(Rs Crore)November 24, 2016: India’s leading fruit juice player, Manpasand Beverages Ltd has reported a 24% rise in net profit at Rs. 5.41 crore for the second quarter ended September 30, 2016 as against net profit of Rs. 4.35 crore in the corresponding quarter of previous fiscal. Net sales for Q2 of FY 16-17 at Rs. 103.81 crore were higher by 34% over previous fiscal’s same quarter net sales of Rs. 77.20 crore. Earnings Per Share (EPS) for Q2FY16 was at Rs. 1.08.
For the six months ended September 2016, company reported a net profit of Rs. 34.06 crore against a net profit of Rs. 20.04 crore in the corresponding period last year, a growth of 70%. Net sales in first half of FY 2016-17 at Rs. 340.35 crore were higher by 52% compared to Rs. 224.35 crore in the previous fiscal. EPS for H1 FY 2016-17 was at Rs. 6.80.
Elaborating on the Company’s performance and future expansion plans, Mr. Dhirendra Singh, Chairman & MD of Manpasand Beverages, said, “The still untapped demand for fruit drinks across India is huge. In spite of having commissioned two new plants in the last one year, we are unable to meet the demand from our existing markets, leave alone expanding our reach further. Company will be also coming up with 4 new plants in different parts of the Country including South India where Manpasand’s presence is minimal. “
Currently the production capacity of Manpasand Beverages is around 1.7 Lakh cases per day and the company is working to double the same in a period of 12 to 18 months.
Speaking on demonetisation and its impact on the company’s business, Mr. Singh said that, this is a bold step taken by the Government and the Country is set to witness a new era in business operations. “There will not be any impact on Manpasand Beverages due to this move as the company has always offered products at affordable price points and continues to focus on smaller packs which range between Rs 5 to Rs 10. Fortunately there is no shortage of these denominations in the Country,” added Mr. Singh.
During the quarter, company has completed setting-up of its new manufacturing facility in Ambala, Haryana and also raised Rs 500 crore through QIP for their expansion plan. Manpasand Beverages operates in the Indian packaged juice industry whose size is about Rs. 8,000 crore and it has been growing at more than 30% per annum in last few years and will maintain that pace in future as well.
The growth potential for organised packaged fruit drink players is very high due to low penetration and small share of the total market which is largely catered to by unorganised players.
About Manpasand Beverages Limited (www.manpasand.co.in)
One of the country’s leading fruit juice players, the Rs 400 crore Manpasand Beverages Limited, has got the unique distinction of being the only pure play company in this sector in the Indian capital markets. It is a niche player in a large, high-growth market. Manpasand Beverages represents the successful story of a visionary first generation entrepreneur, Dhirendra Singh, who has built one of India’s fastest growing fruit juices company and is now ready to take on the global cola giants head-on.
Manpasand Beverages is a fruit drink manufacturing company with a primary focus on mango fruit, which is the leading flavour for juice drinks in India. Company’s mango-based fruit drink, ‘Mango Sip’, is its flagship brand, which is strategically focused towards customers primarily based in semi urban and rural markets. With a view to expand its product portfolio, company has launched two new brands, ‘Fruits Up’ and ‘Manpasand ORS’. Under the ‘Fruits Up’ brand, Manpasand offers fruit drinks and carbonated fruit drinks in different flavours. Under the ‘Manpasand ORS’ brand, it offers fruit drinks with energy replenishing qualities with a primary focus on North East India. Company’s other major fruit juice brands are Apple Sip, Litchi Sip and Guava Sip. In the packaged drinking water its brand is ‘Pure Sip’.
In the fast-growing fruit-based beverages market in India, Manpasand Beverages has emerged as a formidable competitor for the bigger foreign and Indian rivals. Company’s value-for money offerings, strong focus on affordable price points, innovative products (like fruit-based carbonated soft drinks) and distribution strategies are going to be its major strengths.
The company has carved a niche for itself with a strong presence in the tier-2 and semi-rural and rural markets in India. Manpasand’s beverage brands are present in 24 states through more than 200,000 retailers, over 2000 distributors and 200 plus super stockists. The company has two manufacturing facilities at Vadodara in Gujarat, one each at Varanasi in Uttar Pradesh and Dehradun in Uttaranchal and a new one is being set up at Ambala in Haryana. For the year ended March 31, 2015, company reported sales of Rs 360 crore and net profit of Rs 30 crore.