Mrs. Bectors Food Specialities Ltd: A Tale of Growth, Expansion, and Investment Potential

Brokerage Free Team • April 1, 2024 | 11 min read • 1426 views

The remarkable surge of 118% in Mrs. Bector’s Food Specialities Ltd's share price within a year is a reflection of the company's promising business prospects and its solid foundation built over decades. Founded by Mrs. Rajni Bector, the company's journey began in the 1970s in Ludhiana, Punjab, where Mrs. Bector's passion for creating delectable treats like cakes, cookies, ice creams, puddings, and buns captured the hearts of her local community.

McDonald's and Burger King supplier Mrs Bector's Foods to launch ₹540 crore  IPO on December 15 | Business Insider India



Mrs. Bector's entrepreneurial acumen became evident in 1985 when she established a bread unit in Punjab, initially producing 5,000 loaves daily, a number that rapidly escalated to 50,000 loaves as demand surged. This expansion marked the beginning of a series of strategic moves, including the establishment of new manufacturing facilities across India. By 1996, Mrs. Bector’s Food Specialities Ltd had secured a significant milestone by becoming an official supplier of burger buns to McDonald’s, a testament to the company's quality and reliability.


The surge in share price reflects investor confidence in the company's management, strategic decisions, and market positioning. It signifies recognition of Mrs. Bector’s Food Specialities Ltd's ability to adapt to changing consumer preferences, innovate product offerings, and maintain operational excellence. Additionally, the surge reflects optimism regarding the company's growth potential, both domestically and internationally, as it continues to expand its product lines, distribution networks, and market presence.


Financial Triumphs and Investment Potential


Mrs. Bectors Food Specialities Ltd made a significant move by going public in December 2020, generating Rs 541 crore through an oversubscribed IPO, which was oversubscribed by 198 times. This accomplishment propelled the company's market value to over Rs 2500 crore by November 2021, more than doubling its initial value. Moreover, the stock witnessed a remarkable surge, nearly doubling in value with a remarkable return of 118.06 percent over the past year.


Financial Performance Analysis


Delving into the financial performance of Mrs. Bectors Food Specialities Ltd in the December quarter of 2024 reveals commendable growth. The biscuit segment, encompassing both domestic and export markets, experienced a revenue increase from ₹219 crores in Q3FY23 to ₹268 crores in Q3FY24, marking a notable 22% growth. This segment has demonstrated substantial expansion, growing by an impressive 71% since Q3FY22.


Similarly, the bakery segment, including retail bakery and institutional sales, witnessed sales growth from ₹127 crores in Q3FY23 to Rs. 146 crores in Q3FY24, reflecting a 15% increase. The bakery segment's expansion has been notable, reaching 58% since Q3FY22.


Profitability in Q3FY24 also saw a significant surge, with profit after tax rising by 25% to ₹34.6 crores from ₹27.8 crores in Q3FY23. These financial achievements underscore the company's strength and stability in the biscuit and bakery industry in India.


Assessing Investment Potential


Given Mrs. Bectors Food Specialities Ltd's impressive financial performance and market positioning, the company presents a compelling investment opportunity. The substantial revenue growth, especially in key segments like biscuits and bakery, indicates a strong demand for its products. Moreover, the consistent profit growth reflects operational efficiency and effective management strategies.


Furthermore, the company's foray into both domestic and international markets enhances its growth prospects, tapping into diverse consumer preferences and expanding its customer base. The robust expansion of the biscuit and bakery segments signifies a strategic focus on core business areas, driving sustained profitability and market leadership.




Mrs. Bectors Food Specialities Ltd (MBFSL) holds a significant position in North India's premium and mid-premium biscuit and premium baking markets. Operating under two flagship brands, namely “Mrs. Bector’s Cremica” and “English Oven,” the company offers a diverse range of products catering to different consumer preferences.


The “Mrs. Bector’s Cremica” brand encompasses a variety of biscuits, including cookies, creams, crackers, digestives, and glucose-based products. These offerings cater to the premium and mid-premium biscuit segments, showcasing the company's versatility and commitment to quality.


On the other hand, the “English Oven” brand specializes in bakery goods, offering a range of savory and sweet products such as breads, buns, pizza bases, and cakes. This segment further solidifies MBFSL's presence in the premium baking market, providing consumers with a wide array of bakery delights.

Mrs. Bectors Food Specialities Ltd recommends dividend of Rs. 1.75

Operational Excellence and Market Presence


With six manufacturing locations, MBFSL ensures stringent quality control and efficient production processes for all its products. This vertical integration allows the company to maintain high standards across its product range, from biscuits to bakery goods.


Furthermore, MBFSL's global footprint is noteworthy, as it exports its products to 69 countries across six continents. This international reach highlights the company's competitiveness and ability to cater to diverse markets with varying consumer preferences.


In addition to its global presence, MBFSL has established strong partnerships with reputable institutional clients across India. These partnerships extend to popular multiplexes, cloud kitchens, and Quick Service Restaurants (QSR) franchisees, further solidifying the company's position as a preferred supplier in the premium bakery market.


Mrs. Bectors Food Specialities Ltd's corporate overview showcases its strong market presence, diverse product portfolio, and commitment to quality and innovation. With a focus on premium and mid-premium segments in both biscuits and bakery goods, coupled with global exports and partnerships with key institutional clients, MBFSL continues to be a prominent player in India's food industry.


Business Segments


Mrs. Bectors Food Specialities Ltd operates through two primary business segments: the biscuit manufacturing segment under the brand Cremica and the branded breads & bakery products segment under the brand English Oven.


Biscuit Segment

The biscuit segment of MBFSL is a key player in North India's premium and mid-premium biscuit market, offering a diverse range of products under the Mrs. Bector’s Cremica flagship brand. The company has established a strong presence in regions such as Punjab, Himachal Pradesh, Ladakh, and Jammu & Kashmir.

Our Brands

With an extensive product portfolio comprising approximately 400 SKUs, the biscuit segment offers a wide variety of cookies, creams, crackers, and digestives. Notably, MBFSL has partnered with Mondelez India (Cadbury) to manufacture popular products like “Oreo” biscuits and “Choco Bakes” cookies, showcasing the quality and credibility of its offerings.


In the fiscal year 2023, the biscuit segment experienced an impressive 36% revenue growth, amounting to ₹807 crore. This segment contributed significantly, accounting for approximately 59.25% of the total revenue during the same financial year. With a robust distribution network comprising over 1,180 distributors and more than 5,80,000 retail outlets, MBFSL commands a notable 5.4% market share in the premium and mid-premium biscuit segment in North India.


Bakery Segment

Mrs. Bectors Food Specialities Ltd's bakery segment operates under the renowned "English Oven" brand, specializing in the distribution and sale of high-quality bakery products to retail clients across both savory and sweet categories. This segment includes a diverse range of offerings such as breads, buns, pizza bases, and cakes.

Bectors Food Surges 17% in 2 Days After Record Q4 Sales and Profit -  Equitypandit

One of the distinguishing factors of MBFSL's bakery segment is its capability to handle fresh, chilled, and frozen goods, making it one of the few Indian bakeries capable of effectively distributing a wide array of baked goods. The segment boasts an impressive portfolio of about 100 SKUs catering to various consumer preferences in India.


In the fiscal year 2023, the bakery segment experienced remarkable growth, with a 44% increase in revenue amounting to ₹487 crore. This segment significantly contributed around 35.75% of the total revenue during the same financial year. With a well-established distribution network comprising over 600 distributors and more than 35,000 retail outlets, MBFSL commands a notable 5% market share in the branded breads segment in India.


Here is an overview of the financial performance of Mrs. Bectors Food Specialities Ltd over the past few fiscal years:


  FY2023 FY2022 FY2021 FY2020
Revenue (in ₹crore) 1362.14 988.17 880.73 762.12
Net Profit (in ₹crore) 90.07 57.14 72.28 30.31
ROE 17.78% 12.69% 19.26% 9.87%
ROCE 20.53% 13.84% 20.30% 11.48%


In FY2023, Mrs. Bectors Food Specialities witnessed a substantial increase in revenue, surging by 37.8% to reach ₹1,362.14 crore compared to ₹988.17 crore in FY2022. Analyzing a span of four years from FY2020 to FY2023, the company displayed a robust Compound Annual Growth Rate (CAGR) of 20.53% in revenue, indicating sustained growth and market expansion.


Simultaneously, there was a noteworthy upturn in net profit, experiencing a remarkable 57.6% increase from ₹57.14 crore in FY2022 to ₹90.07 crore in FY2023. Over the cumulative four-year period from FY2020 to FY2023, the net profit showcased a 30% CAGR, demonstrating the company's ability to translate revenue growth into improved profitability.


In FY23, Mrs. Bectors Food Specialities maintained favorable financial metrics with a Return on Equity (ROE) of 17.78% and Return on Capital Employed (ROCE) of 20.53%, highlighting the efficient utilization of resources and shareholder value creation. These financial indicators underscore thFuture Plans of Mrs. Bectors Food Specialities Ltd


Industry Outlook


Mrs. Bectors Food Specialities Ltd is strategically positioned to leverage the promising growth trajectory forecasted for the food industry in India. The retail bread and buns sector, anticipated to grow at a rate of 9%, is projected to attain a valuation of Rs 76 billion by FY25, a significant increase from its FY20 valuation of Rs 50 billion. This growth is primarily driven by factors such as rising disposable incomes, evolving consumer preferences, and lifestyle changes. Notably, the demand for bread is expected to surge in metro areas, tier I cities, and larger tier II cities, aligning with the shifting dietary choices of consumers.


Moreover, the Indian food services industry has witnessed remarkable growth over the past decade, marked by changes in consumer habits such as an increasing inclination towards dining out, a trend that was less prevalent in traditional Indian culture. This shift in consumer behavior has contributed to the industry's expansion, with food services revenue in India projected to reach an impressive Rs 6,505.00 billion by FY25. This growth is estimated to occur at a compound annual growth rate (CAGR) of 9% over the next five years, compared to an estimated Rs 4,236 billion in FY20.


Mrs. Bectors Food Specialities Ltd is poised to capitalize on these industry trends by aligning its strategies with the evolving market dynamics, catering to changing consumer demands, and expanding its market presence to leverage the growing opportunities presented by the flourishing food industry in India.e company's strong performance and financial stability in the industry.


Expanding Distribution and Strategic Growth Initiatives


As of March 2023, Mrs. Bectors Food Specialities Ltd (MBFSL) boasted an extensive presence with 2.7 lakh outlets spread across 331 districts, showing a notable increase from 2.16 lakh outlets in 269 districts. This expansion indicates the company's proactive approach towards broadening its distribution reach in the home biscuit market, tapping into diverse consumer segments.


Looking ahead to March 2024, MBFSL anticipates further expansion, aiming to reach 3.2 lakh stores, effectively doubling its presence compared to March 2022. Additionally, the company is strategically venturing into the southern and western regions, targeting untapped markets for increased market penetration and consumer engagement. To bolster sales initiatives, MBFSL has bolstered its sales force, increasing the number of "feet on street" sales personnel from 900 in March 2023 to 1,200, reinforcing its commitment to customer service and market responsiveness.


Moreover, the company has invested in enhancing its production capabilities to meet growing demand. In the current year, MBFSL has commissioned two new biscuit lines in Rajpura, with plans for two additional lines slated for completion by H1 24-25. This investment in production infrastructure underscores the company's readiness to scale operations and capitalize on market opportunities.


In tandem with its biscuit segment expansion, MBFSL is also focusing on strengthening its presence in the bakery business. The commissioning of a Bhiwadi plant in the current year and the establishment of a new bakery unit in Kolkata, expected to be completed in FY 24-25, demonstrate the company's strategic investments in production facilities. Additionally, the ongoing expansion of the Bakery Plant in Khopoli further reinforces MBFSL's commitment to catering to the evolving needs of consumers and enhancing its market competitiveness.


Conclusion: A Bright Future Ahead


In conclusion, Mrs. Bectors Food Specialities Ltd's impressive performance and strategic expansion initiatives paint a promising picture for the company's future. With robust revenue growth, an expanding distribution network, and a solid presence in both the biscuit and bakery segments, MBFSL is well-positioned for continued success. As investors and industry observers, what are your insights into MBFSL's trajectory? Do you perceive MBFSL as a compelling investment opportunity given its strong industry position and growth prospects? Share your thoughts and perspectives in the comments below!