About the Company:
Gopal Snacks Ltd is a prominent snack manufacturer in India and is one of India’s fastest growing and fully integrated fast-moving consumer goods (FMCG) company.
Company manufactures ‘ready-to-eat’ packaged snacks which include wide range of products including ethnic namkeen, gathiya, wafers, snack pellets and other fast-moving consumer goods including extruder products, noodles, spices and flour under its brands – “Gopal” (Namkeen, Gathiya, Snack Pellet, Flour, Spices), “Cristos” (Wafers), “Shot Go” (Noodles) and “Cornigo” (Extruder Snacks).
Company’s product offerings also include FMCG products including gram flour or besan and powdered spices under the “Gopal” brand. Other FMCG offerings of Gopal Snacks Limited include noodles, washing bars, and packaged sweets i.e., soan papdi, rusk and chikki.
Gopal Snacks Ltd has its manufacturing plants located in Rajkot, Nagpur and Modasa.
Company is the second largest organized ethnic namkeen manufacturer in Gujarat, and fourth largest packaged ethnic namkeen and papad manufacture in India.
Company holds the position of being the largest manufacturer of gathiya (in terms of production volume and sales revenue) and snack pellets (in terms of production volume) in India.
Company sells its products in 10 Indian states and 2 union territories and is one of the fastest-growing snack companies in India.
Largest Manufacturer of Gathiya in India.
- Gopal Snacks Limited is the largest manufacturer of Gathiya in terms of production volume and sales revenue in India and holds a market share of approximately 31% in Fiscal 2023 of the organized gathiya market in terms of sales revenue.
- Company offers a diverse portfolio consisting of about 8 varieties in the segment. Its annual production in Fiscal 2023 for Gathiya stood at 26,375 Tons. The Gathiya segment itself generated a revenue of Rs. 423 cr in Fiscal 2023.
- Second largest manufacturer of Ethnic Namkeen in Gujarat and among the leading packaged namkeen players in India.
- In Fiscal 2023, Gopal Snacks Limited secured the position of being the second largest organized ethnic namkeen manufacturer in Gujarat in terms of its sales revenue. Gujarat is among the top states with high consumption of snacks in India.
- Gopal Snacks Limited has also established strong portfolio to compete with leading players like Balaji Wafers Pvt. Ltd. Headquartered in Gujarat.
Company’s Product Portfolio:
Expanding footprint in India along with Global Distribution network.
- Gopal Snacks Limited is the second largest snack manufacturing company in Gujarat. The company is strategically increasing its pan-India presence, by focusing on Northern India (Uttar Pradesh, Rajasthan, Haryana, Delhi) and Southern India (Karnataka, Telangana).
- In addition to Gujarat, the company has a strong hold in states of Maharashtra, Uttar Pradesh, Madhya Pradesh, and Rajasthan. Company has a very focused product portfolio that appeal to metropolitan tastes as well as special tastes or preferences of other cultures and areas.
- During Fiscal 2021 to Fiscal 2023, the company sold their products to countries including Australia, Kuwait, Saudi Arabia, UAE and USA through both direct exports and merchant exporters.
Vertically backward and forward integrated along with established in-house logistics division and machine manufacturing.
- Gopal Snacks Limited has uniquely positioned itself as vertically integrated manufacturing setup with its in-house manufacturing capabilities for machines, raw material such as Chickpea flour (Besan), seasonings, raw snack pellets and owning fleet of trucks for logistics.
- Machinery required for manufacturing of snacks and namkeen is manufactured/ fabricated at their primary plant in Rajkot. This helps in accurate calibration of machinery as per the desired outcome plus saves time and cost by inhouse maintenance.
- Command the highest fixed assets turnover ratio (6.86 in Fiscal 2022) and have the lowest repair and maintenance expenses as a percentage of revenue in comparison to the key snack companies in India.
- Company also owns 263 specially engineered and self-fabricated vehicles for transportation (as on September 30, 2023). Gopal Snacks Limited has the largest in-house transportation fleet as compared to the key snack companies in India
Company’s Manufacturing facilities.
- Company operate six manufacturing facilities comprising three primary manufacturing facilities and three ancillary manufacturing facilities.
- Company’s three primary manufacturing facilities are located at Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat and these facilities primarily focus on the manufacturing of our finished products.
- As of September 30, 2023, the aggregate annual installed capacity of these primary operated manufacturing facilities (including the annual installed capacity for papad which is manufactured at one of our ancillary facilities at Rajkot, Gujarat) was 303,668.76 MT.
Company’s Distribution Network:
- Company has expanded the footprint across India, with products being sold over 523 locations in ten States and two Union Territories as of September 30, 2023. Our distribution network comprised three depots and 617 distributors.
- In addition, as of September 30, 2023, company owned a fleet of 263 logistics vehicles to support our distribution network.
Competition in the Business:
- Some of the key competitors include Balaji Wafers Private Ltd, Bikaji Foods International Ltd, Bikanervala Foods Private Ltd, DFM Foods Ltd, Haldiram, Pepsico India Holdings Private Ltd and Prataap Snacks Ltd
Management Team:
- Mr. Bipinbhai Vithalbhai Hadvani (Designation: Chairman and Managing Director)
- Mr. Dakshaben Bipinbhai Hadvani (Designation: Executive Director)
Objectives of the Issue:
Offer For Sale: (Rs. 650 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 1129.8 | 1356.4 | 1398.5 | 677.9 |
| Net Profit | 21.1 | 41.5 | 112.3 | 55.5 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Gopal Snacks Ltd | 1 | 9.02 | 44.45 | 38.63% | 23.34 |
| Bikaji Foods International Ltd | 1 | 5.14 | 104.67 | 14.15% | 38.22 |
| Prataap Snacks Ltd | 5 | 8.51 | 137.87 | 3.10% | 288.33 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 6th March 2024 |
| Issue Closes on | 11th March 2024 |
| Issue Price | Rs.381 – 401 |
| Face Value | Rs.1 |
| Retail Category Allocation | 35% |
| Minimum Lot | 37 Shares |
| Minimum Investment | Rs.14,837 |
| Issue Constitutes | 13% |
| Issue Size | Rs. 650 cr ($ 78 million ) |
| Market Cap | Rs.4997 cr ($ 602 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,62,09,476 (Rs. 650 cr) |
| Equity Shares Prior to the Issue | 12,46,04,370 |
| Equity Shares after the Issue | 12,46,04,370 |
Also Read : List of Upcoming IPO’s in India.
Also Read: List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th March 2024 |
| Initiation of Refunds | on or Before 13th March 2024 |
| Credit of Equity Shares: | on or Before 13th March 2024 |
| Listing Date: | on or Before 14th March 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.02 | 44.45 | 38.63% | 23.34 |
| Company Contact Info: |
|---|
| Gopal Snacks Limited Plot Nos. G2322, G2323 and G2324 GIDC Metoda, Taluka Lodhika Rajkot – 360 021 Gujarat, India. Tel: +91 28 2728 7370 Email: cs@gopalsnacks.com Website: www.gopalnamkeen.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 81081 14949 E-mail: gopalsnacks@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
