Yellow Diamond Chips producer gets capital market controller SEBI’s endorsement to launch its initial public offering.
Prataap Snacks, the Indore based organization which recorded its draft red herring prospectus last October arrangements to raise Rs.250 crore through a new issue of offer other than an offer available to be purchased by its private equity partner Sequoia Capital.
The organization once it gets launched the funds will be utilize to expand and increase the range of products of this snacks producers, however it competes aggressively with multinational firm PepsiCo, besides local strongholds Haldiram’s and Balaji Wafers within the Rs 20,000-crore salty snacks category.
The firm is wanting to use the cash to beat its obligation of Rs.50 crore, capital use for setting up new creation lines and modernizing existing processing plants at Indore and Guwahati .
Prakash Snacks. Its Yellow Diamond brand has managed to clock a growth rate in excess of 50 percent every year since it started in 2003.
To enter this market is simple, as capital costs aren’t much. Be that as it may, succeeding is exceptionally troublesome. Parle, Perfetti Van Melle, ITC and CavinKare are all extensive players who found the market extreme going. It is noteworthy then for Amit Kumat to make one of the biggest nibble sustenance organizations in the nation. What separates Kumat is that he has figured out how to extend past his home base in Madhya Pradesh. His image has solid market positions in driving nibble markets like Maharashtra, Delhi and Haryana.
Initially, consider the hardware costs: Kumat’s first test was assembling. While visiting residential community India, he’d seen that vast buyer products organizations chipped away at edges of more than 50 percent. There was sufficient space for a player who was eager to offer comparative quality at a lower cost. To understand that quality he would require the best machines.
Prataap Snacks was begun in 2003 by siblings Amit and Apurva Kumat and Arvind Mehta. It makes and offers potato-based snacks, expelled snacks and namkeen. Five years back, it acquired the snack foods business of its group company, Prakash Snacks Pvt. Ltd and brought in the Yellow Diamond brand and the snack foods business under one umbrella.
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