About the Company:
Keventer Agro Ltd is a leading fast-moving consumer goods (“FMCG”) company headquartered out of Kolkata with interests in packaged, dairy, and fresh food products
Company’s range of products span across various brands and categories with more than 90 SKUs as of March 31, 2021, and a presence across the value chain in the fresh, frozen and ambient long shelf life food product categories.
Company offers variety of flavors and tastes for some of the products such as mango and apple flavors for fruit-based beverages, chocolate and kesar flavors for milk-based beverages, and vanilla and chocolate flavors for our ice creams.
Company also sells different variants of white milk such as toned, double-toned and standardized.
Company has tied up with Parle Agro under a franchisee arrangement to manufacture, distribute and sell their range of dairy based drinks.
Company’s business primarily comprises of:
Packaged foods & beverage.
Company’s packaged foods & beverage segment primarily involves the manufacturing, packaging, marketing, distribution of products which include (i) “Frooti” or “Appy” or “B Fizz” or “Appy Fizz” or “Bailley” or “Smoodh” which are licensed to us pursuant to various franchisee agreements entered into with Parle Agro Pvt Ltd (“Parle Agro”); and (ii) “ready-to-cook” and frozen food under “Keventer” brand.
Dairy & fresh segments.
Company’s dairy & fresh segment primarily involves (i) sourcing, processing, marketing, distribution and sale of pouch milk, pouch curd, ice-cream, set-curd, UHT milk, milkshakes and lassi under the “Metro” and “Keventer” brands; and (ii) sourcing, ripening, distribution, branding and sale of bananas under the “Keventer” brand.
Company’s market positions in Fiscal 2020 across various product categories are provided in the table below:
Company’s Manufacturing facility:
Company’s manufacturing and processing infrastructure comprises of flagship facility at Barasat, West Bengal which is spread over 92 acres and comprises of multiple processing units.
The flagship facility and units are strategically located in close proximity to company’s target market, which minimizes the logistics cost and enables company to supply fresh stocks with minimum delay to consumers.
Company’s other food processing units are located at Durgapur, Midnapore, Siliguri, Malda and Patna, which are primarily involved in processing and manufacturing of products under the dairy & fresh segment.
Company is in the process of establishing a food processing unit at Ranchi.
Company’s Distribution Network:
Company has built a large distributor network in the East and North East catering to 160,000 – 170,000 retail touch points across categories of packaged food and fresh bananas.
As of March 31, 2021, company had 3,126 distributors and a sales force of 570 employees (including contractual) and sales promoters.
Company’s products are available through various points of sale such as general trade (which includes traditional retail points, such as kiranas through distributors and stockists),
Company’s products are also available through modern trade channels which includes e-commerce companies such as Innovative Retail Concepts Pvt Ltd (Big Basket), supermarkets such as Big Baazar, Foodhall and Spencer’s Retail, hypermarkets such as Ratnadeep Retail, and convenience stores such as More Retail.
States in which Company’s Products are Sold.
Some or all of company’s products are distributed across the states of Eastern India including Bihar, Jharkhand, Orissa and West Bengal, and states in North East India including Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
Recently, company has also commenced distribution of some products in the states of Andhra Pradesh, Uttarakhand, Haryana, Madhya Pradesh, Himachal Pradesh, Gujarat, Punjab, Rajasthan and Uttar Pradesh, and the union territories of Jammu and Kashmir and Chandigarh as well as the National Capital Region.
Management Team:
- Mr. Mayank Jalan (Designation: Chairman and Managing Director)
- Mr. Ram Krishna Agarwal (Designation: Independent Director)
Objectives of the Issue:
Offer for Sale: (Rs.)
- The proceeds of the Offer for Sale shall be received by the Selling Shareholder. Company will not receive any proceeds from the Offer for Sale
Fresh Issue: (Rs.)
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company.
- Funding capital expenditure requirements of the Company.
- General corporate purposes.
Positives for the Company:
One of the leading players in the East and North East of India, across a wide and varied product range.
- Company is one of the fastest growing companies in East and North East India showing a strong growth rate of 18.46% CAGR over the past 10 years, increasing company’s revenue from Rs.173.5 crores in the Financial Year 2010 to Rs.9,45.1 crores in the Financial Year 2020.
Tie up with Parle Agro.
- Company has tied up with Parle Agro under a franchisee arrangement to manufacture, distribute and sell their range of dairy based drinks, including milkshake under the ‘SMOODH’ brand in the geographies company operates in for Parle Agro.
Plans to expanded the existing distribution.
- Company also has plans to expand the existing distribution platform to launch products in new geographies. For example, company has introduced certain products (such as ready to cook / frozen food) in the states of Andhra Pradesh, Uttarakhand, Haryana, Madhya Pradesh, Himachal Pradesh, Gujarat, Punjab, Rajasthan and Uttar Pradesh, and the union territories of Jammu and Kashmir and Chandigarh as well as the National Capital Region.
- Going forward, company intends to distribute packaged foods & beverage products on a pan India basis.
- Company further intend to foray into the markets of Bihar and Jharkhand with products under the dairy & fresh segment, and plan to launch pouch milk and curd in these markets.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 884.4 | 958.25 | 836.0 |
| Net Profit | 3.4 | (-76.1) | (-0.1) |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Keventer Agro Ltd | 5 | (-29.05) | TBA | (-79.27%) | 38.69 |
| Parag Milk Foods Ltd | 10 | 2.47 | 56.4 | 2.24% | 110.34 |
| Dodla Dairy Ltd | 10 | 22.48 | 26.9 | 19.93% | 112.81 |
| Varun Beverages Ltd | 10 | 11.40 | 68.4 | 9.34% | 122.07 |
| Hatsun Agro Products Ltd | 1 | 11.43 | 82.7 | 24.12% | 47.39 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on:. | Coming Soon |
| 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 | Will be Updated |
| Equity Shares Prior to the Issue | 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) |
|---|---|---|---|
| (-29.05) | Will be Updated | (-79.27%) | 38.69 |
| Check IPO Allotment Status: |
|---|
Link InTime: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Keventer Agro Limited 34/1 D.H. Road Kolkata 700 027 West Bengal, India. Tel: +91 33 3503 6200 E-mail: cs@keventer.com; Website: www.keventer.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 Tel: +91 22 4918 6200 E-mail: keventer.ipo@linkintime.co.in Website: www.linkintime.co.in |
