MML poised for growth post Maharaja Foods IPO

Maharaja Marketing (Pvt.) Limited (MML) is poised for business growth in the domestic market, post successful initial public offering (IPO) of Maharaja Foods.

Maharaja Foods Executive Director Seyed Rizvi Maulana noted, “We successfully raised equity capital at the IPO, which will enable to expand our domestic operations. With the addition of the raw rice mill into our portfolio, MML will earn higher profit margins on value-added rice-based products sold in the domestic market and the new gingelly oil plant, which has already commissioned opens the opportunity to competitively market high-quality gingelly oil in the local market.

The IPO proceeds will finance the setting up of new facilities, including a raw rice plant, rice polishing plant, a warehouse for paddy storage and a gingelly oil plant. Additionally, the funds will be utilised to inject Rs.30 million in working capital and retire Rs.20 million of debt from Maharaja Foods.”   

        
The capital influx resulting from the IPO is set to significantly benefit MML through backward integration, enabling the company to source raw materials such as raw rice for its rice flour and string hopper flour production at lower costs, thereby enhancing profitability.
In FY24, rice flour and string hopper flour contributed 25 percent-30 percent to MML’s revenue and with planned product diversification, the addition of in-house manufactured raw rice and gingelly oil is expected to contribute approximately 19 percent-20 percent of the forecasted revenue for FY25. 

Achieving economies of scale through increased bulk procurement of raw materials such as wheat flour and spices will further bolster MML’s market competitiveness, ensuring quality and competitive pricing for its customers. These benefits from the IPO are expected to materialise from the second half of FY25 onwards. 
Looking ahead, MML’s future outlook is promising, driven by the rising trend towards health-conscious products and a comprehensive strategy to enhance market presence nationwide. This expansion, coupled with targeted sales and marketing campaigns, is expected to sustainably boost MML’s sales and profitability in the coming years.