MVK AGRO FOOD PRODUCTS (NSE SME)

Feb 29, 2024 - Mar 4, 2024

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M.V.K. Agro Food Product Limited, incorporated on February 2, 2018, operates as a public limited company under the Companies Act, 2013. Registered with the corporate identification number U15316MH2018PLC304795, the company is based in Nanded District, Maharashtra, and specializes in integrated sugar and allied products manufacturing.With a single-location sugar unit boasting a licensed crushing capacity of 2,500 Tones Cane per day (TCD), the company also commercializes by-products such as Molasses, Bagasse, and Pressmud. The business is segmented into Sugar production and its associated by-products/waste products, including co-generation capabilities for power generation. Having commenced sugar manufacturing operations in 2020, the company implemented backward integration to include commercial operations of by-products and waste products, along with co-generation capabilities. Over the years, production capacities for all products have been expanded, with current approved capacities as follows:

·        Sugar: 2,500 Tons cane per day

·        Molasses: 120 Tons per day

·        Bagasse: 750 Tons per day

·        Pressmud: 90 Tons per day

This strategic expansion demonstrates the company's commitment to growth and diversification within the sugar and allied products manufacturing sector, positioning it as a key player in the industry.

 

M.V.K. Agro Food IPO Lead Manager(s)

• Horizon Management Private Limited

Company Financials

Period	30 Sep 2023	Mar 2023	Mar 2022	Mar 2021
Assets	14,804.05	15,471.93	11,602.06	11,445.70
Revenue	6,044.36	9,393.63	13,263.56	2,583.10
Profit	430.07	377.45	319.81	140.41
Net Worth	1,767.74	1,337.67	960.22	640.41
Reserves	1,267.74	837.67	460.22	140.41
Borrowing	6,281.23	9,156.10	6,001.32	7,496.33
Amount in ₹ Lakhs

 

Strength Factors

Wide range of products: Having a diverse range of products can attract a wider customer base and cater to different market segments, potentially increasing revenue streams and market share.

Integrated operations and economies of scale: Integration of operations, where different stages of production or distribution are combined, can lead to cost savings and efficiencies, especially through economies of scale, lowering per-unit costs as production volumes increase.

Strategic location of manufacturing unit: A strategically located manufacturing unit can offer logistical advantages such as proximity to suppliers, customers, transportation networks, or favorable business environments, which can reduce costs and improve operational efficiency.

Cordial and strong relationships with sugarcane farmers: Strong relationships with suppliers, such as sugarcane farmers in this case, can ensure a stable and consistent supply of raw materials, potentially at favorable terms, reducing supply chain risks and fostering long-term partnerships.

Captive power plant: Having a captive power plant can provide a reliable and potentially cost-effective source of electricity for operations, reducing dependence on external power suppliers and minimizing energy costs.

Risk Factors

Price Volatility of Sugarcane and Sugar: Lack of control over the cost of sugarcane or the selling price of sugar poses a risk to profitability, as fluctuations in input costs or selling prices may affect margins

M.V.K. Agro Food IPO Lead Manager(s)

• Horizon Management Private Limited

Mas Services Limited

Phone: (011) 2610 4142
Email: ipo@masserv.com
Website: https://www.masserv.com/opt.asp