About the Company:
Manorama Industries Ltd (Incorporated in 2005) is engaged in manufacturing, processing and supply of exotic and specialty fats & oils like Sal butter, Sal fat, Sal oil, Sal Stearine, Sal olein, Mango butter, Mango fat, Mango oil, Mango Stearine, Kokum butter, Kokum oil, Mowrah fat, and several value added tailor made products.
Company is among the leading manufacturers of Sal Oils and Stearine globally with an annual production of 3,000-4,000 tonnes.
Last year, Company produced 908 tonnes of Stearine resulting into approximately 1% global market share. Globally, company is amongst the top 10 manufacturers of Stearine.
Company is majorly catering to chocolate and cosmetic industry. Company’s product stearine which is made out of sal or mango seeds is one of the key ingredients in the manufacturing of Cocoa Butter Equivalents (CBE), which has a demand in the Chocolate Industry.
Company has also entered into an agreement with one of the leading chocolate manufacturers for supply of CBE for a period of two year from 2018.
Company is supplying their products both in domestic and export markets. Company has also been recognised as Star Export House by Government of India.
Domestically, they supply in Maharashtra, Gujarat, etc. and internationally, Company mainly supplies their products in countries like Japan, Italy, Malaysia, Indonesia, Singapore, Netherlands, Germany, Sweden, Denmark and UK.
Currently Company has an order book to supply CBE worth Rs. 76.8 crores over a period of two years from April, 2018.
Sourcing of raw materials by the Company:
Company’s key source of raw material is Sal seeds which are sourced from tribals living in Sal forests in Chhattisgarh, Jharkhand, Orissa & parts of Madhya Pradesh.
The seeds start falling down during month of May and June and tribals collect them and bring them to the village centres. Manorama has been buying these seeds from tribals for many years and has an established network in more than 18,000 villages in the states of Chhattisgarh, Jharkhand, Orissa, Madhya Pradesh, etc.
Company also procures raw materials from forest departments and local markets if required.
Promoter Group Family:
The promoter group family have been in this business for more than four decades and have built relationships with large global chocolate/CBE manufacturers like Ferrero (Italy), Ferrero (India), Mitsui (Japan), Unigra (Italy), Walter Rau (Germany), Adeka Corporation (Japan), Olvea Vegetable Oils (France), etc. who regularly source Sal Stearine and other fats from us.
Company has also entered into a supply agreement with The Body Shop International Ltd. (U.K.) (“The Body Shop”) for supply of Mango Butter. The Body Shop is one of the leading global cosmetic brands who have pioneered social audits with extremely stringent criteria for sourcing of their products & selection of suppliers.
Similarly, they have also been supplying oleins & fats which have been used by other leading cosmetic companies like L’oreal, ActivON (Korea), Naturasante LeafMotiv (France), Gustav Hess GMBH (Germany), Hallstar (USA), Jedward International INC (USA), Kerfoot Group UK, etc.
Awards Received by the Company:
- Highest Processor & Exporter of Sal seeds & Mango Kernel awarded by President of Solvent Extractors Association of India in 2013, 2014, 2015, 2016 & 2017.
- The Chairman of Indian Oilseeds and Produce Export Promotion(IOPEPC) presented the Highest Export for Sal Oil and Mango Oil award to Manorama Industries in 2013, 2014, 2015, 2016 & 2017
Management Team:
- Mrs. Vinita Saraf (Designation: Chairman and Managing Director)
- Mr. Kedarnath Agarwal (Designation: Executive Director)
- Mr. Gautam Kumar Pal (Designation: Executive Director)
Positives for the Company:
Long standing relationships with globally recognised customers and history of Repeat orders.
Company’s customers include large global chocolate/ CBE manufacturers like Ferrero (Italy), Ferrero (India), Mitsui (Japan), Unigra (Italy), Walter Rau (Germany), Adeka Corporation (Japan), Olvea Vegetable Oils (France), etc.
They have also entered into a supply agreement with The Body Shop International Ltd. (U.K.) (“The Body Shop”) for supply of Mango Butter.
Similarly, Company has also been supplying oleins & fats which have been used by other leading cosmetic companies like L’oreal, ActivON (Korea), Naturasante LeafMotiv (France), Gustav Hess GMBH (Germany), Hallstar (USA), Jedward International INC (USA), Kerfoot Group UK, etc.
Supplying to both Domestic and International Markets.
Domestically, they majorly supply in Maharashtra, Madhya Pradesh and Chattisgarh and internationally, they mainly supply their products in countries like Japan, Italy, Malaysia, Indonesia, Singapore, Netherlands, Germany, Sweden, Denmark and UK.
Company has also been recognised as Star Export House by Government of India. Company’s export and domestic revenue from manufacturing operations contributed 65.89% & 34.11%, for the year ended March 31, 2018.
Setting up of new State of the art Manufacturing Facility.
Company plans to set up an integrated state of the art manufacturing plant at Raipur where, all processes including crushing, extraction, refining, fractionation & interstification will take place at one location.
The current combined installed production capacity is proposed to be enhanced from 4,500 mt p.a. to 11,250 mt p.a. Further an integrated manufacturing facility will not only result in reduced logistics costs but also shall improve the operational efficiency of the Company.
Objectives of the Issue:
- Establishing an integrated Greenfield project for manufacturing of CBE / specialty fats and tailormade products at Birkoni, near Raipur, Chhattisgarh.
- General Corporate Purposes.
Peer Group Comparison:
We believe that there are no listed peers engaged exclusively in the segment in which Manorama Industries operates i.e. manufacturing of cocoa butter equivalent and related products and trading of agro based commodities.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 104.39 | 132.53 | 131.03 | 145.47 | 219.97 |
| Net Profit | 0.89 | 0.94 | 1.08 | 1.37 | 10.35 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 21st September 2018 |
| Issue Closes on:. | 25th September 2018 |
| Issue Price | Rs.181 – 188 |
| Face Value | Rs.10 |
| Minimum Lot | 600 Shares |
| Minimum Investment | Rs.1,12,800 |
| Issue Constitutes | 30.59% |
| Issue Size | Rs.64 cr |
| Market Cap | Rs.209.2 cr |
| Listing at | BSE SME |
| Equity Shares Offered | 34,04,400 |
| Equity Shares Prior | 77,23,510 |
| Equity Shares after the issue | 1,11,27,910 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 13.72 | 13.70 | 41.89% | 32.75 |
| Check IPO Allotment Status: |
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Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
Knowledge Corner: (Click on the Link)
| Company Contact Info: |
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| Manorama Industries Limited Office No 403, 4th Floor, Midas, Sahar Plaza, Andheri Kurla Road, Andheri East, Mumbai- 400059 Tel: 022-67088148 Email: investors@manoramagroup.co.in Website: www.manoramagroup.co.in |
| IPO Registrar Info: |
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| LINK INTIME INDIA PRIVATE LIMITED C-101, 1st Floor, 247 Park, L.BS. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India Tel: +91 022 49186200; Fax: +91 022 49186195 Email: manorama.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
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| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Tel: +91-22 61946719 Fax: +91-22 2659 8690 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
