### **Overview** Kriti Nutrients Limited, incorporated in 1993 and headquartered in Dewas, Madhya Pradesh, has evolved from a soybean de-oiling unit into a fast-moving consumer goods (FMCG) and value-added food ingredients company with a strong focus on health, wellness, and plant-based nutrition. The company operates an integrated manufacturing platform centered on soybean processing and is among the largest soybean processors in Madhya Pradesh—the leading soybean-producing state in India, contributing ~70% of national output. Kriti Nutrients is strategically transitioning from a regional edible oils player to a diversified, pan-India foods and nutrition company, driven by innovation, digitalization, and export-led growth. --- ### **Core Business Segments** 1. **Branded Edible Oils** - Products: Refined soybean, sunflower, mustard, and groundnut oils. - Soybean oil accounts for ~95% of oil sales. - Markets: Primarily Madhya Pradesh (9–10% market share), with expansion into Rajasthan, Gujarat, Maharashtra, and Telangana. - Strong brand equity under the tagline *“Pyar sa pure”*, emphasizing purity, taste, and reliability. 2. **Value-Added Protein-Based Products** - Key offerings: Textured Vegetable Protein (TVP), Lecithin, defatted soya flour, super HyPro SBM, soya nuggets, and fortified protein variants. - Target segments: Food & beverage, infant nutrition, confectionery, pharmaceuticals, aquaculture, poultry, and dairy industries. - Strategic shift toward high-margin, complex protein products with lower competitive intensity. 3. **Export Division** - Exports accounted for **over 9% of total revenue** (FY2024–25) and reached **22+ countries** (up from 30+ in earlier reports). - Key markets: Europe, Southeast Asia, and the Middle East. - High-demand exported products: Lecithin and fortified TVP. --- ### **Strategic Transformation & Growth Drivers** #### **1. Diversification Beyond Commodities** - Transitioned from a commodity-exposed, soybean-cycle-dependent model to a **brand-led, value-added product strategy**. - Reduced focus on low-margin items (e.g., soya flour, flakes) and increased investment in **ready-to-eat snacks, functional foods**, and fortified protein products. - Goal: Enhance **pricing power**, de-risk revenue streams, and improve **margin quality**. #### **2. Innovation & R&D** - Established a dedicated **Innovation Centre** staffed with food technologists and doctorates. - Over four years of R&D culminated in commercialization of differentiated health and wellness products starting FY2021–22. - Ongoing development of **plant-based RTF (ready-to-eat) foods, clean-label ingredients**, and customized solutions for global clients. - Management anticipates **breakthrough performance** in protein-based ingredients from FY2025 onward. #### **3. Geographic Expansion** - **Domestically**: Expanded from core markets in MP to Rajasthan (entered FY2023–24), Gujarat, Maharashtra, and Telangana. Monthly revenues in new states grew from ₹2–3 crore to **nearly ₹60 crore within three years**. - **Internationally**: Leveraging global sourcing shifts away from China. Export markets growing due to: - High purity and **non-GMO certification**. - Competitive cost structure (sourcing advantage in MP). - Regulatory compliance and consistent quality. - Export incentives like **RoDTEP and duty drawback** improve international competitiveness. #### **4. Supply Chain & Logistics Excellence** - Located near an **Inland Container Depot (ICD)** in Central India with seamless access to **Mumbai port**, enabling efficient export logistics. - Direct negotiation with shipping lines to secure **better freight rates and flexible routing**. - Mitigated global shipping delays by rerouting through **Port Klang (Malaysia)** and **Hong Kong**. - Uses both **rail and road transport**, selecting optimal mode based on urgency and destination. #### **5. Digital Integration & Data-Driven Operations** - Implemented **Dealer Operating System (DOS)**—a smartphone app enabling digital transaction recording, improving accuracy and transparency. - Real-time point-of-sale (POS) data collection with dashboards for performance tracking. - **Digitally integrated SCM system** synchronizes inventory across e-commerce and brick-and-mortar channels. - Investing in **AI and automation** to enhance responsiveness and reduce manual processes. #### **6. Omnichannel Distribution Strategy** - **B2C Channels**: Organized retail, general trade, e-commerce (Amazon, Flipkart, own websites). - **B2B Clients**: Onboarded through targeted marketing; serving large-scale industrial buyers in food, pharma, and animal feed sectors. - Grew distribution network significantly: - Added **4 new distributors** and **3,000 retail outlets** (FY2022–23). - Installed **1,500+ dealer boards** and launched customer engagement programs (e.g., Swad Bhara Satkar, retailer meets, cooking competitions). - Flexible incentive schemes (including overseas trips) boost dealer loyalty. --- ### **Financial & Operational Highlights (FY2024–25)** - **Revenue**: ₹742.10 crore (**+7.74% YoY**) despite rising input costs and higher import duties on edible oils. - **Edible Oil Business Growth**: +21% (FY2023–24), significantly outpacing sector average of 7%. - **Export Contribution**: >9% of total revenue; growing faster than domestic sales. - **Production Growth**: Soya TVP output increased **48.33% YoY** in FY2023–24; targeting **50% volume growth** in protein products for FY2024–25. - **Profitability**: Core edible oil segment generated **3.56% EBITDA margin** (pre-commercialization of new products); long-term margin expansion expected as value-added products scale. --- ### **Market Opportunity & Macro Tailwinds** #### **Domestic Demand** - India faces a **severe protein deficit**: average per capita intake is ~60g/day vs. 111g/day in the USA. - ~80% of Indians do not meet daily protein requirements—driving demand for affordable, plant-based solutions. - Growth in health consciousness, vegetarianism, and preference for **packaged, branded, clean-label products** aligns with Kriti’s offerings. #### **Global Trends** - Rising global demand for **sustainable, non-GMO, plant-based proteins**. - Importers are diversifying sourcing away from single-country dependence—India benefits as a trusted alternative to China. - Global protein meals market: 355 MMT vs. India's 17 MMT—indicating massive domestic growth potential. --- ### **Sourcing & Manufacturing Advantage** - **Facility**: 70,420 sq. m. integrated plant in Dewas equipped with: - Solvent extraction - Oil refining (225 TPD capacity with Defnet, Belgium tech) - Lecithin production - Effluent treatment - In-house packaging - **Raw Material Access**: Sources 50–100% of soybeans within **200 km radius**, minimizing logistics costs. - **Storage Capacity**: 24,000 MT—allows strategic buying during favorable price windows. - **Automation**: Automated solvent extraction gives productivity edge over manual competitors. --- ### **Environmental & Sustainability Focus** - Soy-based products offer **lower land use and GHG emissions** compared to animal protein. - Positioned as a **sustainable, low-cost, high-efficiency protein source** for both human and animal nutrition. - Emphasis on **non-GMO, clean-label, and resource-efficient production processes**.