Annapurna Swadisht informed the exchange that it sought to acquire 100% of Madhur Confectioners Private Limited (MCPL) which manufactures wide range of products i.e. flavoured candies, lollipops, confectioneries, and chocolates.
Annapurna currently has a distribution network of 550 distributors for its snacks segment, while MCPL adds another 300 distributors for confectionery products. This expanded network is expected to further boost sales volumes through cross-selling, thereby increasing market reach and share.
From a cost perspective, Annapurna operates at an EBITDA margin of approximately 11%, while MCPL enjoys a higher adjusted EBITDA margin of 17.6%. The combined scale of operations is anticipated to reduce per-unit costs, leading to margin improvement for the entire entity.
Moreover, the acquisition will diversify Annapurna’s SKU (Stock Keeping Unit) portfolio, combining 75 SKUs from the snacks segment with 31 SKUs from the confectionery segment.
Annapurna anticipates paying Rs 180 Cr for this acquisition.