Rising demand for honey sweetens APIS India’s revenue

APIS India, known for its strength in the honey segment, is eyeing a robust 50 percent growth in its topline in the current fiscal thanks to a sharp rise in demand for its products as people looked to beat Covid-19, said the company’s Chief Executive Officer Pankaj Mishra.

“In a regular year, summer is usually the lean season for honey sales. However,  this year has been an exception as due to Covid-19 there has been a tremendous surge in its sales as it is largely seen as a health product. We had noticed around 60 percent jump in our honey product sales in the first quarter,” Mishra told indoasiancommodities.com.

The BSE-listed firm, which has a portfolio of around half a dozen products, had notched revenue of around Rs 210 crore in 2019-20 from three key channels – consumer sales, exports and B2B supplies.

Pankaj Mishra

“Last year, our consumer sales was Rs 122 crore with the other two channels contributing the rest of the revenue. And considering the surge in honey sales this year, we are expecting a sales figure of Rs 300 crore at the end of the year with consumer sales contributing Rs 200 crore and Rs 100 crore from exports and B2B delivery,” Mishra informed.

Honey sales contribute nearly 70 percent of the revenue of the company with APIS Himalaya Honey as the flagship brand supplemented by a host of flavor specific varieties.

“Honey is a fast growing segment and when it comes to the domestic market sales, we are placed at number three rank after Dabur and Patanjali,” he pointed out.

According to a recent study by the market research firm IMARC group, the domestic honey market sales in 2019 had stood at over Rs 1,700 crore which is expected to cross Rs 3,000 crore by 2025 growing at a CAGR of around 10 percent.

APIS India, which has a history of over 100 years as trading and exporting house, had kickstarted its direct consumer sales with packaged honey in 2015.

However, it later added added seven other product categories to its portfolio – pickles, dates, jams, ginger garlic paste, green tea, macaroni and soya chunks.

“We have plans to get into other product verticals like packaged nuts and seed products like flax seeds. In terms of availability of these products in the branded format there aren’t too many players in the fray. Further vertical diversification will happen over the next two years which may also include some personal care products,” he added.

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