Vadodara-based fruit drinks maker and marketer Manpasand Beverages Pvt Ltd has filed its draft red herring prospectus (DRHP) with market regulator SEBI to raise as much as Rs 400 crore ($65 million) through its initial public offer (IPO).
Manpasand Beverages essentially manufactures mango juices and is known for its brand Mango Sip. It has a strong presence in tier II and rural markets in India and besides Mango Sip also sells products under the Manpasand ORS and Fruits Up brands.
It has three manufacturing facilities in Vadodara, Banaras and Dehradun. It is targeting to achieve revenue of Rs 500 crore in the current financial year against nearly Rs 300 crore in the year ended March 31, 2014. Majority of its revenue comes from small towns and rural markets.
This would mark another public float of a PE backed company this year. A majority of firms filing for IPOs with the positive turn of the primary market since April this year count a PE firm as a shareholder.
In particular, it would also mark another of SAIF Partners' firm to go public. The venture and growth capital investment firm has been particularly successful in taking a clutch of its portfolio firms to the public market. These include MakeMyTrip, Just Dial, Speciality Restaurants and Lovable Lingerie.
Here's a snapshot of the proposed IPO
* Issue of shares to garner up to Rs 400 crore ($65 million).
* Bankers: Kotak Mahindra Capital, India Infoline and ICICI Securities.
Use of proceeds
Of the total Rs 400 crore, it plans to use Rs 140 crore to set up the new facility in Vadodara and Rs 37 crore to modernise its existing unit in the city. It would also spend Rs 22 crore to set up a new corporate office in its home city and plans to use Rs 84 crore to repay debt. The rest is for general corporate purposes.
Launched in 1997 by Dhirendra Singh, through a proprietorship firm, it has a presence across 23 states in India, with an especially strong outreach in the under penetrated semi urban and rural markets. In addition, it presently offers fruit drinks in apple flavour under the ‘Sip’ brand, as ‘Apple Sip’. In July 2014, it launched Fruits Up brand, a carbonated fruit drink in grape, orange and lemon flavours.
It also recently launched energy drink Manpasand ORS in apple and orange flavours and commenced marketing of Pure Sip brand of bottled water. Processed at a third-party facility, it currently selectively distribute free bottles of Pure Sip along with Mango Sip.
In the past, it also selectively manufactured and distributed premium fruit juice drink under the ‘Fons’ brand, with a relatively high fruit content in different flavours.
It currently manufacture products at facilities located at Vadodara and Varanasi. The combined installed capacity for these facilities is 30,000 tetra pak cases per day and 30,000 PET bottles cases per day for fruit drinks and 10,000 PET bottles cases per day for carbonated fruit drinks. In addition to these facilities, it has acquired a third manufacturing facility at Dehradun from UK Agro. This unit has an installed capacity of 5,000 PET bottles cases per day for fruit drinks. It is also in the process of setting up another manufacturing facility at Vadodara.
Its distribution network as on July 31, 2014, includes 54 consignee agents and 472 distributors spread across 23 states in India to whom it sells directly. In addition, its consignee agents and distributors also engage a number of super stockists, other distributors and sub distributors who distribute the products to a number of retail outlets.
In addition, for our ‘Fruits Up’ brand of products, it is establishing a separate exclusive distribution network.
The partnership firm converted into a limited company in FY11.
It raised Rs 45 crore three years ago from SAIF Partners and early this year pulled in Rs 45 crore more from the existing investor. In addition, it also raised Rs 26.25 crore from Aditya Birla PE's Sunrise Fund, as part of the pre-IPO round.
SAIF Partners currently owns around 29.8 per cent while Aditya Birla PE holds 3 per cent stake.
Its net sales for fiscal 2012, fiscal 2013 and fiscal 2014 was Rs 85.7 crore, Rs 240.2 crore and Rs 294.3 crore, respectively, showing a CAGR of 85.29 per cent. Its EBITDA in the same period rose from Rs 14.3 crore to Rs 39.08 crore to Rs 45.74 crore, showing a CAGR of 78.63 per cent. Its PAT rose from Rs 6 crore to Rs 22.4 crore to Rs 20.48 crore in the corresponding period, recording CAGR of 83.68 per cent.
For the four-month period ended July 31, 2014, its net sales was Rs 146.1 crore, EBITDA was Rs 26.48 crore and PAT was Rs 15.08 crore.
(Edited by Joby Puthuparampil Johnson)