Shiva Global Agro Industries Limited is a prominent Indian agricultural enterprise headquartered in **Nanded, Maharashtra**. The company operates an integrated business model focused on the manufacturing and trading of fertilizers, solvent extraction, and agricultural commodities. Following a period of financial volatility, the company is currently executing a strategic pivot toward a leaner, fertilizer-centric model, prioritizing operational efficiency and alignment with national agricultural policies. --- ### **Core Business Segments & Manufacturing Infrastructure** The company’s operations are diversified across three primary reportable segments, supported by robust manufacturing capabilities in Western India. * **Fertilizers:** The core business involves the manufacturing and marketing of **Single Super Phosphate (SSP)**, **NPK Mix fertilizers**, and specialty soil health products. * **Solvent Extraction:** Processing and trading related to edible and non-edible oils, primarily managed through subsidiary operations. * **Agricultural Commodities:** Trading in high-quality seeds and various agro-products to provide a comprehensive solution to the farming community. **Operational Capacity & Efficiency** The company operates manufacturing units at **MIDC, Nanded** and **Dhakni, Nanded**, featuring flexible production lines. * **Installed Capacity:** Approximately **120,000 MT** for **SSP** and **72,000 MT** for **NPK Mix Fertilizers**. * **Production Performance (FY 2024-25):** Maintained a steady output of **44,104 MT**, with a strategic focus on core products: **SSP (34,814 MT)** and **NPK (8,490 MT)**. * **Target Efficiency:** The plants are optimized to reach a full efficiency level of **400 TPD (Tons Per Day)**. --- ### **Strategic Portfolio Realignment & Divestments** To mitigate decreasing margins and consolidate capital, Shiva Global has undergone a significant restructuring, divesting non-core material subsidiaries to focus on its primary agro-industrial strengths. | Entity | Relationship | Status / Change | | :--- | :--- | :--- | | **Shrinivasa Agro Foods Pvt Ltd** | Subsidiary (**51.01%**) | **Divestment Approved**; Reported **₹216.88 Cr** turnover in FY25. | | **Shiva-Parvati Poultry Feed Pvt Ltd** | Former Subsidiary (**51%**) | **Divested Nov 2024**; Resulted in loss of control. | | **Ghatprabha Fertilizers Pvt Ltd** | Former Subsidiary (**61.53%**) | **Divested Dec 2024**; Resulted in loss of control. | *Note: The divestment of the two subsidiaries in late 2024 resulted in an exceptional gain of **₹8.88 crore** in **FY 2024-25**.* --- ### **Financial Performance & Turnaround Metrics** The company reported a significant financial recovery in **FY 2024-25**, reversing substantial previous losses through cost management and asset rationalization. **Comparative Financial Summary (Consolidated)** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **₹379.93 Cr** | **₹364.27 Cr** | **₹540.20 Cr** | | **PBIDT (Before Exceptional)** | **₹21.78 Cr** | **(₹18.24 Cr)** | - | | **Profit Before Tax (PBT)** | **₹2.78 Cr** | **(₹33.53 Cr)** | **₹7.75 Cr** | | **Profit After Tax (PAT)** | **₹0.22 Cr** | **(₹25.30 Cr)** | **(₹5.70 Cr)** | **Key Financial Drivers:** * **Standalone Recovery:** Achieved a standalone **PBIDT** of **₹18.39 Cr**, reversing a **₹7.35 Cr** loss from the prior year. * **Debt Optimization:** Consolidated finance costs dropped to **₹7.8 Cr** (from **₹12.51 Cr** in FY24) due to disciplined working capital management. * **Subsidy Income:** Recognized **₹26.98 Cr** under the **Nutrient Based Subsidy (NBS)** policy. * **Borrowing Terms:** Working capital interest rates were reduced to **10.05% p.a.** in 2025 (down from **12.80%**). --- ### **Market Strategy & Distribution Excellence** Shiva Global employs a customer-centric, consumption-driven strategy focused on the high-demand regions of **South-Central Maharashtra**, **Vidarbha**, and **Telangana**. * **Product Differentiation:** Focus on fortified **SSP** grades (Zinc and Zinc plus Boron), which dominate sales volumes and offer higher value to farmers. * **Farmer Engagement:** The company conducts on-field soil testing, crop awareness programs, and dealer conferences to build brand loyalty. * **Credit Management:** A formal evaluation system reviews customer credit limits annually. The maximum credit exposure was noted at **₹37.67 Cr** (Consolidated) as of March 2025, with an average credit period of **90 days**. --- ### **Sustainability, ESG & Technological Integration** The company is modernizing its operations to align with **ESG** goals and the **Atmanirbhar Bharat** initiative. * **Energy & Waste:** Installed **IE3/IE4** high-efficiency motors and **SCADA** systems. Traditional coal has been replaced with **agri-waste briquettes** for furnace operations. The company maintains **100% compliance** with **EPR** for plastic waste. * **Precision Agriculture:** Increasing adoption of **drones** for crop monitoring and fertilizer spraying, leveraging the **Namo Drone Didi Scheme**. * **Process Innovation:** Use of waste heat recovery systems in dryer and granulator streams to pre-heat raw materials, significantly reducing energy consumption. * **Government Synergy:** Positioning to benefit from the **PM PRANAM** scheme (incentivizing alternative fertilizers) and major irrigation projects like the **Ken-Betwa link** and **Polavaram project**. --- ### **Risk Profile & Mitigation Framework** The company operates in a highly regulated, climate-sensitive sector. Management has identified several key risks and implemented corresponding safeguards. **1. Regulatory & Subsidy Risk** * **Risk:** Vulnerability to shifts in **Nutrient Based Subsidy (NBS)** rates and **GST** duty structures. * **Mitigation:** Diversifying into **organic** and **value-added specialty fertilizers** to reduce reliance on subsidized standard grades. **2. Input Cost & Currency Volatility** * **Risk:** High dependence on imported **Rock Phosphate** and **Sulfuric Acid**. A **10%** fluctuation in **USD** rates impacts PBT by approximately **₹58.01 Lakhs**. * **Mitigation:** Implementing an "optimal buying strategy" and utilizing hedging for input costs. **3. Agri-Climatic Dependency** * **Risk:** Deficient rainfall in the **Marathwada region** can lead to trapped working capital and high inventory. * **Mitigation:** Business planning is now strictly guided by real-time agri-climatic data to adjust production cycles. **4. Financial & Operational Risks** * **Credit Rating:** In Feb 2024, **India Rating & Research** downgraded limits to **IND B+/Stable/IND A4** following previous losses. * **Internal Controls:** Management is addressing inherent limitations in financial controls, specifically regarding discrepancies in provisional bank stock statements. * **Labor Codes:** Monitoring the implementation of **four new labor codes** notified in **Nov 2025** to ensure seamless compliance.