Do read my previous posts in this thread for context.
The IPO was in September of last year. The management has executed on multiple fronts; more specifically 1. marketing & sales, and 2. the distribution channel. This is commendable as most of the SKUs are priced at Rs. 10/= or less – FMCG giants usually struggle to crack this market. They now have a significant presence outside of WB, and expanding geographically with every quarter. Management has been able to widen the product portfolio and convince private label manufacturers to partner with them. All this has been done prudently and with a sharp eye on profitably – as reflected in the FY23 numbers.
Right from the time of the IPO, the focus was on the East / North East. In this context, the recent “exclusive contract manufacturing agreement” with Gopal Foods, Mathura is a potential gamechanger. This facility will give them access to all of Delhi, Haryana and Uttarakhand, and large parts of UP, MP and Rajasthan. According to the press release, the unit has a capacity of more the 1200 MT (biscuits, namkeen and snacks); how much of this is exclusive to Annapurna is unclear. If the management can customize, execute and scale in this “uncharted territory”, it will be an asset-light template for profitable growth.
Disc: Continue to remain invested; have bought in the last 30 days. Views biased.
| Subscribe To Our Free Newsletter |
