Manpasand Beverages recommends dividend of Rs 1 per share ?

Manpasand Beverages, a fruit juice manufacturer, has set up a new manufacturing facility in the state of Uttar Pradesh. The company has invested approximately Rs 170-180 crore for setting up this facility.

This facility will lead to the capacity addition of 45,000 to 50,000 cases per day from its existing capacity of around 2,25,000 cases per day.

The company said, “The new facility is located in Varanasi. We propose to focus on manufacturing our existing range of products. With this, we will be better positioned to cater to the markets of North and East India."

In the effort to drive volume, Manpasand Beverages had earlier said that it would invest Rs 1,500 crore to set up 10 new manufacturing plants in the country by 2020.

Manpasand Beverages has posted a 1.32 percent gain in net profit at Rs 36.38 cr for the first quarter ended June 30, 2018, as against net profit of Rs 35.91 crore in the same period of the previous fiscal year.

Revenue for the quarter under review stood at Rs 340.07 crore, an increase of 9.24 percent as compared to Rs 311.30 crore it posted during the corresponding quarter of previous fiscal. Earnings Per Share for the first quarter of the financial year 2019 was up 1.29 percent at Rs 3.18 per share, it said during its earnings announcement.

According to the company, the rise in net profit is not commensurate to rise in revenue mainly due to the reduction in other income and rise of depreciation (Non-Cash Item). The company is showing stable QoQ performance and is moving ahead promisingly, it said.

“Issues unrelated to operations caused some spillover and impacted our business in the month of June. Despite this challenge, we managed to perform relatively well and kept ourselves focused on expansion and product development. Operations are now back to normal and we continue to be confident about our growth plans," said Dhirendra Singh, Chairman & MD of Manpasand Beverages.

"Manpasand remains confident about the next fiscal year. Augmenting our presence through Quick Service Restaurants (QSRs), food chains, and retailers to develop stronger brand recognition for our products among consumers will continue to be the main driver of the company’s growth. The company will take this symbiotic growth approach in the coming days too. Product innovation and enhancing the distribution network will be the primary focus areas in our endeavor to create a point of differentiation amongst our local and global competitors," Singh further said.

Homegrown fruit drink maker is planning to expand other vertical with new product range launch subsuming milk-based drinks, fruit-based sugar-free drinks, glucose drinks and protein-based drinks to bring overall revenues on rise and will provide a significant boost in our growth journey across local and global markets.

Manpasand Beverages’ flagship brand ‘Mango Sip’ has emerged as the third largest mango drink brand in the modern trade segment, surpassing ‘Tropicana Slice’. Good consumer schemes and value for money proposition helped ‘Mango Sip’ consolidate its position in the market.

According to a recent data shared by Nielsen, ‘Mango Sip’ had a market share of 13.1% vis a vis 12% market share of ‘Tropicana Slice’, making it the third largest selling mango drink brand in Modern Trade channel, in the last financial year ending in March 2018.

“We are delighted to become the third largest mango drink brand in modern trade segment. Mango juice is amongst the favourite and most widely consumed fruit drink across India. With the experience of growing and expanding from the ground within India and on account of understanding the preferences and tastes of Indians, Manpasand is better equipped to offer products as per the regional penchants”, company’s spokesperson said.

Having established a strong presence in the rural and semi-urban markets through its flagship brand ‘Mango Sip’, Manpasand has been quick to build on it further by phenomenally increasing its footprints in the Modern Trade segment. With a basket with multiple SKUs, Mango Sip, endorsed by Sunny Deol has created a niche for itself in the fastest growing mango drink segment.

In order to cater to the rising demand from various markets, Manpasand is on track on double its production capacity. Apart from its five existing plants at Vadodara, Varanasi, Dehradun and Ambala, the new plant in Vadodara is already functional; the upcoming plant in Varanasi will be operational in next 1-2 months and the plant at Sri City will be up and ready within 3-4 months. The company recently completed the ground breaking ceremony of its ninth plant in Odisha.

Manpasand Beverages, makers of Mango Sip fruit drink, plans to expand aggressively across India and abroad and also enhance its production capacity, after stitching an ambitious distribution pact with Parle Products for the domestic market.

"Besides expansion across the country, we are also looking to expand into other countries including those served by global beverage giants as consumers globally are shifting to health-focussed beverages and the market is growing exponentially," the company's Chairman and Managing Director Dhirendra Singh said.

Asked about whether the company was in a position to take on global giants like Coca-Cola and PepsiCo which have also been betting big on the juice market, Singh said, "We welcome competition and are confident of facing the same.

"We understand the preferences and aspirations of rural consumer way better than the competition and are confident of offering new products as per the regional tastes."

In an interview to, Singh said, "With our experience on expanding from the ground within India, we are now confident of taking on multinational giants within our country and also in other countries."

Manpasand, which became the country's first listed non-alcoholic beverages firm with an IPO in June 2015, has been hailed as a success story of disruptive business model with a strong focus on consumers in the rural and semi-urban India with a strong portfolio of Rs 5-10 per pack products.

However, it had to endure negative sentiments recently when its long-serving auditor resigned and the company's market cap took a hit of about 50 per cent in a fortnight.

Singh said it was an abberation and the company has already declared its results, audited by the new auditor.

"The auditor issue was an aberration and our results have also been already audited by the new auditor. These issues are now things of past and we have already started working on our expansion plans within India and abroad," he said.

Talking about the new tie-up with Parle Products, the maker of famous Parle-G biscuits, Singh said it is a win-win situation for both the companies.

For Manpasand, it is a ten-fold jump in market access as it gives it the largest distribution network of 60 lakh retail outlets and 10,000 distributors in India.

Non-alcoholic beverage market is the fastest growing segment in India with total market size of Rs 13,500 crore. The juice market in India is estimated to grow at a rate of 23 per cent till FY2021, as compared to 9.6 per cent for the carbonated drinks market. Within this segment, the mango drink segment contributes more than 50 per cent.

Singh, who studied in Varanasi and first tested his products in the western Uttar Pradesh, said the rural segment presently accounts for one-third of the total market, is set to grow to 50 per cent in next five years on back of rising income levels, competitive products and favourable price offerings.

Singh said the exclusive 10-year distribution arrangement with Parle Products, coupled with accelerated growth plans, would help the company expand its consumer base quickly.

"Through the agreement, Manpasand will offer products on Health-for-All plank in the form of combo packs consisting of products like MangoSip and Parle-G biscuits at most affordable price points and thereby fulfilling the aspirations of consumers in rural and semi-urban markets," he said.

For Parle Products, the arrangement will complement its objectives of new growth in premium product range in modern trade while maintaining steady growth in traditional trade.

Singh, who served in a government job before going the entrepreneurship way, said the company would expand its production capacity to meet the demand from an expanded distribution network and for its expansion into newer markets.

In the last two years, the company has invested around Rs 600 crore, funded completely from Initial Public Offer and the Qualified Institutional Placement to expand its production base to nine manufacturing facilities spread in five states.

Manpasand presently has five manufacturing facilities -- two in Vadodara and one each in Ambala, Varanasi and Dehradun.

The four new facilities will be up and running by the third quarter of the current financial year, after which the total capacity will rise to 3.5 lach SKU (stock keeping unit) per day.

"With our new distribution pact with Parle Products, we will need a quantum jump in our supply to distributors and retailers. We are planning to expand our production capacity across the country as well to meet this demand," he said.

Besides expansion across the country, the company is also looking to expand into other countries including those served by global beverage giants as consumers globally are shifting to health-focussed beverages and the market is growing exponentially, Singh said.

He said the company's business model is focussed on offering products as per the regional tastes.

"Whether it is India or any other country, the shift away from carbonated drinks and the continuing emergence of health-conscious consumers in the beverages market suits our business model very well," he added.

"Our focus is on serving the consumers with the right mix of products, while also keeping in mind the interest of distributors and retailers," Singh said.

Last week, the company reported sales of Rs 984.95 crore for the year ended March 2018 and profit after tax of Rs 99 crore with a 37.7 per cent growth.

Manpasand Beverages on Wednesday posted 36.42 per cent year-on-year rise in profit at Rs 42.74 crore for the quarter ended March 31. It had posted a net profit of Rs 31.33 crore in the corresponding quarter last year.

Total revenue of the company increased 39.38 per cent to Rs 392.95 crore during the quarter under review. The figure stood at Rs 281.92 crore in the same period last year.

Earnings per share of the company rose to Rs 3.73 as of March against Rs 2.74 in Q4FY17. The figure was at Rs 1.05 as of December 31.

The board of the company also recommended of final dividend at 5 per cent on the face value of Rs 10 per equity share for the financial year ended March 31, 2018.

The share price of the company closed 3 per cent down at Rs 143.25.

Shares of the company have been falling since auditing major Deloitte Haskins & Sells last month resigned as statutory auditors of Manpasand Beverages as the fruit juice maker failed to provide them with "significant information" on the financial results for the year ended March 31, 2018. Shares of the company plunged nearly 30 per cent on a month-to-date basis.

Shares of Manpasand Beverages crashed on Monday after Deloitte Haskins and Sells resigned as auditor ahead of the company’s quarterly results scheduled to be released on Wednesday.

The scrip tumbled 20 per cent to Rs 344.80.

“Subsequent to resignation of Deloitte Haskins & Sells, Chartered Accountants, Vadodara, the Statutory Auditors of the Company with effect from May 26, 2018, the Board of Directors of the company upon the recommendation of the Audit Committee, have appointed M/s. Mehra Goel & Co., Chartered Accountants, New Delhi, as Statutory Auditor of the Company with effect from 27th May 2018 to fill the casual vacancy in the office of Statutory Auditors,” the company in BSE filing said.

Shares of the company had scaled 52-week high of Rs 511.83 on September 15, 2017 and 52-week low of Rs 344.80 on May 28, 2018.

The BSE Sensex was trading 265 points, or 0.76 per cent, up at 35,190 in the afternoon trade on Monday.

Manpasand Beverages and Parle Products have planned a joint distribution of their respective brands in western markets, starting with Gujarat. As a part of this strategic tie-up, the Beverage major has introduced a new brand for Mango Sip, “Mango Sip Gold,” which will be available along with “Parle G”.

“Our core strength has been our strong distribution networks in the rural and semi-urban markets of India. To deepen this, we formed an alliance with Parle Products as they have a strong distribution network across the country and also have a diversified product portfolio that caters to all types of consumers. Through this partnership, Manpasand Beverage will have access to 45 lakh outlets pan-India for our flagship brand “Mango Sip,” Dhirendra Singh, CMD, Manpasand Beverages said.

The first phase of the partnership was completed in the eastern region of India where up to 1 lakh outlets of Parle Products have been roped in by Manpasand Beverages.

Singh said, “As both the companies are known for their dominance in small and value packs, this tie-up will create a formidable synergy in the food and beverages segment of India. It will also help us in achieving our goal of providing quality and nutritional products to the masses.”

Last year, Manpasand Beverages tied-up with Parle products to jointly distribute their brands. Through this partnership the Company targets to expand distribution by two-folds by next fiscal year.

 “Parle is synonymous with the quintessential snack that every Indian has grown up with. This is a significant venture for us as we look for further growth in the Indian FMCG market with our Snacking range,” Krishna Rao, category head, Parle Products said.

Manpasand Beverages has invested a sum of Rs 600 crore to set up four new plants in Vadodara, Varanasi, Sri City, and eastern region of India.

Homegrown beverage maker Manpasand Beverages Ltd aims to have 20 plants pan-India by 2020 in its effort to drive volumes.

With water being the most in-demand beverage of future, Manpasand would launch multiple facilities of packaged drinking water.

In its Q3 results announced on Tuesday, the company reported 64% rise in net profit at Rs. 11.91 crore in the third quarter as against net profit of Rs. 7.24 crore in Q3 of last fiscal.

“For a country whose per capita consumption of cold drinks stand at mere 6 litres against 90 litres in US, we need to have more affordable products to drive sales. We can beat MNCs only by creating volumes and flooding the market with desi brands” said Dhirendra Singh, Chairman of Manpasand Beverages Ltd.

Singh also shared Rs 600 cr expansion plan which is already underway across multiple locations and Manpasand would have double capacity by the end of 2018. The company clocked a turnover of in excess of Rs 750 crore in 2016-17.

Manpasand that has been driving growth through its flagship brand Mango Sip that has 75% share in the revenues has tied up with Parle Products to cross promote products. This would enable Manpasand to get access to the 4.5 million outlets of Parle Products spread across India.

India’s leading fruit drink player, Manpasand Beverages Ltd. has reported a 25.04 per cent rise in net profit at Rs. 35.82 crore for the first quarter ended June 30, 2017 as against net profit of Rs. 28.65 crore in the corresponding quarter of previous fiscal.Total Income for Q1 of FY 17-18 at Rs. 311.30 crore was higher by 30.45 per cent over previous fiscal’s same quarter total income of Rs. 238.63 crore. Earnings Per Share (EPS) for Q1FY18 was up by 9.79 per cent at Rs. 6.28. Chairman & MD, Manpasand Beverages, Dhirendra Singh said, “In a short span, Manpasand has caught the imagination of costumers and investors. The company has co-created value for its various stakeholders. Despite of initial GST rollout concerns, the company’s performance remained sound. Continuing with its philosophy and endeavour of enhancing the shareholders’ value and to appreciate their confidence in the Company, the management at Manpasand Beverages has recommended the issuance of Bonus Shares in the ratio of 1:1, to make all their patrons a part of its growth story.” Staying close to its two pronged strategy of expansion and innovation, the beverage major had an impressive growth trajectory in the last fiscal year ending March 31, 2017. The company’s move of launching newer products entering newer segments helped increase its market presence tremendously. This growth validates the trust of the stakeholders towards the company. Manpasand Beverages is striving to maintain this trajectory and in the coming days will take on more strategic steps to enhance its business. The company will double its production capacity in the coming 12-18 months. In addition, the company has lined up a few product launches that are not only innovative but also cater to health conscious customers.

Fruit juice manufacturer, Manpasand Beverages, has collaborated with biscuits and confectionery maker, Parle Products to cross-promote their brands. With this association, the company plans to access 4.5 million outlets pan-India.

Manpasand Beverages in a regulatory filing said, "The company is associating with Parle Products Pvt and plans to access 4.5 million outlets pan-India. In this association, both companies will cross-promote their brands and aim to achieve a significant market share in biscuits or snacks and the beverage industry. "

Homegrown Beverage Company Manpasand Beverages is investing Rs 150 crore to set up a new manufacturing facility in Sri City in order to cater to the demands of southern markets and to take advantage of the cola ban in Tamil Nadu, the company said in a statement. 

The company will set up three more manufacturing facilities in Vadodara, Varanasi and one more location in east India which will help the beverage maker to double its production capacity in coming 12-18 months.

Dhirendra Singh, Chairman & MD, Manpasand Beverages, said, "As a part of our growth strategy, since last year we have been working on a plan for foray into southern markets. We are glad that our efforts have finally fructified through our presence in Tamil Nadu. It is an important market for us and we hope that through Tamil Nadu we will gain visibility for our products, especially Fruits up, in all key southern markets."

According to Singh, the current situation in Tamil Nadu has benefited the company as they are the only fruit juice manufacturing company with adequate capacity to cater to the vast market of the southern state.

"We have fast-tracked the construction work for our new manufacturing unit at Sri City and are confident to meet the demands of the consumers in the peak months of summer and thereafter," Singh said.

Fruit juice player, Manpasand Beverages is eyeing a significant growth in its revenues through Indian Railways in the coming months. The Company is looking to expand its presence in all stations pan India in the coming fiscal year. Currently, railways contribute 20-22 percent to their overall revenue.

The company is targeting 50-60 percent growth in sales in the next five years.

Manpasand’s flagship brand, ‘Mango Sip,’ is available in all major formats of IRCTC. The Company is now focusing on aggressively expanding the presence of ‘Fruits Up’ across entire Indian Railways network.

Dhirendra Singh, Chairman and MD, Manpasand Beverages, said, "Manpasand Beverages has a long-standing association with Indian railways via ‘Mango Sip,’ which is available across all major formats of IRCTC. Given the penetration of Indian Railways, we hope that our association with them will enhance the visibility of all our products among a wider range of customers."

It has tied up with IRCTC for direct selling to vendors as well as with its e-catering service to sell their brands.

The company which had sales of about Rs 556 crore in FY-16 has entered into strategic alliances in both on-trade and off-trade formats in order to expand its business in the urban areas. The company’s brands are available at METRO Cash & Carry, Baskin-Robbin, SAPR and other major organised retail chains.

Manpasand is also setting up four new plants in the next 12-18 months period to increase its capacity. The new plants will double the production capacity as well as help the company reach out to newer markets, especially in north-eastern and southern India.

It already has two manufacturing facilities at Vadodara in Gujarat, one each at Varanasi in Uttar Pradesh and Dehradun in Uttaranchal and a new one is being set up at Ambala in Haryana.

Manpasand’s beverage brands are present in 24 states through more than 200,000 retailers, over 2000 distributors and 200 plus super stockists.

Manpasand Beverages (P) Ltd established as the leading brand of Delightfully Mango Juice in India, known as MangoSip.

MangoSip is one of the country's largest selling mango drink. For the year ended March 31, 2016, the company reported sales of Rs 557 crore. It has managed to build a network of over 2400 distributors and over 2 lakh retailers.

Abhishekh Singh, the company's promoter, said, "We are managing the entire business very personally. On a daily basis we host 10 of our distributors with their families at our main plant where we've built an apartment for them. Other companies don't do that. Instead they have huge global conferences where distributors feel uncomfortable and awkward. Like I felt when I entered Shopper's Stop. When I go to my provision store, the person will ask me 'saab aap kaise ho' but at Shopper's Stop I have to tell him 'saab, mera bill bana do'."

What also helped was the fact that its flagship product MangoSip was designed to look and feel like Frooti. Says Singh, "It made life easier. We didn't have to explain the product. All we said was 'this is like Frooti but costs less, so you're getting more margin'."

Marketing consultant Jagdeep Kapoor, who was instrumental in building Frooti, says being a me-too is limiting. Especially now since Manpasand and MangoSip need to shed the "rural" tag. According to Kapoor, so far the brand has been catering to the "perspirational segment". But in order to reach the "aspirational segment" it will need to do the following:

Turn up its perceived value. "It's like Balaji wafers versus Lay's", he says, Balaji is an over Rs 1000 crore brand but Lay's is higher up on the perception ladder.

Not just focus on distribution but retail with classier visibility in general and modern trade.

While brand ambassador Sunny Deol has worked well for the audience it has been addressing, the company will have to rethink its choice of ambassador for MangoSip. (It recently hired actor Tapsee Pannu for the Fruits Up range, a 'Make In India' product).

Strengthen its positioning in segments it already has a sturdy foothold in, like railways, which contribute 20% to its business, and fill in some gaps. For instance hotels, restaurants and caterers, canteens, schools, colleges, etc. Kapoor says, "If you want to be a complete national brand you have to be sipped by the entire nation. Otherwise it's not MangoSip, it's MangoTip."

Manpasand Beverages, which owns and manufactures brands like Mango Sip, Fruits Up and Pure Sip has announced plans to double its manufacturing capacity by setting up new plants.

The company has announced that it aims to double its manufacturing capacity and is going to set up four new plants in the country within the next 18 months.

Dhirendra Singh, Chairman and Managing Director, Manpasand Beverages, said, "The still untapped demand for fruit drinks across India is huge. In spite of having commissioned two new plants in the last one year, we are unable to meet the demand from our existing markets, leave alone expanding our reach further.

We will be coming up with four new plants in different parts of the country, including the South, where our presence is minimal."

Manpasand Beverages currently operates five manufacturing plants -- two in Vadodara and one each in Varanasi, Ambala and Dehradun.

On demonetisation issue, Singh said, "There will not be any impact due to this move as we have always offered products at affordable price points and continue to focus on smaller packs which range between Rs 5 to Rs 10. Fortunately, there is no shortage of these denominations in the country."

Manpasand Beverages, manufacturer of Fruit juice plans to set up a new manufacturing plant at Ambala in Haryana. The company has two manufacturing facilities at Vadodara in Gujarat and one each at Varanasi in Uttar Pradesh and Dehradun in Uttaranchal, reported PTI.

"This new manufacturing facility in Ambala would focus on manufacturing our existing range of products, such as our flagship product 'Mango Sip', along with the newly launched 'Fruits Up' range of fruit drinks and carbonated fruit drinks and Manpasand ORS," said the company's Chairman and Managing Director Dhirendra Singh.

"The plant is being set up at a cost of Rs 153.30 crore and would start manufacturing by March 2016," he said, adding that this is part of the company's expansion plans, which includes modernisation of Vadodara and Varanasi facilities.

"We are following a well-defined, two-pronged strategy for fast-paced growth. While we continue to further increase our significant presence in rural and semi-rural markets, we have also started to aggressively tap the urban markets, where our presence was minimal till recently," he said.

The company has a strong presence in tier-II, semi-rural and rural markets.

Manpasand's beverage brands are present in 24 states through more than 2, 00,000 retailers, over 2,000 distributors and 200-plus super stockists.  

Gujarat based Manpasand Beverages has partnered with ice cream and food retailing major Havmor Ice Cream to expand its reach in urban areas.

Manpasand's flagship mango-based brand 'Mango Sip' and recently launched 'Fruits Up' brand will be made available at around 210 food outlets of Havmor spread across Gujarat, Mumbai and Punjab, said the company statement.

"This marks our first major foray to aggressively tap the urban markets. Both Manpasand and Havmor are Gujarat headquartered companies with a strong presence in the state. With our 'Fruits Up' brand, we plan to take head-on the global cola majors in urban markets," shared Dhirendra Singh, Chairman and MD, Manpasand Beverages.

The tie-up is a part of the company's strategy worth Rs 400 crore to expand its reach in the urban areas through Havmor's food outlets.

"We will consider further expanding our tie up with Havmor by making our juice brands available at their outlets in Rajasthan and Madhya Pradesh and rest of Maharashtra in the future," added Singh.

This tie up covers 164 outlets of Havmor in Gujarat, 28 outlets in Mumbai and 17 in Punjab.