns such as spoilage, or supply of unripe or over-ripe fruit and vegetable products or product variants to their customers.
Strong Relationships with the Large and Emerging Global and Indian Companies and Brands.
Company supplies fruits and vegetables based ingredients to over 300 customers including branded fruit based beverages companies, processed food producers, companies in ice cream and bakery items, frozen foods, companies selling frozen fruits and vegetables.
Company’s major domestic customers include multinational companies such as Coca-Cola India Private Limited, which has been their customer for approximately 12 years, and Varun Beverages Ltd has been their customer for approximately 10 years.
In the domestic market, Company also supplies to Manpasand Beverages Limited, Cremica Food Industries Limited, FieldFresh Foods Private Limited, Hector Beverages Private Limited and certain multinational companies.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|
| Revenue | 314.2 | 388.5 | 433.1 | 460.78 | 235.88 |
| Net Profit | 12.47 | 10.11 | 14.6 | 23.0 | 14.3 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Capricorn Food Products Ltd | 10 | 7.9 | Will be Updated | 10.58% | 74.66 |
| Foods & Inns Ltd | 10 | 49.0 | 26.8 | 11.7% | 391.9 |
| Flex Foods Ltd | 10 | 6.3 | 21.4 | 10.3% | 61.1 |
| Freshtrop Fruits Ltd | 10 | 7.42 | 23.3 | 16.2% | 45.8 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Will be Updated |
| Issue Closes on:. | Will be Updated |
| Issue Price | Will be Updated |
| Retail Portion | Will be Updated |
| Face Value | Rs.10 |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE & BSE |
| Equity Shares Offered | Will be Updated |
| Equity Shares Prior | 2,97,20,000 |
| Equity Shares after the issue | Will be Updated |
Also Read: Important Tips For Investing in an IPO.
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 7.90 | Will be Updated | 10.58% | 74.66 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Will be Updated | Will be Updated | Will be Updated |
Also Read: How to become a Successful Investor?
| Find the List of Upcoming IPOs in 2019: |
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Upcoming IPOs in 2019 (Click on the below Link)www.UpcomingIPOs-in-India-2019 |
| Check IPO Allotment Status: |
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Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
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| Capricorn Food Products India Limited Old No.AH-216 New No.AH-11 2nd Street Shanthi Colony, Anna Nagar Chennai 600 040 Tamil Nadu, India Tel: +91 (44) 4228 1020 Email: cs@capricorngroup.com Website: www.capricorngroup.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400 083, Maharashtra, India Telephone: +91 22 4918 6200 E-mail: capricorn.ipo@linkintime.co.in Website: www.linkintime.co.in |
