Incorporated in 2015, Annapurna Swadisht Limited is a manufacturer of snacks and food products, namely, Fryums, cakes, candy, namkeen, chips and Gohona Bori.
Annapurna Swadisht Limited sells more than 12 Lakh packets of products daily. The company is one of the largest FMCG players in Eastern India and we are the fastest-growing segment in Fryums, Cakes, Candies, Namkeen, and Potato Chips.
Annapurna Swadisht Limited has two manufacturing units one in Asansol with a constructed area of approx. 50,142 sq. ft. and in Siliguri with a constructed area of approx. 35,000 sq. The daily production capacity of the Asansol manufacturing unit is 15 MT of Fryums, whereas the daily production capacity of the manufacturing unit at Siliguri is 10 MT of Fryums.
The company’s products are marketed under its own brand names Jackpot, Chatpata Moon, Balloon, Finger, Rambo, Makeup Box, Dhamaka, Phoochka, Jungle Adventures, Ringa, Bachpan Ka Pyaar, Kurchure, Cream Filled Cake Vanilla, Cream Filled Cake Litchi, among others.
Annapurna Swadisht Ltd has been certified by the Food Safety and Standards Authority of India (FSSAI) for the quality management systems of our Company and our products.
As of the Red Herring Prospectus, the company has employed 235 employees including administrative staff, skilled, semi-skilled, and unskilled labour, and has 225 employees on a contractual basis as of July 31, 2022. As of June 30, 2022, The company’s distribution network included 300 nos. of Distributors and 80 Super Distributors.
Excerpts from the Interview:
Q. Motivation for IPO: What motivated ANNAPURNA SWADISHT LIMITED to pursue an IPO? Could you share the strategic reasons behind this decision and how you believe it will benefit the company?
Annapurna Swadisht Ltd.’s decision to pursue an IPO is driven by several strategic motivations. Firstly, it aims to fuel expansion plans by scaling manufacturing capacities, enhancing distribution
networks, and broadening product offerings, particularly targeting growth in Eastern and
Northeastern India. Secondly, going public enhances brand visibility and credibility, attracting talent and business opportunities. Thirdly, the IPO provides financial strength and flexibility for investments in projects, R&D, and marketing, crucial for sustaining competitiveness in the FMCG sector. Additionally, it unlocks shareholder value, establishes market leadership in snacks, enhances corporate governance, and accelerates growth through increased market position, talent acquisition, strategic partnerships, and operational efficiencies, ultimately creating long-term value for stakeholders.
Q. Preparation Journey: Can you describe the journey of preparing for the IPO? What steps did ANNAPURNA SWADISHT LIMITED take to get ready for this significant milestone?
Preparing for an IPO at ANNAPURNA SWADISHT LIMITED was a comprehensive and meticulous process that involved several key steps to ensure our readiness for this significant milestone. We began by aligning our leadership team, led by CEO Rahul Sureka and CFO Ravi Sarda, around a clear strategic vision for our public debut and its role in our long-term growth strategy. Internal audits were conducted to rigorously assess our financials, operations, and compliance, ensuring transparency and robustness.
We assembled a strong IPO team, including experienced advisors in investment banking, legal counsel, and auditing, crucial for navigating the complexities of going public. Strengthening our management team was vital to meet heightened operational demands post-IPO, bolstering expertise in finance, legal, and compliance. Enhancing corporate governance involved reviewing and diversifying our board composition and establishing comprehensive policies on ethics, risk management, and compliance.
Financial preparations were meticulous, with improvements made to our reporting systems and rigorous audits conducted to meet regulatory standards. Market readiness efforts, led by experienced promoters Ritesh Shaw and Shriram Bagla, involved engaging with investors to build confidence and refine our market strategy. Legal preparations ensured compliance with regulatory filings and comprehensive legal reviews of contracts and intellectual property protections.
Investor engagement through roadshows and presentations across financial centers allowed us to communicate our value proposition effectively and adjust strategies based on investor feedback. Final preparations included pricing shares and coordinating a seamless listing process with stock exchanges.
Q. Challenges Faced: What have been some of the major challenges encountered during the IPO preparation process? How did you address and overcome these challenges?
Navigating the path to an IPO posed significant challenges for ANNAPURNA SWADISHT LIMITED, but our team successfully overcame each obstacle through concerted efforts and strategic initiatives. We
ensured impeccable financial integrity by enlisting top-tier auditing firms and fortifying internal controls under CFO Ravi Sarda’s leadership. Enhancing corporate governance included adding independent directors with diverse expertise and crafting comprehensive policies led by Shakeel Ahmad’s legal team. Market readiness involved thorough research and leveraging the capital market acumen of promoters Ritesh Shaw and Shriram Bagla to engage investors effectively. Navigating regulatory complexities with meticulous legal preparation and internal training sessions ensured compliance and alignment. Our seasoned IPO team, including advisors and COO Pawan Jaiswal, facilitated seamless coordination and communication, while extensive investor engagement and strategic feedback incorporation by CEO Rahul Sureka and CFO Ravi Sarda strengthened our market positioning. This rigorous preparation has positioned us for sustained growth and success in the public markets.
Q. Pre-IPO Situation: What was the business landscape like for ANNAPURNA SWADISHT LIMITED before the IPO? How did you manage capital and growth before going public?
Before embarking on our journey to go public, ANNAPURNA SWADISHT LIMITED operated in a competitive FMCG sector, focusing on impulse packaged snacks. Despite intense competition from established and regional brands, we established a strong presence in Eastern and Northeastern India. Our diverse product portfolio includes pellet-based snacks, extruded snacks, potato chips, cakes, namkeen, and candies, known for their quality and affordability.
We developed a robust distribution network with over 550 distributors and 80 super stockists, covering key markets in West Bengal, Bihar, Odisha, Jharkhand, and Assam. Revenue growth was steady, driven by strategic product diversification and market expansion efforts. Initially funded through bootstrapping and internal accruals, founders Ritesh Shaw and Shriram Bagla ensured prudent financial management, reinvesting profits into operations and growth initiatives.
Strategic partnerships with suppliers and distributors optimized our supply chain, enhancing cost efficiencies. COO Pawan Jaiswal focused on operational efficiency and expanded our manufacturing capabilities in Asansol and Siliguri to meet rising demand. Marketing head Rohit Singhania led targeted campaigns, leveraging traditional and digital media to reach rural and semi-urban markets effectively.
Our commitment to innovation led to successful product launches like JACKPOT and MAKE UP BOX, resonating well with consumers. CFO Ravi Sarda maintained financial prudence, aligning practices with sustainable growth goals. This solid foundation, guided by leaders such as Rahul Sureka, Pawan Jaiswal, Rohit Singhania, and Shakeel Ahmad, paved the way for our IPO decision. Going public aims to leverage capital markets for accelerated growth and strategic advancements, building on our established market presence and operational strengths.
Q. Post-IPO Transformations: How has going public transformed your business operations and strategic planning? Can you highlight any significant changes or improvements since the IPO?
Since our IPO, ANNAPURNA SWADISHT LIMITED has undergone significant transformations across critical areas. We’ve expanded our manufacturing capabilities by establishing new units in Asansol and Siliguri, integrating advanced technologies to boost efficiency and product quality. Our product portfolio has diversified with the introduction of innovative snacks and premium offerings, including health snacks and ready-to-eat meals, expanding our market presence. We’ve strengthened our distribution network across Eastern and Northeastern India, partnering with new distributors and embracing digital channels for wider consumer reach. Enhanced marketing campaigns, both traditional and digital, coupled with strategic brand collaborations, have elevated our brand visibility. Operational excellence initiatives have optimized processes, reduced waste, and implemented an ERP system for streamlined operations and better decision-making. Investor relations have been bolstered with regular reporting and proactive engagement, ensuring transparency and alignment with our stakeholders. These efforts collectively position us for sustained growth, delivering increased value to shareholders and stakeholders while advancing our mission of providing high-quality snacks to consumers.
Q. Stakeholder Impact: How have your stakeholders, including employees, investors, and partners, responded to the IPO? What role did they play in this journey, and how has their involvement evolved?
The IPO of Annapurna Swadisht Ltd. has received overwhelmingly positive responses from our stakeholders—employees, investors, and partners—each playing pivotal roles in our journey. Employees have shown dedication in preparing for and supporting the IPO, driving operational excellence post-listing, and benefiting from enhanced engagement through stock options. Investors have demonstrated strong confidence, backing our growth initiatives and providing strategic insights that refine our strategies. Partners, including suppliers and distributors, have collaborated closely to optimize supply chains and expand market reach, strengthening relationships and fostering strategic alliances. Their collective support has been instrumental in our success, underscoring our commitment to mutual growth and continued collaboration moving forward.
Q. Future Plans and Vision: What are your future plans post-IPO? How do you envision leveraging the public status to drive further growth and innovation for ANNAPURNA SWADISHT LIMITED?
Post-IPO, Annapurna Swadisht Ltd. is poised for robust growth and innovation, guided by a strategic roadmap designed to leverage its public status. Our plans include expanding manufacturing capabilities through new facilities and technology upgrades, diversifying our product portfolio with new categories and enhanced offerings, and strengthening our distribution network across Northern and Western India, supported by digital and e-commerce channels. We will prioritize targeted marketing campaigns and strategic brand collaborations to boost visibility and consumer engagement. Investing in R&D and innovation labs will drive the development of healthier, sustainable snack options aligned with market trends. As a publicly listed company, we aim to capitalize on capital market access, enhance credibility, forge strategic alliances, attract top talent, and improve operational efficiencies while focusing on sustainability. Our vision is to establish Annapurna Swadisht Ltd. as a leader in the FMCG sector, delivering long-term value through continuous growth and innovation.
We are excited to feature your story and showcase how ANNAPURNA SWADISHT LIMITED is breaking barriers and setting new benchmarks in the SME sector. Your journey will undoubtedly serve as a source of inspiration and guidance for many aspiring entrepreneurs.
