CKK Retail Mart
- CKK Retail Mart is coming out with an initial public offering (IPO) of 54,00,000 shares in a price band of Rs 155-163 per equity share.
- The issue will open on January 30, 2026 and will close on February 3, 2026.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 15.50 times of its face value on the lower side and 16.30 times on the higher side.
- Book running lead manager to the issue is Oneview Corporate Advisors.
- Compliance Officer for the issue is Shivam Singla.
Profile of the company
The company is engaged in the distribution of packaged products catering to both retail and wholesale businesses. The company commenced its business operations in the Financial Year 2020-21 and since year 2023, the company has focused on the distribution and trading of packaged agro-commodities such as sugar, pulses and ghee across regions including Maharashtra, Bihar, West Bengal, and the north-eastern states.
In April 2025, the company expanded the product portfolio with the launch of ‘FruitzzzUp’, a fruit pulp-based juice brand, reinforcing its commitment to offering a diverse and evolving product range that caters to changing consumer preferences. Its business primarily involves the distribution of packaged agro-commodities such as sugar, rice, and pulses along with packaged products such as milk powder and soft drinks (carbonated as well as fruit based). In addition to its core business operation, it also occasionally undertakes consultancy assignments.
It has strategically expanded its distribution network through a three-tier distribution model and a direct-to-distributor model. Under the three-tier distribution model, the company supplies products to super stockists, who in turn distribute them to distributors. These distributors then supply the products to retailers and wholesalers, ensuring widespread availability across markets. A super-stockist purchases products from the company on an upfront payment basis, thereby providing immediate cash inflow and reducing its exposure to credit risk. Once goods are procured, the super-stockist is responsible for managing the distribution to distributors, including the collection of payments from them. Super stockists purchase goods at a significant discount which results in a reduced realisation per unit sold and has a direct impact on its gross margins and bottom line. However, this model enables it to reduce its working capital cycle and efficiently handle larger volumes with a lower working capital requirement, as the inventory and receivables risk is partially transferred to the super-stockists. In the direct-to-distributor model, the company supplies products directly to distributors, bypassing super stockists. These distributors then deliver the products to retailers and wholesalers, enabling efficient and timely availability to the end consumer.
Proceed is being used for:
- Funding the acquisition of Leasehold Plots along with warehouse constructed upon the Leasehold Plots
- Undertaking repair and refurbishment of the warehouses situated on the Leasehold Plots
- Funding of working capital requirements
- General corporate purposes
Industry Overview
India’s sugar industry is poised for steady growth and structural transformation in the coming decade, driven by rising domestic consumption, proactive government policies, technological adoption, and export opportunities. With India being the world’s second-largest sugar producer, the sector plays a crucial role in the agricultural economy and rural employment. Increasing focus on sustainable and organic sugar production, alongside value-added products like specialty sugars and beverages, is expected to expand market potential both domestically and internationally
The Indian Sugar Industry, based on production data, is estimated at 31,964 thousand tonnes in FY 2024 and is projected to reach 34,678 thousand tonnes by FY 2033 registering a modest CAGR of 0.82% over the period. The production trend has remained relatively stable in recent years, fluctuating between 31,000-36,000 thousand tonnes, highlighting the cyclical nature of sugarcane cultivation and the stabilizing impact of policy interventions. On the demand side, population growth, rising consumption in processed foods and beverages, and continued household use underpin steady domestic demand for sugar.
The Indian non-alcoholic beverage industry, valued at $23.51 billion in 2024, is projected to nearly double to $46.06 billion by 2033, reflecting a healthy CAGR of 7.76%. This growth highlights the rising consumer shift towards diverse, branded, and healthier beverage options, driven by increasing disposable incomes, rapid urbanization, and wider distribution through both traditional and modern trade channels. The steady CAGR also signals strong underlying demand resilience, positioning the sector as a key contributor to India’s fast-moving consumer goods (FMCG) market expansion over the coming decade.
Pros and strengths
Well established relationships with suppliers and wide channel of sales and distribution network: It has developed relationships with its suppliers which gives it a competitive advantage by ensuring efficient and timely sourcing. Over the years, it has built a distribution network across India. As of September 30, 2025, it had 23 distributors and 15 super stockists. Its distribution network has enabled the company to effectively manage its marketing strategies, penetrate new markets, and increase its turnover consistently over time.
Leveraging market skills and relationships: At the core of its growth strategy is its ability to leverage deep market knowledge and strong industry relationships. This is an ongoing process in its organization and the skills that it imparts in its people, gives importance to customers. It aims to enhance the growth by leveraging its relationships and further enhancing customer satisfaction. Its approach focuses on building and nurturing long-term relationships with both new and existing clients. Customer satisfaction remains a top priority, and it is committed to strengthening its market position by exceeding expectations and being responsive to its clients’ evolving needs.
Diversified products portfolio: The company offers a variety of products, including various types of sugar, carbonated beverages, enabling the company to serve a diverse customer base and address a wide range of market needs. This product diversification not only helps the company cater to various consumer preferences but also strengthens its competitive edge by attracting a broader customer in the market. Furthermore, its procurement team constantly monitors market trends and conducts thorough research on demand patterns. As a result, it is able to swiftly adapt and shift from one product to another, ensuring it effectively meets customer requirements and demands.
Risks and concerns
Dependence on sugar industry for revenue: The majority of its revenue is generated from distribution and trading of agricultural commodities, with a primary focus on sugar. As on September 30, 2025 and for the Financial Year ended on March 31, 2025, March 31, 2024, and March 31, 2023, it derived Rs 15,933.35 lakh, Rs 30,052.49 lakh, Rs 22,647.77 lakh, and Rs 10,019.62 lakh from trading of sugar, constituting 99.94%, 99.78%, 97.19%, and 97.02% respectively of its revenue from operations. The aforementioned concentration of its revenue from sugar, renders it particularly vulnerable to a range of risks and challenges that are distinctive to the sugar industry.
Business heavily dependent on top ten customers: The company has developed long- standing relationships with certain key customers i.e. super stockists and distributors. Accordingly, it is dependent on its arrangements with such customers, and its business depends on the continuity of its relationship with them. The majority of its revenue is derived from its top 10 customers. For the period ended September 30, 2025, and the financial years ended March 31, 2025, 2024, and 2023, revenue from operations generated from its top ten customers accounted for 90.62%, 89.58%, 88.92%, and 99.60% of its total revenue from operations, respectively. Since it largely depends on certain key customers for a significant portion of its revenue, the loss of any of its key customers or a significant reduction in demand from such customers could have a material adverse effect on its business, financial conditions, results of operations and cash flows.
Dependency on limited suppliers: The company sources its agro-commodities such as sugar, rice, pulses and milk powder from third-party suppliers located across India under its own brand name. It does not manufacture these products in-house. Its reliance on external suppliers is significant and concentrated. Purchases from its top five suppliers for the period ended September 30, 2025 and for the Financial Years ended March 31, 2025, March 31, 2024, and March 31, 2023 constituted 80.18%, 65.64%, 88.54%, and 97.03%, respectively, of its total purchases. Any failure of its suppliers to deliver these agro-commodities in the necessary quantities or to adhere to delivery schedules, credit terms or specified quality standards and technical specifications may adversely affect its business and its ability to deliver orders on time at the desired level of quality.
Outlook
CKK Retail Mart is engaged in the retail and wholesale distribution sector, focusing on the distribution and trading of packaged agro-commodities and beverages, including refined Indian sugar and carbonated drinks. It has strategically expanded its distribution network through a three-tier distribution model and a direct-to-distributor model. On the concern side, it operates in a highly competitive environment, particularly in the sugar and carbonated and fruit-based beverages segments. In the sugar industry, it faces competition from numerous small to medium-sized producers. Although the sector has witnessed some consolidation, it remains highly fragmented. Additionally, its ability to compete effectively is influenced by several factors such as the quality and consistency of its products, rejection ratios, pricing, brand perception, customer service, and logistical convenience.
The company is coming out with a maiden IPO of 54,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 155-163 per equity share. The aggregate size of the offer is around Rs 83.70 crore to Rs 88.02 crore based on lower and upper price band respectively. On performance front, the Revenue from operations increased from Rs 23,302.48 lakh in FY 2023-24 to Rs 30,118.67 lakh in FY 2024-25, registering a growth of 29.25%, primarily on account of increase in sale of sugar to 76,459 MT in FY 2024-25 from 58,297 MT in FY 2023–24. The company’s Restated Profit After Tax increased to Rs 1,636.10 lakh in the financial year ending March 31, 2025 from Rs 1,267.31 lakh in the financial year ending March 31, 2024, registering a growth of 29.10%.
Going forward, the company has built a wide network of super stockists and distributors, who actively sell its products. As part of its ongoing business strategy, it is evaluating ways to optimise its distribution structure by reducing its dependence on the super stockist model and expanding distributor network. A shift towards a more direct distribution approach, will allow the company to improve operational profitability through better price realisation and greater control over the supply chain. Its strategy includes diversifying and increasing its presence in states such as Delhi, Telangana, Karnataka, Chhattisgarh, and Gujarat in the coming years. Additionally, it plans to sell its products through various online retail platforms to further broaden its reach. For operationalising the same, the company has appointed 43 distributors for sale of beverages and agro commodities. Further, the company has implemented a monthly performance review system to monitor distributor sales and ensure efficient supply-chain coverage.
