The year started with a very promising note since it marked the beginning of work on
four new manufacturing units. We lived up to the expectations by fulfilling our promise of
expansion and fast tracked the completion of our third new manufacturing unit at Vadodara.
The unit is already functional. The upcoming plant in Varanasi will be operational in next
1-2 months and the plant at Sri City will be up and ready within coming 3-4 months. We
recently completed the ground breaking ceremony of our ninth plant in Khurda, Odisha. With
these units in place, not only will our production capacity double, we will also be able
to generate employment for the local communities.
Another feather in the cap was the partnership we entered with Parle Products Pvt. Ltd.
to jointly distribute our respective brands. Our core strength has been our strong
distribution network in the rural and semi urban markets of India. To deepen this, we
formed an alliance with PPPL since they have one of the strongest distribution networks
across the country and also have a diversified product portfolio that caters to all types
of consumers. Through this partnership, Manpasand will have access to 60 lakh outlets
pan-India for our flagship brand ‘Mango Sip. The response from the first phase of
the partnership in the eastern region of India has been tremendous, where we have
successfully roped in up to 1 lakh outlets of PPPL. This has encouraged us to take up the
phase two of this project in western markets of India. In a few months we plan to take it
to other markets across India and hence have signed a 10 - year agreement with PPPL.
Despite GST rollout and related changes, we continued our pace and were able to offer
quality products to our customers at an affordable price and convenient packs. Our
flagship brand ‘Mango Sip and our one of the most promising carbonated fruit drink
brand, ‘Fruits Up are already widely available in all major modern format stores,
pan India. We are now offering our entire product range through new partnerships with
modern trade stores.
Manpasand has Indias leading brands and market shares in beverages network that is
competitive on a global scale. We are using these assets to deliver higher levels of
profitable growth in our core categories. In 2018-19, we have the most robust platform of
innovation ever launched by our Company. We have materially increased our investment
behind marketing, including strong campaigns behind our flagship brand.
Recently, Mango Sip has been quoted by V-Mart as one of their best selling FMCG brands.
Also, according to a recent data shared by Nielsen, ‘Mango Sip has emerged as the
third largest mango drink brand in the modern trade segment, in the year ending March
2018. ‘Jeera Sip is our take on the age old traditional recipe with an innovative
approach, is also now available through modern trade. We will be creating more such
strategic tie-up in the current fiscal yeartoo.
To cater to new-age and health conscious consumers, we rolled out a new nutritional
drink brand called, Siznal. Siznal is a range of juices with a blend of fruits and
vegetables, sweetened with honey. Offered in four different blends of vegetables and
fruits including beetroot-carrot, orange-carrot, pomegranate-carrot, and cucumber-spinach,
Siznal is targeted at urban consumers. The brand does not contain any preservatives or
added sugar and is high on nutritional values. While our exploration into health based
beverages markets is in the early stages, it is an intriguing opportunity. We are
continuing our research into this emerging market to assess potential paths to growth.
While the blended fruit and vegetable juices have a good market overseas, this segment
is still relatively new in India. In the coming years, by enhancing our product portfolio
and distribution we want to establish ourselves as a widely available affordable health
drink player. A customer-centric approach, value-for money offerings, strong focus on
affordable price points, innovation and research, brand building, production capacity
expansions and strong distribution strategies continue to remain as the Companys major
strengths.
Industry structure and development
The Indian consumers today are increasingly becoming more demanding and conscious of
their lifestyle including food and beverage choices. This change is primarily driven by
spurt in media consumption especially new age media, rising per capita income and greater
health consciousness, in some cases prompting a shift from colas to healthier options.
The market share of fruit juices, nectars and juice drinks stands at around 25.1%,
which is still less than that of carbonated drinks (approx 47.9%) , as per KPMG.
Increasing awareness on the health effects of carbonated drinks has certainly made some
consumers rethink about the consumption of colas.
Non-alcoholic beverage market is the fastest growing segment in India with total market
size of Rs. 13,500 crores. The juice market in India is estimated to grow at a rate of 23
percent till FY 2021, as compared to 9.6 percent for the carbonated drinks market. Indias
per capita soft drink consumption is 1/20th that of the U.S. Rural consumption levels
still standing at 2/3rd that of urban consumption.
Carbonated drinks account for more than half of the soft drink market in India. Mango
based drinks still remain the most popular drinks among Indian consumers. Innovation, new
consumption occasions and focus on execution will be the biggest growth drivers of the
soft drink segment .Consumers are looking for products that are available round-
the-clock, beating seasonality constraints. This brings an opportunity for beverage
makers. Even though traditional and homemade drinks will always remain popular, packaged
beverages are gaining traction with Indian consumers who are now frequently reaching for
their more convenient-to-consume counterparts.
We are focusing our market expansion on three new high growth platforms: health based
beverages, carbonated fruit beverages and Parle-Mango Sip Gold project. Manpasand is now
positioned with a more competitive cost base, high-quality products and powerful brands.
In combination with our people, our values, and our commitment to customers and the
communities we serve, this unlocks exciting potential for the future.
Opportunities
The Company became the countrys first listed beverage company with an IPO in June 2015
and has been catering to preferences and tastes of the rural and urban consumers alike.
Its strong focus on the consumers in the rural and semi-urban markets with a strong
product portfolio that resonates with both the masses and the classes at affordable range,
gives it an edge over the competition. With the experience of growing and expanding from
the ground within India and on account of understanding the preferences and aspirations of
Indians, the Company is better equipped to offering products as per the regional tastes.
The joint distribution deal with PPPL will further deepen the already strong
distribution network that the Company has in the rural and semi urban markets, since the
Company will have an access to PPPLs 60 lakhs outlets robust distribution network across
the country. The dominance of both the companies in small and value packs will create
aformidable synergy in the food and beverage segment of India. Besides expansion across
the country, the company is also looking to expand into other countries as consumers
globally are shifting to health focussed beverages away from carbonated drinks, suits our
business model very well.
Anticipation of, and adaptation to, market changes never ends. Current shifts and
trends include industry consolidation, accelerated cost reduction and the increasing role
of lifestyle and social factors that are influencing food purchasing decisions. The
managementteam views these trends as opportunities. Coupled with MBLs commercial
strengths, we have the most advanced supply chain in the Indian beverages industry and we
are cost competitive with our peers. We have also adopted a sustainability strategy
focused on delivering social, environmental and commercial benefits.
FINANCIAL PERFORMANCE
| Particulars |
31-Mar-18 |
31-Mar-17 |
Growth in % |
| (a) Revenue from Operations |
95,517.47 |
71,711.19 |
33.20 |
| (b) Other Income |
2,978.01 |
1,790.89 |
66.29 |
| Total Revenue |
98,495.48 |
73,502.08 |
34.00 |
| Profit Before Tax (PBT) |
11,790.31 |
8,274.29 |
42.49 |
| ProfitAfterTax(PAT) |
9,999.69 |
7,263.71 |
37.67 |
| EBIDTA |
20,743.15 |
15,768.45 |
31.55 |
| EBIT |
12,082.39 |
8,392.77 |
43.96 |
| NetWorth |
1,24,653.10 |
1,15,351.85 |
8.06 |
| EPS |
8.74 |
6.35 |
-- |
Total revenue for the FY18 stood at Rs 98,495.48 Lakhs, up by 33.20% compared to Rs
73,502.08 Lakhs last year.
PBT and PAT of the Company are increased by 42.49 % and 37.67 % respectively from Rs
8,274.29 Lakhs to Rs 11,790.31 Lakhs and Rs 7,263.71 Lakhs to Rs 9,999 .69 Lakhs.
EBITDA grew up by 31.55 % from Rs 15,768.45 Lakhs to Rs 20,743.15 Lakhs.
Net Worth of the Company is increased to Rs 1,24,653 Lakhs from Rs 1,15,351 Lakhs, up
by 8.06%.
Outlook
After the completion of the pilot project, Manpasand and PPPL will jointly distribute
their respective products in rest of India now. With the signing of the ten year joint
distribution pact with PPPL, the Company is planning to expand its production capacity
across the country to meet the demand. The Company has already completed construction of
one plant and the work on the other two plants is on track. The land for the fourth plant
has been acquired in Odisha and the ground breaking was done recently. With these plants,
the Companys production capacity will increase from 1.50 lakh cases per day to 3.5 lakh
cases per day. Besides expansion across the country, the Company is also looking to expand
into other countries including those served by the global beverage giants as the shift
away from carbonated drinks and the emergence of health-conscious consumers in the
beverages market suits the companys business model well.
From being a merely mango pulp drink maker under the flagship brand Mango Sip,
Manpasand has been enhancing its product portfolio. Currently, apart from its star brand
Mango Sip, Manpasands product portfolio comprises of ‘Fruits Up (carbonated and
juices) , ‘Manpasand ORS, ‘Jeera Sip, ‘Aprilla (carbonated apple juice)
, and ‘Siznal (vegetable and fruit based health drink) , among others.
Banking on the low per capita consumption of juices and soft drinks in the country,
going forward, the Company wants to establish itself in the affordable nutritional drinks
portfolio too. Continuous diversification and adaptation has enabled us to remain relevant
and to provide superior shareholder returns over the long-term; and that process
continues. In the coming years, the Company will be launching more health drinks for urban
areas as well as mass market.
INTERNAL CONTROLSYSTEM The Company has adequate Internal Control Systems and procedures
designed to effectively control the operations at its Head Office and at its various
Plants . The Internal control systems are designed to ensure that the financial and other
records are reliable for the preparation of financial statements and for maintaining
assets.
Independent Internal Auditors conduct audit covering a wide range of operational
matters and ensure compliance with specified standards. Planned periodic reviews are
carried out by Internal Audit. The findings of Internal Audit are reviewed by the top
management and by the Audit Committee of the Board of Directors.
Based on the deliberations with Statutory Auditors to ascertain their views on the
financial statements including the Financial Reporting System and Compliance to Accounting
Policies and Procedures, the Audit Committee was satisfied with the adequacy and
effectiveness of the Internal Controls and Systems followed by the Company.
DEVELOPMENT OF HUMAN RESOURCE/ INDUSTRIAL RELATIONS
During the year, the Company had cordial relations with staff, workers and officers.
The Company continuously monitors its Human Resources requirements to ensure that it has
adequate human skills commensurate with its needs. To update human skills and improve the
employees, the Company continuously organizes workshops on different management area and
also deputes employees to external workshop and seminars. The Company has taken initiative
for safety of employees and implemented regular safety audit, imparted machine safety
training, wearing protective equipments etc.
Our success is built on the strength of many - from the dedicated men and women who
workat Manpasand, to our suppliers, loyal customers and consumers, to our community
stakeholders - and we extend our sincere thanks to all of you. Our leadership team and
Board are energized and excited about the years ahead. We have successfully established a
highly competitive cost structure and have the brands, market shares and growth strategies
to deliver strong financial growth. We look forward to rewarding our shareholders with the
benefits from many years of investment and change.
CAUTIONARY STATEMENT
Certain statements made in this report relating to Companys objectives, projections,
outlook, expectations, estimates etc. may constitute ‘forward looking statements
within the meaning of applicable laws and regulations. Actual results may differ from such
expectations, projections etc., whether express or implied. Several factors could make a
significant difference to the Companys operations. These include climatic conditions,
economic conditions affecting demand and supply, Government regulations and taxation,
natural calamity etc. over which the Company does not have any direct control.
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