Sonalis Consumer Products Limited IPO

Apply 0
Avoid 0

i. Sonalis Consumer has absorbed the business line & distribution network of Appetite Food. Since, Appetite Food has already been in active business fovr approximately for three years, it provides an ideal platform for the Company to grow / expand its business in the region.

ii. They have over the years leveraged their understanding of ourtarget markets and consumersegments, product innovation capabilities, distribution network, strategically located manufacturing facilities and have focused our marketing and promotional activities to strengthen our product brands and establish our brands across India.

iii. Their diversified product portfolio includes five categories:

• Granola Bar: These products are made out of 100% fruits and nuts cooked in honey in bar form. The products under this category include C-Bars, IMU-Bars, O-Bars, Pro-Bars and Ragi Bars. We sell these products under our brand “Appetite Food”.

• Laddu: A product made out of grains, pulses, nuts, dry fruits and healthy oils in to spherical form. The products under this category include Mithi Laddu, Multigrain Laddu, Mung Laddu, Oats Laddu, Ragi Laddu and Spirulina Laddu. These laddus are made from various whole-grain flours, Ghee, Jaggery, Dry fruits, Nuts etc. without adding any preservatives or flavors and colors.

• Chakli: Chakli is a deep-fried snack made from rice flour, gram flour, wheat flour or a mixture of lentil flours.

• Chivda: Under this category our product Chivda is a delicious savory snack made with flattened rice (rice flakes/poha), peanuts, daliya dal, cashew nuts, raisins and spices. It is a healthy alternative to high cholesterol and sugar concentrated products.

• Sev: Sev is a noodle type crispy snack made from gram flour

iv. The company manufacture range of products under the private labeling arrangement and contract manufacturing arrangements with our customers and also trade in Agro products.

v. All their products are manufactured in-house at our manufacturing facilities located in Vasai, which enables them to have an effective control over the manufacturing process and to ensure consistent quality of their products.

Competitive Strengths

i. Wide spread sales and distribution network
ii. Diversified Product Portfolio
iii. Experienced promoter and management team

 

Objects of the Sonalis Consumer Products Limited IPO:

The company intend to utilize the proceeds of the Issue to meet the following objects: i. To part finance the Working Capital Requirements ii. General Corporate Purposes iii. To meet Issue Expenses
DRHP of Sonalis Consumer Products Limited IPO
RHP of Sonalis Consumer Products Limited IPO

Sonalis Consumer Products Limited IPO Details:

Open Date: Jun 07 2023
Close Date: Jun 09 2023
Total Shares: 944,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 2.83 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 30 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 19 2023

Promoters And Management:

Ms. Sonali Nilesh Kocharekar, aged 38 years, has been director on the Board since incorporation. She has completed her diploma in Pharmacy from SNDT College, Mumbai; and has completed her bachelor’s in Business Administration (BBA) from Pondicherry University, Directorate of Distance Education. She has more than 12 years of experience being a dietician/nutritionist. She is also a prominent member on the Nutrition Technology Panels Several Organizations. She is Engaged with state-run programs & NGOs to provide low-cost daily interventions of nutrition that address issues of malnutrition & depleted immunity in groups of unprivileged populations through an integrated & sustainable approach. Under her dynamic leadership, the Company will grow immensely. Further, she has been associated with the Company as a Promoter. She is responsible for the manufacturing and overall working of the Company and is instrumental in making strategic decisions for the Company. Ms. Smita Shahshikant Shah, aged 61 years, is the Whole Time Executive Director & Woman Director of the Company w.e.f. March 15, 2022. She is also a Promoter of the Company. She holds a Bachelors degree in Commerce from Marathwada University. Before coming on board, she had co-founded Appetite Food with Ms. Sonali Kocharekar, and they then decided to exponentially grow and extend the scope of business with this venture. Her passion for all things food related along with her great work ethic and philanthropic qualities, makes her a valuable asset for the Company, and drive will help the Company achieve its future goals. She is currently managing new recipe creation in the Company. Mr. Prakash Premkumar Jhangiani, aged 54 years, is the Director of the Company and is associated with the Company since incorporation. He holds a Bachelor degree in Bachelors of Engineering from Bangalore University. He was co-Founder of Mott2, & strategic consultant with a nutraceutical company, before engaging with Appetite Food. He has a vast experience of 25+ years, he have worked with leading MNC’s like ADVA, Huawei & Compaq in various leading roles. He is one of the most valuable assets of the Company, under his guidance; Company will achieve its goals in future.

Financials of Sonalis Consumer Products Limited IPO:

A) Balance Sheet
Particular (In Lakhs) Mar-23
Equity Share Capital 105.50
Reserves 324.95
Borrowings 7.21
Trade Payables 111.84
Other Liabilities 281.69
Total Liabilities 400.75
Net Block 25.60
Capital Work in Progress 0.00
Investments 0.00
Other Assets 0.00
Total NC Assets 25.60
Receivables 36.59
Inventory 398.32
Cash & Bank 93.24
Other Assets 317.29
B) P&L Statement
Particular (In Lakhs) Mar-23
Sales 560.63
Raw Material Cost 770.68
Change in Inventory -398.32
Power and Fuel 0.00
Employee Cost 9.28
Selling and admin 0.00
Other Expenses 55.12
Other Income 0.01
Depreciation 0.36
Interest 0.19
Profit before tax 123.33
Tax 32.07
Net profit 91.27
C) Balance Sheet
Particular (In Lakhs) Mar-23
Cash From Operating Activity
Profit From Operation 123.88
Receivable -36.59
Inventory -398.32
Payable 111.84
Loans And Advances -310.47
Other WC Items 274.87
Working Capital Changes -358.67
Direct Taxes -32.07
Net Cash Inflow from Operating Activity
 -266.72
Cash from Investing Activity
Fixed assets purchased -21.27
Net cash inflow from investing activities
 -21.27
Cash from Financing Activity
Proceeds from shares 100.50
Redemption on debenture 0.00
Proceeds from borrowings 7.21
Repayment of borrowings 0.00
Proceeds from deposits 233.68
Interest paid fin -0.19
Net Cash Flow 86.57

Comparison With Peers:

 
Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sonalis Consumer Products Limited 6 1 4.6 6.6 30 6
DFM Foods Limited 603 -49 -9.7 - 462 2321
Nakoda Group of Industries Limited 55 1 0.7 84.3 55.1 77
Prataap Snacks Limited 1653 20 8.7 92.6 802 1880
Annapurna Swadisht Limited 160 7 4.4 56.4 245 402
*All the data as per FY23.

Recommendation on Sonalis Consumer Products Limited IPO:

Review and Recommendation of Sonalis Consumer SME IPO by IZ team is 2/10 1. They manufacture range of products under the private labeling arrangement and contract manufacturing arrangements with the customers and also trade in Agro products. 2. They have built a nationwide distribution network, supplying products in both general and modern trade. In 2022, they distributed the products in Maharashtra, Gujarat, and Goa, totaling INR 4.20 Cr. The regional focus has helped them penetrate the market effectively. 3. However, as they have acquired the business of partnership firm in 2022 which was only started in 2022, only 1 year financial are given and based on that nothing can be concluded. So, no point of doing further analysis of this company.

Lead Manager of Sonalis Consumer Products Limited IPO:

  1. Expert Global Consultants Private Limited

Registrar of Sonalis Consumer Products Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Sonalis Consumer Products Limited Unit No. 16, Ground Level, Loft & Basement, Sethia Industrial Estate, Tungareshwar Phata Vasai East Palghar Thane, Maharashtra, 410208 Phone: 9867611444 Email: cs@appetitefood.in Website: https://appetitefood.in/

Discussion on Sonalis Consumer Products Limited IPO:

Leave a Reply