Acquire a North-West India-based Malt processing plant.
BUSINESS BRIEF
The unit is jointly owned and promoted by the family.
Plant Location:
- Plant is located on a greenfield project of 17500 sq mtr duly approved for Industrial purpose use, located in North West region of India.
- It is located in the barley producing area and within a radii of 100km, abundant raw material is available.
- It is equipped to process 15000 tons of barley per annum. Provision for further expansion has been kept in terms of layout, requirement of electricity & land.
- It is having grain grading, de-dusting, machines, process tanks, germination chambers, Auto turners, Air compressors, Air Blowers, Heat Exchanger, multi-fuel Boiler, 250 kv DG set, Polishers and elevators, weigh-bridge of 60mt capacity.
- A total of 45000 sq ft is constructed area, which consist of separate office building, security room, servant quarters, storage godowns for raw material & finished material and production and processing area, apart from the road inside the factory.
Owner Info:
The owner is an aged man and is looking to sellout due to no succession in place. The owner has previously worked as a procurement manager for a leading player in the industry
Usage of Malt extract:
- Used as raw material for breweries and distilleries.
- Used as a major component in health and nutrition drinks. Malt extract constitutes 90% of Horlicks.(The business procures more than 1 lakh tonnes of malt extract for Horlicks alone)
Operational Highlights:
The factory has 12000 Tonnes of capacity and runs at 500 tons only.
Financials:
- Land value: INR 10-12 crores
- Asset value: INR 5-7 crore
Future Opportunities:
- Brewery, distillery and FMCG industry growing at 15-20%
- FDI in retail brings huge opportunities, as it will allow departmental stores to sell beer over the counter and result in increased consumption (India consumes 1.7 litre beer per annum per person whereas it is 37 litres for China and 300 litres for Germany).
- Introduction of GST to beer & distillery industry will give a boost to this industry, as multi-tax structure of various states discourages its expansion in a steady manner.
- Changed & buoyant business/employment environment provides growth opportunity
- Taboo attached to drinking is slowly vanishing.
Note: Current year sales are with 20% capacity utilization.
Proposal
Industry
Food and Beverage
Sub Industry
Malt Processing
Deal Size
INR 22 - 25 Cr
Motives For Sellout
No Succession plans
Management is open to continue with the business for handholding the new investor/buyers
Business Operation Information
Industry
Food and Beverage
Sub-Industry
Malt Processing
Division
Division`s Buyers/Customers
Division`s Products/Services
Financial Information |
2020 (in Cr) | 2021 (in Cr) | 2022 (in Cr) | 2023 (in Cr) |
---|---|---|---|---|
Sales |
N.D | INR 3 Cr | INR 7 Cr | N.D |
EBITDA |
N.D | N.D | N.D | N.D |
PAT |
N.D | N.D | N.D | N.D |
TOTAL DEBT |
N.D | N.D | N.D | N.D |
Business Documents
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