Mandala Capital portfolio company Keventer Agro files draft papers for an IPO

Mandala Capital portfolio company Keventer Agro files draft papers for an IPO

10th Aug, 2021 - Mandala Capital backed Keventer Agro Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India (SEBI) to raise funds through an initial public offering.
The IPO consists of a fresh issue of ₹350 crore and an offer for sale of up to 10.77 million shares by Mandala Swede SPV that holds a 6.16% stake in the firm...

Mandala Capital portfolio company Keventer Agro files draft papers for an IPO:
Article Links: Securities and Exchange Board of India (SEBI) | Live Mint | The Telegram| The Capital Quest

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Mandala Capital buys controlling stake in India Cold Chain Player Gati Kausar

Mandala Capital buys controlling stake in India Cold Chain Player Gati Kausar

SINGAPORE – 16th July, 2021 -- Mandala Capital (“Mandala”), a leading private equity firm focused on sustainable and scalable investments across the food value chain, announced today that it has acquired a controlling stake in Gati Kausar India Ltd (“Gati Kausar”) after carving out the cold chain business from Gati Ltd (“Gati”). The transaction was envisaged as an amalgamation of Mandala’s business transformation strategy & focus on the cold chain sector along with Gati’s ongoing strategy of exiting non-core businesses.
Uday Garg, Managing Partner at Mandala Capital, said “Gati Kausar is an established, 35-year-old brand with a trusted name in the cold chain industry. We believe that under our complete ownership, the Company will be able to fully leverage our technical expertise and financial resources to realise its potential over the next few years. ”

Reports show that the Indian cold chain industry had a c.18% CAGR over the last 5 years and has the potential for increased and continued growth with 80-85% of the industry still controlled by unorganised players. The pandemic has further accelerated growth rates with the sector playing an increasingly vital role in the broader food value chain, starting from local procurement to last mile delivery. Demand from producers, processors, QSRs and retailers for efficient, cost-effective, and reliable supply chains remains high; likewise, the end consumer increasingly expects products to be delivered in a timely and safe manner.
“Increasing customer expectations can only be met through technology-enabled solutions and automation in the cold supply chain. We are working closely with various consultants and our sector specialists to bring best-in-class technologies to Gati Kausar that will increase efficiency and provide innovative solutions to customers,” added Garg.

Rakesh Pachauri, recently appointed COO at Gati Kausar, said “For us, customer satisfaction is of utmost priority and we are excited at the prospect of delivering more value to our customers in this new phase under Mandala Capital’s ownership. We are looking to invest in new vehicles, warehouses, and technology to enhance the customer experience and provide enhanced service levels. We also aim to expand the Gati Kausar family in various areas. With the support of our customers, employees, and shareholders, we believe Gati Kausar can create significant value for all stakeholders.”
CJ Shaju, CFO at Gati Kausar, said “The company has been generating operating profits for the past 3 years despite a difficult market environment and restrained capital resources. With access to a larger capital base post-Mandala’s takeover, we expect more growth and increasing profitability in the years ahead.”

Mandala Capital and Gati Kausar transaction featureed in the news:
Article Links: The Economic Times | Equity Bulls

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Mandala Capital and EFRAC featured by AVCJ

Mandala Capital and EFRAC featured by AVCJ

AVCJ recently published an article which highlights Mandala’s role in helping its food laboratory portfolio company EFRAC in developing its business and distinguishing itself as a leading laboratory in the region.

Mandala Capital and EFRAC featured by AVCJ:
Article Link: AVCJ (Needs subscription)

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Impact Report 2021: Building a Circular Impact Economy

Impact Report 2021: Building a Circular Impact Economy

A message from Mandala Capital's Managing Partner, Mr Uday Garg


The current food system has supported a fast-growing population and fuelled economic development and urbanisation for the last several decades; but this has come at a great cost to society and the environment and today’s model is no longer fit to meet tomorrow’s needs. The current linear food system is ripe for disruption into a Circular Economy. I would argue that changing our food systems is one of the most impactful things we can do to address climate change, improve health and nutrition, rebuild biodiversity, and lift hundreds of millions of people out of poverty.

Impact investing will always mean different things to different people. It took us a while to define what it means for Mandala. There are three questions we always ask ourselves to help us think through this:
What is the Impact we are trying to make?
Sustainable and scalable Impact across the food value chain.
Why are we choosing this type of Impact?
Because we feel that Food and Agri is the most impactful sector to influence the things we consider important, such as climate change, rural development, soil health, water conservation, health and nutrition.
How are we making or contributing to this Impact?
By investing in companies with a shared philosophy, by finding investments that enhance the Impact we are trying to achieve, by tracking and monitoring our Impact effect, and by encouraging better Impact standards post-investment.

I am encouraged by the iterative process we have followed so far to arrive at our current understanding and definition of Impact and excited about the years ahead as we continue to learn from what others are doing in this space, while continuously evolving our own thinking on the best way to define and implement Impact investing.

Read Mandala Capital's Impact Report 2021

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Social Impact Highlight: Food Safety

Social Impact Highlight: Food Safety

Sustainable Development Goal #3: Good Health and Well-being

Our physical health and mental well-being determine the quality of life we can live and influence the health and mental well-being of those we come into contact with each day. We are what we eat, and more than 1.6 billion people live in fragile settings where protracted crises and weak infrastructure hinder accessibility to food and basic health services.

Increased demand for (perishable) food
The world’s population is expected to increase by two billion people in the next 30 years, with demand for food and livestock in 2050 estimated to be 56% greater than in 2010. As health-conscious and richer consumers around the world seek to consume more meat, fruits and vegetables, fresh and frozen, all year long, there is a growing demand for nutritious, perishable food requiring sufficient cold transport and storage.

Healthcare and Productivity Costs of Foodborne Diseases (FBD)
Foodborne diseases cost India $28 billion a year (0.5% GDP), and productivity loss of $15 billion a year, with cases expected to increase to 170 million a year in 2030 from 100 million in 2011.
Food contamination monitoring is essential to ensuring the safety of food supply and managing risk. Likewise, consumer awareness about food safety plays an especially important role in the successful implementation of food safety guidelines.

Mandala's Social ROI for Food Safety in FY2020 is 1.6
This means that every $1 invested in food safety has resulted in $1.60 of social value. Food testing, cold chain storage and reefer truck capacity contribute to reduced contamination risk and reduced healthcare spend on FBD. Food safety accounts for 54% of all social impact created by Mandala's portfolio companies. For more insight into our impact methodology, click here.

How Mandala's Portfolio Companies Contributed in 2020
To ensure a safe and sustainable food supply, initiatives in technology, food packaging, and waste reduction can lengthen food’s shelf life and increase food supply.

-Gati Kausar owns temperature-controlled facilities, including an extensive fleet of 180 refrigerated vehicles and a growing network of cold warehouse facilities across India that are needed to meet the growing demand for food with quality and safety.
-EFRAC is one of the largest integrated food testing and research facilities in India, testing food products for nutrition, hygiene, adulteration and quality.
-EFRAC also conducts food safety clinics and provides food safety kits to raise consumer awareness about food safety.

The safe food imperative is more pressing than ever, and investments in market-led capacity building solutions are far outsized by the FBD burden. We want to hear your thoughts on supporting more companies like EFRAC and Gati Kausar towards a safer and healthier world!

Write to info@mandala-capital.com.