An Indian Food Manufacturer is looking to raise funds in the form of an equity investment by divesting a certain portion of its company. The company deals mainly in wholesale trading but recent spikes in demand have made it necessary for it to have its own manufacturing plant.
At present, the company supplies raw papad to customers across 40+ industries with monthly sales of more than USD 0.15 million. Chorafali and Mathiya tend to be seasonal items but nevertheless, their sales crossed USD 0.36 million and sales for Khakhra crossed USD 0.12 million.
75% of its sales take place at industrial canteens through various contractors and tie-ups with companies such as Gujarat Fluro Chemicals, Nosil, SRF, JB Chemicals, Sterling Auxiliary, China Steel, GNFC, OPEL, and ONGC. The remaining sales take place through its retail distribution network and the products are sold directly over the counter or as part of organized stalls.
It has a strong relationship with its contractors and its credit period ranges from 45 to 60 days.
The company is involved in the wholesale trading of food items traditionally enjoyed in Gujarat such as Papadum, Khakhra, Chorafali, and Mathiya, as well as other items such as tea, sugar, rice, and edible oils. It supplies its products mainly to industrial canteens, restaurants, and hotels, as well as to distributors for retail trade.
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The company is looking to raise funds by divesting stake in the company. Funds raised would be used for building its own manufacturing unit in Gujarat on the back of a constant rise in demand
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