### **Overview** Mishtann Foods Ltd., originally incorporated as *Ravi Trading Company* in 1992 by the Patel family, has evolved from a domestic B2B basmati rice trader into a diversified, branded Fast-Moving Consumer Goods (FMCG) and agro-foods enterprise with global ambitions. Headquartered in Ahmedabad, Gujarat, the company operates a state-of-the-art, fully automated manufacturing facility in Talod, Sabarkantha District, and has built a strong presence across India and international markets, including the Middle East, Europe, the UK, the USA, and Africa. The company’s core business revolves around processing and packaging basmati rice, wheat, pulses, and edible salt, with an increasing focus on organic and health-conscious products. It is led by **Hiteshkumar Gaurishankar Patel**, Promoter, Chairman & Managing Director, a recognized leader in the agro-commodity space and recipient of the *Economic Times Business Transformation Icon 2022* award. --- ### **Core Business & Product Portfolio** Mishtann Foods positions itself as an integrated agro-food processor, emphasizing quality, automation, and sustainable sourcing. #### **1. Basmati Rice – Flagship Product Line** - **Processing Capacity:** 45 metric tonnes per hour (100,000 MT per annum). - **Product Categories:** - **Raw Basmati:** Branded as *Pristino*, *Snowflake* - **Sella (Parboiled) Basmati:** *Mahabat*, *Shahryar*, *Ecstasy* - **Steam Basmati:** *Jacinth*, *Jasper* - Marketed as a premium “scented pearl,” leveraging unique aroma from specific agro-climatic conditions and aging processes. - Offers products across economic to premium segments, with ongoing expansion into high-growth categories such as **brown rice** and **aged rice**. #### **2. Other Agro-FMCG Products** - **Wheat:** Marketed under the brand *I ♥ Wheat*. - **Pulses:** Sourced via third-party manufacturers; marketed and distributed under own brands. - **Edible Salt:** - *Mishtann Rock Salt* (organic, launched 2022) - *Pink Rock Salt*, crystal salt, and free-flow iodized salt in development. - Salt is strategically used to penetrate every Indian household due to universal consumption and cultural significance. --- ### **Manufacturing & Operational Strengths** - **Fully Automated “Human Touch-Free” Facility:** - Located in **Sabarkantha, Gujarat**, near major port infrastructure for efficient exports. - Equipped with advanced machinery from **Bühler Holding AG** (sorters, graders, polishers, micro-cameras, silos). - Integrated milling and packaging setup enables co-location, faster turnaround, lower costs, and high hygiene standards. - ISO 22000:2018 certified for food safety management. - **Storage Capacity:** - 25,000 MT raw basmati rice - 15,000 MT raw wheat - 25,000 MT finished rice - 15,000 MT finished wheat - **Value Chain Integration:** Operates across procurement, storage, processing, packaging, and distribution. --- ### **Supply Chain & Sourcing Strategy** - Sources raw basmati rice and wheat directly from farmers, mandis (agricultural markets), and agents via a **‘cash and carry’ model**. - 80–85% of procurement financed at **concessional bank rates**, ensuring liquidity and price competitiveness. - Strong long-standing relationships allow procurement of high-quality inputs at favorable prices during peak seasons. - MOUs signed with key suppliers: - **Cropberry Foods Pvt Ltd** – for raw basmati rice - **Artlay Agritech Pvt Ltd** – for salt - **Risk Factors:** - Entirely dependent on raw basmati rice and wheat; no alternative sources or substitutes currently available. - Environmental threats (soil erosion, pest susceptibility, climate events like El Niño) may affect yields and increase input costs. --- ### **Distribution & Market Reach** - **Domestic Presence:** Operations in **10 Indian states** (Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu, West Bengal, Assam, Maharashtra, Telangana, Goa, Rajasthan), with expansion targeted into North Eastern states and Hindi-speaking regions. - **Distribution Network:** - Over **15 super stockists** - Reaches **100,000+ retailers** and major retail chains - Strong footprint in **HORECA segment** (Hotels, Restaurants, Cafés) - **Marketing & Branding:** - Out-of-home (OOH) advertising, social media (Facebook, Twitter, LinkedIn) - Participation in global trade shows like **GulFood Dubai** - **Exports:** Initially through merchant exporters; now transitioning toward direct exports to enhance margins. --- ### **Financial Highlights (as of Jun 2024 Review Period)** - **Total Sales:** ₹1,288.08 crore - **EBITDA:** ₹359.12 crore - **Net Profit:** ₹346.02 crore - **Key Revenue Contributors (Consolidated Subsidiaries):** - **Mishtann Shoppee India Pvt Ltd / Mishtann Agro Pvt Ltd** – ₹1,326.59 million (41.8% of total consolidated revenue) - **Arihant Corporation** – ₹175.71 million - **Anand Corporation** – ₹112.74 million - **Patel Brothers** – ₹101.18 million - **Revenue by Product:** - Thai Jasmine Rice: 11.22% - Pulses: 4.49%–2.60% - Wheat: 0.51% --- ### **Strategic Expansion & Diversification** #### **1. International Growth** - **UAE Subsidiary:** *Grow and Grub Nutrients FZ-LLC* (established April 2023) - Focus: Import and market **Thai rice** and **jasmine rice** from Thailand - Entered Middle East market with strong initial performance (e.g., ₹3,299.68 lakhs in 3 months ending Jun 2023) - Aims to target Africa and Middle East growing demand - **Singapore Subsidiary:** *Grow & More Nutrifoods Pte. Ltd.* (non-operational as of latest update) - Planned replication of UAE success; future U.S. market entry strategy underway #### **2. New Product Launches** - Entry into **Thai Jasmine rice**, **brown rice**, **aged rice**, and **crystal salt** - Organic line anchored by *Mishtann Rock Salt* - Plans to introduce ready-to-eat foods, besan, multi-grain flours, and agri-tech services --- ### **Major Capital Projects** #### **Grain-Based Ethanol Plant – Gujarat** - **Capacity:** 1,000 Kiloliters per Day (KLPD) - **Location:** Kabodari, Sabarkantha District, Gujarat (adjacent to current facility) - **Projected Investment:** ₹22,500 crores (₹2,25,000 lakhs) - **MOU Signed:** December 27, 2021, during **Vibrant Gujarat Summit 2022** - **Expected Commercial Operations:** Mid-2026 - **Strategic Objectives:** - Support India’s green energy and ethanol blending program - Diversify revenue streams (projected annual revenue of ~₹3,500 crores) - Use surplus grains and agro-waste; produce protein-rich animal feed as by-product - **Risks:** Construction delays, regulatory approvals, technical challenges --- ### **Competitive Positioning** - **Market Position:** A leading Indian FMCG player in basmati rice with competitive advantages in automation, quality, and logistics. - **Competitive Landscape:** - Faces intense competition from large organized players and expanding rice/wheat producers - Competes on **price, quality, delivery reliability, and brand trust** - **Differentiation:** - Integrated operations and automated production - Premium product positioning - Diversified portfolio and expanding organic/health-focused offerings --- ### **Governance & Legal Standing** - **Trademarks:** 4 registered under Trade Marks Act, 1999 (Classes 29, 30, 32, 35) - **Copyright:** 1 registered (A-118648/2017) under Copyright Act, 1957 - **Management:** Professional team overseeing finance, procurement, manufacturing, logistics, sales, marketing, HR, and IT --- ### **Risks & Challenges** 1. **Over-Reliance on Key Customers:** In FY 2022, **99.35% of revenue** came from two entities—Mishtann Shoppee India Pvt Ltd and Button Industries Pvt Ltd. 2. **Third-Party Manufacturing Dependence:** No long-term contracts for pulses and salt; sole reliance on one third-party manufacturer poses supply chain risk. 3. **Subsidiary Conflict of Interest:** No non-compete agreement with subsidiary *Grow and Grub Nutrients FZ-LLC*, creating potential for overlapping operations. 4. **Environmental & Regulatory Risks:** Soil degradation, pest outbreaks, or government restrictions on rice/wheat usage could disrupt raw material supply. 5. **Project Execution Risks:** Ethanol plant faces delays due to approvals and technical hurdles.