ECONOMYNEXT – Maharaja Foods, a company that was founded by a family from Sri Lanka’s north is seeking 125 million rupees to expand its processed ethnic foods, the bulk of which is exported to countries with South Asian expat communities.
The company will use 26.5 million rupees for a raw rice plant and 17.5 million for a rice polishing plant. Another 6 million rupees will go to purchase machinery for a gingelly oil processing plant.
Another 30 million will go for working capital, 25 million to expand a warehouse. About 20 million will go to settle borrowings.
The company is part of GTV group which has logistics and a retailing. The group has been headed by Thavamalar Guganathan from 2016 when her husband who founded the firm passed away.
Vithyanath Guganathan, Managing Director said the recipes for the products were given by his mother.
Their own rice plant will ensure stable quality and lower costs. Polish riced will be a new product.
The firm produces rice-based products are spices which are exported to France, UK, Switzerland and Australia and smaller volumes to countries like UAE, Singapore.
Last year 64 percent of the revenues were from foreign markets. Their products are distributed in about 5,000 outlets.
During the Coronavirus crises the company started exporting and grew the business, eventually reaching a million dollars, Gunanathan said.
Maharaja Foods stand alone revenue was 325 million rupees in the year to March 2024, cost of sales was 263 million rupees and gross profit 62 million rupees.
Net profit was 29.8 million rupees. Profits at group level was 31 million rupees.
After the IPO existing shareholders will have 100 million shares and new shareholders 25 million shares.
The new shares are offered at 5 rupees a share. (Colombo/June20/2024)
Source – https://economynext.com/maharaja-foods-from-sri-lanka-seeks-rs125nm-for-expansion-168876/
