Lykis Limited

 

CMP = 42

Lykis Limited is a well-established listed company engaged  in the business of manufacturing and marketing of fast moving consumer goods (FMCG). The company has gradually diversified its business since last one decade and  launched multiple products under various brands.

Lykis is the fastest growing Home & Personal care company in India. The company has a presence in the Beauty & Grooming segment, Home care segment, Food & Beverages segment, Health & Wellbeing segment. These include an enviable portfolio of brand names such as Lykis, Britex, Rox, Bonita, Lykon, Bentol, Special, Vogly, Tazaagi, Cheers, Alivio etc.

Lykis Show-reel (2 year old video presentation)

https://youtu.be/vGmbBon4Ew4

The company provides personal care products comprising personal wash, hair care, skin care, and baby care products, as well as deodorants, perfumes, talcums. The home care products consisting of dish wash bars and liquid, floor cleaners, glass cleaners, toilet cleaners, and air fresheners. Over the counter (OTC) products, including products for headache, body pain,  foot care and sexual wellness products. In food & beverages segment consist of biscuits and cookies, confectionary, commodities etc.

https://lykis.com/brand/lykis

https://lykis.com/category/fmcg/biscuits-cookies?sort_tag=&category_id=3

The company has portfolio of 1000+ Sku’s products. Rox deo, Perfume, Talc, Shower gel , Shaving cream, Lykis soap, Deo, Perfume, Shampoo, Hair oil, Coconut oil, Bonita beauty soap , Cream & Lotion etc. Britex dish wash bar & liquid, Britex Airfreshner, Britex floor cleaner, Britex toilet cleaner, Britex glass cleaner to name a few.

Research & Development

R&D is the backbone of Lykis Limited It is supervised by an eminent team of qualified professionals, which work towards researching new trends and widening the range of products. Lykis products are at par with the international standards of quality, usage and effectiveness. The company has attained proficiency in developing products that meet the current trends and demands of consumers across the world.

Manufacturing & Private Labelling 

The company has developed a state of the art manufacturing facility deploying latest machines for manufacture of the wide range of cosmetic products. The advanced equipment keeps us ahead of the market curve and helps to reach the consumers spread across the globe. The company is most preferred partner in Private Labelling with 100+ brands being developed.

Quality Control

The products of Lykis Limited are manufactured in a safe and hygienic environment. Lykis products are distinct in quality and match the international standards. Company stringently follow ISI standards and GMP guidelines at each production stage to ensure purity and perfection of the product. 

Export

Lykis Limited bridge the gap of rising demand for FMCG products through the means of manufacturing, private labelling and exporting the same across the globe. The company has  marketing network in 36 countries including African countries, CIS countries, USA, UK, Haiti & Middle East countries. Lykis is dealing in qualitative products by ensuring a strict check on quality control where every product undergoes close scrutiny before dispatch. In the financial year 2012-13 Lykis has been awarded for "Best Debutant Exporter Of The Year"

Investment Rationale

Lykis Limited was formerly known as Greenline Tea & Exports Limited. The company was engaged in the business of tea plantation, manufacturing of quality tea for sale & export of tea both in domestic & overseas market. 

In Year 2011-12 renowned investor Mr. Vijay  Kedia has acquired 13.81% stake and become promoter of the company. He was appointed as Non-executive Chairman of the Company. 

Further the name of the company was changed from Greenline Tea & Exports Limited to “Lykis Limited” and a fresh certificate of incorporation consequent to change in name was obtained on May, 2012. The management has decided to diversify and expand the business of the company through FMCG business and include Food, Pharma and Cosmetics along with its main line tea business.

In last 10 years, even though company had expanded its product portfolio  from Tea to  FMCG  and then personal care, health care, food & beverage and cosmetics but company unable to make any significant profit because of loss making tea division.

Mr. Vijay  Kedia was also unable to give much attention on company activities due to busy schedule in his main business of equity investment. Last year Mr. Vijay  Kedia has decided to transfer the management control to Mr. Dhrolia. Mr. Dhrolia was also company shareholder (in public category) and  Non-Executive, Non-Independent Director since 2011. He has more than 16 years of rich experience and expertise in the African markets. His contribution towards export business is of immense importance for the company to grow in the FMCG industry. 

Mr. N. Dhrolia has taken several major decisions after getting the management control of this company. It has resulted in huge  turnaround for the company in FY 2022. There was multifold jump in top and bottom line of the company and company was able to post first time profit after several years.

Kedia Securities and  Mr. Vijay  Kedia have sold 25% shareholding to Mr. N. Dhrolia. In open offer Mr. N. Dhrolia has acquired further stake from public shareholder and raised his stake up to 68.98 %. Mr. Vijay  Kedia still hold 9.33% stake in the company under public shareholder category.

Reclassification of Promoters from “Promoter and Promoter group Category” to the “Public” Category 

https://www.bseindia.com/xml-data/corpfiling/AttachHis/cc0da9d7-a8f0-4f56-b52d-79330e6a6281.pdf

Lykis has disposed off its loss making tea business along with all rights, title and interest relating there to as a going concern on slump sale basis w.e.f. June 25, 2021.

https://www.bseindia.com/xml-data/corpfiling/AttachHis/346ec2bc-fd6d-4164-a1a1-89b30cb58e06.pdf

Voluntary delisting of Company’s shares from Calcutta Stock Exchange 

https://www.bseindia.com/xml-data/corpfiling/AttachHis/682ce801-30eb-47f1-a22b-1e86c4a6f152.pdf  

Lykis has shifted registered office of the company from state of West Bengal to State of Maharashtra. 

https://www.bseindia.com/stock-share-price/lykis-limited/lykisltd/530689/voting-results/

Lykis is an existing brand, experienced in operations and management of FMCG products. Operations are handled by a strong experienced management and professional team and also there is a strong technical and development team for support.

Company’s business will continue to grow strongly in the next several years with a strong management team, wide distribution network, innovation and technology capabilities, cost efficiency programs.

There is a significant shift in consumer preferences and behaviours, growth of online business channels and higher demand for FMCG and value products are some of the changes brought about by the pandemic. These trends are likely to strengthen and present new opportunities for FMCG business in near future. Importance to Personal Hygiene with increase in demand for personal cleanliness products such as hand and home sanitisers, soaps are expected to grow exponentially. There is increased consumer focus particularly on preventive healthcare products.

360° Solutions for FMCG Product Range 

Lykis offers simplified solutions for FMCG range of products by providing manufacturing support and end to end solution for private labelling. Extensive global network of the company gives the edge of being the preferred partners for many international organisations.

Promoters

Mr. Dhrolia is highly motivated and result-oriented Businessman driven by the desire to make Lykis a brand to reckon with not only in the Domestic Market but also Internationally. Mr. Dhrolia has a vast experience of African market for past 16 years. He has a knack at managing costs and devising strategies. He excels at building and retaining high-performance teams by hiring, developing, and motivating skilled professionals. He aspires to see Lykis as a brand leader of the cosmetic and personal care ranges in India and explore new horizons. He has ensured that his businesses thrive through tough competition and succeed through persistence and hard work. 

In fact  Lykis is the vision of Mr. Vijay  Kedia and he has handed over the baton to Mr. Mr Dhrolia to take this company to next level and continue to scale new milestones of excellence in the years to come.

Conclusion

Lykis is a vibrant company with bold ambition &  becoming more agile & future ready. The company is constantly innovating to delight its consumers with more exciting, superior quality products at affordable price. 

The company insists on honesty, integrity & fairness in all aspects of its business & expects the same in its relationship. The transparent business practices, fair dealings, wide distribution network, timely delivery, client centric approach & cost effective price structure have earned  vast appreciation of customer base spread all across the globe.

Lykis Ltd stock at cmp Rs 42 is excellent investment opportunity for both short term and long term ( 1 year to 5 years ). It can be bought + / - 15% from cmp with 10 %  allocation.