Ambar Protein Industries Limited is an Ahmedabad-based manufacturer and trader specializing in the edible oil sector. Operating from a primary manufacturing facility in **Changodar, Gujarat**, the company leverages the state’s position as a leading processor of cotton to ensure a steady supply of raw materials. The company is currently undergoing a strategic transition, moving from standard oil refining toward a high-margin, health-conscious product portfolio while strengthening its balance sheet to achieve a **debt-free** status. --- ### **Core Manufacturing & Refining Capabilities** The company’s business model integrates the large-scale refining of crude oils with the strategic trading and packaging of diverse oil variants. It operates in a single business segment: **Manufacturing and selling of Edible Oil** (including Edible/Non-Edible Oils, Oil Cakes, and 'D' Oil Cakes). The refinery utilizes a sophisticated three-stage process to convert crude cottonseed oil into refined edible oil: 1. **Alkyl Refining:** Removal of impurities such as gums and fatty acids using phosphoric acid and caustic lye. 2. **Bleaching & Filtration:** Removal of coloring impurities using activated clay and carbon. 3. **Deodorization:** Distillation to remove odoriferous materials, followed by final filtration to ensure a neutral, high-quality end product. **Operational Volume (FY 2022-23):** * **Cottonseed Oil Refined:** **21,896.32 MT** * **Purchased & Packed Oil:** **1,807.84 MT** --- ### **Product Portfolio & Premiumization Strategy** Ambar Protein is pivoting its portfolio toward **high-quality, health-conscious** segments to address rising consumer demand for oils that mitigate risks of coronary heart disease and diabetes. | Segment | Product Category | Key Attributes | Status | | :--- | :--- | :--- | :--- | | **In-house Refined** | Cottonseed Oil | Core high-volume product | Active | | **Traded & Packed** | Groundnut, Sunflower, Maize, Soybean, Mustard | Diverse culinary applications | Active | | **Premium Oils** | **Cold Pressed Series** | Preserved nutrients, natural taste | **Trials started Feb 2025** | | **Health Oils** | Low Cholesterol/Balanced | Focus on **MUFA** and antioxidants | Core Market Focus | | **Specialty Fats** | Extra Virgin Coconut Oil | High antioxidant content | **New Launch** | **The Cold Pressed Initiative:** In **September 2024**, the Board approved the installation of specialized machinery for a new **Cold Pressed** line. Trials commenced on **February 10, 2025**. This line includes: * **Cold Pressed Groundnut Oil** * **Cold Pressed Extra Virgin Coconut Oil** * **Cold Pressed Sesame Oil** * **Cold Pressed Mustard Oil** --- ### **Financial Performance & Capital Structure** The company has demonstrated a significant growth trajectory, characterized by a **25%** increase in revenue and a **216%** surge in **Profit Before Tax (PBT)** for the most recent fiscal year. **Key Financial Metrics:** | Particulars (₹ in Crore) | FY 2024-25 | FY 2023-24 | Growth (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **421.62** | **337.23** | **25.02%** | | **Profit Before Tax (PBT)** | **13.03** | **4.12** | **216.26%** | **Debt Management & Leverage:** The company is actively reducing its reliance on external debt. The **Gearing Ratio** has improved from **0.63** in 2022 to **0.42** in 2025. * **Total Equity (March 2025):** **₹34.72 Crore** * **Total Borrowings (March 2025):** **₹25.79 Crore** * **Term Loan:** A facility of **₹6.00 Crore** at an interest rate of **8.90%**, repayable in **78 monthly instalments**. * **Security:** Loans are secured by a first charge on **Stock and Book Debts** and an equitable mortgage of the factory land and machinery at **Sanand and Changodar**. --- ### **Supply Chain & Strategic Partnerships** Ambar Protein maintains a critical long-term supply arrangement with **Ankur Oil Industries** (a Group Partnership Firm) for the sale of refined edible oils in both loose and packaged forms. * **Current Agreement Term:** **April 1, 2024, to March 31, 2027**. * **Strategic Advantage:** This partnership ensures stable distribution channels and consistent off-take of refined products. --- ### **Market Outlook & Government Alignment** The company’s expansion is strategically aligned with the Government of India’s **National Mission on Edible Oils (NMEO)**, which targets **72%** domestic self-reliance by **2030-31** through a **₹10,103 crore** allocation. * **Capacity Expansion:** The Board approved a new **Sunflower Oil Refinery** with a capacity of **200 TPD (Tons Per Day)** in August 2023 to capture the growing demand for low-pungency cooking oils. * **Import Substitution:** The company identifies a significant opportunity in **Olive Oil** and **Canola Oil**, expecting exponential demand growth as domestically produced variants enter the Indian market. * **Raw Material Trends:** Cotton prices remain above the **Government Minimum Support Price (MSP)**, encouraging farmers to maintain high acreage, which secures the company's primary raw material source (cottonseed). --- ### **Risk Management & Regulatory Compliance** Ambar Protein operates under a robust **Risk Management Policy** overseen by a dedicated Treasury Department to navigate the volatile edible oil landscape. **Primary Risk Factors:** * **Commodity Volatility:** Prices are influenced by global factors such as the **Russia-Ukraine war**, **Middle East conflicts**, and climate events like **El Niño**. The company mitigates this through a mix of **spot buying** and **forward contracts**. * **Agro-Climatic Dependency:** Domestic yields are vulnerable to weather shocks and groundwater depletion. * **Regulatory Compliance:** The company adheres to the **Food Safety Standard Act (2006)** and **Legal Metrology Act (2009)**. * **Governance Note:** In **September 2024**, the company paid a fine of **₹21,240** for a late corporate governance filing. Additionally, an audit noted that the company needs to ensure **100%** of promoter shareholding is in dematerialized form per **SEBI LODR** regulations. **Financial Stability:** * The company reports **zero contingent liabilities**. * It has not been declared a **wilful defaulter** by any financial institution. * As of **March 31, 2025**, there are **no outstanding GDRs, ADRs, or Warrants**, ensuring no immediate risk of equity dilution.