Ganesh Grains plans to strengthen its presence, enter South and also parts of central and northern India
Regional staple food brand Ganesh Grains has used the Rs 100 crore infused by Motilal Oswal PE fund to become debt-free this year, and has chalked out an ambitious plan to more than double turnover from Rs 600 crore this year to Rs 1,500 crore by 2021.
An IPO for a likely exit by the PE fund by that time could be expected, leading to rich dividends for Motilal Oswal with the Ganesh brand growing with CAGR of 25%.
“We have now become debt-free. Before MOPE came on board, we had a debt of Rs 125 crore. The primary fund infusion of Rs 60 crore into the company then was used to pay off the debt while the balance has been paid off from internal accruals this year,” Manish Mimani, managing director, Ganesh Grains, said.
The rest of Rs 40 crore fund infusion which from Motilal Oswal Private Equity Investment Advisors’ India Business Excellence invested in October 2016 was paid out to promoters and other shareholders for a minority stake.
The firm, which has so far remained a regional brand, now plans to strengthen its presence in most of the eastern region, enter South and also parts of central and northern India in UP and Delhi.
“We have very aggressive, but very achievable plans for raising our revenues to more than Rs 1,500 crore by year 2021, delivering an operating profit of 12-14%. Currently, we are focused only on pulses and grains, but future growth would come from several product categories, including spices and edible oils under development stage,” he said.
“There are no plans for an IPO now. First, we need to achieve our targets set for 2021. Then we may intend to do it. We would be investing Rs 25 crore in expanding our distribution set up and bring out new product offerings by using our internal accruals,” Mimani told DNA Money.
PE funds typically invest with an exit planned in five years, which would coincide with the execution of Ganesh’s plans for 2021.
The packaged staple food category offers significant room for growth with only 3-4% of about 92 million tonne of crop sold in packaged form. Yet, the competition is restricted with only large players like ITC, Pillsbury or Cargill in the market.
NOT JUST STAPLE
- Ganesh Grains plans to strengthen its presence, enter South and also parts of central and northern India
- It has aggressive plans to raising our to more than Rs 1,500 crore by year 2021
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Ganesh Grains")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}