Cremica Foods plans US$72.82M IPO to fund international expansion, new products
The Punjab-based FMCG company plans to use IPO proceeds to expand its retail presence, enter new categories and strengthen operations across international markets.
INDIA – Cremica Foods, a Punjab-based FMCG company focused on condiments and packaged foods, plans to raise up to Rs 700 crore (US$72.82M) through an initial public offering (IPO) next financial year as it targets international expansion, wider retail distribution and new product categories.
The proposed IPO is expected to comprise a combination of fresh equity and an offer for sale (OFS), with the Bector family’s stake potentially falling by about 25-26%. The family currently owns around 90% of Cremica Foods.
“We are not looking at a very big raise. We are looking at Rs 600-700 crore (US$62.42-72.82M) at the IPO maximum, which should result in a dilution of about 25-26%,” chairman and managing director Akshay Bector told Fortune India.
At the proposed issue size, Cremica could command a valuation of around Rs 1,500-2,000 crore (US$156.04-208.06M). About half of the offering could comprise secondary sales, while approximately Rs 350 crore (US$ from the primary issue would be allocated towards expansion.
Cremica expects to close the current financial year with revenue of around Rs 450 crore (US$46.81M) and EBITDA of approximately Rs 70 crore (US$7.28M). Bector expects revenue to increase by about 20% by the end of the following financial year, with EBITDA projected to reach Rs 120 crore.
The company traces its origins to 1978, when Rajni Bector began a small backyard business in Ludhiana producing ice cream, bread and bakery products. The business later expanded into biscuits, bakery products and condiments before being divided among siblings Anoop, Akshay and Ajay Bector.
Following a family settlement, the biscuit and bakery operations were separated from the condiments business. Anoop and Ajay took over the former, while Akshay retained the condiments business, which operates as Cremica Foods.
International markets are expected to become a key growth area for Cremica.
“We are on the verge of internationalizing the business,” Bector said.
The company has partnered with exporters to supply products to the UK, with initial shipments expected around December-January. It is also working with international quick-service restaurant customers to secure approvals for supplies to additional markets.
Cremica is targeting the UK, Middle East and Southeast Asia, with the UK and Southeast Asian markets at an advanced stage. The company expects to serve around 5,000-6,000 restaurants outside India.
Bector estimates international operations could contribute about Rs 150 crore (US$15.61M) in revenue during the first year.
Cremica’s portfolio includes ketchup, sauces and other condiments. The company has also launched vegetarian mayonnaise and Opera crisps, described as India’s first cottage-style potato crisps.
Following the IPO, Cremica plans to enter snacks, pickles and ready-to-eat food categories.
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