Gemini Edibles & Fats India Limited, owners of the "Freedom brand" and market leaders in the sunflower oil category across Telangana, Andhra Pradesh and Odisha has filed for a Rs 2500 cr IPO with the market regulator.
The Issue is a complete Offer for Sale by the Selling Shareholders and the company will not receive any funds from the net proceeds of its initial public offering.
GEFIL, commenced its business in 2010 and as of today stands to be one of the fastest growing edible oils and fats companies in India. The company is engaged in the business of manufacturing, distribution and branding of edible oils and specialty fats in India and holds the third largest market share in the state of Karnataka. It operates across the edible oil and fats value chain i.e from importing crude edible oil to processing, packaging and distribution of its products that are sold under three verticals i.e branded retail consumer- sunflower oil, rice bran oil, mustard oil, palm kernel oil, palmolein oil; industrial consumer - high stability frying oils, palm oils, cocoa butter substitutes, inter-esterified vegetable fats and bulk merchandising - palmolein, sunflower and soyabean oils.
Between FY19 to FY21, it's revenue from operations has grown at a CAGR of 19.6% and gross profit margin has almost doubled.
Besides tapping into multiple offline and online channels for retail sales, the Company intends to expand presence across Tamil Nadu, Kerala and foray into the northern and eastern states of India such as Chhattisgarh, Jharkhand, Uttar Pradesh and West Bengal over a span of 5 years.
As of June 30, 2021, the company had a network of over 30 depots, 1100 distributors and wholesalers which had a retail reach to approximately 640 towns in the state of Telangana, Andhra Pradesh, Odisha and Karnataka.
Freedom, the brand owned by GEFIL was ranked amongst the top 5 cooking oil brands in India according to India Today "Ipsos Urban Consumer Sentiment Survey 2020. According to the Technopak report and Nielsen Retail Index, stated in the DRHP, the regional player is also amongst the top two companies by market share in the branded sunflower oil category pan-india in FY21.
Additionally, it's promoter, Golden Agri Resources Ltd, has been listed on the Singapore Exchange since 1999, it is one of the leading integrated palm oil plantation companies in the world that focuses on sustainable palm oil production.
The packaged edible oil segment is forecasted to grow at a CAGR of 7% for the period from Fiscal 2020 to Fiscal 2025. The Indian specialty fats and oils segment which caters to industries such as bakeries, biscuit, confectionery and snack foods is estimated to be growing at a CAGR of 8% per annum.
Investment Bankers appointed to the issue are Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities(India) Private Limited.