M.V.K. Agro Food Product Ltd IPO

Apply 0
Avoid 0

This company, operational since 2020, has quickly established itself as a key player in the sugar industry, with a focus on integrated production and the commercialization of by-products and waste products derived from sugar manufacturing.

Key Highlights of the Business:

  • Core Operations: The company operates from a single location with a licensed crushing capacity of 2,500 Tones Cane per Day (TCD), engaging primarily in the production of sugar and, subsequently, in the commercialization of by-products such as Molasses, Bagasse, and Pressmud.
  • Expansion and Diversification: Since its inception, the company has expanded its production capacities across all its product lines. A significant strategic move includes the proposal to diversify into the manufacturing of Ethanol, Bio-CNG, and Fertilizer, utilizing the backward integration of Molasses and processing Bagasse and Pressmud. This move aims to create additional revenue streams and further solidify the company’s market position.
  • Capacity Overview:
    • Sugar: 2,500 TCD
    • Molasses: 120 Tones per day
    • Bagasse: 750 Tones per day
    • Pressmud: 90 Tones per day
  • Investment in Greenfield Projects: The company plans to invest ₹3,488.17 lakhs and ₹1,750.00 lakhs towards establishing manufacturing units for Ethanol and Bio-CNG plus Fertilizer, respectively. This initiative represents a forward-thinking approach to leveraging waste materials for generating additional industrial and consumer products.
  • Marketing and Distribution: The company employs a diversified marketing strategy, engaging domestic brokers for the local distribution of sugar to institutional manufacturers and wholesalers, and partnering with export-oriented commodity traders for international sales. This dual approach has enabled the company to establish a significant brand presence both domestically and internationally.
  • Integration and Sustainability: The company boasts a completely integrated production facility that emphasizes zero wastage. Through the effective commercialization of by-products and waste materials, it operates as a zero discharge unit, showcasing its commitment to sustainability and efficient resource utilization.
  • Track Record and Business Model: With a successful track record, the company has developed an efficient business model focusing on stringent control over raw material procurement, manufacturing operations, inventory management, and distribution logistics. Adherence to quality standards and responsiveness to consumer preferences underline the company’s operational excellence.


This business overview reflects a robust and forward-looking approach by a company deeply entrenched in the sugar industry yet eager to innovate and expand into related sectors. Through strategic diversification, sustainable practices, and a solid operational framework, the company is well-positioned to capitalize on emerging market opportunities while contributing to environmental sustainability. Its integrated business model, focusing on zero wastage and the commercialization of by-products, sets a benchmark for operational efficiency and environmental responsibility in the industry.

Objects of the M.V.K. Agro Food Product Ltd IPO:

The Net Proceeds are proposed to be used in the following manner: i. Setting up a greenfield unit in Nanded, Maharashtra for (i) manufacturing Ethanol and (ii) generation and bottling of Bio-CNG and Fertilizer 5,238.17 ii. General corporate purposes

M.V.K. Agro Food Product Ltd IPO Details:

Open Date: Feb 29 2024
Close Date: Mar 04 2024
Total Shares: 5,490,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 65.88 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 120 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 08 2024

Promoters And Management:

Marotrao Vyankatrao Kawale, aged 58 years, is the Promoter and Managing Director of the Company. He had attended the Marathwada University to pursue bachelor’s degree in arts. He started his career as a school teacher and was previously associated with Nutan Vidyalaya Education Society in the capacity of an assistant teacher. He has vast knowledge and experience in the field on management and manufacturing of sugar, jaggery, ethanol, milk product and dairy for over 20 years. Presently, he supervises the operational management of the Company. He has played a key role in growth and development of the Company. Sagarbai Marotrao Kawale, aged 48 years, is the Promoter and Non-Executive Director of the Company. She does not hold any formal educational qualification. She is a farmer and has more than 20 years of experience in farming including sugarcane farming. Ganeshrao Vyankatrao Kawale, aged 62 years, is the Promoter and Non-Executive Director of the Company. He does not hold any formal educational qualification. He is a farmer and has more than 30 years of experience in farming including sugarcane farming.

Financials of M.V.K. Agro Food Product Ltd IPO:

Particulars ( In Lakhs )
Revenue from Operations 2,283 13,067 9,328 6,013
Other Income 300 196 66 32
Total Revenue 2,583 13,264 9,394 6,044
Cost of Materials Consumed 6,709 8,983 8,920 772
Manufacturing Expense 259 513 475 157
Changes in Inventories -5,306 1,852 -2,667 3,388
Employees Benefit Expenses 239 505 649 303
Other Expenses 150 208 356 100
EBITDA 534 1,202 1,661 1,325
Depreciation & Amortisation 45 179 227 164
Finance cost 303 605 943 594
EBIT 489 1,023 1,434 1,161
OPM (%) 20.66% 9.06% 17.68% 21.93%
PBT 185 418 491 568
Tax 45 98 114 137
PAT 140 320 377 430
NPM (%) 5.44% 2.41% 4.02% 7.12%
No.of Shares 154.90 154.90 154.90 154.90
EPS 0.90 2.06 2.43 2.77

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
M.V.K. Agro Food Product Limited 93 4 2.43 49.2 120 186
Ugar Sugar Works Ltd 1,794 103 9.16 13.6 83.1 935
Dwarikesh Sugar Industries Ltd 2,103 105 5.57 14.1 80.1 1,508
Balrampur Chini Mills Ltd 4,666 284 14.09 12.9 376 7,576
Dhampur Sugar Mills Ltd 2,460 158 23.72 11.4 247 1,638
* All the data is as per FY23.

Lead Manager of M.V.K. Agro Food Product Ltd IPO:

  1. Horizon Financial Pvt Ltd

Registrar of M.V.K. Agro Food Product Ltd IPO:

  1. MAS Services limted

Company Address:

M.V.K. Agro Food Product Ltd GUT No. 44 and 46 Kusumnagar, At Post Waghalwada, Umari, Nanded – 431 807 Phone: +91 862 309 4480 Email: info@mvkagrofood.com Website: https://mvkagrofood.com/

Discussion on M.V.K. Agro Food Product Ltd IPO:

1 Comment

Leave a Reply