Mukka Proteins Ltd

About the Company:

Mukka Proteins Ltd is engaged in the business of manufacturing and export of fish meal, fish oil and allied products and one of the key players of the Fish Protein industry in India.

Company is amongst the first few Indian companies to have commercialised insect meal and insect oil (collectively “Insect Protein”) as an ingredient for aqua feed, animal feed and pet food.

Company manufactures and supplies fish meal, fish oil and fish soluble paste which is an essential ingredient in the manufacturing of aqua feed (for fish and shrimp), poultry feed (for broiler
and layer) and pet food (dog and cat food).

Further, fish oil also finds its application in pharmaceutical products (additionally, Omega-3 pills and related products derived from fish oil are gaining importance as high nutrient
and healthy dietary supplements), soap manufacturing, leather tanneries & paint industries.

Company sells products domestically and also export them to over 10 countries, including Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan and Vietnam.

Company is one of the pioneers of the industry and is also amongst the first few companies to have introduced the steam dried process in India for manufacturing of fish meal.

Company’s Manufacturing Facilities:

Company has 6 manufacturing facilities operated by us, out of which 4 manufacturing facilities are located in India and 2 manufacturing facilities, held through Foreign Subsidiary, namely Ocean Aquatic Proteins LLC is located in Oman.

Further, Company operates 3 blending facilities and 5 storage.

Company’s Manufacturing Capacity:

As on September 30, 2023 company’s annualised aggregate manufacturing capacity is 115050 MTPA of fish meal, 16950 MTPA of fish oil and 20340 MTPA of fish soluble paste.

Raw material Sourcing for the Company:

Company sources fish meal, fish oil and fish soluble paste as our raw materials from partnership firms, namely Ullal Fish Meal and Oil Company, Mangalore Fish Meal and Oil Company, Progress Frozen and Fish Sterilizetion, and Pacific Marine Products, where Company has made substantial capital contribution (collectively “Partnership Facilities”) and also from third party manufacturing units.

The fish meal, fish oil and fish soluble paste, as raw materials are further processed and blended at company’s Blending Facilities in order to cater the demand of our customers.

Company has also entered into contractual arrangement with third party manufacturing units, situated at Sasihithlu (Karnataka), Udupi (Karnataka), Ullal (Karnataka), Taloja (Maharashtra), Porbandar (Gujarat) and Mangrol (Gujarat), for supply of fish meal and fish oil.

Product wise revenue:

Management Team:

Mr. Kalandan Mohammed Haris (Designation: Managing Director & Chief Executive Officer)
Mr. Kalandan Mohammed Althaf (Designation: Whole-Time Director & Chief Financial Officer)

Objectives of the Issue:

Fresh Issue: (Rs.224 cr)

Funding working capital requirements of our Company.
Investment in our Associate, viz. Ento Proteins Private Limited, for funding its working capital requirements.
General Corporate Purpose

Fund Utilization:

Particulars	Amount (Rs. in Crores)
Funding working capital requirements of our Company	120
Investment in our Associate, viz. Ento Proteins Private Limited, for funding its working capital requirements	10

Peer Group Comparison:

Company is engaged in the business of manufacturing of Fish Protein (i.e. fish meal, fish oil and fish soluble paste) and Insect Protein (i.e. insect meal and insect oil), which is an essential ingredient in the manufacturing of aqua feed (for fish and shrimp), poultry feed and pet food.

While there are listed companies which are engaged in the business of manufacturing of aqua feed, they are not directly comparable with our Company since they are our consumers and our product is one of ingredients that they use in the manufacturing of aqua feed products.

Considering the nature and size of the business of our Company the peers are not strictly comparable.

Positives for the Company:

Company is a leading manufacturer and exporter of Fish Protein products.

Company is consistently being awarded by MPEDA, during the last 7 (seven) years for the export performance, inter alia, including as an outstanding performance in export of fish meal, fish oil and allied products for Fiscal 2021, Fiscal 2020 and Fiscal 2019.
Company is a “Three Star Export House” recognised by the Ministry of Commerce since March 20, 2020 and is effective till March 19, 2025. In Fiscal 2023, export of fish meal by our Company was 40,630 MT which represented 18 % of India’s fish meal exports.
Company has been able to penetrate into overseas market including China and Japan that are believed to have high standards for manufacturing, social and environmental compliance and food safety and traceability standards.

Established customer base and strong relationships.

Company has a long established relationships with key customers who are the major producers of aqua feed, poultry feed and pet food.
Company believes that one of the key factors differentiating itself from competitors is the quality of products and customer centric approach by offering products meeting the customers’ specifications.
Company believes that this approach has helped us to not only grow business since inception but has also nurtured and expanded company’s market presence in the industry.
Company exports the products to countries such as, Bahrain, Bangladesh, Chile, Indonesia, Malaysia, Myanmar, Philippines, China, Saudi Arabia, South Korea, Oman, Taiwan and Vietnam.

Strengthening foothold in existing markets and expanding to new geographies.

Company’s manufacturing Facilities, long standing customer relationship and customer centric approach have enabled us to scale up our operations while maintaining the quality of our products.
Company has been able to penetrate into overseas market including China and Japan that are believed to have high standards for manufacturing, social and environmental compliance and
food safety and traceability standards.
Company had a market share of approximately 25% – 30% of the fish meal and fish oil industry in India for Fiscal 2023 and aims to increase the market share by meeting customer demand for fish meal
and fish oil.
Company further aims to deepen the presence in existing export markets such as, China, Chile, Japan and facilitate company’s entry into new markets.

Company plans to pursue strategic inorganic and organic growth opportunities.

In order to grow and expand the business, company continues to evaluate strategic investment opportunities in domestic and international markets with a strategy to further secure the source of key raw material and also to grow and develop the market share and product portfolio such as, alternative protein products.
Company plans pursue opportunities where such acquisitions or arrangements will add value to our business, stakeholders and customers.
These inorganic growth opportunities may include acquisitions, joint ventures, strategic partnerships as well as acquiring the production capacity and / or processing facilities.

Financials of the Company:

(in Crores)	FY 21	FY 22	FY 23	Upto 30th Sept 23
Revenue	609.9	776.1	1183.8	612.8
Net Profit	11.0	25.8	47.5	32.9

Valuation of Peer Group Companies:

Company Name	Face Value	EPS	PE Ratio	RoNW	NAV
Mukka Proteins Ltd	1	2.0	14	34.19%	5.86
Avanti Feeds Ltd	1	20.45	25.00	13.14%	174.45
Godrej Agrovet Ltd	10	15.71	33.23	10.77%	142.78

IPO Details:

Details	Info
Issue Opens on	29th February 2024
Issue Closes on	4th March 2024
Issue Price	Rs.26 – 28
Face Value	Rs.1
Retail Category Allocation	35 %
Minimum Lot	535 Shares
Minimum Investment	Rs.14,980
Issue Constitutes	26.66 %
Issue Size	Rs.224 cr ($ 27 million )
Market Cap	Rs.840 cr ($ 101 million )
Listing at	NSE & BSE
Equity Shares Offered (Fresh)	8,00,00,000
Equity Shares Prior to the Issue	22,00,00,000
Equity Shares after the Issue	30,00,00,000

Also Read : List of Upcoming IPO’s in India.

Important Dates:

Finalization of Basis of Allotment	on or Before 5th March 2024
Initiation of Refunds	on or Before 6th March 2024
Credit of Equity Shares:	on or Before 6th March 2024
Listing Date:	on or Before 7th March 2024

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
2.0	14	34.19%	5.86

Company Contact Info:
Mukka Proteins Limited Mukka Corporate House Door No. 18-2-16/4, First Cross, NG Road Attavara, Dakshina Kannada Mangaluru – 575001, Karnataka, India Tel No: +91 8244252889 Email: cs@mukkaproteins.com Website: www.mukkaproteins.com

Registrar to the Issue:
Cameo Corporate Services Limited Subramanian Building, 5th Floor, No. 1 Club House Road, Chennai – 600 002, India Tel: +91 4440020700 (5 lines) Fax: +91 4428460129 Email: priya@cameoindia.com Website: www.cameoindia.com