### **Corporate Overview: A Pioneer in Dehydrated Food Technology** Established in **1972**, Oceanic Foods Limited is a premier Indian manufacturer and exporter specializing in the industrial production of **dehydrated vegetables and herbs**. Operating as a single-segment entity, the company has built a reputation as a critical supply chain partner for leading **Multinational Corporations (MNCs)** in the global food sector. The company is currently undergoing a strategic transformation, transitioning from a niche dehydration specialist into a diversified food ingredients and commodities player. This evolution is supported by a robust promoter holding of **74.07%** (**8,332,600 shares**) as of **March 31, 2025**, signaling strong management confidence in the long-term trajectory. --- ### **Manufacturing Infrastructure & Quality Framework** Oceanic Foods operates two specialized units in Gujarat, strategically separated to optimize the dehydration lifecycle: | Unit | Location | Size | Core Operations | |:---|:---|:---|:---| | **Unit I** | Lalpur, Jamnagar | **5 Acres** | Automated primary processing: peeling, washing, slicing, and **steam drying** under a controlled **ozone environment**. | | **Unit II** | Jamnagar | **0.5 Acres** | Secondary processing: oven-drying, sorting, mincing, grinding, **metal detection**, pulverizing, and toasting. | **Quality Assurance & Global Compliance:** To maintain its competitive edge in international markets, the company adheres to rigorous global safety standards, holding certifications including: * **fssai**, **BRCS** (Food Safety Certificated), **Star-K Kosher**, **HALAL**, and **FDA**. * Operational frameworks compliant with **ISO 9000**, **ISO 22000**, **HACCP**, **GMP**, and **GHP**. --- ### **Strategic Diversification & Vertical Integration** In **April 2025**, the company amended its **Memorandum of Association (MOA)** to significantly broaden its commercial scope. This "New Business Model" focuses on high-volume commodities and integrated logistics: * **Salt Vertical:** Trading and exporting all grades of salt (**edible, industrial, and rock salt**), designed to complement the existing spices business. * **Energy Trading:** Entry into the **Coal Industry**, involving the distribution of **bituminous, anthracite, and coking coal** to leverage existing merchant capabilities. * **Oceanic Food Ingredients Ltd:** A **wholly-owned subsidiary** incorporated in **September 2025** to streamline the specialized food ingredients portfolio. * **Expanded Product Scope:** Authorization to manufacture and trade in **Pulses, Spices, Fruits, Agricultural Produces, Herbs, and Edible Oil**. --- ### **Infrastructure Expansion & Cold Chain Logistics** To mitigate raw material spoilage and ensure year-round supply consistency, the company is executing a major infrastructure play: * **Cold Storage Acquisition:** A slump sale agreement with **Julyys Foods** for a facility in **Soyal** (admeasuring **1,891.22 Sq. Mtr**). * **Capacity:** **2,500 to 5,000 tons** (optimized for Onion Flakes, Granules, and Powder). * **Valuation:** **INR 12 Crores**, with an initial **INR 3 Crore** advance already approved. * **Target Completion:** Full integration targeted for **FY 2031-32**. * **Logistics Autonomy:** Purchase of a **Commercial Truck** in **March 2024** to reduce reliance on third-party internal distribution. --- ### **Financial Performance & Capital Discipline** While the company has demonstrated revenue resilience, it is currently navigating a high-cost environment. **Key Financial Metrics:** | Metric (Rs. in Crore) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Net Revenue (incl. Other Income)** | **109.73** | **89.05** | **124.07** | | **Net Profit After Tax (PAT)** | **2.47** | **3.01** | **2.69** | | **Paid-up Equity Capital** | **11.25** | **11.25** | **11.25** | **Liquidity and Debt Profile:** * **Foreign Exchange:** Strong export focus with **FY 2022-23 earnings** of **Rs. 49.22 Crores** against an outgo of only **Rs. 58.46 Lakhs**. * **Working Capital:** Secured by a **first charge** on all current and fixed assets. Facilities include **Cash Credit (Rs. 13 Crore limit)** and **Packing Credit**. * **Interest Rates:** Borrowings have transitioned to a **3-month T-bill plus 3.01%** (approx. **9.95% p.a.**), reflecting a tighter interest rate environment compared to the previous **7.5% p.a.** * **Dividend Policy:** The Board opted to **forgo dividends** for FY 2023-24 to conserve capital for the Soyal acquisition and diversification projects. --- ### **Governance, Leadership & Material Transactions** The company recently emerged from a period of management transition and regulatory settlements, resulting in a more consolidated leadership structure. * **Leadership:** **Mr. Ajesh Vinodrai Patel** serves as **Chairman & Managing Director** (tenure until **Dec 2026**), with **Forum Ajesh Patel** as **CEO**. Remuneration for both is capped at **Rs. 10 Lakhs per month**. * **Related Party Framework (FY 2023-24 to FY 2028-29):** * **VDP Foods & A&T Infra:** Trade limits of **INR 50 Crores** each for dehydrated food items. * **Julyys Foods:** **INR 12 Crore** slump sale for the cold storage unit. * **Regulatory Resolution:** Settled a long-standing promoter dispute (withdrawn **May 2024**) and paid **Rs. 12.22 Lakhs** to **SEBI** to resolve historical non-disclosure issues. A **Rs. 94.71 Lakh** BSE penalty provision was reversed following full compliance. --- ### **Risk Management & Mitigation Strategy** Oceanic Foods employs a structured framework to categorize and address operational and macroeconomic risks: | Risk Category | Primary Drivers | Mitigation Strategy | |:---|:---|:---| | **Market & Forex** | Volatile exchange rates and commodity prices (Onion, Wheat, Crude). | Use of **financial derivatives** for hedging; strictly no speculative trading. | | **Credit Risk** | Counterparty default on trade receivables. | **Credit rating scorecards** and centralized monitoring of receivables. | | **Liquidity Risk** | CAPEX for Soyal facility and working capital needs. | Matching maturity profiles of assets/liabilities; monitoring **Gearing Ratio**. | | **Regulatory** | **Code on Social Security, 2020**; SEBI (LODR) compliance. | Quarterly Board reviews and dedicated secretarial audit functions. | **Operational Challenges:** * **Reporting Discrepancies:** Management is addressing historical audit notes regarding differences in stock values between bank filings and internal books (e.g., a **Rs. 1,045.23 Lakh** variance in a prior Q1). * **Unsecured Loans:** The company maintains loans from promoters at **12% p.a.**, which are repayable on demand. * **Macro Factors:** The **Russia-Ukraine war** and global inflationary pressures continue to impact the cost of raw materials and international freight.