Shreeoswal Seeds & Chemicals is an Indian agro-commodities company built on a simple, recurring idea: take a raw agricultural product, process it in-house, and sell it into global markets where demand is steady and growing. It began as a partnership in 2002 in Neemuch, Madhya Pradesh, and became a public company in 2017, evolving from a traditional seed processor into a diversified player with two distinct engines. That original idea - own the processing, control the quality, and reach the customer directly - now repeats across both its seeds and psyllium businesses. # Business segments Two engines built on the same playbook - a seed-processing core that anchors the group, and a psyllium business that has grown to become its largest revenue driver, each run through its own processing facility and legal entity. ## 1. Seeds: the original processing anchor **The company cleans, grades and trades agricultural seeds from a single owned plant, serving a farming economy that feeds 2.5 billion people.** - **A single processing hub** - all seed products are processed at the company’s own facility in Neemuch, Madhya Pradesh. Owning the plant means the company controls throughput and quality rather than relying on third-party processors. - **Inventory is the working capital engine** - as of March 2025, finished goods made up Rs. 2,268 Lakhs of the Rs. 2,389 Lakhs in total inventories, with the entire stock pledged to secure working capital facilities. This is a business that ties up cash in seed stock before it is sold, so access to bank funding against that stock is what keeps the cycle turning. - **R&D is now in-house** - the company received three-year recognition for its in-house R&D unit from the Department of Scientific and Industrial Research, Government of India, in FY25. That lets it develop its own seed varieties rather than just trading what others produce, and it had already announced plans to enter vegetable seeds. - **Customer risk sits in the soil** - the company faces legal claims from farmers when seeds fail to germinate, though it notes that causes can include climate, soil, water or farmer error rather than seed quality alone. This is a structural feature of the seed business: the product is alive, and outcomes are never fully in the seller’s control. ## 2. Psyllium: the high-growth export engine **Psyllium husk is processed and traded through a wholly owned subsidiary that has scaled to become the group’s largest segment by revenue.** - **A separate legal entity with its own plant** - the psyllium business runs through Shreeoswal Psyllium Exports India Limited, a wholly owned subsidiary incorporated in 2018 that operates its own processing unit. This structure isolates the psyllium operations and lets the subsidiary raise its own equity, as it did through a Rs. 6 Crore rights issue in 2024 that the parent fully subscribed. - **Parent funding fuels the subsidiary** - beyond equity, the parent has extended unsecured loans to the subsidiary, with Rs. 758.84 Lakhs outstanding as of March 2025, used for the subsidiary’s principal business activities. The parent also provided a corporate guarantee of Rs. 55.86 Lakhs, backing the subsidiary’s obligations. - **Built from a partnership foundation** - the subsidiary began life as a partnership firm, ‘M/s Oswal Psyllium Exports’, registered in December 2007, before converting to a public limited company in February 2018. That means the psyllium expertise predates the corporate structure by over a decade - the company was trading psyllium long before it became a formal segment. - **India’s psyllium advantage** - psyllium husk is a fibre used in laxatives and health foods, and India is its dominant global producer. The company does not disclose export volumes, but the subsidiary’s turnover was already Rs. 15,791 Lakhs as of March 2023, and the segment now accounts for roughly 30% of consolidated revenue. The business carries no foreign exchange exposure and does not hedge, suggesting it invoices in rupees or passes currency risk to buyers. # Group structure and partners **The company operates through a parent-subsidiary structure with two reportable segments, while a related ethanol entity creates a new revenue stream from FY26.** - **Consolidated reporting, standalone simplicity** - on a consolidated basis the company reports two segments, Seed and Psyllium; on a standalone basis the parent has no reportable segments, meaning all operating activity sits in the subsidiary. The parent is effectively a holding company for the seed business and the investment in psyllium. - **Promoter control is concentrated** - as of March 2024, Mr. Anil Kumar Nahata and Mr. Sanjay Kumar Baigani each held 34.99% of the company, giving the two founders combined control of nearly 70%. The board of eight directors is chaired by Mr. Sanjay Kumar Begani as Chairman & Managing Director. - **A related ethanol entity brings new optionality** - Oswal Ethanol and Feed Industry Private Limited, a group company, has received a Rs. 110 Crore corporate guarantee from Shreeoswal and its subsidiary, secured against the company’s own property. In return, Shreeoswal has obtained the first right of refusal for Distiller’s Dried Grains with Solubles (DDGS) - a high-protein animal feed by-product of ethanol production - effective from FY26. This is a capital-light way to add a third product line without building its own ethanol plant.