Manpasand Beverages Initiating Coverage

Initiating Coverage
18 April 2018
18 Apr 2018 Company Report
Buy
Target Price: Rs. 528
CMP : Rs. 422

Potential Upside : 25%
MARKET DATA
No. of Shares : 11.44 Cr.

Market Cap : Rs. 4,828 Cr
Manpasand Beverages Ltd.

Free Float : 56%
Avg. daily vol (6mth) : 1,90,269
52-w High / Low : 511/336
Bloomberg : MANB IN
Sector: FMCG
Promoter holding : 44.1%
FII / DII : 33.1%
A Cool “SIP UP”
Price performance
120
110
100
90
80
Apr-17 Jul-17 Oct-17 Jan-18 Apr-18
BSE Sensex Manpasand Bever.
Financial Summary Key Drivers

Y/E Net Sales EBITDA PAT EPS Change P/E RoE RoCE EV/EBITDA
DPS (Rs) Y/E
March (Rs Cr) (Rs Cr) (Rs Cr) (Rs) (%) (x) (%) (%) (x) FY18E FY19E FY20E
March
FY16 511 110 50 4.4 69% 80 13% 12% 36 0.4
FY17 691 140 73 6.3 44% 56 8% 8% 29 0.6 Volume Growth 32% 30% 42%
FY18E 957 179 90 7.9 24% 53 8% 8% 22 1.6 Gross Margin 36.9% 37.2% 37.4%
FY19E 1,292 246 122 10.7 36% 39 10% 11% 16 2.2
FY20E 1,812 351 178 15.5 46% 27 13% 14% 11 3.1 EBITDA Margin 18.6% 18.9% 19.2%
Source: Company, Axis Securities CMP as on April 17, 2018
Suvarna Joshi Sr. Manager - Research |  suvarna.joshi@axissecurities.com |  (+91 22 4267 1740) 2

Manpasand Beverages Ltd

Contents Sector: FMCG
Page
 Executive Summary 5-6
 Industry Overview 7-12
 Company Overview 13-17
 Product Portfolio Expansion 18-23
 Distribution Expansion = Network Growth 24-28
 Financial Commentary 29-35
 Key Risks 36
 Appendix – I : Indian Soft Drink Industry 37-43
2
Executive Summary

Executive Summary Sector: FMCG
Largest & Fast Growing Category

- Indian Soft Drink Market to grow at 17% volume CAGR versus Global Soft Drink Market’s ~3.4% CAGR by CY2021
- Indian Juices Drink segment to outgrow Carbonates segment with 23% volume CAGR over CY16-21 as against 9.6% CAGR expected for the
Carbonated Soft Drinks (CSD) segment in the Indian Market, we believe, Mango based drinks to continue to dominate
- MANB sweetly positioned in the Non-Carbonates/ Juice Drinks segment which is growing at 2x of Carbonates
- Bottled Water an emerging category likely to touch a value size of Rs. 395bn in 2021 reporting 23% CAGR over 2016-21E with volume
growth of 20%
Low per capita consumption huge growth opportunity

- Indian Soft Drinks per capita consumption at ~5 litres/year is very low compared to global average of 91.9 litres/year, 100 litres/year in
USA, 64 litres/year in China & 127 litres /year in Brazil
- Per Capita Soft Drink Consumption volume wise is 1/20th that of the USA, 1/10th of Kuwait, 1/8th of Thailand & Phillipines and 1/3rd of
Malaysia
- Government thrust on enhancing agri income (1.5x MSP for crops) to aid soft drink consumption
Bharat – an untapped growth opportunity

- Bharat estimated to contributes ~40% of overall FMCG sales of USD 20 bn and USD 100 bn over 2018 and 2020 respectively
- Huge under-penetration in Rural India with rural market share at 1/3rd of urban market
- Rural sales of juices grown at 26% CAGR over FY10-15 and estimated to grow to Rs. 41,700 Cr by 2020 from Rs. 13,200 Cr in 2015
- Rural growing faster than Urban as indicated by 24% share in the volume mix in 2015 vs 21% in 2010
1.2x Capacity Expansion to power growth over FY18-20E

- FY2018 combined capacity at 2,25,000 cases/day; MANB to expand capacity by 1.2x over FY17-20E
- Target setting up facilities in each zone in Phase I; Vision 2030 – to set up manufacturing facility in each state
- Greenfield capacity at Andhra Pradesh and Orissa enables MANB to increase it addressable market areas
- Capacity expansion to aid consistent volume growth; expect a 35% volume CAGR over FY18-20E
5

Executive Summary Sector: FMCG
Deepening Distribution – Parle Products tie up a kicker

- Parle Products has a 33% market share in biscuits with access to 45 lakh retail selling points mainly in the Off-Trade segment
- MANB’s current distribution network dominated by Off-Trade segment is 1/9th that of Parle Products
- Revenues of ~5% from Parle Products generated in Q3FY18 (just 1 quarter) from West Bengal alone in Phase 1
- MANB’s distribution to grow 2x YoY over FY18-20E. MANB intends to touch 1,000 distributors going forward from 450 in Q3FY18
MANB’s Growing Market Share

- 2016 market share in Juice Drinks (Rs. 162bn) category nearly doubled to 5%; grown by 240bps over CY2015 (2.6%)
- Tie up with Parle Products to aid market share gains given the huge untapped potential in Bharat
- Juice Drinks (up to 24% Juice) segment expected to report 24% value CAGR over CY16-2021E at Rs. 350bn size with 17% volume CAGR
- Parle Products dominance in South India to allow MANB to make in-roads into South which forms c.~10% of revenues
Robust Financial Growth to continue over FY17-20E

- Expect MANB to reported strong 38% Revenue CAGR at Rs. 1,812 cr driven by 35% volume CAGR over FY18-20E
- Estimate 60bps EBITDA Margin expansion by FY20E at 19.2% driven by improving utilization levels
- We believe, MANB to report a 41% PAT CAGR over FY18-20E driven by strong operating performance; ROE expected to improve albeit
gradually to 13% by FY20E
- At CMP, MANB trades at 27.2x FY20E earnings, at a discount to some of its FMCG peers and Global peers. Given robust revenue and
earnings growth we value MANB at 34x P/E arriving at a Target Price of Rs. 528 per share (25% upside) over 12-18 months horizon
6
Industry Overview

India Soft Drink (CY16): Market overview Sector: FMCG
India Soft Drinks

(Rs 603 bn; 13,574 mn ltr)
Carbonates Bottled water Fruit Juices Others

(Rs 276 bn; (Rs 142 bn; (Rs 162 bn; (Rs 21 bn;
4,927 mn ltr) 6,427 mn ltr) 2,120 mn ltr) 100 mn ltr)
Juice Drinks Concentrates

Cola based Non-cola based (Rs. 9.3bn; 41 mn ltr)
(up to 24% Juice)
(Rs 111 bn; (Rs 165 bn; (Rs 119 bn;
1,986 mn ltr) 2,941 mn ltr) 1,757 mn ltr)
Sports and Energy Drinks
(Rs. 11.1bn;
Regular Cola Lemonade/Lime Nectars (25-99% Juice) 42 mn ltr)
Carbonates (Rs 101 bn; (Rs 28 bn;
(Rs 109 bn, 1,804 mn ltr) 252 mn ltr)
1,959 mn ltr) Ready To Drink Tea (RTD)
((Rs.1.4bn; 17 mn ltr)
Mixers
Low Calorie Cola (Rs 10 bn; 100% Juice
Carbonates 254 mn ltr) (Rs14.7 bn;
(Rs 2 bn; 27 mn ltr) 112 mn ltr)
Orange Carbonates
(Rs 30 bn;
526 mn ltr)
Other Non-Cola
Carbonates
(Rs 22 bn;
358 mn ltrr)
Indian Soft Drink category - Rs. 603 bn the largest FMCG category
8

Sustainable Category = Robust Growth Sector: FMCG
Soft Drink Per Capita Consumption - Global

 Low Per Capita Consumption in India: 44 bottles in
CAGR 2016-21 15.1% 3.4% 1.8% 2.8% -0.1% 0.7% 3.3%
2000
India vs 1,496 bottles in USA and 537 bottles in
1,616
1,489 1,496 1,490
Brazil
Per Capita Bottles
1500 1,2211,203
1000  Growing middle class: aspiring and affluent households

537 566
391 434
500 271 313 to rise to 100mn from 48mn over next 10 years
44 84
0
 Rising Affordability: Avg. consumer expenditure is likely
India China Brazil Mexico Germany USA World
2016 2021E to increase 3x over next decade to Rs. 150 trillion by
2020
Soft Drinks Industry - India
Million Cases 2016 2017 2022E CAGR  Rurbanization: Rural-Urban percent share stood at
Bottled Water 1,967 2,351 6,006 20.6% 24:76 in 2015 against 21:79 in 2010. Dependence
Carbonates 919 949 1,122 3.4% on cyclical agri reduced significantly to 30% of total
Juices 313 336 495 8.1% rural household income
Others* 18 19 25 5.6%
 Government Thrust on Rural Income: Announcement of
Total 3,217 3,655 7,648 15.9%
a minimum1.5x MSP on crops to aid agri income in
2017 2022E rural areas
CAGR  Distribution Penetration: Growing distribution especially
3,655 7,648
Million Million in rural areas is critical for a fast paced growth
Cases 15.9% Cases
(distribution in rural is negligible because of lack of
consistent electricity, poor infrastructure and low scale)
Source: Industry, Axis Securities Research
9

Low Per Capita Consumption = High Growth Sector: FMCG
Indian Per Capita Soft Drink Consumption (litres/year)

120
100
100
80
60
40
20 5
0
USA Saudi Lebanon Kuwait Qatar Thailand UAE Oman Uganda Phillipines Malaysia Vietnam China India
Source: Industry, Axis Securities Research
 Indian per capita Soft Drink consumption is 1/20 th of  Opportunities for increasing Per Capita Consumption
USA, 1/10th of Kuwait, 1/8th of Thailand and  Thrust on raising consumer disposable incomes especially in
Phillipines and 1/3rd of Malaysia rural areas
 Focus on expanding distribution network
 Low Per Capita Consumption in India lower than global
 Leverage the Small Pack growth potential
average
 Improvement in overall infrastructure facilities with rural at
 Lower average disposable income the heart
 Hugely under penetrated segment  Healthy products pipeline catering to the changing
 Price sensitive market consumer taste – a critical success factor
 Inadequate infrastructure facilities (roads, electricity etc)
 Lack of new product innovations
10

Soft Drink Market in India – Growth Potential Sector: FMCG
"Market Size of ~ Rs. 603.36bn, Off-Trade Market growth ~17% CAGR (2011-16);
Off-Trade market expected to grow at 16% CAGR over 2016-21E
Soft Drink Industry - Classification by Category 2016 Soft Drink Industry - Classification by Geography 2015
Volume (mn litres) Value (Rs. bn) Volume (mn litres) Value (Rs. bn)
Others; 94 Bottled West
West North North
Juices: mn litres Water: Others 30%
Bottled Water: 30% 36% 37%
1,846mn 1% 4,437mn : Rs. 18bn, 6%
litres; 20% litres; 47% Rs. 70bn; 21%
Carbonates
2,975mn East &
Juices Carbonates East &
litres; 32% North
: Rs. 125bn; : Rs. 115bn; North South East South
38% 35% East 23% 11% 22%
11%
2016 Market Volume : 13,574 mn litres 2016 Market Size : Rs. 603bn (USD 9.28bn)
Off-Trade Value Growth Juices Carbonates Bottled Water

CAGR 2011-16 26.5% 11.8% 27.2%
CAGR 2016-21E 16.9% 3.7% 16.5%
 2016 Volume and Value split for Off-Trade and On-Trade Segments is about 69:31 and 54:46 resp; On-Trade segment has better pricing realizations
 Off-Trade channel is where sales take place through traditional grocery stores, hypermarkets, super markets etc.
 On-trade channel is that where sales happen through restaurants, food service outlets, bars & clubs
 Within the off-trade channel, a significant majority of sales of soft drinks in India constitutes to take place through traditional grocery retailers; they contributed to 87.8%,
69.7% and 63.8% of the Total off-trade volume sales for carbonated drinks, juices and bottled water resp in 2016
 Rural consumers constitute ~24.3% of Off-Trade volume sales in (2015) and it is price sensitive market with weak distribution linkages
Source: Company, Axis Securities Research
11

Off-trade Juices Segment Sector: FMCG
Strong growth in Juice Drinks Category (value) Juices Segment Sub-category
100% Juice Juice Drinks (up to 24% Juice) Nectar (25%-99% Juice)
Estm. Value
Target Income Value CAGR
268
300 CY11-16 CAGR : 27.3% Category Fruit Content CAGR
Segment 2011-16
250 CY16-21E CAGR : 24.5% 2016-21E
Rs. Billion
200
150
Juice Drinks <25% Low Mid 26.2% 24.0%
90
72
56
100
49
44
34
34
27
Nectars 25 - 99% Med-High 22.0% 15.8%
23
20
17
15
12
11
10
50
8
8
6
5
3
0
2011 2012 2013 2014 2015 2016 2021E 100% Juice 100% High 29.0% 23.4%
Mango Drinks form a significant share of Juice Drinks Juice Drinks Market Shares
4.10% Juice Drinks Nectar Share by Fruits 100% Juice Juice Drinks
2% 13%
23% 9% Off-Trade Market Share
4.90% 1% 8%
5%
32% Maaza 30.5%
14%
Frooti 20.5%
36%
42%
85% Slice 21.5%
5% 18%
Mango Orange Others
Manpasand Bev 5.0%
Mango Lemon Mango Orange Others
Orange Other Flavours Apple Mixed Fruits Lychee
Apple Mixed Fruits Others 22.5%
Key growth drivers are improving penetration, rising health consciousness and increasing affordability
Source: Company, Axis Securities Research
12
Company Overview

Company Overview Sector: FMCG
 Manpasand Beverages Ltd (MANB), established in Vadodara (Gujarat)
 Unique distinction of being one of the Indian Beverages manufacturer listed on the bourses
 Manufacturing plants at Vadodara, Varanasi, Ambala, Dehradun in North and West India
 Primary focus on mango-based drinks

 Mango Sip – the flagship product launched in 1997
 Mango Sip is strategically focused on semi-urban and rural markets
 Contributed 75% of revenues in FY17 (98% in FY13)
 ~55% of revenues from Rural areas, 20% through IRCTC and the remaining from urban areas
 Initiated portfolio diversification from 2014 onwards thus reducing impact of seasonality
 Launched Fruits Up in 2 variants premium fruit drink and carbonated drinks
 Manpasand ORS to cater to North East market launched with apple and orange flavour with energy replenishing qualities
 Commenced marketing of Pure Sip bottled water
 Fruits Up carbonated fruit drinks, available in grape, orange and lemon flavors, is similar to Thums Up, Mirinda and Sprite.
 ‘Siznal’ a healthy vegetable and fruit drink with honey (no added sugar) thereby diversifying its product portfolio to cater to
every customer segment across the price pyramid.
 Reported Revenues/EBITDA/PAT CAGR of 52%/59%/64% over FY12–17
14

Key Milestones Sector: FMCG
“Mango Sip” Raised Equity Capital Raised Rs 400 cr New product launched – Jeera Sip
Brand Launched from SPIL through IPO  Distribution tie-up with
 Incorporated as  Inducted Mr. B.M. Vyas  Brownfield Capacity Parle-G
Manpasand Agro Food (ex-MD, Amul) to the Board Expansion undertaken  Green field expansion at
 Setup plant at Varanasi 3 Locations
2013
&
2005 2014 2016
1997 2010 2015 2017

&
2011
First own Raised Equity Capital from Set Up Green field
manufacturing Plant SAIF Partners India IV Fund & plant @ Ambala
 Set up at Vadodara Aditya Birla Trustee Pvt Ltd  New product launched – Coco-
 Brand Ambassador signed Sip (Tender Coconut water)
 Sunny Deol - Mango Sip  Signed Brand Ambassador –
 Mary Kom – Taapsee Pannu for Fruits Up
Manpasand ORS
 Launched new Brands - Fruits
Up, Pure Sip
15

Multiple Growth Drivers at Play Sector: FMCG
Sustainable Category Product Portfolio Expansion

= =
Robust Growth Reducing Seasonality
Low Per Capita Experienced Management

consumption SAMPLE =
= Consistent Growth
High Growth TEXT
Capacity Expansion Distribution Expansion

= =
Fast Tracking Growth Network Growth
A Structural play on India soft drinks industry
16

Bharat - An Untapped Growth Opportunity Sector: FMCG
 70% India resides in small towns and rural areas.

Rural market was 21% of soft drink sales in FY10
However, it accounts for 40% of overall FMCG
Sales
 FMCG Sales by FY20 estimated to be USD 100bn

by 2025 largely driven by Bharat
 Rural sales of Juices reported 26.3% CAGR over

FY10-15 and is expected to report 25% CAGR
over FY15-20E with Rs. 417bn value
 2015 Rural sales stood at 24% of total off-trade Urban Rural

market segment while it has 70% of India’s
population Rural share in soft drink sales increased to 24.3% in FY15
 MANB is focused on the huge opportunity and
cognizant of this has launched affordable and
innovative small packs to cater to this price sensitive
market
 Manpasand Beverages Ltd currently derives ~55%

of its revenues from rural market with the share
continuing in line with distribution expansion in the
hinterland
Urban Rural
Source: Axis Securities Research
17
Product Portfolio Expansion = Reducing Seasonality

Mango Sip the flagship money spinner Sector: FMCG
Mango Sip’s growing dominance in Rural India

 Flagship product of MANB launched in 1997
 Caters to the largest fruit drink segment (Mango Drink forms 85% of Juice
Drinks) a dominant summer fruit drink
 Targeted towards consumers in Tier II and Tier III (small towns and villages);
mango dominating fruit in the Indian Soft Drink market
 55% revenues from Rural Markets; present across 24 states in India
 IRCTC contributes ~20% to overall revenues
 Mango Sip revenues grown ~6.3x (44% CAGR) over FY12-17 driven by 47%
CAGR rise in capacity and distribution expansion over FY12-17
 Distributors are well compensated with 35% margins v/s competition 20-25% 125ml 250ml
200ml 500ml
margins 600ml
1200ml
 Peers Maaza & Slice which control more than 50% market share are urban
centric brands
SKU wise comparison

SKU (ml) MANGO SIP FROOTI TROPICANA SLICE MAAZA
80-100 5 5 Not Present Not Present
160 10 10 Not Present Not Present
200 14 14 14 17
500-600 35 34 32 33
1200 60 62 64 64
Pulp Content (%) 13% 19.5% 13.6% 19.5%
Source : Company; Axis Securities Research
19

Mango Sip the flagship money spinner Sector: FMCG
Mango Sip <Rs. 15 packs are 58% of MANB’s Sales  Low Unit Packs (LUPs) with fruit drinks introduce consumers to
13% the brand and also creates multiple opportunities for
19%
consumption. This differentiated strategy provides MANB
14% with healthier options to cola based products of competitors
 MANB’s knack of understanding rural mindset allowed it to

15% innovate with small packs. Samosa Packs (Rs. 5 / 80ml)
39% introduced by MANB took on competition
 Peers - Maaza, Slice and Frooti control 55% market share

100/125 ml 160/200 ml 500 ml 600 ml 1.2 Litre with more exposure to Rs. 15 and above packs. Thus keeps
competition at bay
Samosa Pack : Small Pack : PET Bottle :  In 2016, for MANB less than Rs. 10 packs formed 40% to
Rs. 5 (80ml) Rs. 7 (125ml) Rs. 15 (160ml) total revenues thus indicating its focus on small towns and
hinterland i.e. Bharat
 MANB - preferred supplier to Indian Railways that reach the

interiors of the country truly making it a “play on Bharat”
 Advantage MANB in small packs :

 Segment margins are inferior due to proportionately high
costs which discourages global players like Coca-Cola
(Maaza) and Pepsi Co’s (Tropicana Slice)
 Allows sustain growth momentum in times of economic
Source: Company; Axis Securities Research
slowdown
20

Fruits Up catching up the shift Sector: FMCG
 Launched in 2014 as carbonated drink and premium

fruit drink
 To capture shift from flavour based cola drinks to
natural fruit juice based drinks including carbonated
fruit drinks
 Fruits Up Premium offers higher juice content (~16-17%)
with a dash of fizz and Fruits Up CSD offers fruit juice
content (8-10%) rather than synthetic concentrates
 Flavours offered – Apple, Litchi, Guava, Lemon, Grape,
Orange, Mango, Mixed Fruits
 Since FY2014, Fruits Up clocked Rs. 160 Cr revenues
(70% carbonated and 30% non-carbonated) in FY2017
Fruits Up – presence in Fruits Drinks & CSD with multiple SKUs Comparison : Fruits Up Carbonates vs Peers
catering to every consumer segment
Fruit Drink Carbonated Fruit Drink MANB PEPSI COCA-COLA THUMS UP
Tetra Pack 100 ml & 200 ml -

250 ml PET Rs. 15 Rs. 10 Rs. 10 Rs. 10
Pet Bottle 125 ml, 160 ml, 300 ml, 600 ml 250 ml and 300 ml
Can - - 600 ml PET Rs. 40 Rs. 34 Rs. 30 Rs. 34
Mango, Apple, Litchi, Guava,

Flavours Grapes, Orange, Lemon 250 ml CAN - Rs. 25 Rs. 25 Rs. 25
Orange, Mix Fruit
21

De-risking Seasonality Sector: FMCG
 Coco Sip launched in 2016  Siznal , a premium product launched in 2017

 A health driven drink  Health drink (vegetable and fruit juice with the sweetness of honey)
 To tap the niche pure tender coconut water segment  Caters to the health conscious consumer as it has no added sugar
 Jeera Sip (with dash of fruit juice) re-launched in 2017

 Oxy Sip launched in 2017
 Aprilla (apple based juice drink) re-launched in 2017
 To capitalize on the fast growing bottled water segment - a highly
fragmented segment
 Tapping consumers with unique taste for traditional (home grown)
 Bottled water to report 23% value CAGR and 19% volume CAGR over
flavours
2016-2021E
22

1.2x Capacity addition YoY to power growth post FY19E Sector: FMCG
 MANB doubled capacity every two years; FY2013 Manufacturing Plant in proximity to end market
capacity stood at 35,000 cases/day and in FY2017 it
stood at 1,70,000 cases/day
 FY2018E too capacity grew by 32% YoY to 2,25,000

cases/day over 1,70,000 cases/day in FY2017 Dehradum
Ambala
 By FY20E we expect capacity to be 4,25,000
cases/day which is 2.5x growth in capacity over
FY2017; total outlay of Rs. 450 Cr for capex to be Varanasi 1 & 2
largely funded from internal accruals (QIP proceeds)
 Existing plants at Vadodara, Varanasi, Dehradun and

Ambala
Vadodara
Bhubaneshwar
 Upcoming greenfield plants at Sri City, Andhra Pradesh (Orissa)
and Bhubaneshwar, Orissa
 Planned capacity expansion of 50,000 cases/day at each
Sricity (AP)
location
 Dedicated capacity for Coco Sip at Sri City to commence
operations from H2FY19
 Reduces geographical concentration Existing
 Increases addressable market size
Upcoming
 For new plants ~40% capacity allocation to Fruits Up
balance 60% assigned for Mango Sip Proximity to end markets reduces Logistics costs and working capital requirements
23
Distribution Expansion = Network Growth

Expanding Pan India Presence and fortifying its Distribution Sector: FMCG
Manpasand Beverages vs MNC Competition Expanding Distribution network across India

Category
Retail Distributor Retailer Total Retailers: 5,00,000+
Outlets Margin Margin Margin
Distributors: 2,500+
Coca-Cola 26 lakh 7% 15% 22% Jammu &
Kashmir
Super Stockist: 250+
Pepsi Co 10 lakh 7% 15% 22%
Manpasand Beverages 5 lakh 15% 20% 35%

Himachal Pradesh
Punjab
Parle Products 45 lakh - - - Haryana Uttarakhand
Uttar Pradesh
Rajasthan Assam
Two Tier Distribution Model
Bihar
Manipur
Manpasand Gujarat
Madhya Pradesh Jharkhand
Beverages Ltd West Bengal
Orissa
Maharashtra
Consignee Telangana
Distributors
Agents
Goa Andhra
Karnataka Pradesh
Super stockiest, Other Distributors/ Tamil Nadu Distributor Density

Stockiest, Wholesale & Retailer Kerala
High Low
25

Multi-pronged Distribution Approach to aid sales growth Sector: FMCG
Modern Retail provide visibility in urban centres Celebrity Endorsements – key to brand building
 Vans on-the go distribution strategy

 Differentiated distribution for Fruits Up
 40-50 distributors to supply Fruits Up through these
mobile Vans O RAL
 For sales of Rs. 20 lakh additional distribution margin R EHYDRATION
offered to its distributors (15% margin)
S ALT
ENERGY
DRINK
26

Parle Products tie-up strengthens distribution penetration Sector: FMCG
 MANB had initiated product supply through Parle’s

distribution network in West Bengal in Q2FY18
 Profiled 150 distributors for 30,000 outlets in

Q3FY18 (revenue contribution ~5% in 3QFY18)
 Target to expand distribution reach by 2x with over

1,000 distributors. To tap West Bengal and Orissa
geographies in Phase 1
 Maharashtra, UP and Gujarat to be aimed through

Parle Products tie-up in Phase 2
 Created a distinct brand for Parle Products Channel

“Mango Sip Gold”
 Tie-up with MANB is a win-win for Parle Products as

well which is looking at a Beverage company with
dominance in small packs to complement its snacks
and biscuits
 Distribution margins for Parle Products Distributors to

be 35% (same as its own distributors)
27

3 pronged growth strategy = Market Share Gains Sector: FMCG
MANB gained 240 bps value market share from 2.6% in 2014 to Total Juices Segment a 23% value CAGR market over CY16-21E
5% in 2016 attributed to :
400
 +75 SKUs for Mango Sip and Fruits Up, amongst the 350
350
largest by any player
300
Rs. Billion
 Absence of Maaza and Slice in <200 ml SKU which 250
generates ~40% revenues for MANB 200
150 119
95
 Doubling of Capacity over FY15-17 aiding market share 100 59 75
47 59
37
18 21 12 24 15 28 42
gains 50 4 10 6 14 7 9
0
 Higher trade margins 2011 2012 2013 2014 2015 2016 2021E
 2x Distribution expansion 100% Juice Juice Drinks (up to 24% Juice) Nectar (25%-99% Juice)
Mango dominates fruit based drinks in India Off-Trade Value Market Share in Juice Drinks (CY16)
4.1%
4.9% 1.0%
Others
5.0% 23%
Maaza
31%
Manpasand
Bev
5%
85.0%
Slice Frooti
22% 21%
Mango Lemon Orange Other Flavours Apple
28
Financial Performance

Financial Commentary Sector: FMCG
Volume CAGR ~35% over FY18-FY20E to drive topline Topline growth of 38% CAGR over FY18-20E
 Aggressive capacity expansion over FY16-18 (1.8x) to aid
volume CAGR of 35% over FY18-20E
2,500 42% 50%
38% 39%
 Growing distribution network at 2x YoY aided by organic 35% 35%
2,000 40%
strategies and Parle Products tie-up to support robust volumes
trajectory.
Rs. Cr
1,500 22% 30%
1,000 1,292 1,812 20%

 Greenfield plants at Sri City and Bhubaneshwar will add to 957
volume production – to cater to underpenetrated East, North East 500 691 10%
511
and South Indian markets …
0 0%
FY2015 FY2016 FY2017 FY2018E FY2019E FY2020E
 Market share gains to be sustained in Rs. 119bn Juice Drinks
category. Currently MANB has 5% market share which has Net Sales (RHS) % Growth (LHS)
nearly doubled over the past two years
40% EBITDA CAGR over FY18-20E Operating Profitability to remain strong aided by robust volume growth
400 19.2% 25%  MANB to report steady GMs of 37.4% by FY20E in an industry
marked by sharp volatility in RMs like fruit pulp, sugar
21.2% 18.9%
300 19.9% (agri commodities), pre-forms and laminates driven by crude oil.
18.6%
20% The steady GMs are due to diversified RM sourcing and strong
relationships with suppliers
Rs. Cr
200
18.2% 351
246 15%
100  We expect, EBITDA to be Rs. 351 Cr by FY20E a 40% CAGR over
140
110 179 FY18-20E
66
0 10%
FY2015 FY2016 FY2017 FY2018E FY2019E FY2020E  EBITDA Margin to be 19.2% in FY20E from 18.6% in FY18E a
60bps expansion
EBIDTA EBIDTA Margin (%)
30

Financial Commentary Sector: FMCG
Earnings CAGR of 41% over FY18-20E

200 9.6% 9.9% 20%
 MANB recorded a profit CAGR of 52% during FY14-17 owing
10.5% 9.5%
to volume growth in Mango Sip, robust growth in Fruits Up, 150
9.9%
Rs. Crore
capacity expansion and distribution expansion 100 8.3% 10%
178
 Net Profit is estimated to report 41% CAGR over FY18-20E to 122
50 73 90
Rs. 178 Cr 30 50
0 0%
 Expect PAT Margin to expand 50bps to 9.8% by FY20E over
9.3% in FY18E PAT PAT Margin (%)
Better Utilization to improve Return Ratios 30%
 ROE’s to improve to ~13% in FY20E from ~8.3% in FY17,

19.6%
driven by better operating leverage and increasing utilization
13.9%
levels (current 55%) in the lean season aided by product 15% 20.5% 11.8%
10.4%
portfolio diversification 7.5% 7.5%
12.8%
12.6% 9.6%
 Capex to be internally funded from internal accruals and FCF 8.3% 7.6%
generation over FY19E/FY20E. Expect Cash From Operation to 0%

increase to Rs. 210 Cr in FY19E and Rs. 320 Cr in FY20E

ROE (%) RoCE (%)
31

Peer Comparison Sector: FMCG
Manpasand
Coca-Cola Inc PepsiCo Inc Dr. Pepper Snapple Cott Corp National Beverage Co Varun Beverages
Beverages
FY19E FY20E FY19E FY20E FY19E FY20E FY19E FY20E FY19E FY20E FY19E FY20E FY19E FY20E
Mcap (USD Bn) 43 191 152 21 2 4 77
CMP 422 44 109 121 14 93 645
Sales Growth (%) 35 40 -12 2.2 3.2 2.8 7.2 -1.3 3.7 2.0 13.9 13.2 15 10
PAT Growth (%) 36 46 15.2 15.8 7.1 7.2 10.5 -1.2 41 21 22.1 17.6 35 24
P/E (x) 32 23 21.0 18.2 17.7 16.4 22.6 19.9 32.6 22.0 22.6 19.3 33 27
PEG (x) 1.0 0.7 4.8 2.6 2.4 2.1 2.1 1.9 1.8 1.6 1.9 1.9 1.3 0.9
ROE (%) 10 13 36.1 36.4 61.5 54.1 43.9 46.3 NA NA NA NA 12.2 14.6
EV/EBITDA (x) 16 11 18.3 17.6 12.2 11.6 15.1 14.5 12.4 11.7 15.6 13.3 12.5 11.5
Source : Company; Axis Securities Research; Bloomberg
32

Outlook & Valuations Sector: FMCG
P/E band Valuation

PE Mean +1 STDDEV -1 STDDEV  We estimate MANB to post top-line CAGR of 38% and
55 bottom-line at 41% over FY18-FY20E
50
45  We expect the company to report EBITDA Margin of 19.2% by
40 FY20E versus 18.6% in FY18 (+60bps) in an intensely competitive
35 industry
30
25  ROEs are estimated to increase to 13% over FY18-FY20E
Dec-16
Dec-17
Oct-16
Oct-17
Jun-16
Jun-17
Feb-17
Feb-18
Apr-16
Apr-17
Apr-18
Aug-16
Aug-17
 We value MANB at 34x FY20E EPS given the growth prospects
and arrive at a price target of Rs. 528 (25% Upside)
12mth fwd P/E (x) Risk Factors

Close Price 30X 35X 40X 45X 55X
 Seasonality – significant portion of the production and sales
700
600
500  RM Price volatility especially fruit pulp, vegetables and
400 crude
300
200
100
 Delay in capacity expansion – execution slippages
0
 Key Man risk
Nov-15
Mar-16
Nov-16
Mar-17
Nov-17
Mar-18
Jan-16
Jan-17
Jan-18
May-16
May-17
Jul-15
Jul-16
Jul-17
Sep-15
Sep-16
Sep-17
33

Financials (Consolidated) Sector: FMCG
Profit & Loss (Rs Cr) Balance Sheet (Rs Cr)

Income Statement (INR Cr) FY16 FY17 FY18E FY19E FY20E Balance Sheet FY16 FY17 FY18E FY19E FY20E
Net Sales 511 691 957 1,292 1,812 Non-current assets

Fixed Assets 266 436 597 683 726
Growth % 41.9% 35.4% 38.4% 35.1% 40.3% CWIP 134 18 18 18 18
Total Operating Costs 85 118 177 235 327 Total Non Current Assets 435 785 946 1,032 1,075
Growth % 0% 39% 50% 33% 39%

Current assets
EBITDA 110 140 179 246 351 Cash and Equivalent 40 36 49 104 219
Trade accounts receivable 68 75 61 82 122
Growth % 68.3% 26.7% 28.1% 37.3% 42.6%
Inventories 70 62 90 121 170
Depreciation on Tangible Assets 74 89 113 157 234 Other Financial Assets 44 66 66 66 66
Total Current Assets 226 448 370 408 581

Operating Profit (EBIT) 53 66 90 133 194
Total Assets 661 1,234 1,316 1,440 1,656
Growth % 18% 24% 36% 48% 46%
Finance Costs 6 1 - - - Current liabilities

Trade Accounts Payable 45 67 77 104 178
Profit before taxes (before exceptional
57 83 102 141 206 Short-Term Borrowing - - - - -
items)
Growth % 70% 46% 24% 38% 46% Total Current Liabilities 59 80 90 117 190
Profit Before Taxes (PBT) 57 83 102 141 206 Non-current liabilities

Long-term borrowing - 0 0 0 0
Provision for Tax 6 10 13 19 28
Total Non-Current Liabilities - 0 0 0 0
Profit After Tax 50 73 90 122 178
Total Liabilities 59 80 90 117 191
Growth % 69% 44% 24% 36% 46%
Total Shareholders’ Equity 602 1,154 1,225 1,323 1,465
Diluted EPS 4.4 6.3 7.9 10.7 15.5
Growth % 69% 44% 24% 36% 46% Total Equity and Liabilities 661 1,234 1,316 1,440 1,656
Source: Company, Axis Securities
34

Financials (Consolidated) Sector: FMCG
Cash Flow (Rs Cr) Ratio Analysis (%)

Cash flow Statement FY16 FY17 FY18E FY19E FY20E Ratios Matrix FY16 FY17 FY18E FY19E FY20E
Return Ratios
Profit Before Taxes (PBT) 57 83 102 141 206 Asset Turnover 1.0x 0.7x 0.8x 0.9x 1.2x
ROE (%) 12.6% 8.3% 7.6% 9.6% 12.8%
Non-cash adjustments 65 112 140 192 255 ROCE (%) 11.8% 7.5% 7.5% 10.4% 13.9%
ROA (%) 10.0% 7.7% 7.1% 8.9% 11.5%
Change in operating working
(6) (15) 24 (4) (26)
capital
Profitability Ratios (%)
Cash generated from Operating 53 82 146 176 210 EBITDA Margin 21.2% 19.9% 18.6% 18.9% 19.2%
(Purchase) of fixed assets incl Cap PAT Margin 9.9% 10.5% 9.4% 9.4% 9.8%
(232) (279) (250) (200) (200)
Adv. & CWIP
Cash generated / (used) in Per Share Data
(158) (312) (623) (145) (130)
Investment EPS 4.4 6.3 7.9 10.7 15.5
Proceeds/(Repayment) of Long Term DPS 0.4 0.6 1.6 2.1 3.1
(64) 0 - - -
Borrowings (Net)
Leverage Ratios
Finance Cost Paid (6) (1) - - -
Debt - Equity Ratio 0.0x 0.0x 0.0x 0.0x 0.0x
Interest Coverage (0.1x) (0.0x) (0.0x) (0.1x) (0.1x)
Dividend Paid (11) (1) (18) (24) (36)
Cash generated / (used) in Valuation Ratios

232 477 (18) (24) (36)
Financing EV/EBITDA 36.3x 28.7x 22.4x 16.3x 11.4x
Change in cash and cash EV/Sales 7.8x 5.8x 4.2x 3.1x 2.2x
1 (0) 13 55 115
equivalents P/E 80.1x 55.7x 53.7x 39.6x 27.2x
Net Financial position at the
3 4 4 17 72
beginning of the period Liquidity Ratios
Net Financial position at the end of Current Ratio 3.8x 5.6x 4.1x 3.5x 3.1x
4 4 17 72 187
the period Quick Ratio 3.8x 5.6x 4.1x 3.5x 3.1x
Source: Company, Axis Securities
35

Key Risks Sector: FMCG
Category Risk: Low

 Soft drinks as a category is unlikely to
see structural slowdown in under-
penetrated markets like India
 Only risk is if fizzy drinks see sharp Seasonality: High
Competition: High migration to pure fruit juices
 ~70% revenues comes in Q4 and
 Key target market is Rural and Semi- Q1 (peak summer months) of a
Urban regions which is price financial year. Adverse change in
sensitive market weather pattern could impact its
 Global players with deep pockets business
RM inflation: Medium
Key man risk: Medium  In the last couple of years, it has
 MANB’s MD has been the chief benefited in terms of lower input cost
strategist and thus lacks second line prices. In CY17, raw materials like
of management to manage complex sugar surged
operations spread across the  If there is a sharp surge, it could
country impact margins in the near term
Single product: Low
 Mango Sip forms 75% of revenues
even today. Though this has declined
from 98% in FY12
 Diversified product basket (ethnic,
traditional drinks, Fruits UP)
36
Appendix : India Soft Drink Industry

India Soft Drink (Size in CY16: Rs 603bn) Sector: FMCG
Soft Drinks Market Segmentation (by value) Soft Drink Volume market share (by volume)
Others
(Rs22bn), 4% Non-Cola Others Parle Bisleri
Cola Carbonates 25.3% 12.9%
Carbonates (Rs165bn),
(Rs111bn), 18% 27%
Dabur India
1.3%
Parle Agro
Bottled Water
4.9%
Juices
Cocal-Cola
(Rs142bn),
(Rs162bn), 27% PepsiCo 33.3%
24%
22.3%
Source: Industry Source: Industry
Top 18 brands in Total Soft Drink industry (by volume) Soft drink volume growth trend
Mkt Mkt 25%
Sl no Brand Sl no Brand
Share Share
20% 20% 19%
1 Bisleri # 12.9% 9 Limca * 3.1% 20%
17% 18%
2 Kinley * 6.9% 10 Slice ^ 3.1% 16%
15% 14%
3 Sprite * 6.7% 11 7-Up ^ 2.4% 15% 13%
4 Thums Up * 5.8% 12 Frooti @ 3.0% 9%
10%
5 Aquafina ^ 5.9% 13 Mountain Dew^ 2.2%
6 Pepsi ^ 4.5% 14 Fanta * 2.0% 5%
7 Maaza * 4.9% 15 Mirinda ^ 2.0%
8 Coca-Cola * 3.0% 16 Bailey @ 1.6% 0%
Source: Industry CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16
Source: Industry
Note: * owned by Coca-Cola; ^ Owned by Pepsi; # Owned by Parle Bisleri; ^^ Owned by Dabur India; @ Owned by Parle Agro
38

India Soft Drink (CY16): Channel contribution Sector: FMCG
Channel-wise soft beverage volume contribution Channel-wise soft beverage sales contribution
(mn litres) (Rs bn)
On-trade
(4,222 mn ltr); 31%
On-trade
(Rs 275 bn)
46%
Off-trade
(Rs 328
Off-trade bn) 54%
(9,352 mn ltr); 69%
Channel-wise category segmentation Channel-wise category segmentation

(by volume, in mn litres) (by value, Rs bn)
On-trade Off-trade On-trade Off-trade
Bottled Water Bottled Water

31% 69% 51% 49%
(6,427 mn litres) (Rs 142 bn)
Carbonates Carbonates
40% 60% 59% 41%
(4,927 mn litres) (Rs 276 bn)
Juices Juices (Rs

(2,120 mn litres) 13% 87% 23% 77%
162 bn)
0% 20 % 40 % 60 % 80 % 10 0% 0% 20 % 40 % 60 % 80 % 10 0%
39

India Soft Drink: Carbonates (Size in CY16: Rs 276bn) Sector: FMCG
Carbonates market segmentation (by value) Cola carbonates volume (off trade) market share
Other Non-Cola Carbonates (by brand) Coca-Cola* ,
(Rs22bn), 8% Pepsi^, 33%
21%
Orange Carbonates
(Rs30bn), 11% Diet Coke*,
1%
Mixers, (Rs10bn), Diet Pepsi^,
4% Cola Carbonates 1%
(Rs111bn),
40%
Others, 4%
Lemonade / Lime (Rs101bn), 37% Thums Up * ,

Source: Industry 4 2%
Note * owned by Coca-Cola (64% market share); ^ Owned by Pepsi (33% market share)
Source: Industry Cola carbonate - On trade : Off-trade = 40:60
Non-cola carbonates volume (off-trade) market share (by brand) Carbonate volume growth trend
Carbonates Off-trade cola and non-cola
Others, 9% 20% 19% ~8% & ~10% volume CAGR
respectively over CY11-16
Evervess^, 3%
16%
Sprite*, 34% 13% 13%
Fanta*, 8% 12%
12% 11%
9%
9%
8%
Mirinda^, 9% Lemon ~60% of market; 8%
Orange ~20% of market 5%
4% 3%
7-Up^, 11%
Mountain Limca*, 15% 0%
Dew^, 11% CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16
Source: Industry
Source: Industry
Note * owned by Coca-Cola (60% market share); ^ Owned by Pepsi (35% market share)
Non-cola carbonates – On trade : Off trade = 39:61 Carbonate - On trade : Off-trade = 39:61
40

India Soft Drink: Juices (Size in CY16: Rs 162 bn) Sector: FMCG
Juices market segmentation (by value) Overall Juice market share (by player, in volume terms)
100% Juice Others
Manpasand
(Rs15bn), 9% Beverage 7%
3%
Nectars (25-
99% Juice) -
Dabur India
(Rs28bn), 17% 8% Coca-Cola India
34%
Juice drinks
Juices Mix (upto 24%
Mango ~85%; Parle Agro Pvt.
juice) -
Orange ~5%; Apple Ltd
~1% & Lemon ~5% (Rs119bn), 21% Pepsi Co India
Others ~4% 74%
27%
Source: Industry
Source: Industry
Juices market share (by brand, in volume terms) Volume growth trend
Minute Maid* Appy@ 7-Up^ Others Juices
30%
5% 2% 1% 7%
Mango Sip 26%
Mazza* 24%
3% 25% 23% 23%
31% 22%
19% 19% 20%
Tropicana^ 20% 17% 18%
5%
15%
Real^^
8% 10%
Slice^ 5%
Frooti@
20%
19%
0%
CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16
Note: *owned by Coca-Cola; ^ Owned by Pepsi;
Source: Industry;
^^ Owned by Dabur India; @ Owned by Parle Agro Source: Industry
41

India Soft Drink: Bottled water (Size in CY16: Rs142 bn) Sector: FMCG
Off trade volume contribution Bottled water volume share continues to expand
Bottled Water Carbonates Juices
Non-Bulk
(2,313 mn 100%
11 12 12 13 13 14 14 15 15 16
litre) 36%
80%
49 46 44 41 39 37
60% 59 55 54 53
40%
Bulk 20% 40 42 44 46 48
30 33 33 35 37
(4,113 mn
litre) 0%
64% CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16
Bottled Water market share (by brand, in volume terms) Volume growth trend
35% Bottled Water
Others Parle Bisleri 30%
38% (Bisleri) 28%
30%
27% 25%
24%
25% 22%
Himalayan (Tata 21%
20% 20%
Global Beverages 19% 19%
20%
Ltd)
1% 15%
Coca-Cola
UB Group 10%
(Kinley)
(Kingfisher)
15%
2% 5%
Dhariwal Inds Pepsi Co
Parle Agro 0%
(Oxyrich) (Aquafina)
(Bailey) CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16
2% 12%
3%
Note: ^ Excluding institutional sales (over 20 litre pack which had a sales volume of10,069 mn liter in 2015) 42

India Soft Drink: Territorial trends Sector: FMCG
 West India with total sales volume of 4,184 mn litres (worth Territorial volume (mn litres)
Rs 181 bn) in CY15 is the largest soft drink market by
volume in India Sales volume (million l itres) - 2015
Market
 North India with total sales volume of 4,104 mn litres Total Off Trade Share On Trade Share
(worth Rs 182 bn) is the second largest market in terms of North India 4,104 2,973 72% 1,132 28%
volume.
West India 4,184 2,523 60% 1,661 40%
 East and North East has the lowest per capita consumption
due to limited presence on account of transportation in East and Northeast India 1,049 989 94% 60 6%
tough terrain South India 2,744 1,940 71% 804 29%
Source: Industry
Off-trade region-wise volume breakup (mn litres) Off-trade region-wise sales breakup (Rs bn)
East and North East East and North
East (Rs 32 bn),
(989 mn litres), North India
11%
11% (Rs 104
bn), 37%
North India
South India
(2,973 mn
South India (Rs 62
litres), 36%
(1940 mn bn), 22%
litres), 23%
West India
West India (Rs 85
(2,523 mn bn), 30%
litres), 30%
43

Disclaimer Sector: FMCG
Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
1. Axis Securities Ltd. (ASL) is a SEBI Registered Research Analyst having registration no. INH000000297. ASL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of
providing Stock broking services, Depository participant services & distribution of various financial products. ASL is a subsidiary company of Axis Bank Ltd. Axis Bank Ltd. is a listed public
company and one of India’s largest private sector bank and has its various subsidiaries engaged in businesses of Asset management, NBFC, Merchant Banking, Trusteeship, Venture Capital,
Stock Broking, the details in respect of which are available on www.axisbank.com.
2. ASL is registered with the Securities & Exchange Board of India (SEBI) for its stock broking & Depository participant business activities and with the Association of Mutual Funds of India (AMFI) for
distribution of financial products and also registered with IRDA as a corporate agent for insurance business activity.
3. ASL has no material adverse disciplinary history as on the date of publication of this report.
4. I/We, Suvarna Joshi – Senior Manager, Research, MBA (Finance), author/s and the name/s subscribed to this report, hereby certify that all of the views expressed in this research report
accurately reflect my/our views about the subject issuer(s) or securities. I/We (Research Analyst) also certify that no part of my/our compensation was, is, or will be directly or indirectly related to
the specific recommendation(s) or view(s) in this report. I/we or my/our relative or ASL does not have any financial interest in the subject company. Also I/we or my/our relative or ASL or its
Associates may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Since associates of
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44

Disclaimer Sector: FMCG
Disclaimer:
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Manpasand Beverages Initiating Coverage

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Initiating Coverage

CMP : Rs. 422

No. of Shares : 11.44 Cr.

Manpasand Beverages Ltd.

BSE Sensex Manpasand Bever.

Financial Summary Key Drivers

Suvarna Joshi Sr. Manager - Research |  suvarna.joshi@axissecurities.com |  (+91 22 4267 1740) 2

Manpasand Beverages Ltd

 Executive Summary 5-6

 Industry Overview 7-12

 Company Overview 13-17

 Product Portfolio Expansion 18-23

 Distribution Expansion = Network Growth 24-28

 Financial Commentary 29-35

 Appendix – I : Indian Soft Drink Industry 37-43

Manpasand Beverages Ltd

Largest & Fast Growing Category

Low per capita consumption huge growth opportunity

Bharat – an untapped growth opportunity

1.2x Capacity Expansion to power growth over FY18-20E

Manpasand Beverages Ltd

Deepening Distribution – Parle Products tie up a kicker

MANB’s Growing Market Share

Robust Financial Growth to continue over FY17-20E

Manpasand Beverages Ltd

India Soft Drinks

Carbonates Bottled water Fruit Juices Others

Juice Drinks Concentrates

Manpasand Beverages Ltd

Soft Drink Per Capita Consumption - Global

1000  Growing middle class: aspiring and affluent households

Manpasand Beverages Ltd

Indian Per Capita Soft Drink Consumption (litres/year)

Manpasand Beverages Ltd

Off-Trade Value Growth Juices Carbonates Bottled Water

Manpasand Beverages Ltd

Strong growth in Juice Drinks Category (value) Juices Segment Sub-category

Nectars 25 - 99% Med-High 22.0% 15.8%

Manpasand Beverages Ltd

 Manpasand Beverages Ltd (MANB), established in Vadodara (Gujarat)

 Primary focus on mango-based drinks

 Reported Revenues/EBITDA/PAT CAGR of 52%/59%/64% over FY12–17

Manpasand Beverages Ltd

1997 2010 2015 2017

Manpasand Beverages Ltd

Sustainable Category Product Portfolio Expansion

Low Per Capita Experienced Management

Capacity Expansion Distribution Expansion

A Structural play on India soft drinks industry

Manpasand Beverages Ltd

 70% India resides in small towns and rural areas.

 FMCG Sales by FY20 estimated to be USD 100bn

 Rural sales of Juices reported 26.3% CAGR over

 2015 Rural sales stood at 24% of total off-trade Urban Rural

 Manpasand Beverages Ltd currently derives ~55%

Manpasand Beverages Ltd

Mango Sip’s growing dominance in Rural India

SKU wise comparison

Manpasand Beverages Ltd

 MANB’s knack of understanding rural mindset allowed it to

 Peers - Maaza, Slice and Frooti control 55% market share

 MANB - preferred supplier to Indian Railways that reach the

 Advantage MANB in small packs :