Why Modi Natural?


The increase of the health fad among the people today has created a deep rooted desire to be in vogue with branded products and count themselves among the fit and the healthy. Modi Nturals realized this shifting trend of the consumers from unbranded commodities to branded products. As such, the company too transitioned its business from the commoditized non-branded manufacturing and marketing of edible oils to making unique branded edible oils and in the process became India’s third largest blended oil brand.
 
As of 2016, 29% of the revenues of the company comes from branded products; while the rest comes from the unbranded commodities. The share of the branded product in the total pie has been consistently increasing since 2010. In fact, the company plans to increase the share of the branded products to 70% of its total business by the end of 2020. This will significantly improve the margin profile of the company, which is an issue currently like all unbranded oil manufactures. The branded product portfolio of the company includes brands such as Oleev Olive oil, Oleev Active oil (Blend of Olive oil and Rice Bran Oil), Rizolo Rice bran oil, Tarai shudh Mustard oil, Tarai Tasty+ (Blend of mustard and rice bran oil), Miller Canola Oil and Olivana Wellness Oil.In the unbranded space, the company manufactures and markets sunflower oil, rice bran oil, mustard oil, rice bran wax and de-oiled cakes.
 
In terms of its distribution network also, the company boasts of 20 own depots and more than 400 distributors across the country. The products of the company are today available in all the prestigious and popular retail outlets such as Spencers, Big Bazaar and Reliance Retail as well as in the online retail space such as Big Basket and Grofers. Ever since the company has ventured into the branded segment, it has left no stone unturned to ramp up its marketing strategy to strengthen the brand presence and improve brand recall; particularly important in the highly commoditized edible oil industry in India. Advertisements on televisions and digital marketing on youtube, facebook and instagram is testimony to the same.
 
 
#1. Mukul Agarwal of Param Capital – Alpha Ideas holds 1.21% stake in the company, bought in the range of 60-80/share during Oct-Dec 2015 quarter
 
#2. Prime India Investment fund use to hold 7 Lacs shares of the company as on May 2017, they sold 2 Lacs share in May 2017 to Nikhil Vora, founder and CEO of consumer-focused venture capital firm Sixth Sense Ventures at the price of Rs 132 worth Rs 2.64 Cr approx.  Rest of the shares are bought by DIVYAM TIE UP LLP & DEVIDAS NARAINDAS BUDHRANI. Prime India still hold 4 Lacs shares which constitute 3% stake.
 
#3. Earlier in Oct 2015, Anil Modi the promoter has bought 3 Lacs shares @ Rs 52 from Prime India Investment fund.

#4. Promoters are holding 82 Lacs shares which is 73% stake out of total 1.11 Cr shares. It looks like promoters issued 15.38 Lacs preferential shares @ 130 to their own people calling them non-promoters; after this promoter holding is likely to be around 76-77%. Promoters issuing shares @130 is a good indication that future is bright for this company and one can buy in the range of Rs 130.


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