Amudi Foods' Journey: Aiming to Become a National Food Brand with Product Diversification, Capacity Expansion, and IPO Plans

Amudi Foods Limited, which has been expanding its presence in the Nepali food industry, has put forward an ambitious business plan for the coming days, prioritizing product diversification, production capacity expansion, and capital strengthening.

Established in 2069 BS, Amudi Foods has its office in Koteshwor, Kathmandu, and its factory in Bharatpur-12, Chitwan. Currently, 115 employees are working in the company. As a public limited company moving forward, Amudi Foods has been producing various snacks, dal moth, and noodles under the brand 'U N Me'.

The company aims to build customer satisfaction and long-term trust through high-quality and clean food production. Additionally, the company's long-term vision is to establish itself as Nepal's most reliable and innovative food brand, bringing Nepali taste to a wider market.

Preparation for Expansion from Production to Market

Currently, under the 'U N Me' brand, snacks such as cheese rings, potato crackers, pomes, cheese balls, akbare, fire balls, balls, grand, and tangy tomato are being produced. In addition, products like mixed dal moth, plain bhujiya, salted peanuts, anytime dal moth, mung dal, and potato bhujiya are also in the company's portfolio.

According to the company's plan, in the next phase, it is preparing to establish a dedicated noodles production plant to expand production capacity and product portfolio. For this, a plan has been put forward to invest in land and land development, buildings and structures, machinery and equipment, and working capital.

Growing Business and Long-Term Financial Goals

In the financial projections presented by the company, the goal of expanding sales and profit in the coming years is evident. From sales revenue of about Rs 8.41 crore in fiscal year 2082/83, it is projected to reach Rs 68.41 crore in sales revenue by fiscal year 2086/87. During that period, the target is to increase net profit from Rs 28.8 lakh to Rs 5.32 crore.

However, the company itself has clarified that due to the one-time income of Rs 14 crore from land sales included in the financial statements of fiscal year 2083/84, the earnings per share (EPS) for that year appears abnormally high. It will be important to look at income from regular business and one-time income separately to understand the company's actual business progress.

Towards Public Participation through IPO

Amudi Foods has also moved forward with preparations to further strengthen its capital structure and involve public investors. According to the company's proposed capital structure, the total issued capital will be Rs 42 crore, with Rs 32 crore from the promoter group and Rs 10 crore worth of shares for the general public.

Global IME Capital has already been appointed for the initial public offering (IPO) process, and an agreement related to rating has been made with CARE Ratings Nepal, according to the company. The new noodles plant, product diversification, and the proposed IPO could create a foundation to provide further expansion opportunities for the company's next phase.