Prataap Snacks Limited has announced the closure of its Bengaluru manufacturing facility effective January 1, 2026, as part of a strategic operational consolidation. The company informed stock exchanges about this development under Regulation 30 of the SEBI Listing Regulations, emphasizing that the move aims to achieve operational efficiency and synergy.

Manufacturing Operations Transition

The company has ceased manufacturing activities at its Bengaluru plant located at No. 260, Bommasandra–Jigani Link Road, Jigani Hobli, Anekal Taluk, Bengaluru – 560105, Karnataka. Operations from this facility have been shifted to another manufacturing arrangement within the same region, aligning with the company's operational requirements and strategic manufacturing plan.

Financial Impact Assessment

The financial contribution of the closed Bengaluru unit has been disclosed as minimal to the company's overall operations. According to the regulatory filing, the unit's revenue and income contribution was not material to Prataap Snacks' overall business operations. The net worth contribution from the closed facility represented approximately 1.00% of the company's total net worth.

Strategic Consolidation Initiative

The closure represents part of Prataap Snacks' broader strategic consolidation of manufacturing operations. The company emphasized that this transition aligns with its operational requirements and long-term manufacturing strategy. By consolidating operations within the same geographical region, the company aims to optimize manufacturing resource utilization while maintaining operational continuity.

The company has assured stakeholders that the transition will not adversely impact overall production capacity, supply commitments, or financial performance. This strategic move reflects the company's focus on operational efficiency and resource optimization in its manufacturing network.

Regulatory Compliance

Prataap Snacks filed the disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary Sanjay Chourey signed the regulatory filing, ensuring compliance with mandatory disclosure requirements for material events affecting listed companies. The disclosure included detailed information as required under Schedule III of the listing regulations.

Prataap Snacks , a leading Indian snack food company, has outlined an ambitious growth strategy aimed at achieving 15% revenue growth and improving EBITDA margins by 2-3%. The company plans to leverage automation, cost optimization, and strategic channel expansion to drive this growth.

Financial Performance

For the quarter ended September 30, Prataap Snacks reported:

Despite a slight dip in revenue, the company managed to improve its EBITDA and EBITDA margin significantly year-over-year.

Growth Strategies

Automation and Cost Optimization

Prataap Snacks plans to set up a new, state-of-the-art facility in Indore with a higher degree of automation. This move is expected to streamline production, reduce overheads, and optimize production costs, potentially leading to structural margin enhancements.

Channel Expansion

The company is focusing on diversifying its distribution channels:

1. Quick Commerce: Showing strong traction among new platforms.
2. Modern Trade: Experiencing positive growth.
3. Exports: Gradually building presence in international markets.

Prataap Snacks aims to grow these emerging channels from less than 1% of revenue to over 5% within three years.

Product Portfolio Strategy

The company has categorized its products into:

• Anchor Products: Including chips, chulbule, and rings.
• Growth Products: Focusing on pellets and namkeen.
• Next Products: Exploring healthier options like puffs, makhanas, and popcorn.

This segmentation allows for targeted investment and scalable growth across different product categories.

Market Segmentation

Prataap Snacks has adopted a strategic market segmentation approach:

• Command Regions: High-margin areas with strong existing presence.
• Expand Regions: Large markets with initial traction, focusing on distribution expansion.
• Maintain Regions: Areas where the company aims to maintain market share while optimizing costs.

Outlook

Amit Kumat, Managing Director and CEO of Prataap Snacks, expressed optimism about the company's future performance. He stated, "We are confident that this improved external environment, combined with the multiple internal initiatives we are implementing, will translate into accelerated topline growth and enhanced profitability."

The company expects these outcomes to become visible in the second half of the fiscal year, driven by near-term impact initiatives, and to further strengthen over time as medium to long-term measures take effect.

As Prataap Snacks navigates through a challenging demand environment, its focus on operational efficiency, channel diversification, and product innovation positions it well for potential growth in the coming quarters.