Aveer Foods Limited (**AFL**) is a specialized Indian food processing company focused on the "Meal Accompaniments" segment. Following its strategic demerger from Chordia Food Products Limited in **2022**, the company has emerged as an independent listed entity. AFL operates under the renowned **"Suhana Pravin"** brand umbrella, leveraging a legacy of expertise in spices and processed foods to cater to evolving consumer demands for convenience and authentic regional flavors. --- ### **Core Product Portfolio and Market Dynamics** AFL operates as a single reportable business segment under **Ind AS 108**, focusing on branded, pre-packed food items. The portfolio is strategically split between traditional Indian staples and modern global flavors. * **Indian Meal Accompaniments:** * **Pickles:** The company’s largest revenue contributor. While it maintains a preferred market position, it experienced **muted growth** in **FY24**. * **Papad:** Includes both **handmade and machine-made** variants. This category achieved **double-digit growth** in **FY24**, with distribution footprint expanding significantly from **18% to 40%**. * **Chutneys & Thecha:** Includes traditional Maharashtrian **Thecha** and the newly launched **Schezwan Chutney**. This segment registered **double-digit growth** in **FY24**. * **Non-Indian & Fusion Accompaniments:** * Focuses on Chinese cuisine, including **Schezwan Chilli Garlic Chutney**, **Ketchups**, **Sauces**, and culinary pastes. The Schezwan range is specifically targeted at capturing younger demographics. **Market Penetration:** The company maintains a dominant presence in Western India, with products available in **60% of retail outlets in Maharashtra**. The distribution network comprises over **1,500 distributors** reaching approximately **3 lakh outlets** nationwide. --- ### **Manufacturing Excellence and Supply Chain Infrastructure** AFL operates a sophisticated manufacturing and quality control framework designed to meet both domestic and international food safety standards. * **Production Facilities:** * **Satara, Maharashtra:** Primary facility located at Village Sanghvi, Taluka Khandala. * **Dharwad, Karnataka:** Facility located in the Belur Industrial Area, supporting Southern Indian expansion. * **Quality and Compliance:** Facilities are certified for **ISO 22000:2018** and **FSSC 22000**. Products are manufactured to adhere to **FSSAI**, **EU**, or **USFDA** standards depending on the target market. * **The GIGO Standard:** The company employs a "Goods In Goods Out" (**GIGO**) quality assessment protocol to ensure consistency from raw material to finished product. * **Sustainable Sourcing:** AFL engages directly with **Farmer Producer Organizations (FPOs)** for key raw materials like mangoes, lemons, and tomatoes, ensuring traceability and supporting sustainable agriculture. --- ### **Strategic Growth Initiatives and Inorganic Expansion** The company is executing an aggressive strategy to transition from a regional player to a national brand through consolidation and capital investment. * **Acquisition of Kamal Industries:** Effective **April 30, 2025**, AFL acquired the business of Kamal Industries (a related party) on a **slump sale basis** for up to **₹25 Crores**. This move consolidates the pickle and spice trading business and strengthens the company’s footprint in **Southern India**. * **Distribution Targets:** Management aims to increase Maharashtra outlet coverage from **60% to 80%** while introducing regional-specific tastes to penetrate other Indian states. * **R&D and Exports:** Current research is focused on extending **shelf life** and enhancing packaging to establish a robust **Export market** presence. * **Digital Transformation:** AFL has implemented **SAP ERP**, **Sales Force Automation (SFA)**, and **Distributor Management Services (DMS)** to streamline procurement, vendor payments, and sales tracking. --- ### **Financial Performance and Capital Structure** AFL has undergone a significant financial turnaround, moving from a loss-making position to a debt-free, profitable entity. **Key Financial Turnaround Metrics:** * **Profitability:** Shifted from a **loss of ₹4.98 crore** in FY22 to a **Profit After Tax (PAT) of ₹1.02 crore** in FY23. * **Debt Elimination:** Total borrowings were reduced from **₹791.72 lakhs** in 2023 to **Nil** by March 31, 2025. * **Liquidity:** Cash and cash equivalents rose to **₹690.41 lakhs** in March 2025, up from **₹30.97 lakhs** the previous year. **Promoter Capital Infusion:** To fund expansion, the company raised approximately **₹26 Crores** through preferential warrant allotments to promoters at **₹575 per share**. * **Warrant Conversion:** **4,52,174 shares** were allotted to **Mr. Rajkumar Chordia** and **Mr. Vishal Chordia** across February and March 2026. * **New Paid-up Capital:** Post-conversion, the capital stands at **₹4,48,04,260** (comprising **44,80,426** equity shares). **Asset Depreciation Schedule (Straight-Line Method):** | Asset Category | Useful Life | | :--- | :--- | | **Machinery and Equipment** | **15 Years** | | **Furniture and Fixtures** | **10 Years** | | **Vehicles** | **8 Years** | | **Leasehold Improvements** | **7 Years** | | **Computers** | **3 Years** | --- ### **Governance and Leadership** The company is led by the founding family, with a focus on long-term stability and professional oversight. * **Executive Leadership:** **Mr. Vishal Rajkumar Chordia** and **Mr. Anand Rajkumar Chordia** have been re-appointed as Managing Directors for **5-year terms** (until 2030). Notably, both have opted to draw **no salary** at present to support company growth. * **Board Oversight:** The appointment of Independent Directors **Mr. K Radha Krishnan** and **Dr. Anil Shivram Lamba** in 2025 has strengthened the corporate governance framework. --- ### **Risk Profile and Mitigation** AFL navigates a complex landscape of agricultural volatility and regulatory transitions. * **Operational Risks:** Dependence on seasonal agri-commodities makes the company vulnerable to climate change. AFL mitigates this through strategic sourcing and related-party processing units that handle rapid seasonal surges. * **Regulatory Compliance:** * The company is resolving a **suo-moto adjudication** for minor delays under the Companies Act. * A technical delay in updating the **CIN** from Unlisted to Listed has temporarily impacted **Foreign Assets and Liabilities (FLA)** filings. * **Insider Trading:** AFL transitioned from manual tracking to designated **SDD Software** in June 2023 to comply with SEBI regulations. * **Labor Impact:** The implementation of new **Government of India Labour Codes** is estimated to have an incremental financial impact of **₹50.09 lakh**, primarily related to gratuity provisions. * **Financial Covenants:** The company remains in strict compliance with bank mandates, maintaining a **Current Ratio $\ge$ 1.30** and a **Minimum Tangible Net Worth of ₹16 Crore**.