Epigamia to Hindustan Uniliver

Executive Summary
Epigamia is India’s first brand in the premium dairy segment as we serve customers in the areas
of milk products and milk substitutes. Our products serve 21 categories ranging from Greek
Yogurt, milk solids, beverages, plant based natural products and deserts. All these products have
been designed as per the preferences for the youth who aspire to live a healthy life. A no-
compromise solution to the ‘health and taste’ aspect, our products are being consumed as a ‘mid-
meal snack’. We believe in innovation, making things happen, consumer first open and honest in
all do.
Core Product
Epigamia offers guilt- free snack products. These products are divided into 4 categories:
a. Milk solids: Cheese spreads, chocolate & cream spreads
b. Beverages: smoothies, almond milk & milk shakes
c. Plant Based: Blends
d. Desserts: Berries and Alphonso desserts
e. Yogurt
Market and Paying Customers
With a sale of 3 million units a month amounting toa revenue of more than 110 crores as of
2019. Our brand has been successful in penetrating into the healthy food market for the youth
who aspire a junk-free healthy lifestyle. We are represented by more than 8000 retail stores who
distribute our products to the final customer. Our market has representation from all sections of
the society as we aim for a pan India existence. This is also shown in our packaging as we aim to
attract individuals as well as families.
Competitors
In this expanding market we are competed by Mexicor, Storia, FERBERA and Vitasoy
International as our main competitors.
Management
We are ably led by:
1. Rohit Mirchandani- CEO, Co- Founder
2. Deepika Padukone- Strategic Advisor
3. Uday Thakker- Director, Co- Founder
4. Rahul Jain- Director, COO
5. Ganesh Krishnamoorthy- Co-Founder & Chef
6. Ramanpreet Singh Sohi- Chief Financial Officer
 Financials
Company's authorized capital stands at Rs 2000.0 lakhs and has 86.0282% paid-up capital which
is Rs 1720.56 lakhs.
EBITDA: 17.29%
Net Worth: 68.5 million dollars.

EQUITY AND LIABILITIES In Crore

Share Capital 20

    Equity Paid Up 17.20

    Face Value 10.00

Total Reserves 48.50

    Capital Reserves 8.45

    Profit & Loss Account Balance 35.42

    General Reserves 4.63

Liabilities

Long-Term Borrowings 25.00

Shor-Term Liabilities
Trade Payables 7.23
Deferred Tax Liabilities 1.10

Assets

Fixed Assets 6.43

Plant & Machinery 5.00

Sundry Creditors 2.50

Cash and Cash Equivalents 8.00

Inventories

WIP 8.20
Finished Goods 3.20

Ratios:
 Deal Structure

We propose an acquisition deal at 90 million dollars.

The breakup of the deal:
1. 68.5 million dollars value of the firm
2. 68.5 million dollars premium for the brand equity

Structure

1. AYS Asia to represent Epigamia for the deal

2. Expression of interest to be submitted before any formal discussions
3. Inspection of books, assets and physical inspection of factories to be undertaken after
submitting the EOI and Non-Disclosure Form
4. Any transaction of payment to be undertaken in the ESCROW account only.
5. 60% cash & 40% preference share at 2250 per share
6. All assets to be taken over by the firm. The deal will on asset sales terms
7. All Liabilities to be undertaken by the present owners
8. No existing employee will be terminated before the completion of 1 year from the date of
acquisition.

Payment

1. 5% of the deal to be honored immediately after the agreement

2. 75% of the deal to be honored on the public announcement 50 million cash to be
completed to pay the liabilities
3. 20% to be honored 1 month after the acquisition is completed.

Risk
1. Financial Risk: Acquisitions can place a huge cash burden on the company if not
executed properly.
2. Operational Risk: Acquisition may warrant staff to underperform
3. Cultural risk: The new company may not fit in with the culture of the company

Conclusion
Epigamia is a powerful brand which has shown a lot of growth over the years. It has the potential
to become an industry as this industry is only in adolescence and has huge growth potential. The
valuations are based on the current revenue and the premiums account for the brand equity and
future revenues. Keeping that in mind these values are attractive for prospective bidders as there
is scope for more growth and profits.
 Investment Recommendation
Epigamia will be a good investment for HUL as:
1. HUL is primarily an FMCG company and Epigamia gives addition to their product range
2. HUL will now have appeal on the youth or the younger population through Epigamia
3. HUL can increase the capacity, demand and supply as it has a good operations
management.
4. Being a large-scale consumer company HUL can increase Epigamia’s brand value and
presence through efficient utilization of its recourses.
5. The profit margins for Epigamia are good also it is the most recognized brand in
premium diary which gives the company a premium margin.