HMA Agro Industries Limited IPO

About the company:

Introduction

HMA Group has been in the meat industry since over four decades. The company is the flagship company of the group and is a three star export house recognized by Government of India. They are currently among the largest exporters of frozen buffalo meat products from India and account for more than 10% of India’s total export of frozen buffalo meat. Its products are mainly packaged under the brand name “Black Gold”, “Kamil” & “HMA” and exported to over 40 countries all over the globe.

HMA Group deals in buffalo meat and allied products. Unlike beef or pork, buffalo meat is free from religious constraints and has the added advantage of low fat and cholesterol.

In order to take advantage of their robust export business and well-established distribution channels across 40 countries, they have recently diversified their product portfolio by adding Frozen Fish Products, Basmati Rice and planning to start 131 Poultry and other agri products as business verticals. The company intends to become one of the most well recognized food products exporters in India.

Issue Details

Objectives

The Objects of the Net Fresh Issue is to raise funds of Rs. 150 crores for:

· Funding working capital requirements of our Company

· General Corporate Purpose

Strengths

· Expansion of Product portfolio with Exports of Packaged Frozen Fish which has recently started in November 2021 and Exports of Packaged Basmati Rice which has recently started in August 2022.

· One of the well-established brand. One of the top three meat exporter companies of India exporting to more than 40 countries under the brands “Black Gold”, “Kamil” & “HMA” with the products being bought off the shelf at local stores in these countries by end users.

· Geographical Diversification as customers are spread in various geographies over the globe. Its business model is customer centric and requires optimum utilization of existing facilities, assuring quality supply of raw materials and achieving consequent economies of scale.

Risks

· Significant portion of revenue is derived from meat business. Any change in the demand for the same will have an adverse impact on the business.

· HMA Agro operates in a highly regulated and environmental and religiously sensitive business.

· Certain of processing units generate pollutants and waste, some of which may be hazardous and harmful to the environment and they have in the past experienced plant shutdowns and disruptions with respect to processing plants.

Financial Snapshot