HOAC Foods India Limited is a premium, fast-growing FMCG player specializing in the production and retail of fresh, unadulterated food staples under the flagship brand **"HARIOM"**. Operating a unique hybrid model that integrates in-house manufacturing, a rapidly expanding franchise network, and a robust Direct-to-Consumer (D2C) digital platform, the company has established a dominant presence in the **Delhi-NCR** region and is currently scaling operations across **North and Central India**. --- ### **Product Portfolio & Revenue Architecture** The company manages a diverse portfolio of over **200 SKUs**, with **135+ products manufactured in-house** to ensure total quality control. The product mix is strategically designed to balance high-volume staples with high-margin value-added goods. * **Core Revenue Driver:** **Flour (Chakki Atta)** remains the primary anchor, accounting for **50-55%** of total sales. The flagship **MP Sharbati Atta** is a premium differentiator, characterized by higher protein content and lower gluten. * **Edible Oils:** Includes Cold-Pressed Black and Yellow Mustard Oil, Almond Oil, and Groundnut Oil. This segment is projected to grow from **10%** to **15%** of revenue by **Jan 2026**. * **Spices & Pulses:** A comprehensive range of pure spices, herbs, and unpolished pulses. * **Value-Added & New Launches:** * **Dry Fruits:** Launched in **Sept 2024** (Cashews, Almonds, Walnuts). * **Processed Foods:** Manufacturing of **Vadi**, **Papad**, and **Pickles** via an exclusive Indore facility. * **Impulse & Daily Essentials:** Pasta, Macaroni, Tea, and the **"VegRoot"** line (Potatoes, Onions, Garlic) designed to increase daily store footfall. * **By-Product Monetization:** Mustard oil extraction generates **3,80,000 kg** of mustard cake annually, sold as **"Hariom Pashu Ahar"**, contributing approximately **₹87.4 lakh** in annual revenue. **Revenue Bifurcation (H1 FY26):** * **B2C (Direct Retail/App):** **54%** * **B2B (Wholesale/Distribution):** **37%** * **Exports:** **8.23%** --- ### **Manufacturing Infrastructure & Operational Scalability** HOAC is transitioning from localized production to a "Mega Factory" model to support nationwide scaling and cost optimization. | Facility Location | Status | Key Features / Capacity | | :--- | :--- | :--- | | **Sohna, Gurugram** | Operational | Primary unit for cleaning, grinding, and packaging. | | **Mahinderwara, Haryana** | Operational | **475,200 kg/annum** Spices; **219,960 liters/annum** Oil. | | **Vidisha, Madhya Pradesh** | Under Dev. | **53,819 sq. ft.** Mega Unit; strategic hub for South/West India. | | **Indore, Madhya Pradesh** | Operational | Exclusive facility for Vadi, Papad, and Achar production. | | **Dausa, Rajasthan** | Operational | **5 lakh liters/annum** capacity for Black Mustard Oil. | | **Najafgarh, New Delhi** | Operational | Dedicated **5,000 sq. ft.** warehouse for export operations. | **Operational Efficiency Gains:** * **Backward Integration:** Installation of an **Advanced Grain Cleaning Machine** saves **₹1 crore annually** in costs. * **Automation:** Packaging speeds have been upgraded from **4 to 60 pouches per minute**. * **Supply Chain:** Optimized for **same-day to 1-day delivery** from factory to kitchen. --- ### **Omni-Channel Distribution & Market Expansion** The company utilizes a multi-channel approach to target the **upper-middle-class** demographic and institutional buyers. * **Exclusive Retail (EBOs):** Operates **19+ stores** (7 company-owned, 12 franchise). New stores now achieve break-even within **3–4 months**. The roadmap targets **200-300 outlets** long-term. * **B2B & General Trade:** Supplies to **1,400+ kirana stores**, with a target of **5,000 stores** by **FY27**. Key partnerships include **Country Delight**, delivering **100-150 bags** of flour daily. * **Digital & Quick Commerce:** * In-house app with **30,000+ active monthly users** and **1 Lakh+** direct-billed users. * Average Transaction Value (ATV) has grown to **₹700**. * Active on **Blinkit** (Gurugram, Delhi, Noida) and **Amazon**. * **Global Footprint:** Managed via **HOAC Exports Private Limited** (75% subsidiary). Successfully entered the **UK** (10+ containers) and **USA** (initial **₹60 lakh** order), with **Canada** and **Australia** in the pipeline. --- ### **Financial Performance & Capital Structure** Since its listing on the **NSE SME Emerge** platform in **May 2024**, HOAC has demonstrated aggressive growth and a strengthening balance sheet. **Consolidated Financial Summary (₹ Lakhs):** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **2,664.07** | **1,562.94** | **1,220.64** | **1,087.05** | | **EBITDA** | **427.00** | **182.00** | - | - | | **Profit After Tax (PAT)** | **248.74** | **102.35** | **78.80** | **37.14** | | **Basic EPS (₹)** | **6.79** | **3.88** | - | - | **Capital Raising & Liquidity:** * **IPO (May 2024):** Raised **₹5.54 crore** (oversubscribed **1,994 times**). * **QIP (July 2025):** Raised **₹9.99 crore** at **₹201 per share** to fund working capital and expansion. * **Debt Profile:** Maintains secured loans of **₹4.47 crore** with IDFC First and DBS Bank at interest rates between **10.50% – 11.00%**. * **Margins:** Targets **10%** in B2C and **8-9%** in B2B at scale. --- ### **Risk Framework & Mitigation** HOAC operates under a formal **Risk Management Policy** to navigate the competitive FMCG and industrial landscape. * **Commodity & Market Risk:** Vulnerability to raw material price swings (wheat, oilseeds). Mitigation includes **backward integration** and **technology-enabled inventory management**. * **Regulatory Compliance:** Management monitors evolving food safety standards and land acquisition procedures for new plants. As of **October 2025**, there are **no pending litigations** impacting financial stability. * **Execution Risk:** Geographic expansion into rural markets and new territories like Rajasthan and MP involves logistical hurdles. The company uses **Super Stockists** and **Joint Venture models** to hedge these risks. * **Liquidity Management:** Unutilized QIP funds (**₹5.1 crore**) are currently parked in **Fixed Deposits** to ensure a buffer for upcoming capital expenditures.