- Shervani Industrial Syndicate is a real estate developer that has been building homes in Prayagraj, Uttar Pradesh, since 1948. It began as an industrial company famous for its ‘GEEP’ flashlights, but after selling that brand, it pivoted entirely to property, and its wholly-owned subsidiary is engaged in biscuit manufacturing, while its Memorandum of Association lists objects such as IT services and healthcare. The recurring approach is to operate from its Prayagraj base, use the cash flows and reputation from one completed project to fund the next, and target steady, middle-income demand rather than speculative booms.
Business segments
Four engines at different stages - a residential real estate anchor, a contract manufacturing operation, a fledgling IT supply business, and two infrastructure bets under construction - each rooted in the company’s Prayagraj base.
1. Real estate: building and selling apartments for middle-income India
The company develops group housing projects in Prayagraj, sells individual flats to homebuyers, and moves on to the next project - a project-based model where reputation for on-time delivery is the competitive edge.
- One city, one township - all projects are located within a planned township called ‘Shervani Legacy’ in Prayagraj, a Tier-II city where the company believes unsold inventory is low compared to metropolitan areas.
- Built for the salaried class - the company targets middle-income and salaried homebuyers, a segment it says forms the bulk of housing demand and aligns with government policies like PMAY (the affordable housing scheme).
- A track record of completion - it has finished and handed over three projects (Tara Towers, Naman Homes, and The Crescent), and is currently building Victory Towers, a 13-storey, 520-unit complex with 2, 3, and 4-bedroom apartments.
- Revenue on a per-unit basis - the company earns money when it sells a flat and transfers control to the buyer, recognising the sale price as one-time revenue, not recurring income.
- Material supply risks squeeze project margins - construction relies on cement and steel from the organised sector and sand and bricks from the unorganised sector, so cost inflation and supply disruptions directly squeeze project margins.
2. Biscuit manufacturing: a contract producer for a national brand
Through its wholly-owned subsidiary Farco Foods, the company makes biscuits exclusively for Surya Foods and Agro’s ‘Priya Gold’ brand - it owns no brand, sells no biscuits directly, and gets paid for production.
- Paid for output, not sales - Farco Foods operates on a job-work basis, meaning it manufactures biscuits for a single client and earns a manufacturing fee, insulating it from consumer marketing and distribution costs.
- A steady, single-client operation - the subsidiary produced 4,759 metric tonnes of biscuits in FY25, down from 6,297 metric tonnes five years earlier, but incurred a loss of 15.65 Lakhs during the year.
- A failed diversification closed cleanly - the subsidiary previously attempted a goat farming project, but shut it down permanently because the climatic conditions at the project site were unsuitable for goat rearing, and the land now sits vacant and is to be leased out.
3. Information technology: supplying and setting up specialised labs
The company buys and installs IT equipment for institutional projects - it is a project-based hardware and infrastructure business, not a software or services firm.
- A separate reportable segment - the company treats IT as a distinct business from real estate in its financial reporting, and it generated revenue from a single customer that accounted for more than 10% of total company revenue in FY24.
4. Hospitality and healthcare: two projects in early construction
The company is building a hospital and planning a holiday resort, both in the Prayagraj area - these are infrastructure bets that will serve entirely new customer bases if completed.
- A 50-bed hospital, with room to double - a multi-speciality hospital is under construction within the Shervani Legacy township, with earth excavation complete and building work started; the company is seeking approval to expand it to 100 beds.
- A rural tourism resort on the drawing board - the company has conceptualised an eco-conscious holiday resort in Village Sansarpur, about an hour from Prayagraj, with plans for rooms, fishing, outdoor activities, and a restaurant.
Group structure and partners
The company is a family-promoted entity with one wholly-owned subsidiary and two associate investments, all controlled from Prayagraj.
- Promoter-controlled with a recent buyback - the Shervani family’s promoter group held 62.07% of equity shares as of March 2025, and a buyback in FY24 reduced total outstanding shares by about 5%, with a promoter entity selling part of its stake.
- One operating subsidiary - Farco Foods Private Limited is the wholly-owned biscuit manufacturing arm, and the parent has extended loans of Rs. 489.73 lakhs to it.
- Two associate companies on the books - the company holds 35.4% of Star Hotels Private Limited, a Delhi-based hotel firm, and 46.33% of Youngtronics India Private Limited, a Prayagraj-based entity whose investment value has been fully written down.