Manorama Industries Limited

Leading Sal & Mango Specialty Fats Manufacturer

Investor Discussion Docket

Disclaimer

This Investor Presentation has been prepared by Pantomath Capital Advisors Private Limited in consultation with Manorama
Industries Limited (MIL) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This
presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute
an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only
current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be
“forward looking statements”, including those relating to the general business plans and strategy of MIL its future financial condition
and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which
contain words or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or
variations of such expressions. These forward-looking statements involve a number of risks, uncertainties and other factors that could
cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements.
Further, no representation or warranty expressed or implied is made nor is any responsibility of any kind accepted with respect to the
completeness or accuracy of any information. Also, no representation or warranty, express or implied, is made that such information
remains unchanged in any respect as of any date or dates after those stated herein with respect to matters concerning any statement
made in this Investor Presentation. MIL may alter, modify or otherwise change in any manner the content of this presentation, without
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This presentation is strictly confidential. The earlier versions of this presentation, were in draft form, and should not be circulated or
referred to by any person.
2
Manorama Group | Overview

Overview

+ Manorama Industries (‘the company’) is a pioneer in manufacturing of specialty fats & butter from Sal Seeds, Mango Kernel, Kokum, Dhupa &
Mowrah.

+ One of the largest Indian manufacturer of Sal/Mango based specialty fats, which is used to manufacture Cocoa Butter Equivalent (“CBE”), which
in turn is used as an important ingredient in Chocolate & Cosmetic Industries.

+ More than 4 decades of established relationships with chocolate & cosmetic giants such as Ferrero, The Body Shop, Lo’real, Mitsui and global
major edible fats/butter producers such as Adeka (Japan), Fuji fats/butter (Japan) & Walter Rau (Germany) who also make CBE.

+ The company has been directly procuring and sourcing Sal seeds & other tree borne seeds from more than 18,000 villages & 7.8 mn tribals of
Chhattisgarh, Odisha, Jharkhand, Madhya Pradesh, Maharashtra, and others.

Key Products

Sal Stearine Sal Olien Shea Stearine Shea Olien Mango Stearine Mango Olien

Sal Based CBE Shea Based CBE* Mango Butter

* Will supply post setting up of in-house integrated facility

Largest Indian Manufacturer & Exporter of Sal & Mango based specialty fats
3
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018
Manorama Group History

As early as the 1970s M a n o r a m a G r o u p h a d m a d e i t s m a r k o n g l o b a l b u t t e r a n d Fa t s i n d u s t r y w i t h

Netherlands Governme nt publishing special features on the Indian entrepreneur in leading Dutch

newspapers publicizing the vast potential of Indian exotic fats

“Gold lies in the streets of India” published in Dutch Newspaper, 1974

The Manorama Group traces its origins to the mid-1940s, when its
Manorama Group founder Mr. Jankilal Gangaram Agarwal founder Jankilal Gangaram Agarwal (Saraf), used to extract fats/butter
(Saraf) with Mr. Michele Ferrero of the Ferrero Group from seeds at home.
4
 Key Milestones

-Award For CSR & Fair Trade By

Pujya Swami Ram Dev Baba &
Jankilal Gangaram ‘Gold lies in the streets Installation of Installation of De-Nationalization of Shri Ramvilas Paswan at
Agarwal (Founder) of India’ – article India’s Second India’s first Sal seed collection in Globfats/butter India 2017
pioneered extraction published in Dutch Solvent plant solvent Chhattisgarh, - MOU with Chhattisgarh
of fats/butter from Newspaper fractionation plant Jharkhand & Orissa Government
seeds

1940 1950 1974 1975 1979 1982 1991 2005 2014 2015/16 2017 2018

Sets up a semi Signed agreement Installation of the first Incorporation of -Secured ‘Highest Processors Signed major
automated piston with Ferrero Group for Dry fractionation plant Manorama & Exporters of Sal seed & contracts with the
expeller fats/butter supply of Sal/Mango in India Industries Limited Mango Kernel’ Award for the world’s largest
mill based specialty fats past 13 consecutive years chocolate &
- De-Nationalization of Sal cosmetic
seed collection in MP companies

5
Key Products & End Usage

Sal seeds based Fats & butter Mango kernel based Fats & butter Kokum seeds based Fats & butter

6
Key Success Drivers for Manorama - Protection of Growth & Margins

Sal Potential Sal Sourcing Advantage

+ Manorama Industries is based in the heart of the Sal forests & is the leading in sourcing
Sal seeds and other Indian tree borne fats/butter seeds.
Estimated Sal seed
production per annum + Sourcing advantage due to strong relationships with tribal people across four Indian
10 lakh MT states over the last four decades

Estimated Current Utilization

+ Uniquely positioned to source the required quantities of Sal seeds through its well
trenched network
1.5 lakh MT
+ Proactively working with the GOI in policy formulation for fair play in the Sal business
Estimated Available Potential Legacy Client relationships
8.5 lakh MT
+ Well established relationships with chocolate MNCs built over four decades on
account of supply of quality Sal based specialty fats
~10% of the Sal seeds potential is + These products are tailor made to meet their stringent requirements creating a
currently being utilized unique entry barrier over new entrants

+ Majority of Sal seeds i.e. nearly 8.5 lakh MT- Increasing usage of Cocoa Butter Equivalent

which are not sold are just not picked from + Increasing consumption of chocolates and limited availability of cocoa butter
the forest and are wasted currently + CBE demand is likely to further increase in future on account of increasing
awareness and applications across sectors

+ Sal seeds are available in abundance + CBE is the most compatible Cocoa Butter Alternative in terms of physical and
chemical composition

Manorama Industries is uniquely positioned to capitalize on the vast market potential in the specialty fats/butter
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018
7
Direct Supply Chain Network developed over 4 decades

8
Some of the key Clientele

The Company has the order book of INR 143 crore as on FY18-19
9
Manufacturing Process Snapshot

Seed Seed Picking Purchase Centers

Local Transporting Warehousing Transporting to Plants by Rail/Trucks

10
Manufacturing Process Snapshot contd.

Unloading Feeding Shell Solvent Crude Butter

Cooking Cracking & Flaking
Removing Extractor

Refining & Fractionation Sampling Packing Fats & butter are used
Shipment in Chocolates &
Cosmetics

11
Promoters & Key Management

Name & Designation Experience & Responsibility

Mrs Vinita Saraf • > 20 years of experience who oversees the critical function of seed procurement
• Involved in development, design, operation and improvement of systems that create and deliver superior services
(Director)
• Has international exposure in specialty fats & butter

Mr Kedarnath Agrawal
• > 5 decades of experience with leading food processing companies
(Director) • Provides guidance in Processing, Quality Control and Marketing

Mr Gautam Kumar Pal

• Been with the group for close to 2 decades and involved in production & operation control of products
• Focused on quality improvement & developing tailor made products for clients
(Director)

Mr Ashish Saraf • Over 3 decades experience in Sales & Marketing of confectionery & cosmetics products in the export markets – led delegations for export promotion
• Excellent relationship with leading multinationals voz Ferrero, Adeka, Body Shop, Loreal etc
(President) • Established an invaluable sourcing network across key states for seed procurement

Mr Deep Saraf • Deep knowledge of the business and industry gained over the last 2.5 decades
• Ensures efficient operations for resource management, distribution of goods and customer service
(Vice President) • Implements modern techniques and continuous improvement as per international standards

12
 Awards & Recognitions

Star Export House Highest Exporter Awards

Award For Excellence In CSR &

Sustainable Fair Trade Sourcing Given
By Pujya Swami Baba & Shri Ramvilas
Paswan, At The Globfats/butter India
2017

“SHEFEXIL, Ministry of Commerce & 2014-15 2013-14 2012-13 2011 2010 2009
Industry Government of India &
Economic Times Awarded 6 (six)
Excellence in Exports Awards to
Manorama Industries Limited from the FSSC 22000 ISO 22000 Organic Cert ISO 9000 KOSHER HALAL
hands of Mr Suresh P Prabhu, Hon’ble
Minister of Commerce & Industry & Civil
Aviation, Government of India at a
Glittering ceremony in Kolkata amongst
all the industry stalwarts organized by
SHEFEXIL on July 07th, 2018”.

Registered Members
Indian buttereeds
SHEFEXIL Export Award for
and Produce Export
Highest Exporter of Fixed Promotion Council
Vegetable, fats/butter, Cake
& Others
13
 Cocoa Butter Equivalent – Overview & Need

Overview

+ Cocoa Butter, a by product of Cocoa Bean processing, is a key ingredient Chocolate

(100 grams)

used in manufacturing of Chocolates & Cosmetics

Cocoa Solids / Cocoa Butter
Other Inputs (up to 20 grams)
+ Increase in price of Cocoa Butter has necessitated the usage of Cocoa

Butter Alternatives like Cocoa Butter Replacers (“CBR”) Substitutes (“CBS”)

+ Cocoa butter by volume is 20% but by value is 80%

/ Equivalents (“CBE”) as ingredients
+ If 5% of Cocoa Butter is replaced by a cheaper equivalent, the
raw material costs will reduce by ~6-8% - This will be a

+ While CBR & CBS are only partially compatible with Cocoa Butter, CBE is massive cost saving for the chocolate giants

+ CBE costs 50% lower than Cocoa Butter

fully physically & chemically compatible & hence the most suited alternative
+ Governments across the globe have been trying to increase the
usage of CBE in manufacturing of Chocolate

Usage of CBE will improve texture and shelf life of Chocolate without compromising quality
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018 14
 Global CBE Scenario

Rising Global CBE Demand Relationship between Cocoa Butter Prices & CBE
Demand
(000’ tonnes) 216 223
186 192 198 204 210 20%
180
166 168 166 167 175
152 162 153

Change in CBE Demand

over chocolate market
138 149 146 15%

10%

growth
5%
0%
-5%
-
+ Global CBE demand is currently ~180,000 tonnes of which ~90,000 tonnes 10% -40% -20% 0% 20% 40% 60% 80%
is Stearine which is made from processes undergone by Shea / Sal Seeds
Change in Cocoa Butter Prices

Key Drivers

+ Increasing consumption of chocolates and limited availability of cocoa

butter
+ CBE costs ~50% lower than that of Cocoa Butter
+ Improves Texture and shelf life - thereby helpful for brands selling in
tropical climate
+ Helps to match the demand supply gap of Cocoa Butter
+ CBE demand is likely to increase awareness proportionately and
applications across sectors
+ Governments across the globe have been allowing use of CBE
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018 15
 Key factors driving demand for CBE

Growth of
Chocolate Industry

03

Key Factors

Regulatory Increasing Cocoa

Changes Butter Prices

Source: CARE Industry Report on Cocoa Butter Equivalents, 2018 16

 Chocolate Industry Scenario

Global Chocolate Industry Indian Chocolate Industry

(USD Bn) (USD Bn)

3.0
139 147 2.5
117 124 131 2.1
98 107 1.8
1.3 1.5
1.2 1.2

FY 12 FY 13 FY 14 FY 15 FY 16 (F) FY 17 (F) FY 18 (F) FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

(F) (F)
+ World's fastest growing chocolate market with a 13% Y-o-Y sales growth
+ For mature markets, chocolate consumption growth is limited in 2016; Indian consumption of chocolate was ~228,000 tonnes in 2016

(~3%)
+ India Chocolates Market Expected to Cross US$ 3 Billion by 2019
+ Mature markets has per capita chocolate consumption of + The per capita consumption of chocolates has increased from 40 grams
in 2005 to 120 grams in 2013
~11,000 grams per year
+ Large chocolate giants like Ferrero, Mondelez & Mars etc have already
+ For emerging markets, consumption is in the rapid growth phase established their manufacturing bases in India to cater to the rising
– over 4% per annum in Asia, South America & over 7% in demand

Middle East + Consumption has seen an upward swing with the rising income level of
consumers

Source: CARE Industry Report on Cocoa Butter Equivalents, 2018, Mintel 2016 17
Increasing Cocoa Butter Prices

Cocoa Butter Prices

+ From 2003-08, the CBE Market grew over 10% annually due to rising
$ per Cocoa Butter Cocoa Beans
cocoa butter prices
tonne
6500 6800 6550 6800 7000
6000 6300 6400
+ In 2009, the recession resulted in a reduction of chocolate demand
4200 3600
3500
2200 2500
3200 3000 3100 2700
3000 + From 2010-12, Cocoa butter prices went down on the back of the
1800 2500 3200 expectation that the cocoa supply will improve
1500 2700 2500
1000 1600
+ Since 2013, Cocoa butter prices have been supported by a deficit in
cocoa production due to weather conditions & a long term inability of
cocoa crop yields to meet demand

Cocoa Producing Countries Global Cocoa Demand

Brazil, 6000
Americas (000’ tonnes) Africa
Ecuador &
Colombia 15% 5000
Asia Asia
17% 4000
Indonesia,
Africa Latin America
Malaysia & 3000
Ivory Coast,
Papua New 68% 2000 North America
Ghana, Nigeria
Guinea
& Cameroon 1000 Eastern Europe
+ Cocoa Production is limited it requires specific weather conditions 0
Central Europe
+ Cocoa Plantations are being replaced by rubber plantations worldwide

Source: Taste of the future (KPMG), Global Chocolate Market Report, ICCO Report, CARE Industry Report on Cocoa Butter Equivalents, 2018 18
Opening of the Indian CBE Market – Game Changer

Indian CBE Market

+ In 2017, FSSAI approved* the use of upto 5% CBEs in chocolates along

the lines of the European LegiMILation w.e.f 1st January, 2018

+ Such CBE to be used in chocolate manufactured in India has to be

produced out of Indian tree borne seeds such as Sal, Mango, Kokum,
Manorama is the highest
Mahua, Phulwara, & Dhupa.
beneficiary of this deregulation
& is one of the leading player
+ Shea nuts which accounts for major source of speciality fats world over uniquely positioned to source
for producing CBE is not allowed in India plus heavy import duty. the required quantities of Sal
seeds & other Indian exotic
+ With the positive change in the standards of chocolates, the CBE fats through its well
entrenched network to cater
demand is estimated to grow substantially & hence the company has this rising demand
increased its Inventory from Rs.190 Lacs in FY 2016-2017 to Rs. 1803

Lacs in FY 2017-2018 to cater to the domestic demand

+ Indian consumption of CBE is likely to be ~8,000 tonnes per annum in

2018 & projected to go upto ~20,000 tonnes by 2021**

Source: * The Food Safety and Standards (Food Products Standards and Food Additives) Fourth Amendment Regulations, 2017 notified and revised the
standards vide F. No. Stds /SCSS&H/ Notification (02)/FSSAI-2016 ** CARE Industry Report on Cocoa Butter Equivalents, 2018 19
Sources for CBE

Type of seeds Description Geographical Availability

+ Cheaper than Shea

Sal Seeds Central India
+ Available in abundance
+ Provides a high yield of fats/butter
Shea Nuts East & West Africa
+ Facing a major supply constraint
+ Costlier than Sal
Mango Kernel Central India
+ Blends well with Palm-Mid Fraction
+ Costlier than Shea and Sal
Kokum Konkan (South India)
+ Limited availability
+ Contains 50% of valuable fats/butter/butter used
Mowrah for CBE Central India
+ Palm fats/butter replacer
+ Contains 60% of valuable fats/butter/butter used
Phulwara for CBE North India & Nepal
+ Palm fats/butter replacer

Source: CARE Industry Report on Cocoa Butter Equivalents, 2018 20

Sal Seeds: Indian sub-contient has the largest Sal forest in the world

Sal Network Geographical Spread

+ Major collection network of seeds & other forest Sal – widely distributed & economically important tree in India

products:
o Chhattisgarh
o Orissa
o Jharkhand
o Madhya Pradesh
o Nepal

+ Manorama is based in the heart of the Sal forest and

has been procuring the Sal seeds for last 4 decades

+ It has created a brand through its social commitments

(CSR) and procures the material from backward class
tribals

+ The company has a major competitive advantage over

other players in the market
‘Nurture the people who nurture forests’

21
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018
Manorama Industries is at an inflection point

Current Status Future Outlook

Manorama
Industries is Well positioned
among the top to acquire over
most ~7-8% of the
manufacturers of world Stearine
Sal butter & market by 2023
Stearine.

+ Currently producing over 3,000 tonnes of Sal fats/butter & stearine + Total output of CBE will be ~15,000 tonnes by 2023 post setting
annually
up of the integrated state of the art manufacturing facility
+ Over 4 decades of established relationships with chocolate &
cosmetic giants such as Ferrero, Mitsui, Body Shop, Loreal and + Manufacturing facility will enable the company to directly service
global major edible fats/butter producers such as Adeka (Japan) - CBE requirements of legacy customers

Manorama Industries is the leading Indian company catering to the + MIL is the leading company which can service the additional
global stearine demand demand of CBE from India
+ Manorama Industries is the leading player uniquely positioned to
+ Global CBE demand is likely to further increase on account of
source the required quantities of Sal seeds through its well
entrenched network increasing awareness and applications across sectors
22
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018
Building the Scale - Integrated Manufacturing Facility

Overview

+ To set up an integrated state-of-the-art manufacturing plant processing Sal Seeds, Mango Kernel & Shea Nuts located at Birkoni, near Raipur,
Chhattisgarh by 2019

+ All Processes including Crushing, Extraction, Refining , Fractionation & Interstification will take place in one facility
+ Recovery Yield Improvement as Wet Fractionation will result in 70% efficiency as compared to the current Dry Fractionation (60%)

Plant Layout Map

Storage Section Bfats

Preparatory Silo Silo /butt
erer
Seed / Doc Godown

Green Belt
Solvent Extraction Plant

Area
&
Fractionation Plant
Laboratory

Solvent Tanks

Refinery Steam Gate

Bfats/butterer Refinery Interstification Administration

ETP Staff Home

23
Manufacturing Process & Value Addition

Manufacturing Process Value Addition

Sal seeds Main Raw Material

Sal Seeds
Conversion Factors %
Extraction Sal Doc / Meal Product Stage
Quantity Value Sal Seed 100.0%
(kg) (INR)
Sal Crude fats/butter
Sal Crude fats/butter 13.3%
Seeds / Nuts* 1000 16,000
Refining Sal Defats/buttered
Doc 860 5,160 86.0%
Neutralizing/ Bleaching Cake
Olien 48 2,337 Sal Refined
11.9%
N.B Soap Grade fats/butter
fats/butter fats/butter Stearine 72 17,510 Sal Soap/Acid
0.9%
Palm Mid fats/butter
Export Sales
Deodorization Fraction* 28 1,690 Sal Stearine 7.2%
N.B.D CBE 100 28,800 Sal Olien 4.8%
fats/butter Export Sales
*Inputs
Fractionation

Olien Stearine Palm Mid Fraction

+ Price of Input: Sal Seeds – INR 17 per kg

Local Sales + Output (Sal based CBE) priced at INR 245 per kg
Sal Based CBE

24
Source: CARE Industry Report on Cocoa Butter Equivalents, 2018
Project Cost & Means of Finance

Particulars Amount (INR Rs. Lacs)

Land & Site Development 328.85

Shed & Building 729.58
Plant & Machinery 4560.92
Project Cost Electrical Installations 184.08
(To set up state of the art
Deposits
integrated manufacturing facility) 24.00
Contingencies and other costs 129.00
Preliminary and Pre- Operative Expenses 70.00
Margin money for Working Capital ( From
FY 2019-20) 1973.57
Total 8000.00

Particulars Amount (INR Rs. Lacs)

Means of Finance Initial Public Offering 5600.00

Internal Accruals 2400.00

Total 8000.00
25
 Financial Highlights

INR in lakhs

TOTAL REVENUE EBITDA PAT

1851
22,189
1036

14,638
13,344 13,169

10,533

462 432 431

367
108 138
90 94

FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18

20.46% CAGR 41.45% CAGR 84.12% CAGR

26
Balance Sheet

INR in lakhs
Particulars FY18 FY17 FY16 FY15 FY14
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share Capital 755 216 216 176 175
(b) Reserves and Surplus 1,717 1,221 1,084 788 690
Non-current liabilities
(a) Long-term Borrowings 9 0 9 27 22
(b) Long –term Provisions 15 12 9 6 4
Current liabilities
(a) Short-term Borrowings 1,782 1 466 330 1,120
(b) Trade Payables 103 717 152 130 45
(c) Other Current Liabilities 35 85 64 190 45
(d) Short Term Provisions 259 9 23 14 20
ASSETS
Non-Current Assets
(a) Fixed Assets 395 251 280 273 248
(b) Non-Current Investments - 1 1 1 1
(c) Deferred Tax Assets (Net) 65 46 35 22 11
(d) Long-term Loans and Advances 16 6 6 6 3
Current assets
(a) Inventories 1,803 190 551 286 761
(b) Trade Receivables 158 107 38 100 316
(c) Cash and Cash Equivalents 1,912 1,574 1,018 698 659
(d) Short-term Loans and Advances 109 60 44 273 117
(e) Other Current Assets 218 26 50 1 4
TOTAL 4,676 2,261 2,023 1,660 2,120
27
Profit & Loss Statement

INR in lakhs
Particulars FY18 FY17 FY16 FY15 FY14
Revenue from Operations 21,998 14,548 13,104 13,253 10,440
Other Income 191 90 66 90 93
Total 22,189 14,638 13,169 13,344 10,533
Expenses:
Cost of Material Consumed 3,440 2,978 3609 4,369 1,065
Purchase of Traded Goods 16,001 9,122 7496 5,927 8,418
Change in Inventory (1,522) 361 (339) 513 (489)
Employees Benefit 299 298 249 183 108
Other Expenses 2,121 1,512 1,724 1,919 968
EBITDA 1,851 367 431 432 462
Depreciation & Amortization Expenses 71 82 86 69 61
EBIT 1,781 285 345 363 401
Finance Charges 190 80 178 219 277
EBT 1,591 205 167 144 124
Tax Expenses:
Current Tax 574 79 72 61 51
Deferred Tax (19) (11) (13) (11) (16)
PAT 1,036 138 108 94 90
28
Profit & Loss Statement – Past 3 years Segmented Financials

Particulars (INR Lacs) FY 18 FY 17 FY 16

Manufacturing
Revenue from Operations 6,207 5,784 5606
Other Operating Income 191 90 66
Total Revenue from Operations 6,398 5,874 5,671
Identifiable Operating Expenses 2,081 2,879 3,270
As a % of manufacturing revenue 32.52% 49.01% 57.66%
Allocated Operating Expenses 2,435 1,717 1,790
As a % of manufacturing revenue 38.06% 29.24% 31.56%
Depreciation 71 82 86
As a % of manufacturing revenue 1.10% 1.40% 1.52%
Operating Income 1,812 1,196 526
Operating Income Margin % 28.32% 20.36% 9.28%
Trading *
Revenue from Trading 15,791 8,764 7,498
Identifiable Operating Expenses 15,838 9,588 7,496
As a % of trading revenue 100.30% 109.40% 99.98%
Allocated Operating Expenses - 3 -
Income / Loss from Trading (47) (826) 2
As a % of trading revenue -0.30% -9.43% 0.02%

Total Revenue 22,189 14,638 13,169

Total Operating Income 1765 369.48 528
Unallocable expenses 174 165 361
PBT 1,591 205 167
Tax 555 67 59
PAT 1,036 138 108

Consolidated ROCE % 41.77% 19.79% 19.46%

Consolidated RONW % 41.89% 9.57% 8.33%
Consolidated Debt Equity Ratio 0.73 - 0.37
*The company has stopped its trading activities from the current financial year 29
 Cash Flow Statement

(INR in lakhs)
Particulars FY18 FY17 FY16 FY15 FY14
A) Cash Flow From Operating Activities :
Net Profit before tax 1,591 205 167 144 124
Adjustment for :
Depreciation 71 82 86 69 61
Interest Paid 175 69 122 208 97
Interest Income (143) (87) (60) (84) (90)
Provision for Gratuity expenses 4 4 3 3 0
Profit on Sale of Investment (10) - - - -
(Profit)/Loss on Sale of Assets 24 0 - - -
Prior Period Gratutiy adjusted with Reserves - - - - (3)
Operating profit before working capital changes 1,711 272 319 340 190
Changes in Working Capital (2,543) 892 (119) 772 (106)
Cash generated from operations (832) 1,164 200 1,112 83
Less:- Income Taxes paid (355) (98) (69) (72) (67)
Net cash flow from operating activities (1,187) 1,066 131 1,039 16
B) Cash Flow From Investing Activities :
Net Purchase/Sale of Fixed Assets (234) (54) (93) (95) (20)
Investment made/Sold during the year 10 - - - -
Increase/(Decrease) in Long Term Loans and Advances (10) 0 (1) (2) 5
Interest Income 143 87 60 84 90
Net cash flow from investing activities (90) 33 (33) (14) 74
C) Cash Flow From Financing Activities :
Proceeds from Issue of Share Capital - - 227 6 32
Increase/(Decrease) in Short Term Borrowings 1,782 (465) 136 (790) 44
Increase/(Decrease) in Long Term Borrowings 9 (9) (17) 5 (20)
Interest Paid (175) (69) (122) (208) (97)
Net cash flow from financing activities 1,616 (544) 223 (987) (41)
Net Increase/(Decrease) In Cash & Cash Equivalents 339 555 321 39 49
Cash equivalents at the beginning of the year 1,574 1,018 698 659 610
Cash equivalents at the end of the year 1,912 1,574 1,018 698 659 30
IPO Highlights

Details Particulars
Issuer Manorama Industries Limited
Issue Type Book Built Issue
Issue Price Rs. 181-188
Bid/ Offer Opens On 21st September, 2018
Bid/ Offer Closes On 25th September, 2018
Lot Size 600
IPO Venue BSE-SME
Issue Size Upto 34,04,400 Equity Shares of Rs. 10 through Fresh Issue
Market Maker Portion Upto 1,71,000 Equity Shares
QIB Upto 5,32,200 Equity Shares
Issue Structure
Retail Portion Upto 13,50,600 Equity Shares
Non-Retail Portion Upto 13,50,600 Equity Shares

Book Running Lead Manager

31
Issue Structure

Aggregate Nominal Price

Particulars No. of Equity Shares
(INR In Lakhs)
Issue, Subscribed and Paid up capital before the Issue 77,23,510 772.35

Fresh Public Issue 34,04,400 340.44

Issue, Subscribed and Paid up capital after the Issue 1,11,27,910 1,112.79

Pre Issue Holding Post Issue Holding

Particulars
(%) (%)

Promoter & Promoter Group 85.99 59.69

Others 14.01 40.31

32
Object of the Issue

• Establishing an integrated Greenfield project for manufacturing of CBE / specialty fats/butter

and tailor-made products at Birkoni, near Raipur, Chhattisgarh.
• General Corporate Purposes.

Net Proceeds from the Issue

Sr. No. Particulars Amount (INR in Lakhs)

Establishing an integrated Greenfield project for manufacturing of CBE /
1. specialty fats/butter and tailor-made products at Birkoni, near Raipur, 5,600.00
Chhattisgarh.
2. General Corporate Purposes [●]

33
Investment Rationale

Niche Scalable
Un-parallel Sourcing
Products with high Scale Marquee Clients
Network
margin

The Company plans to The Company has been

setup a new state of directly procuring and
The Company is into the art manufacturing sourcing Sal seeds &
production & supply of facility which will take other tree borne seeds
The Company has more
CBE, butter products their stearine butter from more than 18,000
than 100+ customers
out of forest seeds, production to ~18,000 villages. This process
with many MNC Clients
mango kernel waste, tonnes resulting in a engages 7.8 mn tribals
such as Loreal, Ferror,
which are used in ~7-8% global stearine of Chhattisgarh,
Body Shop, Adeka
chocolates, market share. This shall Odisha, Jharkhand,
Corporation etc
confectionary food result into 600cr of Madhya Pradesh,
item sand cosmetics. turnover @100% Maharashtra, Bihar,
capacity (estimated to and West Bengal to
be achieved by FY21) some extent.

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Thank you!
Book Running Lead Manager Issuer Company

Pantomath Capital Advisors Pvt. Ltd. Manorama Industries Limited

406-408, Keshava Premises, Behind Family Office No 403, 4th Floor, Midas, Sahar
Court, Bandra Kurla Complex, Bandra (East), Plaza, Andheri Kurla Road, Andheri East,
Mumbai – 400051, Maharashtra, India Mumbai- 400059

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