Founded in 1999, Gopal Snacks is an FMCG company dealing in ethnic snacks, western snacks, and other products.
KEY POINTS [ edit ]
Product Portfolio [1] The company offers a wide variety of savory products under its brand ‘Gopal’, including ethnic snacks such as namkeen and gathiya; western snacks such as wafers, extruded snacks, and snack pellets; and fast-moving consumer goods including papad, spices, gram flour or besan, noodles, rusk, and soan papdi.
Market Share [2] In FY23, the company has a 20% market share in ethnic savories, 8% in western snacks, and 6% in the papad industry within Gujarat, spanning both organized and unorganized sectors.
SKU’s [3] As of September 30, 2023, their product portfolio comprised 84 products, with 276 SKUs. The products are sold in over 523 locations in India across 10 states and two Union Territories.
Manufacturing Facilities [4] Co. operates six manufacturing facilities, the company’s three primary sites in Nagpur, Rajkot, and Modasa, Gujarat, focus on the production of finished goods. The three ancillary facilities specialize in besan production, raw snack pellets, seasoning, and spices, primarily for internal consumption in the manufacturing process of gathiya, namkeen, and snack pellets.
Manufacturing Capacity [4] As of September 30, 2023, the annual installed capacity across all facilities reached 404,729 tonnes. The primary manufacturing sites accounted for 303,669 tonnes annually, while the ancillary facilities (excluding papad) contributed 101,060 tonnes.
Low Utilisation% [5] In H1 FY2024, the capacity utilization of primary manufacturing facilities was 28.64% and the utilization of ancillary manufacturing facilities was 51.10%.
Revenue Bifurcation [6]
Ethnic Snacks - 59.5% in FY23 vs 64.5% in FY22
Western Snacks - 29.5% in FY23 vs 26.5% in FY22
Others - 10% in FY23 vs 9% in FY22
Distribution Network [3] As of September 30, 2023, their sales and marketing team comprised 741 employees, complemented the distribution network of 3 depots and 617 distributors. As of September 2023, the company has a fleet of 263 logistics vehicles to support its distribution network.
Revenue Concentration [7] The company heavily relies on Gujarat for its revenue, with significant percentages in FY 2021, 2022, and 2023, constituting 74.31%, 76.27%, and 79.08%, of total revenue, respectively.
The company’s revenue is significantly reliant on sale of small-pack SKUs. Revenue from SKUs priced at Rs 5 constituted 82.68%, 80.74%, 75.48%, and 77.31%, of FY21,22,23 revenue.[6]
Concerns [8] In the past, co. has received 8 notices from the Food Safety and Standards Act, 2006, alleging substandard products, misbranding, deficient packaging, and misleading advertisements.
Disc: Not SEBI regd. 1% Invested.
credits: Screener, @Worldlywiseinvestors