About the Company:
Gemini Edibles and Fats India Ltd is one of the leading and the fastest growing edible oils and fats companies in India.
Company is engaged in the business of manufacturing, distribution and branding of edible oils and specialty fats in India.
Company is market leaders in the sunflower oil category with our ‘Freedom’ brand, in the states of Telangana, Andhra Pradesh, and Odisha, and hold the third largest market share in the state of Karnataka.
Despite being a regional player, company is amongst the top two companies by market share in the branded sunflower oil category on a pan-India basis as of Fiscal 2021.
Company’s range of edible oils and fats are sold to customers under three verticals, i.e., branded retail consumer, industrial consumer and bulk merchandising.
Company’s Business verticals:
Branded retail consumer Business.
- In the branded retail consumer vertical, company manufactures and markets oils such as sunflower oil, rice bran oil, mustard oil, groundnut oil, palm kernel oil and palmolein oil, under company’s own brands.
- Sunflower oil is the largest selling product within the branded retail consumer vertical.
- Premium oils such as sunflower, rice bran, mustard and groundnut are sold under the ‘Freedom’ brand while palm oil is sold under the ‘First Klass’ brand.
- The products in this vertical are sold through an extensive network of distributors and wholesalers to reach retail stores.
- Company also sells the products to regional and national supermarket chains and e-commerce companies in the states in which company operates.
Industrial consumer Business:
- In the industrial consumer vertical, company produce and market oils and fats such as high stability frying oils, palm oils, cocoa butter substitutes, inter-esterified vegetable fats and shortenings to companies in the food industry.
- These products are supplied to manufacturers of biscuits, snack foods, confectionery, non-dairy whip topping, ready-to-eat, frozen desserts and food ingredients.
- The oils and fats are supplied to customers in bulk or packaged form under ‘GEF Magik’, ‘Fabula’ and ‘Be Rite’ brands.
- Company is one of the largest players in specialty fats in south India with a 16% market share in specialty bakery fats.
Bulk Merchandising Business:
- In the bulk merchandising vertical, company sells palmolein, palm kernel, sunflower and soyabean oils in bulk form to players operating with their own brands and to those who sell edible oil in unbranded or loose form.
- Customers in this vertical are based in the states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Odisha and Kerala. There is also a proportion of oil in the market that eventually gets consumed in bulk form through the wholesale network.
Revenues from various Business Verticals:
Gross profit margin from each of the business verticals:
Company’s Distribution Network:
As of June 30, 2021, Company has a distribution network which consists of over 30 depots and over 1,100 distributors and wholesalers through which the products reach retail outlets in approximately 640 towns in the states of Telangana, Andhra Pradesh, Odisha and Karnataka.
This extensive network has ensured access to the ‘Freedom’ range of products by retail consumers in over 260,000 retail outlets in these states during Fiscal 2021.
Market share of ‘Freedom’ sunflower oil:
Competition in the Business:
Company’s competitors in the branded retail consumer vertical are Adani Wilmar, Ruchi Soya, Kaleesuwari, MK Agrotech and Lohiya Industries, among others.
While in industrial consumer vertical, competitors include Adani Wilmar, Bunge, 3F Industries, AAK Kamani and Emami Agrotech, among others.
Company’s Shareholders:
GAIE: Golden Agri International Enterprises Pte. Ltd.
Management Team:
- Mr. Pradeep Chowdhry (Designation: Managing Director)
- Mr. Prathap Gangaraju (Designation: Whole Time Director)
Company was founded by Pradeep Kumar Chowdhry who has over 40 years of industry experience, of which over 30 years has been in the edible oil industry. He is also the Managing Director of the Company and is responsible for the day-to-day business operations.
Objectives of the Issue:
Offer for Sale: (Rs.)
- Company will not receive any proceeds from the Offer and all the Offer Proceeds from the offer for sale will be received by the Selling Shareholders.
Positives for the Company:
Leading and reputable brands in both the retail consumer edible oil and the industrial consumer speciality fats.
- Company’s branded retail consumer products are marketed under own brand, ‘Freedom’, for premium oils such as sunflower oil, rice bran oil, mustard oil and groundnut oil, and under ‘First Klass’ for palm oils.
- As of March 31, 2021, ‘Freedom’ had the highest market share in the sunflower oil sector in Andhra Pradesh, Odisha and Telangana at 47%, 49%, and 37%, respectively, and the third-highest market share in Karnataka at 9%.
Modern and strategically located manufacturing facilities.
- Company’s processing facilities are large-scale integrated facilities and are strategically located at the ports of Krishnapatnam and Kakinada in the south-eastern part of India, which is a high consumption region for edible oils.
- Company’s total refining capacity as at June 30, 2021 was 2,615 MT per day or 862,950 MT per year.
Extensive and well-established sales and distribution network.
- Company’s branded retail consumer products are sold in approximately 640 towns in Andhra Pradesh, Karnataka, Odisha and Telangana through a network of over 1,100 distributors and traders, serviced by 130 sales personnel and over 30 depots.
- Company’s ‘Freedom’ brand of sunflower oil was sold to more than 260,000 retail outlets across these states during Fiscal 2021.
- Company has consistently added distributors to the network to further the reach and penetration of the brand.
- As of Fiscal 2019, company’s distribution network comprised over 800 distributors and has now increased to over 1,100, as of June 30, 2021.
Company Plans to Increase production capacity.
- To meet the increasing demand, company is evaluating proposals to set up another refinery at Krishnapatnam.
- Company already has land of approximately 33.82 acres available at Krishnapatnam to set up this refinery and have recently purchased 1.61 acres of land parcel at Kakinada to set up additional tank farm capacities.
Expand the market presence to other states in India and increase distribution reach.
- Company intends to further expand the reach in the next three years to enter other southern states such as Tamil Nadu and Kerala which have high volumes of sunflower oil consumption.
- Within the next five years, company aims to expand presence to the northern and eastern states of India such as Chhattisgarh, Jharkhand, Uttar Pradesh and West Bengal.
Company enjoy certain benefits from the experience and expertise of the Shareholders.
- Gemini Edibles and Fats India Ltd benefits from the expertise of GAR (Golden Agri-Resources Ltd) and other shareholders, namely, Black River and Pradeep Chowdhry.
- Listed on the Singapore Exchange since 1999, GAR is one of the leading integrated palm oil plantation companies in the world that focuses on sustainable palm oil production. GAR’s primary activities include the cultivation of approximately 536,000 hectares of oil palm plantations in Indonesia.
- GAR also has shipping and logistics capabilities that are bolstered by its ownership of vessels, seaports, jetties, warehouses and bulking facilities in strategic locations.
- GAR handled more than 10 million MT of edible oils annually, during its financial year from 2018 to 2020.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 5533.9 | 6571.3 | 7863.1 |
| Net Profit | 109.3 | 185.8 | 570.7 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Gemini Edibles & Fats India Ltd | 1 | 55.48 | TBA | 35.1% | 157.92 |
| Marico Limited | 1 | 9.08 | 58.12 | 37.16% | 25.09 |
| Agro tech Foods Limited | 10 | 13.21 | 75.79 | 7.33% | 178.93 |
Also Read: Adani Wilmar Ltd Ruchi Soya Ltd
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 28th August 2017 |
| Issue Closes on:. | 31st August 2017 |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| 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 (OFS) | Will be Updated |
| Equity Shares Prior | Will be Updated |
| Equity Shares after the issue | Will be Updated |
Also Read : List of Upcoming IPO’s in India.
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: (Will be Updated)
| (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) |
|---|---|---|---|
| 55.48 | Will be Updated | 35.1% | 157.92 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Gemini Edibles & Fats India Limited “Freedom House” 8-2-334/70 & 71 Opposite SBI Executive Enclave Road No.5, Banjara Hills Hyderabad 500 034 Telangana, India Tel: +91 40 6735 7868; E-mail: investors@gefindia.net; Website: www.gefindia.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium Tower-B, Plot 31 & 32 Gachibowli, Financial District Nanakramguda, Serilingampally Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: gefil.ipo@kfintech.com Website: www.kfintech.com |
