Mrs. Bectors Foods Specialities Ltd

Mrs. Bectors Foods Specialities Ltd

About the Company:

Mrs. Bectors Foods Specialities is one of the leading companies in the non-glucose biscuits and premium breads segment in North India.

Company’s products are sold under well-recognized brand names like, ‘Mrs. Bector’s Cremica’ and ‘English Oven’.

Company manufactures and markets a range of products such as biscuits, breads and buns, catering primarily to retail consumers in 11 states within India as well as to reputed institutional customers pan-India.

They are also a leading exporter of biscuits from India,and have exported biscuits under their brand as well as under third party private labels to 61 countries in Financial Year 2018.

They market a wide variety of biscuits under their flagship brand ‘Mrs. Bector’s Cremica’, which is one of the leading non-glucose biscuit brands in North India.

They manufacture and market breads under the ‘English Oven’ brand, which currently caters to the premium bread segment in Delhi NCR and Maharashtra.

‘English Oven’ is one of the largest players in the premium bread brand in Delhi NCR, supplying approximately 120,000 loaves per day as of May, 2018.

 

Company’s Manufacturing Facilities:

Company has six manufacturing facilities in Phillaur and Rajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khapoli (Maharashtra) and Bengaluru (Karnataka).

 

Company’s Distribution Network:

Company has a strong distribution network in India and globally in the general trade and the modern trade segment. As of June 30, 2018, Company distributed their biscuits across 11 states in India, through a widespread network of 135 super-stockists and 570 distributors.

The breads are sold through over 9,000 retail outlets situated in Delhi NCR region and Maharashtra.

Company has a distribution tie-ups with reputed retail chains in India and they are the largest suppliers of biscuits to Canteen Stores Department of Government of India (“CSD”).

 

Supplies to Mc Donalds & Burger King:

Company is also the largest supplier of buns in India to reputed QSR (Quick Service Restaurants) chains such as Hardcastle Restaurants Pvt Ltd (Mc Donalds India) and Burger King India Private Limited. Substantially all the products are manufactured in-house at their six strategically located manufacturing facilities.

 

Company’s Exports: (Making India Proud Globally)

Company’s market share in the total biscuit exports from India to the key export markets in Financial Year 2017 in Europe was 41.40%, in North America was 12.14%, and in Africa was 11.35 %. Particularly in certain regions such as 138 the Caribbean region and Oceania region, we have a 66.16% and 13.54% share of the total exports from India, respectively.

Further, in certain countries such as Haiti and in Uganda we have a share comprising 75.50% and 48.84% of the total exports from India, respectively.

 

Company’s Product Portfolio includes 3 main categories.

Biscuits.

Company manufactures and sell biscuits, primarily in the non-glucose category including a wide variety of cookies, creams, crackers and digestives, which accounted for ₹ 3,85.1 crores, or 84.97 % of their Biscuit Revenue from Direct Sales in Financial Year 2018.

‘Mrs. Bector’s Cremica’ is one of the leading biscuit brands in the non-glucose biscuit segment in Punjab, Himachal Pradesh, Jammu and Kashmir, Haryana and Rajasthan.

Company’s key export markets are Africa and North America, where they export biscuits under the ‘Mrs. Bector’s Cremica’ brand and under private labels for
international retail chains through reputed buying houses such as Monteagle International (UK) Limited.

Additionally, company also undertakes manufacturing of ‘Oreo’ and ‘Bournvita’ biscuits on contract basis for Mondelez India Foods Private Limited and another leading biscuit manufacturer in India.

 

Breads.

Company manufactures and sells various types of breads, including whole wheat, multigrain fruit and sandwich breads under the ‘English Oven’ brand, which caters to the premium segment in Delhi NCR, Maharashtra and the Northern region of India.

In the bread segment they also manufacture and supply readyto- eat frozen products and other varieties of breads, such as garlic bread and other stuffed breads.

Company’s revenue from the sale of breads accounted for Rs.77.3 crores or 11.14% of their consolidated revenue from operations in Financial Year 2018.

Buns.

Company manufactures and supplies buns in accordance with the specifications provided by the QSR customers and have been the preferred supplier of buns to Hardcastle Restaurants Private Limited since the year 2007.

Company is the largest bun suppliers in India equipped with dedicated modern manufacturing facilities which enables them to undertake large orders while complying
136 with the stringent quality standards required by reputed QSR chains.

In Financial Year 2018, the revenue from sale of buns to the institutional customers accounted for ₹ 90.8 croresor 13.09 % of their total revenue.

 

Newly Entered Segments.

Company has recently started manufacturing frozen products such as frozen pizzas, croissants and muffins to hotels, restaurants and cafés.

As on June 30, 2018, Company’s diversified product portfolio consists of 542 SKU’s products across all their product segments.

Company has also undertaken four new products launches in Financial Year 2018, which include ‘Golden bytes’, ‘Kalonji Cracker’, Their range of digestive biscuits including ’oatmeal’ and ‘cornflakes’, ‘100%’ whole wheat bread and ‘Bunfills’.

 

Market share of brands in Branded Biscuit market Financial Year 2018: 

 

Management Team:

  1. Mr. Subhash Agarwal (Designation: Chairman and Independent Director)
  2. Mr. Anoop Bector (Designation: Managing Director)
  3. Mr. Ishaan Bector (Designation: Whole Time Director)

 

Positives for the Company:

  • Established brands with a diversified product portfolio of medium and premium products.
  • Wide spread and established sales and distribution network
  • Leading exporter of biscuits.
  • A leading supplier of buns to the fast growing QSR industry.

 

Financials of the Company: (Consolidated)

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18
Revenue 562.5 603.01 609.63 640.8 695.75
Net Profit 25.49 29.3 40.8 28.8 36.01

 

Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Mrs. Bectors Foods Specialities Ltd 10 6.29 TBA 13.48% 44.57
Nestle 10 127.07 81.16 35.82% 354.76
Britannia 2 83.65 76.45 29.47% 283.85
Pratap Snacks 5 20.70 54.10 8.50% 221.49
DFM Foods 10 23.29 53.43 22.76% 102.40

 

IPO Details:

Details Info
Issue Opens on Will be Updated
Issue Closes on:. Will be Updated
Issue Price 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 to the Issue 5,72,67,622
Equity Shares after the Issue 5,72,67,622

 

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)
6.29 TBA 13.48% 44.57

 

 

Check IPO Allotment Status:

Link InTime Website (Click on the below Link)

https://linkintime.co.in/PublicIssue/

 

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Company Contact Info:
Mrs. Bectors Food Specialities Limited
Theing Road
Phillaur, Jalandhar 144 410
Punjab, India
Tel: (+91 1826) 225 418
Fax: (+91 1826) 222 915
Website: www.cremica.in

 

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: (+91 022) 49186200
Investor Grievance E-mail: bector.ipo@linkintime.co.in
Website: www.linkintime.co.in