Cremica Foods Plans ₹600-700 Crore IPO at ₹2,000 Crore Valuation to Fuel Global and Product Expansion

Punjab-based packaged foods and condiments maker Cremica Food Industries is formalising plans to launch an Initial Public Offering (IPO) of ₹600 crore to ₹700 crore in the upcoming financial year. The issue is expected to command a post-money valuation between ₹1,500 crore and ₹2,000 crore, serving as a launchpad for the brand's next phase of domestic scale and global expansion.

According to Akshay Bector, Chairman and Managing Director of Cremica Foods, the proposed issue will involve a dilution of approximately 25% to 26%. The offering will be structured as a balanced combination of a fresh issue and an Offer for Sale (OFS).

Issue Structure and Capital Allocation

Of the total targeted proceeds, around ₹350 crore will be raised through primary issuance, while the remainder will comprise secondary share sales by existing shareholders.

The primary capital raised from the market will be directed toward key strategic initiatives:

• Manufacturing and Capacity Enhancement: Expanding manufacturing infrastructure beyond its current installed capacity of 6,000 to 8,000 tonnes of liquid condiments per month (approximately 100,000 tonnes annually).
• Overseas Market Expansion: Deepening export networks and client servicing across the UK, the Middle East, and Southeast Asia.
• Product Diversification: Moving past core condiments, ketchup, and mayonnaise into high-margin value-added food categories.
• Strategic Acquisitions: Pursuing inorganic growth and brand buyouts post-listing to accelerate segment penetration.

Capital Restructuring and Ownership

The decision to tap the primary equity market comes on the heels of a clean-up of Cremica’s capital structure. Cremica recently bought back a 35% equity stake previously held by institutional investor Kroll (earlier linked to India Agri Business Fund II/Rabo Equity Advisors).

Following this buyback transaction, the promoter family led by Akshay Bector controls around 90% of the company, with the remaining equity held by angel investors. The company opted for this secondary buyback and subsequent public listing route rather than pursuing an earlier planned private fundraising round of ₹500 crore.

Financial Trajectory and Market Outlook

Cremica Foods closed FY25 with a consolidated revenue of ₹319.3 crore. For the current fiscal year, the company expects to reach approximately ₹450 crore in turnover with operating earnings (EBITDA) pegged at ₹65 crore to ₹70 crore. Management has guided for a 20% revenue expansion in the following fiscal year, aiming for an EBITDA benchmark of ₹120 crore.

The company serves two primary demand segments:

Institutional and HoReCa: Cremica is a key institutional supplier of sauces, dips, and sandwich spreads to quick-service restaurant (QSR) chains, café operators, and hotel networks across India. It is also aggressively scaling its snack food brand, Opera, via B2B food-service tie-ups.

Retail and Tier-2/3 Penetration: Consumer demand is seeing robust growth beyond Tier-1 urban hubs, driven by deeper retail penetration and rising consumption of packaged condiments in semi-urban India.

The Bector Family Footprint

Cremica traces its lineage back to 1978, when Rajni Bector established a home enterprise in Ludhiana. In 2013, an amicable business family settlement separated the operations into two distinct businesses: the biscuits and bakery division, operated under Mrs Bectors Food Specialities Ltd by Anoop Bector (which listed on the Indian bourses in December 2020), and the condiments and sauces business, operated under Cremica Foods by Akshay Bector.

With institutional bankers expected to be appointed in the coming months, Cremica Foods will submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to secure listing approvals.

Tags: Cremica Foods FMCG Sector Mrs Bectors Food Specialities IPO SEBI BSE