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Kolkata-based consumer goods group Keventer has emerged as the third largest corporate donor through electoral bonds, with four different group entities purchasing bonds worth a combined Rs 617 crore, data shows.
This puts Keventer third on the list of largest donors, behind Future Gaming and Hotel Services and Megha Engineering.
Keventer Food Park Infra donated Rs 195 million through electoral bonds; Madanlal Ltd: Rs 185.5 million; MKJ Enterprises Rs 192.4 crore and Sasmal Infrastructure Rs 44 crore, according to data released by the Election Commission of India.
Of this, Rs 380.5 crore was donated in 2019 and the rest in 2022 and 2023.
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These entities are part of the Keventer group, led by its flagship company Keventer Agro Ltd, which sells packaged foods and beverages, dairy products and branded bananas, under the Keventer and Metro brands.
The company also has a tie-up with Parle Agro, under which it manufactures, packages, markets and distributes Parle products such as Frooti, Appy, B Fizz, Appy Fizz, Bailley and Smoodh.
Promoters
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The Keventer Group is promoted by Mahendra Kumar Jalan, who is currently the Chairman Emeritus of Keventer Group.
A graduate of St. Xavier’s College, Kolkata, and an alumnus of Harvard Business School, he has business interests in dairy, food processing, real estate, port, steel and other industrial sectors. He acquired the operating rights of Edward Keventer Ltd. in 1986.
He is also the promoter of Metro Dairy, the first joint dairy sector project under World Bank operation flood and is a member of the board of directors of several companies including Bengal NRI Complex Ltd, Keventer Projects Ltd and Edward Keventer Pvt. Limited. Limited.
Jalan has served as Honorary Consul General of France and is currently Honorary Consul of Ireland in Kolkata, according to the group’s website. He is also a trustee of Heritage School and Heritage School of Technology and a member of several Chambers of Commerce.
His son Mayank Jalan currently serves as the Chairman and CEO of Keventer Agro.
He holds a Bachelor of Engineering in Business Finance from University College London and has completed certificate courses in advanced mathematics, advanced physics and advanced economics. He has served as president of the Indian Chamber of Commerce in Calcutta and also chaired the Federation of Indian Chambers of Commerce and Industry in the State Council of West Bengal.
Keventer Finance
Keventer Agro posted revenue of Rs 1,231.3 crore in FY23, compared to revenue of Rs 996.9 crore in the previous year, according to a December 13, 2023 report by credit rating agency India. Ratings.
The company’s EBITDA saw a sharp decline in FY23 to Rs 14.3 crore from Rs 55.3 crore a year earlier.
“EBITDA margin plummeted to 1.17% in FY23 (FY22: 5.54%), due to high volatility in input costs, led by an increase in raw material price in the packaged food and beverage, and dairy and fresh produce segments. Ind-Ra expects the margin to remain under pressure in the near term due to continued volatility in commodity prices,” India Ratings said in its report.
The rating agency further noted that Keventer’s gross interest coverage deteriorated to 0.38 times in FY23 (FY22: 2.10 times). “This was attributable to a substantial decline in absolute EBITDA… and increase in debt to Rs 431.5 crore (Rs 304.8 crore) to fund capital expenditure,” the report said.
Keventer’s packaged food and beverage segment contributed around 52 per cent to the company’s revenue in FY23, followed by dairy and fresh produce segment at 40 per cent and trading and other activities with 8 percent.
IPO plans
In 2021, Keventer Agro decided to go public and on August 8, 2021, filed the draft documents for its initial public offering with SEBI.
It planned to raise Rs 350 crore through the IPO, while the promoters planned to sell around 10.7 million shares, according to drafts filed with SEBI.
The company wanted to use the money from the IPO to repay loans and finance capital expenditures.
In its December 13 report, India Ratings said the management has canceled its plan to launch the IPO.
“The draft prospectus was approved by the Securities and Exchange Board of India in December 2021, but the IPO had since been delayed due to unfavorable market conditions. However, the management has stated that it may reconsider when market conditions become favourable,” India Ratings said in its report.
Keventer Brand History
The brand was established by Swedish citizen Edward Keventer before India’s independence from the British crown.
Edward Keventer was hired by the British government in 1890 to modernize the dairy industry in India, according to the company’s website.
In 1913, Keventer was granted a royal charter by British Emperor George V for the supply of dairy and agricultural products. He died in 1937 in Shimla.
Established in 1986, Keventer Agro acquired the rights to Edward Keventer’s operations.
“The company aims to take the legacy of more than 130 years in the consumer goods sector to new heights, while remaining committed to the philosophy and beliefs of Edward Keventer,” according to Keventer Agro’s website.