21 Tweets 9 reads Jan 06, 2023
#Manorama Industries Ltd. -
👉Co. is leading global producer & suppliers of specialty fats & butters from tree-borne & plant-based seeds.
👉A Techno-Funda 🧵on #Manorama Industries Ltd.
Technical View 👇
About:
👉Co. is major producer of Cocoa Butter Equivalent (CBE) from shea, sal & mango seeds collected by the forest tribal community (18,000 collection centres operated in India) & converts them into products used in premium chocolates, confectionary & cosmetic products.
👉Co. has a total installed capacity of 15,000 MTPA for end products (fractionation capacity) through a vertically integrated capacity set up in Birkoni, Raipur.
👉Business Segments :
👉Revenue Break-up:
Exports - 38%
Domestic sales - 62%
👉Sales Break-up (RM-Wise):
Shea nuts (imported from Africa) & Sal Seed Products– Majority of its sales
Mango kernel Products- Balance sales
👉Client Base -
World’s leaders in chocolate, confectionery & cosmetics sectors
👉KEY RAW MATERIALS👇
👉KEY FINISHED PRODUCTS 👇
👉CAPEX
After Covid, Co. is operating at Fractionation & Refinery Capacity of 15000 MT each (65-70%).
👉Co. has made preferential allotment of Rs. 102 Cr in July 2021 for capacity expansion to 40,000 MTPA each at Birkoni facility, which is expected to be commissioned by Q3FY23.
Considering the full utilization, it is likely to more than double the refining capacity likely lead to generate close to Rs. 350-375 Cr of sales.
It Includes:
👉Setting up new fractionation & new refinery plant 25000 MTPA each
👉A 300 TPD solvent extraction plant to save additional expense
👉Warehouse for storage of Seeds, Shea nut & De-oiled cake
👉Construction of storage tanks of 2000 MT for storage of butter & fats.
👉UPDATE ON BROWNFIELD CAPACITY EXPANSION 👇
NEW WAREHOUSE & SOLVENT EXTRACTION PLANT
New Products 👇
👉Co. is looking forward towards entering into Business-to-Consumer (B2C) segment & are currently developing a range of new products.
👉In the business-to-business (B2B) segment the company has developed a heat-tolerant CBE (CBE-HT) for tropical countries.
Government Initiatives
👉Govt. support through incentives & subsidies given for agriculture, vegetable Butter, Fats & food processing businesses. In addition, the liberalization & opening of global trade has created a significant opportunity for international collaboration.
👉The Central & State Govt. have developed policies for food processing & value-added product supply.
➡️Atma-Nirbhar Bharat & SAMPADA are two such Government policies (Mega Food Park).
Positive Triggers
👉Co. has a sourcing advantage due to its strategic location in India’s forest-region & its strong relationship & network with the local tribals, who are well-versed with the forest topography.
Contd...
👉Co. has established a state-of-the-art integrated manufacturing plant. It’s a high-tech plant that can handle everything from crushing to extraction to refining & fractionation to meet the growing demand for CBEs.
Contd...
👉The plant is 550 KMs from Visakhapatnam port.
Upcoming Raipur-Visakhapatnam Expressway will reduce the transportation & logistics by 6-7 Hours & also save the fuel & freight cost.
Contd...
👉The Company is creating new tailor-made products for the spreads, confectionery, bakery, culinary & nonfood, health drink, & personal Development Centre care markets.
Risks
👉As the Co. functions in Tribal Regions, any negative developments in such areas as a result of Naxalite activity, might have an indefinite negative impact on operations of Company.
👉Continuous innovative & improved product quality leads to higher margins across categories, while reducing the danger of commoditisation.
👉Forex rate changes have major influence on Co. financial performance, as Manorama is primarily an export-oriented company.
Contd...
👉Shift in consumer tastes, spending patterns, economic recessions can lead to decrease in demand.
Thanks☺️
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