Who is Keventer? The group that donated Rs 617 crore through electoral bonds

Keventer is third on the list of the biggest donors, behind Future Gaming and Hotel Services and Megha Engineering (representative image)

Kolkata-based FMCG group Keventer has emerged as the third biggest corporate donor through electoral bonds, with four different group entities buying bonds collectively worth Rs 617 crore, data shows.

This puts Keventer third on the list of the biggest donors, behind Future Gaming and Hotel Services and Megha Engineering.

Keventer Food Park Infra donated Rs 195 crore through electoral bonds; Madanlal Ltd – Rs 185.5 crore; MKJ Enterprises Rs 192.4 crore and Sasmal Infrastructure Rs44 crore, as per the data released by the Election Commission of India.

Of this, Rs 380.5 crore was donated in 2019 and the rest in 2022 and 2023.

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These entities are part of the Keventer group, led by its flagship company Keventer Agro Ltd, which sells packaged foods and beverages, dairy and branded bananas, under the Keventer and Metro brands.

The company also has a tie up with Parle Agro, under which it manufactures, packages, markets and distributes of Parle products such as Frooti, Appy, B Fizz, Appy Fizz, Bailley and Smoodh.

Promoters

Keventer group is promoted by Mahendra Kumar Jalan, who is currently the Chairman Emeritus of Keventer Group.

A graduate from St. Xavier's College, Kolkata, and an alumni member of Harvard Business School, he has business interests in dairy, food processing, real estate, port, steel, and other industrial sectors. He acquired the rights of operations of Edward Keventer Ltd. in 1986.

He is also the promoter of Metro Dairy, the first joint sector dairy project under operation flood of the World Bank and is a board member of various companies, including Bengal NRI Complex Ltd, Keventer Projects Ltd and Edward Keventer Pvt. Ltd.

Jalan has served as the French Honorary Consul General and is currently the Honorary Consul of Ireland in Kolkata, as per the group’s website. He is also a trustee member of Heritage School and Heritage School of Technology and a member of several Chambers of Commerce.

His son Mayank Jalan currently serves as the Chairman and Managing Director of Keventer Agro.

He holds a bachelor’s degree in engineering in business finance from the University College, London and has completed certification courses in advanced mathematics, advanced physics and advanced economics. He has served as the President of the Indian Chamber of Commerce, Calcutta and also chaired the Federation of Indian Chambers of Commerce and Industry, West Bengal State Council.

Keventer Financials

Keventer Agro reported a revenue of 1,231.3 crore FY23, compared to a revenue of Rs 996.9 crore in the previous year, according to a December 13, 2023, report by credit rating agency India Ratings.

The company’s EBITDA saw a sharp decline in FY23 to Rs 14.3 crore from Rs 55.3 crore in the previous year.

“The EBITDA margin plunged to 1.17% in FY23 (FY22: 5.54%), on account of a high volatility in input costs, led by an increase in price of raw material in the packaged food & beverages, and dairy & fresh segments. Ind-Ra expects the margin to remain under pressure in the near term due to continued volatility in raw material prices,” India Ratings said in its report.

The rating agency further noted that Keventer’s gross interest coverage deteriorated to 0.38x in FY23 (FY22: 2.10x). “This was attributable to a substantial decline in the absolute EBITDA…and the increase in debt to Rs 431.5 crore (Rs 304.8 crore) to fund capex,” the report said.

Keventer’s packaged foods and beverages segment contributed about 52 percent to the company's revenue in FY23, followed by the diary & fresh segment at 40 percent and trading and other activities at 8 percent.

IPO Plans

In 2021, Keventer Agro decided to go public and on August 8, 2021, it filed the draft papers for its initial public offering with SEBI.

It planned to raise Rs 350 crore through the IPO, while the promoters planned to sell about 10.7 million shares, as per the draft papers filed with SEBI.

The company wanted to use the IPO money for repayment of loans and for funding capital expenditure.

In its December 13 report, India Ratings noted that the management has cancelled its plan of launching the IPO.

“The draft prospectus was approved by the Securities and Exchange Board of India in December 2021, but the IPO had been delayed since then owing to the unfavorable market conditions. However, the management has stated that it could reconsider when market conditions turn favorable,” India Ratings said in its report.

History of Keventer brand

The brand was established by Swedish citizen Edward Keventer prior to India’s Independence from the British crown.

Edward Keventer was recruited by the British government in 1890, to modernise the dairy industry in India, according to the company’s website.

In 1913, Keventer was conferred a royal charter for supply of dairy and farm products by British emperor George V. He died in 1937 in Shimla.

Established in 1986, Keventer Agro acquired the rights of Edward Keventer’s operations.

“The Company aims to take the legacy of over 130+ years in FMCG to new heights, while remaining committed to Edward Keventer's philosophy and beliefs,” as per Keventer Agro’s website.