Ganges Securities Limited is an Indian listed entity (NSE: **GANGESSECU**; BSE: **540647**) that operates under a dual-track business model. It functions primarily as an **Unregistered Core Investment Company (CIC)**, managing a strategic portfolio of securities and providing financial support to group entities. Simultaneously, it maintains a significant operational footprint in the agricultural sector through its wholly-owned subsidiary, **Cinnatolliah Tea Limited (CTL)**. --- ### **Strategic Investment Portfolio & Capital Allocation** The company’s primary value driver is its role as a capital allocator, focusing on increasing its footprint in the FMCG (food processing) and chemical sectors. * **Morton Foods Limited (MFL):** A cornerstone of the company’s long-term strategy. Ganges Securities has aggressively increased its stake in MFL, an FMCG player specializing in canned fruits and vegetables. * **Stake Increase:** Through a series of rights issues and off-market acquisitions from promoter group entities (such as **Palash Securities Limited**), the company has grown its holding to **70,25,000 equity shares**. * **Current Ownership:** As of **November 18, 2025**, the company holds **19.68%** of MFL’s paid-up equity share capital. * **Chambal Fertilisers and Chemicals Limited (CFCL):** The company is building a significant position in this listed entity through open-market purchases. * **FY 2024-25:** Allocated up to **Rs. 20.00 Crore** for acquisitions. * **FY 2025-26:** Approved an additional **Rs. 13.00 Crore** to acquire up to **2,00,000** further shares. * **Expanded Investment Limits:** To facilitate this growth, the company increased its Section 186 limits for investments, loans, and guarantees from **Rs. 100 Crore** to **Rs. 200 Crore** in July 2023. #### **Summary of Recent Capital Deployment** | Investee Company | Transaction Type | Period | Value/Volume | | :--- | :--- | :--- | :--- | | **Morton Foods Ltd** | Rights Issue | Nov 2024 | **Rs. 5.00 Crore** | | **Morton Foods Ltd** | Rights Issue | Nov 2025 | **Rs. 3.45 Crore** | | **Morton Foods Ltd** | RPT Acquisition | FY 2025-26 | **6,70,000 Shares** | | **Chambal Fertilisers** | Open Market | FY 2024-25 | Up to **Rs. 20.00 Crore** | | **Chambal Fertilisers** | Open Market | FY 2025-26 | Up to **Rs. 13.00 Crore** | --- ### **Operational Subsidiary: Cinnatolliah Tea Limited (CTL)** The tea business represents the group’s primary reportable operational segment, with estates located in the high-yield regions of **Assam**. * **Production & Infrastructure:** CTL operates a seasonal crop cycle from **March to December**. The company recently completed the **augmentation of tea manufacturing facilities** in Assam to enhance yield and quality. * **Sustainability & Standards:** The gardens are **Trustea certified**, adhering to scientific soil management and carbon footprint reduction protocols. * **Revenue Generation:** In FY 2023-24, the segment generated **Rs. 2,441.48 lakhs** from the sale of finished tea and tea waste. * **Cost Dynamics:** The business is labor-intensive, with manpower accounting for approximately **65%** of total production costs. --- ### **Financial Performance & Capital Structure** The company maintains a lean standalone structure while consolidating the volatile earnings of the tea industry. #### **Three-Year Financial Summary** | Fiscal Year | Consolidated Revenue | Consolidated Profit | Standalone Revenue | Standalone Profit | | :--- | :--- | :--- | :--- | :--- | | **FY 2024-25** | **₹37.98 crore** | **₹5.06 crore** | **₹7.87 crore** | **₹3.89 crore** | | **FY 2023-24** | **₹34.82 crore** | **₹3.48 crore** | **₹10.69 crore** | **₹6.90 crore** | | **FY 2022-23** | **₹41.24 crore** | **₹9.75 crore** | **₹13.63 crore** | **₹9.78 crore** | * **Share Capital:** The **Authorized Share Capital** is **Rs. 35 Crore**. The **Issued and Subscribed Capital** stands at **Rs. 10,00,36,870**, comprising **1,00,03,687 Equity Shares** of **Rs. 10** each. * **Preference Share Redemption:** In June 2022, the company redeemed **2,40,000 8.5% NCCRPS** totaling **₹2.40 crore**. * **Dividend Policy:** The Board has **not recommended a dividend** for the last three consecutive financial years, prioritizing capital reinvestment. --- ### **Governance, Leadership, and Internal Controls** The company is governed by a **6-member Board**, including **3 Independent Directors** and a **Non-Executive Chairperson**. * **Key Leadership:** **Mrs. Urvi Mittal** was re-appointed as Managing Director for a **three-year term** starting **April 1, 2024**. * **Internal Control Remediation:** Following the discovery of a **₹1.82 crore** misappropriation by a former CFO at the CTL subsidiary (spanning 2022-2024), the company has implemented stricter controls. This includes addressing **material weaknesses** such as the lack of **dual-level approval** for banking transactions and inadequate **segregation of duties**. * **Audit Oversight:** **M/s. MR & Associates** have been appointed as Secretarial Auditors for a five-year term through **FY 2029-30**. --- ### **Market Dynamics and Risk Landscape** Ganges Securities operates at the intersection of financial market volatility and agricultural uncertainty. #### **Sector-Specific Risks** * **Tea Industry Headwinds:** North Indian production saw a decline of **7.5 crore kg** between April 2024 and January 2025. Input costs for coal and gas are rising at a **9-15% CAGR**. * **Climate Impact:** Unpredictable weather in Assam has interfered with pruning and plucking cycles, leading to **wilting of tea bushes** and potential "liquidity crises" due to yield drops. * **Export Stress:** The **Iran market**, which absorbs **20%** of Indian tea exports, is facing financial stress, leading to a price realization decline of over **16%** in early 2024. #### **Financial & Regulatory Risks** * **Credit & Market Risk:** As a CIC, the company is exposed to the creditworthiness of its borrowers and the price volatility of its equity holdings in **CFCL** and **MFL**. * **Regulatory Compliance:** The company was previously fined **₹1,00,000** each by the **NSE** and **BSE** for delays in appointing a Compliance Officer, highlighting the need for rigorous adherence to SEBI timelines. * **Labor Regulations:** The company is monitoring the implementation of the **four Labour Codes (2019-2020)**, which could impact the cost structure of the tea estates once final rules are notified. --- ### **Growth Outlook** Despite short-term agricultural challenges, the long-term outlook for the Indian tea market remains positive with a projected **4.5% CAGR (2022-2027)**. Ganges Securities is positioned to capture this through **premiumization** and **online retail channels** (growing at **5.9% CAGR**). Simultaneously, its increasing stake in **Morton Foods Limited** signals a strategic pivot toward the high-growth FMCG and food processing sectors.