Gopal Snacks IPO

Gopal Snacks Limited is a fast-moving consumer goods company in India with a major presence in Gujarat, offering a wide variety of savoury products under its brand `Gopal’, including ethnic snacks such as namkeen and gathiya, western snacks such as wafers, snack pellets and extruder snacks, along with fast-moving consumer goods that include papad, spices, gram flour or besan, noodles, rusk and soan papdi which are semi-perishable in nature.

As of September 30, 2023, its product portfolio comprised 84 products with 276 SKUs across its various product categories. As of the date of this Red Herring Prospectus, the company operates six manufacturing facilities comprising three primary manufacturing facilities and three ancillary manufacturing facilities in India. Its three primary manufacturing facilities are located at Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat and these facilities primarily focus on the manufacturing of its finished products.

Gopal Snacks IPO Strengths

• The company has a leading market position in the Indian snacks industry for ethnic savoury products, especially in Gujarat.
• It focuses on quality and diversified product offerings.
• Its position as a manufacturer of gathiya in India and its growing popularity will help the company leverage the demand.
• It has strategically located manufacturing facilities.
• Vertically integrated advanced business operations.
• Its distribution network is quite wide.
• Its track record of profitable financial performance is a big plus.
• Skilled and experienced management team.

Gopal Snacks IPO Risks

• A majority of its revenues are derived from namkeen, gathiya and snack pellets.
• The sale of products is concentrated in Gujarat.
• The business is subject to various contamination-related risks.
• The business is subject to seasonality.
• The company operates in a competitive industry.
• High working capital requirements.