Rama Vision is in the business of trading in the FMCG (Fast
Moving Consumer Goods) segment.
It procures and distributes a broad portfolio of products in
the mother/baby care and other personal care sub-segments. It distributes goods such as ‘Kindoh’
biscuits, ‘Real Thai’ foods etc.
The company’s strength appears to lie in its distribution
network and market knowledge.
There appears to be plenty of per-capita growth potential in
branded products with expected economic growth in the country.
The company reported marginal profits on growing revenues –
reporting 72lacs of operating profits on revenues of 18cr in the last financial
year. It operated with minimal net debt
as at 30th September, 2011.
However, the company is in the business of trading and not
owning the brands themselves depriving it of the main source of value and the
risk of suppliers choosing other distributors.
There is strong competition from international players who
are focusing on volume with consequent price wars with particularly intense
competition in the personal care segment.
Since the company is a heavy importer, it is exposed to a weakening
INR. It is also exposed to high taxes
(e.g. customs duty) in its business.
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