White Organic Retail hits new 52-week high post business announcements and future outlook

18 Feb 2022 , 01:33 PM

White Organic Retail Ltd (WORL), an integrated Organic Foods player offering end-to-end solutions to its customers. The company has built a robust value chain right from contract / leased farming to supply chain management to direct consumers.

Having acquired 55.01% holding of the company by ‘Suumaya Retail Ltd.’ Through this acquisition, Suumaya group an emerging Diversified Conglomerate Group has marked its footprint into Food & Beverages Retail business through inorganic route. 

The larger platform of “Suumaya Group” substantially widens the sourcing capability of WORL across pan-India. This would aid WORL significantly in terms of expanding its existing product basket and enjoy economies of scale and thereby improve margins, said company in a regulatory filing.

Further, WORL is positioned as a niche player focusing on Organic Products aimed at lifestyle and health conscious customer segment. Its premium positioning would be further strengthened as it would be now able to procure specialized Organic products from various respective States having their speciality in particular products.

Q3 FY21 vs. Q3 FY20 Consolidated Performance Highlights:

• Revenue was at Rs60.76 crore in Q3FY21 as against Rs16.84 crore in the Q3FY20 with a growth of 260 %
• Profit Before Minority Interest was at Rs6.95 crore in Q3FY21 as against Rs0.64 crore in Q3FY20 with a growth of 977 %.
• EPS for Q3FY21 at Rs4.77 (Annualized EPS : Rs. 22.08) in Q3FY21 as against Rs0.44 in Q3FY20.

The company is currently cultivating organic vegetables and fruits from over 120+ farmers in the state of Maharashtra and Gujarat. Having a strong relationship with farmers is one of the major critical edge the company has built, which ensures a reliable and consistent supply of fruits and vegetables of the desired quality and quantity on a sustainable basis.

Robust supply-chain-management is another area the company has specialized with the use of technology, which ensures highest level of freshness, minimal wastages, cost optimization and timely delivery to end customer. The company has established multichannel distribution model through retail stores, e-commerce, digital platform, etc. It is also one of the major suppliers to various reputed restaurants in Mumbai.

Future Outlook :
With the help of the robust growth in the last quarter and the internal accruals, the newly introduced management is aggressively determined and envisions robust growth across all the verticals of the company. The company shall invest upto 25 Million USD in Organic Fruits and Vegetables category through food processing organisations across India, to tie up with 50 FPO’s catering to 20000 farmers to grow Organic fruits and vegetables.

The vision of the new management is creating overall social impact due to organic farming. The company shall design system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity, and this is accomplished by using on-farm agronomic, biological and mechanical methods in exclusion of all synthetic off-farm inputs.

Post-acquisition by the new promoter group and introduction of new management, by using the company’s cash flow, the determined growth plan includes phase wise expansion beginning with opening of 110 retail stores across Mumbai, Pune, Banglore, Delhi, Chennai and other major cities.

The management is determined to develop its own e-commerce website with all integrated digital platform and mobile application and drive sale through omni channel route. Online availability of organic food products and shifting consumer preference towards organic food are among the major factors expected to boost the demand for organic food products in India and across the globe.

At around 1:32 PM, White Organic Retail was trading at Rs949.95 per piece higher by 4.43%, after hitting 52-week high at Rs950 per piece on Sensex.