Cremica Food Industries Limited
1 MAbout Cremica Food Industries Limited
A Comprehensive Overview of Price & Journey
Understanding Cremica Food Industries Limited Inception and Growth
CREMICA FOOD INDUSTRIES LIMITED UNLISTED SHARE PRICE
Cremica Food Industries Limited is an unlisted company trading in the private market. Unlike listed companies, valuation and share price of unlisted or Pre-IPO companies is determined via negotiation and demand & supply Cremica Food Industries Limited unlisted share.
Investors looking for diversification of their portfolio should carefully analyse Cremica Food Industries Limited unlisted share price, valuation and research report for the latest year. This is the comprehensive coverage of Cremica Food Industries Limited unlisted share that answers simple questions of investors such as how to buy unlisted/ Pre-IPO shares of Cremica Food Industries Limited , what are does Cremica Food Industries Limited do and How has Cremica Food Industries Limited performed in the recent years.
Overview
Rajni Bector started launching a home ice cream business in Ludhiana in 1978 with Rs. 20,000, and it turned into Rs 1000 food conglomerate. Few years down the line, in 2015 Rajni’s two sons divided the empire in two distinct entities – Anoop Bector undertook biscuits and bakery to public listings and Akshay Bector took over condiments and sauces to build CFIL that became preferred condiments and sauce for partners like McDonald’s, Pizza Hut, Starbucks, KFC, Domino’s, subway and others. And now CFIL is going public.
How does CFIL make money?
CFIL makes money by selling condiments and sauces—3/4 of its revenue comes from long-term institutional supply relationships with QSR giants such as McDonald’s, Pizza Hut, Domino's, etc. It provides stability and a sustainable revenue stream, while 1/4 of the revenue comes from a growing direct-to-consumer retail business.
Revenue Stream 1: Institutional/Food Service (B2B)
CFIL manufactures proprietary recipes, custom packaging for sauces, bulk packaging for restaurant back-of-the-house use, and specialized delivery logistics to restaurants. Some of its institutional clients include McDonald’s, Pizza Hut, Starbucks, KFC, Domino’s, and Subway, among others. This vertical makes the revenue predictable since the partnership is long-term with volume commitments. Growth of this segment is passive, and Cremica does not need to increase its marketing expense to grow; this segment grows with increasing store count and order volumes of institutional investors.
Revenue Stream 2: Retail/B2C
This vertical of Cremica constitutes 1/4th of the revenue of the company. It includes 700+ distributors and 4000+ retail outlets. CFIL has pioneered the vegan (vegetarian mayonnaise) and includes tandoori mayo, salad dressings, sauces, ketchup, syrups, and other condiments. This is the higher margin segment with a gross margin typically between 40% and 50%.
Who are competitors?
CFIL competes in two different arenas—the institutional/food service condiment market, where it faces competition from MNCs, and the retail condiment market, where it competes with both MNCs and Indian FMCG giants; however, its strength lies in the institutional arena.
Institutional Condiment Competitors
- Del Monte India
- Cremica’s own QSR client competition
- Veeba Food Services
- Funfoods (Dr. Oetker India)
Retail Condiment Competitors
- Kissan (HUL)
- Maggi (Nestle India)
- Heinz
- Hellmann’s (Unilever)
CFIL Positioning
- CFIL’s institutional revenue is structurally protected due to long-term relationship/contract, custom formulations and high switching cost.
- CFIL’s retail vertical is where it faces cut throat competition deep pocketed and vast network players such as Nestle, Dr. Oetker, HUL and others.
SWOT Analysis
Strength
- Cremica enjoys decades-long brand recognition and strong legacy of Cremica in North India
- Extensive distribution network across Indian states and across general trade, modern trade, QSR, hotel, restaurant and cafes.
- It offers a wide-variety of products that make it suitable for all sort of needs
Weakness
- CFIL has a deep and strong presence in North India but is less known in the southern, eastern, and western parts of India
- A significant business portion of CFIL depends on the HoReCa segment
- In the B2B segment, operating margins and debt coverage further squeeze bottom line of the segment
Opportunities
- CIFL is leveraging its existing B2B network to grow its B2C and retail market share
- Growing demand for premium and healthy foods
- Rapid growth in quick commerce
- Export Market Expansion
Threats
- Fierce competition from deep-pocketed FMCG giants and global brands
- Profit margins are vulnerable to price fluctuations in agricultural raw inputs
- Constantly changing consumer preference and low brand switching cost is a threat
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CREMICA FOOD INDUSTRIES LIMITED UNLISTED SHARE PRICE
Cremica Food Industries Limited is an unlisted company trading in the private market. Unlike listed companies, valuation and share price of unlisted or Pre-IPO companies is determined via negotiation and demand & supply Cremica Food Industries Limited unlisted share.
Investors looking for diversification of their portfolio should carefully analyse Cremica Food Industries Limited unlisted share price, valuation and research report for the latest year. This is the comprehensive coverage of Cremica Food Industries Limited unlisted share that answers simple questions of investors such as how to buy unlisted/ Pre-IPO shares of Cremica Food Industries Limited , what are does Cremica Food Industries Limited do and How has Cremica Food Industries Limited performed in the recent years.
Overview
Rajni Bector started launching a home ice cream business in Ludhiana in 1978 with Rs. 20,000, and it turned into Rs 1000 food conglomerate. Few years down the line, in 2015 Rajni’s two sons divided the empire in two distinct entities – Anoop Bector undertook biscuits and bakery to public listings and Akshay Bector took over condiments and sauces to build CFIL that became preferred condiments and sauce for partners like McDonald’s, Pizza Hut, Starbucks, KFC, Domino’s, subway and others. And now CFIL is going public.
How does CFIL make money?
CFIL makes money by selling condiments and sauces—3/4 of its revenue comes from long-term institutional supply relationships with QSR giants such as McDonald’s, Pizza Hut, Domino's, etc. It provides stability and a sustainable revenue stream, while 1/4 of the revenue comes from a growing direct-to-consumer retail business.
Revenue Stream 1: Institutional/Food Service (B2B)
CFIL manufactures proprietary recipes, custom packaging for sauces, bulk packaging for restaurant back-of-the-house use, and specialized delivery logistics to restaurants. Some of its institutional clients include McDonald’s, Pizza Hut, Starbucks, KFC, Domino’s, and Subway, among others. This vertical makes the revenue predictable since the partnership is long-term with volume commitments. Growth of this segment is passive, and Cremica does not need to increase its marketing expense to grow; this segment grows with increasing store count and order volumes of institutional investors.
Revenue Stream 2: Retail/B2C
This vertical of Cremica constitutes 1/4th of the revenue of the company. It includes 700+ distributors and 4000+ retail outlets. CFIL has pioneered the vegan (vegetarian mayonnaise) and includes tandoori mayo, salad dressings, sauces, ketchup, syrups, and other condiments. This is the higher margin segment with a gross margin typically between 40% and 50%.
Who are competitors?
CFIL competes in two different arenas—the institutional/food service condiment market, where it faces competition from MNCs, and the retail condiment market, where it competes with both MNCs and Indian FMCG giants; however, its strength lies in the institutional arena.
Institutional Condiment Competitors
- Del Monte India
- Cremica’s own QSR client competition
- Veeba Food Services
- Funfoods (Dr. Oetker India)
Retail Condiment Competitors
- Kissan (HUL)
- Maggi (Nestle India)
- Heinz
- Hellmann’s (Unilever)
CFIL Positioning
- CFIL’s institutional revenue is structurally protected due to long-term relationship/contract, custom formulations and high switching cost.
- CFIL’s retail vertical is where it faces cut throat competition deep pocketed and vast network players such as Nestle, Dr. Oetker, HUL and others.
SWOT Analysis
Strength
- Cremica enjoys decades-long brand recognition and strong legacy of Cremica in North India
- Extensive distribution network across Indian states and across general trade, modern trade, QSR, hotel, restaurant and cafes.
- It offers a wide-variety of products that make it suitable for all sort of needs
Weakness
- CFIL has a deep and strong presence in North India but is less known in the southern, eastern, and western parts of India
- A significant business portion of CFIL depends on the HoReCa segment
- In the B2B segment, operating margins and debt coverage further squeeze bottom line of the segment
Opportunities
- CIFL is leveraging its existing B2B network to grow its B2C and retail market share
- Growing demand for premium and healthy foods
- Rapid growth in quick commerce
- Export Market Expansion
Threats
- Fierce competition from deep-pocketed FMCG giants and global brands
- Profit margins are vulnerable to price fluctuations in agricultural raw inputs
- Constantly changing consumer preference and low brand switching cost is a threat
Fundamentals
Financials
All values are INR Cr except per share value
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Frequently Asked Questions
Like any other financial product or commodity, the price of unlisted shares is discovered at the intersection of demand from buyers and supply from sellers of particular unlisted shares.
The two determinants of price are dynamic factors and keep changing constantly, hence share price tends to fluctuate constantly – every day, every minute.
Upon successful completion of a deal, the unlisted shares are credited electronically directly to your standard demat account that is usually created with CDSL or NSDL (Central Depository Services Limited or National Securities Depository Limited).
The lock-in period of Purple Style Labs Limited varies depending on the category of the investor:
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Venture capital or foreign venture capital investors are subject to lock-in period of 6 months from the date of acquisition of shares
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For AIF investors of Category-II are not subject to any lock-in.
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Any other investor, including retail investors, HNI or corporate investors are subject to a lock-in period of 6 months from the date of listing.
Note – The above-mentioned lock-in is for mainboard, however for SME IPO the applicable lock-in period is 1 Year.
There is no regulatory minimum limit to invest in unlisted shares. However, minimum investment size varies with the per share price. Earlier, the typical investment size often ranges between 70K – 100K, but with the growing awareness and increased participation the investment size has been down sized to 50k.
Short-Term Capital Gain tax is applicable when you sell your unlisted shares within a year from date of acquisition. Realized gain is taxable at your slab rate after consolidating in total income for the year. Hence, the rate of tax depends on your overall income for the particular financial year.
Long-Term Capital Gain taxes are applicable when you sell your unlisted shares after two years from the date of acquisition. LTCG tax is calculated on profits realized on sale of unlisted shares at 12.5%. Investors particularly retail or HNI must understand the concept clearly as it impacts strategy and tax planning.
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You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
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Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
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You would also get email confirmation of credit of shares via email.
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The value of share in unlisted space is determined in the same way as it is done in the listed market. Demand and supply decide the price of any share. If the demand is more than the supply, then the price of the share increases and vice versa.
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When a new share is introduced in the unlisted space, the value of the company is decided upon the last funding raised by the company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
Yes, investing in unlisted shares is legal in India, the activity is regulated and governed under the rules and guidelines laid by SEBI (Securities and Exchange Board of India). Related parties must comply with the regulations and guidelines to ensure legal and financial standards.
Investing in unlisted shares in India carries a significant and distinctive risk profile such as limited liquidity, lack of transparent pricing and regulatory oversight because unlisted shares do not trade on listed stock exchange, they are bought or sold in OTC (over the counter) market that makes vulnerable to following risks:
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Liquidity risk, unlisted shares are difficult to buy and sell,
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Lack of transparent pricing, as share price of pre-IPO or unl;isted company is often determined by narrative not fundamentals
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Lack of information disclosure, unlisted companies are not mandated for disclosures like listed companies
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Tax ambiguity, because determination of fair market value and cost of acquisition of unlisted shares is often disputed
Hence, investors should carefully examine related facts before investing in Pre-IPO or unlisted shares.