Mrs. Bectors Food Specialities Ltd Mrs. Rajni Bector is the founder of Mrs. Bectors Food Specialities Ltd, an incredible tale of vision and success in business. Mrs. Bector started out in the 1970s in Ludhiana, Punjab, bringing homemade cakes, cookies, ice creams, puddings, and buns to neighbourhood get-togethers.

Mrs. Bector’s success story is replete with noteworthy achievements. Her first significant action came in 1985 when she established a bread unit in Punjab, producing 5,000 loaves a day, which quickly rose to 50,000 loaves. As the business grew, new manufacturing facilities were opened around India, and by 1996, they were formally supplying McDonald’s with burger buns.

Mrs. Bectors Food Specialities Ltd went public in December 2020, attracting Rs 541 crore through an IPO that was oversubscribed by 198 times. Due to this accomplishment, the company’s market value more than doubled, reaching over Rs 2500 crore by November 2021. The stock has almost doubled in value over the last year, yielding a return of 118.06 percent. 

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Additionally, the business performed well financially in the December quarter of 2024. With both domestic and export biscuits, the biscuit segment’s revenue in Q3FY24 was ₹268 crores as opposed to ₹219 crores in Q3FY23, representing a 22% increase. The biscuit segment has expanded by 71% from Q3FY22 onward.

With retail bakery and institutional segment included, bakery segment sales in Q3FY24 was Rs. 146 crores, up from ₹127 crores in Q3FY23. This is a 15% increase over Q3FY23. The bakery segment has expanded by 58% since Q3FY22.

The profit after tax in Q3FY24 has also surged by 25 percent to ₹34.6 crores from ₹27.8 crores in Q3FY23. So how does the company stand when it comes to the biscuit and bakery industry in India? Can it provide a good investment opportunity for the future as well? Well let’s delve into the article to find out.

Corporate Overview of Mrs. Bectors Food Specialities Ltd

In North India, Mrs. Bectors Food Specialities Ltd (MBFSL) is a prominent player in the premium and mid-premium biscuit and premium baking markets. Under the main brand “Mrs. Bector’s Cremica,” it produces and sells a variety of biscuits, including cookies, creams, crackers, digestives, and glucose.

Under the “English Oven” brand, it also produces and sells bakery goods in the savoury and sweet categories, such as breads, buns, pizza bases, and cakes. At its six manufacturing locations, MBFSL produces all of its own goods. It exports to 69 countries on six continents and provides its products to reputable institutional clients with a presence throughout India, in addition to retail customers in 26 states in India.

In addition, the company is a prominent player in the premium bakery market in India and serves as the preferred supplier to numerous popular multiplexes, cloud kitchens, and QSR franchisees in the nation.

Business Segments of Mrs. Bectors Food Specialities Ltd

The company has two main business segments. One is the manufacturing of biscuits under the brand name Cremica and the other is the Branded breads & bakery products under the brand name English Oven.

Biscuit segment

MBFSL is a prominent player in North India’s premium and mid-premium biscuit market, offering its goods under the Mrs. Bector’s Cremica flagship brand. With a prominent presence in Punjab, Himachal Pradesh, Ladakh, and Jammu & Kashmir.

There are around 400 SKUs in its biscuits category product portfolio, which includes a large range of cookies, creams, crackers, and digestives. To further highlight the excellent quality of its products, it also contracts with Mondelez India (Cadbury) to manufacture “Oreo” biscuits and “Choco Bakes” cookies.

In FY2023, this business segment witnessed a 36 percent revenue growth to ₹807 crore. During the same financial year, this segment contributed around 59.25 percent of the total revenue. With over 1,180 plus distributors and possessing more than 5,80,000 retail outlets, the company has 5.4 percent  Premium and mid premium market share in North India

Bakery Segment

Under the “English Oven” brand, MBFSL distributes and sells high-quality bakery goods to retail clients in both savoury and sweet categories, including breads, buns, pizza bases, and cakes.

Being able to handle fresh, chilled, and frozen goods makes it one of the few Indian bakeries that can effectively distribute its array of baked goods, which includes about 100 SKUs in India.

In FY2023, this business segment witnessed a 44 percent revenue growth to ₹487 crore. During the same financial year, this segment contributed around 35.75 percent of the total revenue. With over 600 plus distributors and possessing more than 35,000 retail outlets, the company has 5 percent market share in branded breads segment in India.

Financials Of Mrs. Bectors Food Specialities Ltd

FY2023FY2022FY2021FY2020
Revenue (in ₹crore)1,362.14988.17880.73762.12
Net Profit (in ₹crore)90.0757.1472.2830.31
ROE17.78%12.69%19.26%9.87%
ROCE20.53%13.84%20.30%11.48%

In the fiscal year 2023, Mrs. Bectors Food Specialities saw a substantial increase in revenue, surging by 37.8% to reach ₹1,362.14 crore as opposed to ₹988.17 crore in FY2022. Analyzing a span of four years, encompassing FY2020 to FY2023, the company displayed a  robust Compound Annual Growth Rate (CAGR) of 21.36% in revenue.

Simultaneously, there was a noteworthy upturn in net profit, experiencing a 57.6% increase from ₹57.14 crore in FY2022 to ₹90.07 crore in FY2023. Over the cumulative four-year period from FY2020 to FY2023, the net profit showcased 20.53% CAGR.

In FY23, Mrs. Bectors Food Specialities maintained favourable financial metrics with a Return on Equity (ROE) of 17.78% and Return on Capital Employed (ROCE) of 20.53%.

Future Plans of Mrs. Bectors Food Specialities Ltd

Huge Industry Tailwind

With a forecasted growth rate of 9%, the retail bread and buns industry in India is expected to reach a valuation of Rs 76 billion by FY25, from its FY20 valuation of Rs 50 billion. The primary drivers of growth will be the rise in disposable incomes, as well as changes in consumer preferences and lifestyle. Due to rising disposable incomes and shifting dietary choices, the demand for bread is mostly focused in metro areas, tier I and bigger tier II cities.

Over the past ten years, the Indian food services industry has experienced growth as a result of shifting consumer habits, including a rise in the country’s tendency to eat out, which has not historically been a part of Indian culture. 

Food services revenue in India is expected to reach Rs 6,505.00 billion by FY25, growing at a compound annual growth rate (CAGR) of 9% over the next five years, from an estimated Rs 4,236 billion in FY20.

Expanding Distribution

As of March 2023, MBFSL had 2.7 lakh outlets in 331 districts, up from 2.16 lakh outlets in 269 districts. This indicates that the company is expanding its distribution reach in the home biscuit market.

By March 2024, the business expects to have 3.2 lakh stores, which is double what it had in March 2022. Additionally, the business is expanding into the southern and western regions. To promote sales, MBFSL has also raised the number of feet on street (sales people who serve and monitor distributors) from 900 in March 2023 to 1,200.

The company has commissioned two Biscuit Lines in Rajpura in the current year. Two more lines are further being added and are estimated to be completed by H1 24-25. 

When it comes to the bakery business, the company has commissioned a Bhiwadi plant in the current year and a new bakery unit is also being set up in Kolkata which will be completed in FY 24-25. The Bakery Plant in Khopoli is also under expansion and is expected to be commissioned by FY24-25.

The company has commissioned two Biscuit Lines in Rajpura in the current year. Two more lines are further being added and are estimated to be completed by H1 24-25. 

When it comes to the bakery business, the company has commissioned a Bhiwadi plant in the current year and a new bakery unit is also being set up in Kolkata which will be completed in FY 24-25. The Bakery Plant in Khopoli is also under expansion and is expected to be commissioned by FY24-25.

Conclusion

In light of Mrs. Bectors Food Specialities Ltd impressive performance and strategic expansion plans, the future of the company appears promising. With robust revenue growth, expanding distribution networks, and a strong foothold in both the biscuit and bakery segments, MBFSL stands poised for continued success. As readers, what are your insights into the company’s trajectory? Do you foresee MBFSL as a solid investment opportunity given its industry position and growth prospects? Let us know in the comments below!

Written by Nalin Suriya

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