Description

The Company established in 2010, is engaged in processing fresh fruits and vegetables using the Individually Quick Frozen (IQF) technology. The current product offering includes peas, carrots, sweet corn, capsicum, cauliflowers & strawberries.
The company was set up with a vision to be able to be self dependent as a producer of food products - an integrated facility. From having a facility processing raw vegetable (already established), to the Ready to Eat / Cook products making the company one of the most cost-efficient producers. Use best-in-class technology to drive value. To provide avenues for value addition through scientific processing and preservation.

The state-of-the art processing facility has:
•Capacity: ~ 5-6,000 MT (at current shifts); can be raised to ~ 7,000 MT with marginal cost.
•The plant has a modular design, so additional lines can be added at a minimal cost; adequate space is available for expansion
•Frozen Stores: The Company has a refrigerated capacity to store ~2,000 MT. Customers procure products on an ex-factory basis i.e. they are responsible for transportation and delivery as well as management of the cold-chain logistics. Provision for expansion of 1000-1200 tons for more frozen storage.

The facility has received a Food Safety System Certificate - ISO 22000:2005 from Det Norkse Veritas (DNV), signifying best quality risk and safety management, and business performance processes
•The Company has imported an Canadian Individual Quick Freezing (IQF) machine, which is the first of its kind machine in India
•This machine has some patented technologies such as a “thumper” which prevents clumping of products and increases the overall quality of the finished products

Financial Performance:
• The Company only in its second year of operation, achieved a turnover of INR 108 Mn in Fy2014, and was marginally net profitable. The company which was built to meet international quality standards, and in a short time managed to attract marquee customers, had serious financial crunch.
• Significant lack of funding which impacted in lack of available working capital funding which impacted both procurement and sales and hence the financial performance
• Currently the business needs INR 155Mn ($2.5mn) funding to turnaround and reach optimum operational level. With the current installed capacity the company can achieve a turnover of approximately INR 250Mn with an EBITDA margin of approximately 18%
• The Company requires an additional funding of INR 140mn ($2mn) to get into the high demand and high margin RTE business. The approximate installed Capacity of the RTE Project will be about 4000 T pa, and in 3-5 years the project could achieve about 75% capacity utilization, with a projected turnover of approximately INR 340 Mn with an EBITDA margin of approximately 25%.

Figures in MN Indian Rupees
Years Revenues EBITDA
2019 205 38
2018 177 37
2017 54 -18
2016 47 -30
2015 85 -40
2014 108 32

Figures in MN USD
Years Revenues EBITDA
2019 3.1 0.6
2018 2.7 0.6
2017 0.8 -0.3
2016 0.7 -0.5
2015 1.4 -0.6
2014 1.7 0.5

Posted Jul 30, 2016

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