Tirupati Starch and Chemicals Limited (TSCL) is an **ISO 9001:2015** certified manufacturer based in Indore, specializing in the processing of maize (corn) into a diverse range of primary products and high-value derivatives. Established in **1985**, the company serves a global clientele across the food and beverage, pharmaceutical, textile, and paper industries. --- ### **Product Portfolio & Industrial Value Chain** TSCL operates a sophisticated maize-processing facility that converts raw grain into a variety of industrial and consumer-grade applications. * **Core Starch Products:** * **Maize Starch & Modified Starch:** Essential for the **Textile** industry (softening and weighting fabrics) and the **Paper** industry (enhancing bonding strength in corrugated boxes). Modified versions serve as stabilizers and emulsifiers. * **Liquid Glucose:** A strategic high-value product launched to drive margin expansion in the confectionery and bakery sectors. * **Dextrose (Anhydrous & Monohydrate):** High-grade sweeteners used in pharmaceutical formulations and food processing. * **By-products & Animal Nutrition:** * **Maize Gluten:** A high-protein (**vegetable protein**) ingredient for cattle and poultry feed. * **Maize Husk & Poultry Feed:** High-demand products serving the livestock sector. * **Maize Oil:** Used in the production of Vanaspati and refined edible corn oil. --- ### **Manufacturing Infrastructure & Strategic Expansion** The company’s operations are centered at its primary facility in **Village Sejwaya, Ghatabillod, District Dhar, Madhya Pradesh**. * **Capacity Augmentation:** TSCL is currently executing a **₹40 Crore capex** program for maize starch products, funded through an equal mix of **internal accruals (₹20 Cr)** and **term loans (₹20 Cr)**. * **Asset Acquisition:** In **March 2024**, the company acquired land and buildings from the liquidation of Jyoti Overseas Limited to facilitate future scaling. * **Operational Efficiency:** In **February 2025**, the Board approved the establishment of **captive power generation** facilities to reduce energy costs and ensure operational continuity. * **Government Incentives:** The company receives an annual grant of **₹3.2 Crore** from MPID for investment in plant and machinery. This **7-year** grant (**Nov 2019 – Oct 2026**) totals **₹22.43 Crore**. --- ### **Financial Performance & Capital Structure** TSCL has undergone significant capital restructuring to support its growth ambitions, though recent profitability has faced headwinds. **Key Financial Metrics** | Metric | FY2025 (Est/Actual) | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | **Total Revenue** | - | **₹306.51 Cr** | **₹364.79 Cr** | | **Net Profit (PAT)** | - | **₹2.19 Cr** | **₹6.57 Cr** | | **Tangible Net Worth** | **₹84.36 Cr** | - | - | | **Total Debt** | **₹112.21 Cr** | **₹132.81 Cr** | - | | **Gearing (Debt/Equity)** | **1.33x** | **1.79x** | - | | **Interest Coverage** | **2.68x** | **2.07x** | - | **Working Capital Management** The company has demonstrated improved discipline in its cash cycle: * **Gross Current Assets (GCA):** Reduced from **118 days** to **83 days**. * **Inventory Days:** Improved from **62 days** to **43 days**. * **Debtor Days:** Reduced from **42 days** to **37 days**. **Capital Infusion & Borrowing** * **Promoter Support:** In **May 2024**, promoters infused **₹5.50 Crore** via a preferential allotment of **1,506,654 shares** at a premium of **₹26.71 per share**. * **Borrowing Limits:** Shareholders approved an increase in borrowing limits from **₹125 Crore** to **₹500 Crore** in **September 2023**. * **Authorized Capital:** Increased to **₹14.50 Crore** (comprising **1.02 Crore Equity Shares** and **42.50 Lakh Preference Shares**). --- ### **Market Dynamics & Growth Strategy** TSCL is positioning itself to capture a larger share of the **Asia-Pacific** market, which accounts for **40%** of global starch consumption. * **Global Market Outlook:** The modified starch market is projected to reach **$16.34 Billion by 2028** (**6.2% CAGR**). * **Clean-Label Focus:** Strategy involves expanding into clean-label, gluten-free, and convenience food ingredients. * **Sustainability Initiatives:** Investing in **corn starch-based bioplastics** as a biodegradable alternative to conventional plastics. * **Sector Diversification:** Targeting high-growth demand in the **Automobile** (safety features), **Pharma** (binders), and **FMCG** sectors. --- ### **Risk Profile & Mitigation** While TSCL maintains a strong market position, it faces several financial and regulatory challenges. * **Credit Outlook:** Acuité revised the outlook to **Negative** in **February 2026** due to debt-funded capex and a contraction in profit margins to **2.08%**. * **Raw Material Volatility:** High sensitivity to **Maize prices**, which are impacted by monsoons and government **Minimum Support Price (MSP)** revisions. * **Liquidity Constraints:** The **Debt Service Coverage Ratio (DSCR)** stood at **0.99x** in FY25; shortfalls are currently bridged via **unsecured loans from promoters**. * **Regulatory Compliance:** The company has addressed historical non-compliance regarding **Independent Director** counts and is monitoring the transition to new **Labour Codes**. **Contingent Liabilities & Disputes** | Nature of Dispute | Amount (₹ Cr) | Status | | :--- | :--- | :--- | | **Custom & Central Excise** | **9.34** | Disputed classification of starch; pending in court. | | **Electricity Surcharge** | **1.76** | Demand by MPPKVVCL; pending before MPERC. | | **Capital Commitments** | **10.00** | Contracts remaining to be executed (as of Sept 2023). | --- ### **Corporate Structure** * **Subsidiaries:** **Tirupati Starch Charitable Foundation** (Wholly-owned Section 8 company incorporated in **April 2023**). * **Leadership:** Led by **Amit Modi** (Managing Director) and **Prakash Chand Bafna** (Chairman). * **Dividend Policy:** The Board has opted to **omit dividends** for FY23 and FY24 to prioritize cash conservation for expansion projects.