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Add-Shop E-Retail Ltd - Wish You Health Wealth & Prosperity

CMP = 134

Add-Shop E-Retail Ltd is incorporated in 2013 and started its commercial production and distribution in 2015. Later on the company converted into a public limited company in June 2018. The company is engaged in the business of manufacturing, marketing and distribution of products in the categories of ayurvedic products, food supplement products, agricultural products, animal feed supplement products, personal care and home care products under the brand name "Add-Shop Promotions". 

The company has set up its herbal & ayurvedic processing unit for manufacturing of cosmetic & non-cosmetic products in Rajkot Gujarat. The company manufactures its high quality products through its own two fully automated manufacturing units which are FDA, HACCP, GMP, ISO 9001: 2008, ECOCERT, and KVIC (Khadi & Village Industries Commission, Government of India) certified.

With an objective to penetrate major markets, the company caters more than 125 products to retailers and wholesalers. Add Shop has adopted new age marketing and distribution system which uses direct selling business method to promote and distribute products and services which uses word of mouth publicity, which is very low cost as well effective and also generate employment for the people. 

Organic Farming - Vish Mukt Kheti Samruddha Kisan  

This is one of the main objective of the company to minimize the use of chemical / pesticide and divert farmers towards organic farming which increases profitability of farmers as well drastically reduce import bill on chemical fertilizer. Currently there is a vast use of chemical fertilizers and pesticides into Indian agriculture. Organic farming will improve soil quality, reduce pollution into our environment as well deadly diseases. With this care of mother nature in mind, the company is producing and distributing high quality organic products to farmers for their agriculture use as well organic cattle feed products for their livestock. The Bhoomi sudha, Cropsudha, 3B(Black bioBooster), DNC –90,  Cropvitta, ASP –90, Microsudha, DOJ –80, Cattle Sudha are the major product in the field of agriculture.

Organic farming by Dinesh Pandya

https://youtu.be/wq81d5MHkwA

https://youtu.be/JxnosdT3EPY

PM Modi urges farmers to cut the usage of chemical fertilizers, pesticides and adopt organic farming.

https://youtu.be/BVs1KxbBpm0

https://youtu.be/QTVhXJJgHQA

Sikkim is the First Organic State in India and in the World.

https://youtu.be/-idI1dkaxzM

https://youtu.be/hAd7EPiL3f0

https://youtu.be/PfloyqsWfy4

Ayurveda - Healthy Way of Living

The Ayurveda principle  is preserving the health of healthy persons and  curing the diseases of diseased.

The primary objective of the company is  to promote Ayurveda to live healthy  and disease free life for Indians. It will also help to generate employment for the people living  in rural and urban areas. In this present competitive era of medicines and food supplements, the company is aiming to focus on ways to bridge the nutrition gap, which is a recognized cause of any diseases by promoting Ayurveda and its products. The company has full range of high quality ayurvedic products - ASP Madhushakti , ASP Aloe Vera, ASP Amla, ASP Ashwagandha, ASP Shatavari, Shlimsudha, Narisudha, Protein Sudha, ASP Triphala, Satayu Capsule, Karkyusudha, Necharsudha, Satayu Syrup, BrensudhaPowder, Gausudha, Naturacal, Sampurna Sudha, Hradyasudha Capsule, Vaytroga, Kenkarsudha, Skeensudha Cap, ASP Melshakti, Floosudha Cap, Pilssudha Capsule, Urosduha Capsule, Arthosudha Capsule, Narvosudha Capsule, Dadaji Gaupiyush Capsule, Dadaji Immumax Capsule, Dadaji Karkyumax Capsule, ASP Fimel Shakti, Joint Sudha Oil, Dentosudha Toothpaste, Tulsi Sudha Drop, V-Sudha, ASP Harde, ASP Alfalfa, Spirulina, Wheatgrass, ASP Tulsi, ASP Nony, ASP Moringa etc.

Beauty and Personal  Care  Herbal  Products

The company has wide range of high quality Beauty and Personal Care Herbal products under Bit us brand - ASP Herbal Hair Oil, Bit us Hair Conditioner, Bit us Lemon fresh Soap, Bit us Facial Kit, Bit us Sunscreen Lotion, Bit us Herbal Face Wash (Papaya & Cucumber), ASP Herbal Shampoo, ASP Saffronolivo Beauty Soap, Bit us Herbal Shampoo, Bit us Skin lightening Cream, Bit us Beauty Soap, Bit us Sanitary Pad, Bit us Gel Face Wash, Bit us Shaving Gel, ASP Aloeglycerin Bath Soap, Bit us Body Lotion, Bit us Peel Of Mask, Bit us Pimple Cream, Bit us Night Cream, ASP Luxurious Bath Soap etc.

Promotional Video - Personal care and home care 

https://youtu.be/eTL7RrVaQJ4

Home Care Products

The company is expanding its portfolio in home care segment  with  some of the key products - Home Sudha Dishwashing Liquid, Homesudha Multi-Purpose Liquid, Homesudha Laundry Liquid Detergent, Khadi Night Dress, Khadi Mask, Addshop T-Shirt, 7 in One Kitchen Dicer etc.

Promoters

Dineshbhai Pandya and Jayshreeben Pandya are the promoters of the company. They have started with vision to find and implement radical solution for very deep rooted challenges of the nation which is into developing phase.

A) Employment generation for the people specially for women.

B) To Promote Ayurveda, which is an Indian heritage - to live disease free life.

C)  To Promote organic Farming - To improve productivity as well profitability of farmers

D)  To promote Khadi so that it generates vast self employment at grass root level specially into remote village area of our Nation.

Dineshbhai Pandya is Promoter and Managing Director of the company. He is visually impaired person and a first-generation entrepreneur, trainer and motivator. He has vast experience in the field of  Agri and Ayurveda. Below given are some of his personal achievements. 

"Golden Book of World Records" (USA) Achieved for most village assemblies addressed by a differently abled person.

 "Best Businessman in History of Blind Person" awarded by Central Government 

"Best Canvassing Organic Farming"Award from  Agriculture Department.

"Krushi Mauli" Award from Swami Samarth Organization Maharashtra.

"Shram - Ratna" Award from Labor & Employment Department, Gujarat Government.

He has conducted more than 1500 Gram Sabha with Farmers across India.

"Best Motivator to Farmers in Layman Language"Award from Indira Gandhi Agriculture University, Raipur - Chhattisgarh.

His unit has been awarded as "Best Manufacturing Unit" by KVIC (Khadi & Village Industries Commission, Government of India).

Dinesh Pandya - The Miracle man   

https://youtu.be/-eTbgjqwhuY

Investment Rationale

As per KPMG and FICCI Report  - Direct sales enterprises  in India are growing exponentially. It is expected to  expand direct sales from Rs 16776 crores in 2019-20  to  Rs 64500 crores in 2025.  India has made rapid progress in Direct Selling business, having recorded an 18% CAGR over a period of last four years.

https://globalprimenews.com/2021/07/19/indian-direct-selling-industry-registers-28-y-o-ygrowth-currently-valued-at-inr-16776-crore-in-2019-20-idsa-annual-survey-report/

https://economictimes.indiatimes.com/industry/services/retail/direct-selling-industry-crossed-sales-of-rs-7500-crore-in-april-september-report/articleshow/79841129.cms?from=mdr

Direct sales in India gives extra income and encouraged micro-entrepreneurship considerably. Around 7.4 million Direct Sellers are employed in the Direct Selling industry in India. There has been a staggering growth of ~30% y-o-y and expected to rise exponentially  to 18 million in 2025.

As per a report by the World Federation of Direct Selling Associations (WFDSA), the top countries with global market share are USA (22%), China (11%) and Germany (10%). India’s ranking in the industry in terms of the size of the sector has improved to 12th rank globally, up from 15th position in 2019. The contribution of Indian direct selling industry in global sale is still less than 2% which gives it huge growth possibility in the future.

https://wfdsa.org/wp-content/uploads/2021/06/Sales-Seller-Report-2020.pdf

https://www.businesswire.com/news/home/20210526005567/en/Direct-Selling-Association-Releases-Data-Showing-Record-High-Sales-Sellers-and-Customers-in-the-U.S.-in-2020

Indian homegrown direct selling companies are stimulating ‘Make in India’ by sourcing products and  people across India to make this industry and sector atmanirbhar so that every citizen embraces self-reliance. The direct selling industry is going to be the catalyst for this transformation.

Add-Shop E-Retail Ltd is only listed  direct selling company in India. It is coming in the category of consumer non-durables, household and personal care products. The company is growing exponentially right from beginning  due to high quality products and very dynamic team. 

Add-Shop E-Retail has much bigger agriculture product portfolio then any other direct selling company in India. It gives huge growth potential due to national drive for organic farming . The company is aiming to expand its product portfolio from 125 to 500 products in next 5 years.

Add-shop is leveraging on its robust distribution network of more than 550 franchises spread across the country for its ayurvedic products and agriculture products. The company has ever expanding very dynamic marketing and distribution network. These people are  the  major asset and  growth catalyst for the company. 

The company works on cash-and-carry business model with its franchises and business associate, it help to keep check on receivable and generate high ROCE.

This industry has given tremendous empowerment to the Indian women. Today almost 2.1 million women have been successful entrepreneurs and are at the center of this industry.

The company believes that the agriculture sector in India is expected to generate better momentum in the next few years due to increased investments in agricultural infrastructure. Foreseeing the growth in the agricultural sector, the company intends to tap the growth opportunity by pushing sales through a wide range of agro products. 

Add-Shop E-Retail is growing much faster then its domestic and international direct selling peers like  Vestige and Amway. If we compare these companies then Add-Shop has much bigger product portfolio and sales turnover at same age. The below graph will give the fair idea of exponential growth possibilities in this business.

The company has recently approved private placement of the convertible warrants to the foreign investor (NEXPACT LIMITED) at the conversion price Rs 160 on  preferential basis.  It will improve the fund liquidity to further expand its operation in new areas.

 

https://www.bseindia.com/xml-data/corpfiling/AttachHis/8788537b-f574-457d-a9bf-4eefec3e99a2.pdf

Digital India’s alignment with technology is shaping the new norm in the industry. Besides using technology for marketing and distribution, company is increasingly investing in online training and development tools. These are creating transparent self-sustaining business models in entrepreneurship with better governance.

Add Shop Awards & Certificates

The company is having all required certification to meet the manufacturing and distribution standards. 

https://www.addshop.co/#/AwardsCertificates

Conclusion

Add-Shop E Retail Ltd is in the future business of 21st century. It has a proper path in career building opportunities and it emerged as a viable source of income and growth in  marketing business. It has made a steady progress and well poised for tremendous growth in the coming years. The government has taken several initiatives such as strengthening regulatory framework for direct selling industry, Vocal for Local and Aatmanirbhar Bharat have led the Indian people to consider the prospect of locally produced goods being bought and marketed through direct sale routes, involving low investment costs and high returns. 

Even though 'Ayurveda' is originated in India but American & European companies have dominated the herbal product segment in the world. These foreign companies are making billions $ but Indian companies left far behind due lack of interest and promotion. This is great initiatives taken by Add-Shop and it makes its future extremely bright.  Add-Shop stock at cmp 134 is giving excellent investment opportunity for  short term to long term ( 1 year to 5 years ). It can be bought + / - 15% from cmp with 10 - 20 % allocation.