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Annual Report Highlights No : 15

#ManoramaIndustries FY 22 Annual Report Highlights

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Company Overview

• Manorama Industries is engaged in manufacturing cocoa butter equivalents (CBE), butter products & other related by-products from the waste products like sal seeds, mango kernel etc which go into the premium food, chocolate and

confectionery segment as well as cosmetic conglomerates.
• CBE is a cheaper alternative to Cocoa Butter (CB), which improves the taste, solidity and texture of the chocolate.

• The Group has a history of many decades which started with extracting butter and fats from Sal seed and Mango kernel and gradually forayed into exotic products and specialty fats.

Business segment contribution
The company has 2 business segments: (i) Chocolate, Food & Confectionery and (ii) Cosmetics

Geographical Mix

Clientele
The company has a strong clientele with the world’s leading confectionery & cosmetic brands, like Ferrero, Mondelez, The Body Shop, L’Oréal, Unigra, Mitsui, Walter Rau, etc., sourcing its products.

Annual report FY22 Highlights
• The company’s dominance in the creation, processing, and supply of unique speciality fats and butter in India and across the world continued to expand.

• The worldwide chocolate market was anticipated to be worth US$106.6 billion in 2021, and isfurther expected to expand at a CAGR of 5.5% through 2027 – reaching US$147 billion.North America is expected to have a significant proportion of the chocolate market.

The changing lifestyle and increasing consumer spending power in the region are driving market expansion. Meanwhile, the Asia-Pacific area is expected to develop at the quickest rate, with emerging economies like India and China driving market expansion.

• The Indian chocolate market is predicted to grow at an annual pace of 8.12% from 2022 to 2027.

• High-end chocolates are becoming increasingly popular in India’s chocolate industry.

Increased middle-class discretionary income, extensive use of industrial chocolates in confectionery and ice cream manufacturing, as well as a growing gifting culture and the country’s enormous customer base, are all adding to the industry’s rise.

• The global confectionery market is expected to reach US$ 387.94 billion in 2022. Chocolate is now leading the worldwide confectionery industry in terms of product type.

The rising popularity can be attributed to the willingness to spend more by the consumers to satisfy their palates, since chocolates and gums are consumed by people of all ages.

• Europe accounts for a large share of the confectionery industry. Meanwhile, the Asia- Pacific area is expected to develop strongly, owing to rising demand for packaged food items and increased penetration of confectionary products.

• The worldwide sugar and confectionery products market is predicted to witness a CAGR of 6.84%, from US$ 341.62 billion in 2020, to US$ 475.65 billion in 2025.

• The global cosmetic market is predicted to be US$ 255 billion in 2022. Skin care, hair care, deodorants & scents, and makeup & colour cosmetics are all part of the global cosmetics business.

• The development in awareness of exterior beauty, along with an individual’s inner intellect, has become one of the major driving reasons for cosmetics consumption in the worldwide market

• By 2027, the worldwide cosmetics business is predicted to rise to US$ 737.54 billion, exhibiting a 6.23% compound annual growth rate (CAGR).

• The year 2021-22 was a productive one for the company, and here are the financial highlights for the year:

Revenue from operations for 2021-22 stood at ₹2,791.20 million as compared to last year, with 38% growth y-o-y

Earnings before interest, tax, depreciation and amortization (EBITDA) stood at ₹389.40 million as compared to ₹346.60 million in the previous year, with the EBITDA margin of 12.3%

Profit after tax (PAT) for 2021-22 stood at ₹241.50 million as compared to last year, with 65.6% growth y-o-y

Earnings per share (EPS) for the year ended March 31, 2022, stood at ₹20.8

• Manorama Africa Limited (MAL) is a strategic asset that specializes in procuring shea nuts from key West African markets for the past few years now.

Moving ahead, we intend to strengthen MAL by putting more workers on the ground to obtain higher-quality shea seeds, with an emphasis on cost reduction and output growth.

• The company’s new product offerings include hard fats for culinary application and marinades, general purpose hard stock for spreads and applications, cocoa butter replacer, cocoa butter improvers and stable filling fats for bakery segment.

• In recent years, demand for specialized chocolate products and pre-immunised offers has increased significantly. Chocolate’s growing popularity as a key ingredient in pastries and baked goods is also aiding the sector.

• In Russia and Latin America, there is a huge opportunity. India has a significant potential to expand its geographical region, customer base, revenue, and reach.

• On the other hand, the worldwide specialty fats and butter market has grown significantly in recent years, owing to increased demand for speciality fats in a variety of industrial applications.

Cocoa Butter Equivalent is in high demand in the international market driven by the capacity of these destiny to satisfy the desired features in items like dairy, bread, confectionery, and cosmetics.

• To support the industry and boost growth, initiatives by the Indian Government such as incentives and subsidies are given for agriculture, vegetable oil and fats, and food processing businesses, aiding growth.

• Our newly constructed state-of-the-art manufacturing plant in Birkoni, Chhattisgarh, commenced operations in March 2020. Our overall output significantly improved in FY 2021-22 with increased capacity utilization.

Post carrying out the additional expenditure on fractionation and refinery, the total production capacity will reach 40,000 MTPA . The addition of capacity through the development of a new plant will help fulfill global demand.

The Company has increased the capacity of the business’ packaging line by 50 MT per day (current capacity is 50 MT per day) to accommodate varied product packaging at the same time.

• The company offers a variety of one-of-a-kind items in the basket which are:

MIL DP1055, a hard fat for culinary use and marinades (MIL DP1052). MIL DP1054 is a general-purpose hard stock that may be used for spreading

All-round filling fats (MilcocreamTM1056 and MilcocreamTM1010), cocoa butter equivalents/improvers (Milcoa ES1057 and Milcoa IS1043) and cocoa butter replacers (MilcoatTMR1058)

• Bake stable filling fats MilcocreamTM1059, MilcocreamTM1052 for use as filling in croissants and pastries in the bakery market

• Chocolate Hazelnut Spread fat MilcospreadTM1003, MilcospreadTM1053, MilcospreadTM1060

• Products under Development (B2B)

Thermo-tolerant Cocoa Butter Equivalent

Thermo-stable Chocolate/Hazelnut Spread Fat

Cocoa Butter Replacers

Aeratable Confectionery Filling Fats

Cocoa Butter Substitute – Reduced SAFA

Organic Glycerine, Sal Tanin Concentrate

• Products Under Development (B2C)

Thermo-tolerant Chocolate Spread

Chocolate-filled Bakery/Biscuit Products

Chocolate Tablets

Filled-wafer Products

• The Company intends to create products for the health industry in the near future.