Narmada Agrobase Limited is an **ISO 9001:2015** certified manufacturer and exporter specializing in high-performance livestock nutrition and agro-based industrial by-products. Headquartered in **Mehsana, Gujarat**, the company operates a high-volume **B2B model** designed to bridge the gap between agricultural residues and scientific animal husbandry. Following its migration to the **Main Board of the National Stock Exchange (NSE)** and listing on the **BSE**, the company has transitioned into a growth-oriented phase supported by a significant capital infusion in late **2024**. --- ### Specialized Product Ecosystem & Brand Portfolio The company provides a diverse portfolio of protein-rich feed ingredients and processed cotton by-products engineered to enhance milk yield, livestock health, and farm productivity. | Product Category | Key Brands / Components | Nutritional & Industrial Value | | :--- | :--- | :--- | | **Compound Cattle Feed** | **'Gaay Chhaap'**, **'Narmada Super'**, **'Kala Sona'**, **'Churma'** | Pelletized and mesh forms containing grains, oil cakes, and molasses; rich in **Vitamins A, C, D, E, K, and B-complex**. | | **Cottonseed Derivatives** | **Kapasia Khali** (Oil Cake), Delinted Cottonseed | Energy-rich by-products that directly amplify **milk fat content** and production volumes. | | **High-Protein Meals** | **Guar Korma** (**38% protein**), Maize Meal, Multigrain Meal | Cost-effective substitutes for soybean meal; supports muscle growth in cattle and poultry. | | **Industrial Fibers** | **Bleached Cotton Linters**, Cotton Linters | High-purity viscose fiber rich in **alpha/nitro cellulose** for the **textile, paper, and chemical** sectors. | --- ### Strategic Infrastructure & Operational Scale Operations are centralized at a strategically located facility near **Ahmedabad**, providing a logistical advantage for sourcing raw materials from Gujarat’s cotton belt and distributing to major dairy hubs. * **Manufacturing Capacity:** Currently maintains an installed capacity of **40,000 Tons Per Annum (TPA)**. * **Capacity Utilization:** Operating at approximately **50%**, providing significant headroom for immediate volume scaling without major greenfield investment. * **Expansion Landbank:** Recently acquired **7,473 sq. mtrs.** of industrial land in Mehsana to facilitate future facility expansion and automation. * **Quality Control:** Employs a dedicated **Quality Assurance team** and semi-automatic production lines with batching flexibility to ensure nutritional consistency across **150+ wholesale** and **1,000+ retail points**. --- ### Financial Performance & Capital Structure Narmada Agrobase has demonstrated a consistent turnaround in profitability, moving from a net profit of **₹0.65 Crore** in FY23 to **₹4.09 Crore** in FY25. **H1 FY2025-26 Performance Highlights:** * **Total Income:** **₹23.70 Crore** * **EBITDA:** **₹3.27 Crore** (Margin: **13.82%**) * **Profit After Tax (PAT):** **₹2.05 Crore** (Margin: **8.63%**) **Capital Strengthening:** * **Rights Issue (Oct 2024):** Successfully raised **₹36.58 Crore** by allotting **2,43,87,685** equity shares at **₹15.00** per share. * **Authorized Capital:** Expanded from **₹13.60 Crore** to **₹38.00 Crore** to accommodate growth. * **Debt Management:** Maintains a disciplined debt profile with interest-bearing borrowings of **₹9.47 Crore** (as of March 2025) and working capital loans at an effective rate of **9.90% p.a.** * **Dividend Policy:** The company currently follows a **zero-dividend** stance, opting to "plough back" 100% of profits into manufacturing automation and capacity building. --- ### Market Expansion & Forward Strategy The company is executing a multi-pronged strategy to evolve from a regional player into a global livestock nutrition provider. * **Geographical Diversification:** While **Maharashtra** is the highest revenue contributor, followed by **Gujarat** and **Rajasthan**, the company is aggressively entering the high-potential dairy belts of **Punjab, Haryana, and Madhya Pradesh**. * **Global Export Push:** Targeting **Southeast Asia, the Middle East, and Africa**. The focus is on **non-GMO** and organic-certified feed to meet stringent international standards. * **Product Premiumization:** Shifting the revenue mix toward higher-margin **Value-Added Products (VAP)**, such as molasses-enriched feed blocks and specialty mineral blends. * **Digital & Educational Outreach:** Launching farmer advisory programs to drive the transition from traditional grazing to scientific, compound feed adoption. --- ### Procurement Intelligence & Risk Mitigation Operating in a low-margin, high-volume B2B environment requires sophisticated commodity management. * **Inventory Strategy:** The company locks in prices for cottonseed and molasses during **Q1 and Q2** via pre-booking contracts. It maintains a **20%–25% buffer stock** during **Q3 and Q4** to protect against seasonal price spikes. * **Hedging:** Active use of fixed-price vendor contracts and commodity derivatives on recognized exchanges to manage market volatility. * **Client Retention:** Maintains a **99% retention rate** among its **~150** core B2B clients, despite a high concentration where the top 7 customers account for **~48%** of receivables. * **Intellectual Property Protection:** The company aggressively defends its flagship **"Gay Chhap"** trademark, recently securing an **interim injunction** in August 2025 against competitors using deceptively similar branding. --- ### Sustainability & ESG Integration Narmada Agrobase is aligning its operations with circular economy principles to ensure long-term viability: * **Waste Valorization:** Zero-waste processing models that convert every part of the cottonseed into either animal nutrition or industrial cellulose. * **Resource Efficiency:** Adoption of renewable energy and water recycling at the Mehsana plant. * **Social Impact:** Enhancing rural livelihoods by improving livestock milk fat content, which directly increases the "milk-cheque" income for small-scale dairy farmers.