Indian biscuit giant Anmol Industries files for IPO
The Kolkata-based company plans to go public through an offer for sale of up to Rs 750 crore ($110m).
The public issue will consist of an offer for sale by Baijnath Choudhary & Family Trust (Rs 720.4 crore – $105.6m), SKG Land Developers (Rs 22.5 crore - $3.3m), Delta Nirman (Rs 4 crore - $587,000), Anmol Hi-Cool (Rs 2.5 crore - $360,000) and Puneet Mercantiles (Rs 60 lakh - $88,000).
Anmol is the fourth largest biscuit brand and fifth largest cake brand in India in terms of revenue posting a Rs 857.9 crore ($125.8m) operational income and Rs 61.8 crore ($9m) profit for the nine-month period ending December 2017.
Last year, the company consolidated its operations, merging Anmol Biscuits, Anmol Bakers and Anmol Industries into one entity.
Its six manufacturing facilities have a production capacity of almost 300k metric tons per annum (MTPA) for biscuits and more than 8k MTPA for cakes, producing 62 varieties of biscuits – such as crackers, sweet biscuits, health biscuits and cookies – and 26 varieties of cakes, including bar cakes, tiffin cakes and cupcakes.
It has a distribution network across 17 states in India comprising three depots and more than 200 super stockists, who in turn sell products to more than 2,500 local distributors.
Anmol’s biscuits and cakes are sold in approximately 1.8 million retail outlets in India.
India’s biscuit space
According to market research firm Frost & Sullivan, India’s biscuit market was valued at Rs 230bn ($3.37bn) in 2017, and is expected to grow at an 8.2% compounded annual growth (CAGR) rate between 2018 and 2022.
However, the biscuit space – which is dominated by Britannia, Parle and ITC – has not been vibrant in terms of fundraising or acquisition activities.
The cakes and pastries market is expected to grow at a CAGR of 15.1% during the same period.
In the broader snacks space, Prataap Snacks, which makes Yellow Diamond chips, made a strong debut on the bourses last year.