Baba Food Processing India Limited IPO
1. Manufacturing: The company operates a manufacturing unit in Ranchi, India, with two distinct divisions: the high-fiber whole wheat atta division and the refined flour division. In the former, they produce whole wheat atta using advanced Buhler’s Swiss Technology Pesa Mill. In the latter, they manufacture refined flour (maida), tandoori atta, and semolina flour (sooji) using an ultra-modern Buhler’s Swiss Technology Roller Flour Mill. Additionally, they commercialize by-products and waste materials like wheat bran as cattle feed and fish feed, emphasizing a zero-waste and zero-discharge manufacturing process.
2. Brands: The company markets and sells its products under the brand names ‘Panchakanya’ and ‘Bhajan.’ They also sell chickpea flour (besan) and roasted gram flour (sattu) sourced from third-party manufacturers. The company plans to expand its product portfolio by manufacturing chickpea flour (besan) and roasted gram flour (sattu) in their existing manufacturing unit.
3. Leadership: The company is led by Yogesh Kumar Sahu, an experienced professional in the agro trading and milling business. He previously worked with a partnership firm named ‘M/s. Baba Flour Mill’ and played a key role in establishing the company.
4. Geographic Expansion: While currently operating in Jharkhand, Odisha, and West Bengal, the company intends to expand its business operations across India. This includes setting up an ultra-modern roller flour mill and chakki whole wheat atta mill in Patna and broadening its market and customer base to Bihar, West Bengal, Andhra Pradesh, the North East Region, Odisha, and Jharkhand. They’ve even incorporated a wholly-owned subsidiary, Panchakanya Foods Private Limited, for this purpose, with plans to invest in its expansion.
5. Marketing Network: The company has a diverse customer base categorized into five groups:
a) Institutional Manufacturers: They supply products to renowned FMCG companies and food processing companies, including franchises offered by established FMCG companies, to be used as raw materials for finished products.
b) Modern Traders: The company sells its products through modern supermarkets like ‘Reliance SMART’ and ‘JIO Mart,’ which offer convenience and quality to customers.
c) Dealers: A network of dealers is used to penetrate local markets, particularly in Jharkhand and Odisha, and establish a brand presence.
d) Wholesalers: The company directly sells products to wholesalers and large-scale retailers in Jharkhand, Odisha, and West Bengal.
e) Retailers: Products are supplied directly to local retailers in Jharkhand, without intermediaries, ensuring higher profit margins and customer feedback.
6. Future Investments: The company intends to use a portion of the proceeds from a new issue to invest in its subsidiary for expanding the manufacturing unit and market base.
Objects of the Baba Food Processing India Limited IPO:
Baba Food Processing India Limited IPO Details:
|Open Date:||Nov 03 2023|
|Close Date:||Nov 07 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||33 Cr.|
|Lot Size:||1600 Shares|
|Issue Price:||₹ 72 - 76 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Nov 16 2023|
Promoters And Management:
Financials of Baba Food Processing India Limited IPO:
Particulars ( In Lakhs )
|Revenue from Operations||10,655||9,711||18,954||4,135|
|Cost of Material Consumed||8,767||8,060||15,665||3,387|
|Change in Inventories||-35||-200||103||-76|
|Employee benefits expenses||311||299||422||120|
|Depreciation & Amortisation||139||116||163||44|
Comparison With Peers:
|Name of the Company||Revenue (In Crore)||PAT (In Crore)||EPS ( in Rs)||P/E||CMP||Mcap (In Crore)|
|Baba Food Processing (India) Limited||190||5.03||3.08||24.7||76||124|
|Megastar Foods Ltd||268||10||9.62||38.5||293||293|