### **Overview** Manorama Industries Limited (MIL), established in 2005, is a globally recognized leader in the manufacturing of exotic specialty fats and butters derived from tree-borne and plant-based seeds. The company specializes in **Cocoa Butter Equivalents (CBEs)**, **specialty fats**, and **butter derivatives** from **Sal, Shea, Mango, Kokum, Illipe, and Mahua seeds**, serving premium segments in the **global chocolate, confectionery, cosmetics, and food industries**. With a strong focus on sustainability, innovation, and inclusive growth, MIL delivers **customized, trans-fat-free, clean-label, and ethically sourced ingredients** to **Fortune 500 clients** and leading global brands across over 80 countries. --- ### **Core Business & Product Portfolio** Manorama’s product range revolves around **value-added, functional fats** that replicate the texture, performance, and stability of cocoa butter without hydrogenation. Key offerings include: - **Cocoa Butter Equivalents (CBEs)**: Under the **Milcoa®** brand (e.g., ES1057, IS1043), used in chocolate, coatings, and compound applications. - **Cocoa Butter Replacers (CBRs)**: Products like **Milcoat™ R1058**. - **Filling Fats**: **Milcocream™** series for baked goods, desserts, and cream fillings. - **Spread Fats**: **Milcospread™** series for hazelnut and chocolate spreads. - **Specialty Hard Stocks**: **MIL DP** series for bakery and culinary applications. - **Cosmetic-Grade Butters**: Shea, Sal, Mango, and Kokum butters used in skincare and personal care formulations. - **By-Products**: **De-oiled cakes (DOC)** are processed into cattle feed, enabling forward integration and a zero-waste model. --- ### **Manufacturing & Vertical Integration** Manorama operates a **fully integrated, state-of-the-art manufacturing facility** in **Birkoni, Raipur, Chhattisgarh**, equipped with processes across the value chain: - Seed milling (90,000 TPA) - Solvent extraction (90,000 TPA) - Refining & interesterification (45,000 TPA) - **Fractionation (40,000 TPA as of FY25)** - Blending & packing (30,000 TPA) The Birkoni plant is strategically located **~550 km from Visakhapatnam Port**, with logistics further optimized by the upcoming **Raipur–Visakhapatnam Expressway** reducing freight time and costs. Recent expansions (2023–2025): - Commissioned a **300 TPD solvent extraction plant**, reducing dependence on third-party processors. - Added **25,000 TPA fractionation capacity (total now 40,000 TPA)** in July 2024, fully operational by FY25. - Commissioned a **30,000 TPA refinery** and **15,000 TPA interesterification plant**. --- ### **Capacity & Growth Strategy** MIL is on a robust **capacity expansion trajectory**, with key milestones: | Metric | FY21 | FY25 | CAGR | |-------|------|------|------| | Fractionation Capacity (TPA) | 15,000 | 40,000 | 21.7% | | Revenue (INR Cr) | 203 | 771 | 39.7% | | Fixed Assets (INR Cr) | 54 | 152 | — | | Asset Turnover | 4.0x–5.1x (consistently high) | — | | **Next Phase Expansion (FY26–FY27):** - **Increase fractionation capacity to 52,000 TPA** via plant upgrades in Q3 FY25–26 (launch scheduled Nov 2025). - Acquired adjacent land at Birkoni for future scale-up. - **Forward & backward integration projects underway:** - **Palm mid-fraction (PMF)** manufacturing plant. - **Industrial compound chocolate** production. - **Raipur-based domestic processing unit** for Sal, Mango, and exotic seeds (target 2026). - **Strategic capex underway** for cocoa butter alternatives (CBA) and compound chocolates. --- ### **Global Expansion & Strategic Partnerships** To strengthen its global footprint and secure raw material supply, Manorama has established: - **Subsidiaries in Africa (6), UAE (1), and Brazil (1)**: - **Manorama Africa Limited (Ghana)**: 100% acquired in 2023 for direct sourcing of high-quality shea nuts. - **Manorama Burkina Industries SA**: Signed MOU with Government of Burkina Faso to establish a **processing plant for shea nuts and mango kernels**. - **Strategic Partnership with DEKEL AgroindOstria (Brazil)**: MIL will begin CBE manufacturing in Brazil in **November 2025**, making it the **first global CBE producer in Latin America**, catering to the regional chocolate market. - **Subsidiaries in UAE (Manorama Mena Trading LLC) and Brazil (Manorama Latin America LTDA)** to enhance regional procurement and market penetration in MENA and Latin America. --- ### **Sourcing Strategy & Sustainability** - **‘Waste to Wealth’ & ‘Poorest to Richest’ Model**: Sources from **millions of tribal women and forest dwellers** across **India and West Africa**, empowering rural communities. - **Raw Material Network**: - **India**: Sal seeds, mango kernels sourced via 10,000+ collection centers; procures 80,000–100,000 MT of Sal seeds annually (~9% of India’s total). - **West Africa**: 40,000–80,000 MT of shea nuts annually; sourcing enhanced through **5 African subsidiaries** (Nigeria, Burkina Faso, Togo, Ivory Coast, Benin). - **Ethical Certifications**: Fair Trade, Organic, RSPO, SEDEX, FSSAI compliance, and IGBC-aligned green operations. - **Global Shea Alliance Partnership**: Pledged to plant 10 million shea trees in 10 years starting in Ghana. --- ### **Revenue & Financial Performance** - **FY25 Revenue**: INR 771 Crores (up from INR 203 Cr in FY21). - **Projected FY26 Revenue**: **Over INR 1,050 Crores**, driven by higher capacity utilization and demand. - **Q1 FY26 (Apr–Jun 2025)**: INR 289.6 Crores (117% YoY growth). - **Exports**: 57% of total revenue (2023–24), key markets include **Russia, Japan, Europe, UAE, Latin America, and Turkey**. - **Domestic Sales**: 43%, including **animal feed (de-oiled cake)** – a significant revenue and ESG contributor. Operational efficiency remains strong, with assets generating **4.0x to 5.1x turnover**, despite rising capex. --- ### **R&D & Innovation (Milcoa® Innovation & Research Centre)** - **DSIR-Certified R&D Facility**: Among only 2,000 Indian companies with this elite certification. - Focus areas: - **CBE innovation** for tropical climates (CBE-HT), palm-free alternatives, non-hydrogenated fats. - **Custom product co-development** with clients for bakery, confectionery, personal care, and vegan food. - **B2B products**: Thermo-stable spreads, aeratable fillings, reduced-saturated fat solutions. - **B2C product pipeline**: Chocolate spreads, filled biscuits, tablets, wafers. - Led by **Dr. Krishnadath Bhaggan** (VP, R&D), a 25+ year veteran with multiple patents and technical publications. - Collaborates with **client R&D teams** and institutions globally. --- ### **Market Position & Competitive Edge** - **Global Leadership**: - **Only company** producing CBEs from **Sal, Mango, and Shea**. - **World’s largest producer** of Sal and Mango-based specialty fats. - **Leading exporter** of tree-borne fats and butters from India. - **Client Stickiness**: High retention due to **lengthy supplier qualification processes**; serves long-standing clients like **Mitsui & Co., Walter Rau, and Unigra**. - **Pricing Power**: Focus on **quality and innovation over cost**, enabling resilience during inflation. - **Three-Star Export House** (recognized by Govt. of India), reflecting consistent export excellence. - Awarded **Highest Foreign Exchange Earner** (2018–19, 2019–20) and **Highest Processor of Minor Oilseeds** nationally. --- ### **ESG & Social Impact** - **Women Empowerment**: Over 80% of raw material collectors are rural and tribal women across India and West Africa. - **Zero-Waste Model**: Utilizes de-oiled cake for cattle feed, reducing waste and enhancing margin. - **Community Development**: Subsidiaries create direct employment and strengthen rural economies. - **Traceable & Sustainable Supply Chain**: From forest to final product, compliant with global ESG standards.