SEBI approves merger of Sumuka Agro Industries Limited with Gujjubhai Foods

Sumuka Agro Industries Restricted, a publicly listed firm in India, just lately introduced to the inventory exchanges that it has acquired approval from the Securities and Change Board of India (SEBI) for the merger of Gujjubhai Foods with its enterprise by means of absorption. Gujjubhai Meals, a personal firm owned by the promoters of Sumuka, is famend for its vary of Gujarati namkeen, together with khakhra, bhakhri, and different ready-to-eat savoury snacks. The merger now awaits remaining approval from the Nationwide Firm Regulation Tribunal (NCLT).

The merger marks a strategic transfer to strengthen Sumuka Agro’s presence within the fast-moving client items (FMCG) sector by combining operational synergies and market strengths with Gujjubhai Meals. The Bombay Stock Exchange (BSE) issued a ‘no objection’ to the merger proposal in July 2024.

Commenting on the milestone, Shaili Patel Bhatt, Director and CFO of Sumuka Agro Industries Restricted, stated: “We’re delighted to obtain SEBI’s approval for our merger with Gujjubhai Meals. This partnership will improve our market positioning, develop our distribution community, and propel our progress within the aggressive FMCG house. Collectively, we goal to ship higher worth by leveraging our collective experience and sources.”

Below the merger phrases, shareholders of Gujjubhai Meals will obtain 17.5 shares of Sumuka Agro for each 10 shares of Gujjubhai Meals. Submit-merger, the promoters’ stake within the mixed entity is anticipated to rise from 27.71% to 64%.

Financial performance and progress

Sumuka Agro has witnessed speedy progress, with revenues rising from Rs 1.39 crore in 2021-22 to Rs 54.95 crore in 2023-24, alongside a Revenue After Tax (PAT) of Rs 4.26 crore in 2023-24. This progress has been pushed by innovation and growth in product choices, together with a rise in SKUs (Inventory Retaining Models) from 53 to 76 throughout the identical interval.

The corporate operates throughout a number of product classes, together with:

• Namkeen and snacks: Packaged Gujarati snacks with distinctive recipes, prolonged shelf life, and health-focused components.
• Dry fruits and ready-to-cook objects: Premium dried fruits and ready-to-cook mixes beneath the ‘Siamaa’s’ model.
• Pure alkaline water and rock salt: A distinct segment vary beneath the ‘GO2’ model.

However, Gujjubhai Meals reported revenues of Rs 22.06 crore in 2023-24 together with a PAT of Rs 1.32 crore.
In addition to, its group firm Café Gujjubhai Non-public Restricted runs a sequence of franchisee-led eating places in Bengaluru serving Gujarati and North Indian delicacies, supported by centralised kitchen operations.
Sumuka Agro’s merchandise can be found throughout India by partnerships with main retailers resembling DMart and BigBasket, together with over 10 offline commerce companions.

The merger with Gujjubhai Meals is anticipated to additional improve Sumuka Agro’s choices, solidify its management in branded Gujarati snacks, and open new progress avenues within the FMCG sector.

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