SEBI Approves Merger of Sumuka Agro Industries Limited with Gujjubhai Foods

PRNewswire

Mumbai (Maharashtra) [India], May 16: Sumuka Agro Industries Limited (BSE: 532070), a publicly listed company in India, announced to the stock exchanges today that it has received approval from the Securities and Exchange Board of India (SEBI) for the merger of Gujjubhai Foods with its business by way of absorption. Gujjubhai Foods, a private company owned by the promoters of Sumuka, is renowned for its range of Gujarati namkeens, including khakhra, bhakhri, and other ready-to-eat savoury snacks. The merger now awaits final approval from the National Company Law Tribunal (NCLT).

The merger marks a strategic move to strengthen Sumuka Agro's presence in the fast-moving consumer goods (FMCG) sector by combining operational synergies and market strengths with Gujjubhai Foods. The Bombay Stock Exchange (BSE) had issued a 'no objection' to the merger proposal in July 2024.

Commenting on the milestone, Shaili Patel Bhatt, Director and CFO of Sumuka Agro Industries Limited, said:

"We are delighted to receive SEBI's approval for our merger with Gujjubhai Foods. This partnership will enhance our market positioning, expand our distribution network, and propel our growth in the competitive FMCG space. Together, we aim to deliver greater value by leveraging our collective expertise and resources."

Under the merger terms, shareholders of Gujjubhai Foods will receive 17.5 shares of Sumuka Agro for every 10 shares of Gujjubhai Foods. Post-merger, the promoters' stake in the combined entity is expected to rise from 27.71% to 64%.

Financial Performance and Growth

Sumuka Agro has witnessed rapid growth, with revenues rising from Rs 1.39 crore in 2021-22 to Rs 54.95 crore in 2023-24, alongside a Profit After Tax (PAT) of Rs 4.26 crore in 2023-24. This growth has been driven by innovation and expansion in product offerings, including an increase in SKUs (Stock Keeping Units) from 53 to 76 during the same period.

The company operates across multiple product categories, including:

* Namkeens & Snacks: Packaged Gujarati snacks with unique recipes, extended shelf life, and health-focused ingredients.

* Dry Fruits & Ready-to-Cook Items: Premium dried fruits and ready-to-cook mixes under the "Siamaa's" brand.

* Natural Alkaline Water & Rock Salt: A niche range under the "GO2" brand.

On the other hand, Gujjubhai Foods reported revenues of Rs 22.06 crore in 2023-24 along with a PAT of Rs 1.32 crore.

Besides, its group company Cafe Gujjubhai Private Limited runs a chain of franchisee-led restaurants in Bengaluru serving Gujarati and North Indian cuisine, supported by centralized kitchen operations.

Sumuka Agro's products are available across India through partnerships with leading retailers like DMart and BigBasket, along with 10 offline trade partners.

The merger with Gujjubhai Foods is expected to further enhance Sumuka Agro's offerings, solidify its leadership in branded Gujarati snacks, and open new growth avenues in the FMCG sector.

About Sumuka Agro Industries Limited

Sumuka Agro is a pioneer in branded Gujarati snacks available PAN India. Its diverse portfolio includes snacks, dry fruits, natural beverages, and packaged food, distributed through a robust online and offline network.

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