Freshtrop Fruits Ltd


(Krishnendu) #165

Processed Mango Product Market Expanding at CAGR of 6.1% and 7% Respectively from 2018 to 2026.

https://financialportal24.com/global-processed-mango-product-market/

http://www.digitaljournal.com/pr/3749236


(Whipsaw) #166

(Krishnendu) #167

Does this has a market in India as of now ?


(Whipsaw) #168

To begin with, the company has introduced its products in the Mumbai, Nashik and Pune markets in 14 flavours with plans to go in for pan-India retail expansion in a phased manner.


(Whipsaw) #169

(s) #170

Can any one shed some light on Cold extracted juice shelf life. Also since the company wants to expand pan India any thoughts on how will it handle the distribution considering there is no preservative and warehousing and logistic is going to shorten the shelf life. Has any one tasted the juices being marketed.


(Prince V) #171

FTQ119

Good results by Freshtrop with some help from Rupee and Lower Tax Rate of 25% from Current Year.

I have been tracking Freshtrop for a while now and sharing some info which I collected from Scuttlebut (kindly ignore if shared already)

  • Company recently released a video on youtube regarding Company Info https://www.youtube.com/watch?v=rXdxsP8V2fs

  • It is a family owned and managed business run by Mr Ashok Motiani and family

  • Company’s main business comes from Export of fresh fruits to EU region primarily grapes (This is stated in ARs also). Last few years Company has ventured into contract manufacturing (processing) for some FMCG companies. My Ex Employer Company was one among them

  • Based on my experience, Processing business is a low margin, low to average ROCE business. Its difficult for a listed company to compete with a SSI Unit type of business who dont always comply with all regulations, pay taxes etc.
    Freshtrop’s processing business has been loss making for some time now

  • Export of processed foods is highly seasonal since there is one major product. The business is highly susceptible to bad weather and EU food regulations. Plus there is unionism attitude among farmers. I cannot see this business growing at more than 10-12% in the long run

  • Recent foray into Cold Extracted Juices looks interesting and this is why I am invested. The market for health conscious products is only developing in India and by many estimates would grow faster than most other FMCG products. Company has got strength in sourcing due to long standing name and favourable geog. location for procurement of fruits like Mango, Orange, Grapes, Pomegranate etc.

  • Marketing of Juices is the key challenge. Based on info gathered, Mr Ashoks younger daughter - Dipti is looking after the new foray in juices.There is an Instagram handle - https://www.instagram.com/getsecondnature/ which is doing limited publicity among the urban youth and apparently a few food blogger type people.

  • Juices business has a low base and I feel it has to potential to grow at 20% + at the topline although whether that can be translated at the bottomline level is anybodys guess

  • Lots of risks ofcourse as Freshtrop will find it extremely difficult to compete with any large player like Pepsi, Dabur; Apart from the risks and problems facing the First two businesses

Invested with a small amount. Will increase allocation if \ when the story plays out


(adi16in) #172

They are into a totally different premium juices segment, and competition from mass selling juices from pepsi/dabur should not matter much in my opinion. I hope they are able to market their product in a way to gain popularity amongst urban population.